FTV News / Reported by Tang Shiqing and Chen Bohan from Taipei
China’s real estate storms continue to expand. Not only state-owned enterprises are accused of owed employees’ salaries for half a year. There are also construction companies in Shanghai that are unable to pay their employees’ salaries and have announced a three-month shutdown. Many experts bluntly say that China is in economic trouble, and the next 10 to 20 years In 2020, the economy will fall into a stagnation of deflation, which may replicate Japan in the 1990s and enter the lost 20 years.
The construction site owed wages for a long time, and the workers came to ask for wages, but they were beaten with iron rods.
China Railway Construction also reported that employees jumped off the building to protest because they had no way to ask for salary. The confidence in China’s real estate industry plummeted. Not only private enterprises, but even state-owned enterprises have not paid wages for half a year. .
The Chinese people said, “Think about how many people’s homes this is. It’s not one or two buildings, it’s the whole area that’s completely unfinished. The key is that it’s all super high-rise buildings.”
China is facing a deflation crisis, experts warn: it may enter the lost 20 years
Chinese netizens photographed Fuzhou, Fujian, the largest unfinished community. The entire 30-storey building was shut down before it was nearly completed, leaving tens of thousands of people homeless. It also leaked online. The construction company in Shanghai admitted that it was struggling. , to inform the employees that since June 29 this year (2023), the work has been suspended for 3 months. So far, 2,001 companies in China that owe wages have been notified or punished. With the real estate bubble, China has fallen into a deflationary crisis.
Qiu Dasheng, a researcher at the Taiwan Institute of Economics, said, “China’s economic situation in the future may move towards the same state as in Japan in the 1990s. When deflation occurs, it means that producers do not produce and consumers do not consume. All economic activity is postponed, creating a vicious cycle.”
China is facing a deflation crisis, experts warn: it may enter the lost 20 years
In China, which is caught in deflation, the government thinks that the people have money, and the continuous interest rate cuts will force out funds. However, many companies have not paid salaries for a long time. How long can the people resist their old instincts? Experts warn that in the next 10 to 20 years, the economy will fall into a period of stagnation.
Qiu Dasheng, a researcher at the Taiwan Institute of Economics, said, “The Beijing government is taking some measures to deal with it, such as monetary easing and fiscal expansion. At present, it seems to be a sign of falling into a liquidity trap, and it is quite obvious.”
People’s lives are miserable, and the Chinese government’s loose policy must simultaneously solve the contradictions of real estate thunderstorms and high unemployment. The test of the Beijing authorities is yet to come.
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2023-08-22 11:46:02
