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The Beijing Bubble: Will China’s Housing Addiction Damage the Global Economy?

For some time now, a number of analysts have been warning that the boom in China’s housing sector could be the catalyst for a major economic collapse in that country. Such warnings are probably overdone, however, for the simple reason that the Chinese housing market is neither free, nor does it really reflect market forces. But that does not mean that the slowdown in China’s housing sector is not an ominous development.

Since the economic crisis began in the United States and Europe in 2008, the global economy has undergone a massive change, with exports by the developed nations falling and nations such as China scrambling to adjust to this reality.

via The Beijing Bubble: Will China’s Housing Addiction Damage the Global Economy? | The National Interest.

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