CHINA’S $18 TRILLION REAL ESTATE CRASH – WHAT IT MEANS FOR THE WORLD 🌍
China’s real estate sector has lost over $18 trillion in value since 2021 — a collapse larger than the entire hit the U.S. took during the 2008 Global Financial Crisis. This staggering downturn signals that the world’s second-largest economy is facing deep structural headwinds. The crisis began when over-leveraged developers like Evergrande defaulted on massive debts, triggering panic. As confidence vanished, property sales dried up, and the dominoes began to fall. The result? A sector that once drove nearly 30% of China’s GDP is now in freefall.
Globally, this matters. Real estate is not only a core pillar of China’s economy, but also the primary store of wealth for millions of Chinese citizens. As housing values plunge, consumer spending power erodes, investment slows, and the ripple effect spreads beyond China’s borders — hitting global markets, commodities, and even crypto. While Beijing is expected to roll out stimulus packages, most economists believe short-term fixes won’t address the systemic rot. Structural reform is needed, but regaining trust won’t happen overnight.
The bottom line: China’s property bubble has burst. A fast recovery looks unlikely. Instead, the world should brace for a slow, grinding adjustment — one that could reshape global economic dynamics for years to come.