Thousands of Chinese Construction Workers Go Unpaid for Months

We find it difficult to understand China partly due to the cultural differences and partly because China belongs to and is operated by the Chinese Communist Party. The CCP never provided any information about China’s actual economic state, particularly in real estate.

Now, the chickens have come home to roost. CCP China’s real estate bubble has burst, and workers in China’s housing industry are already paying for it.

Reuters reports that workers for a Chinese developer have been working without pay and are not completing their jobs as the Chinese property market is struggling.

Reuters reports that Country Garden, formerly China’s largest developer of real estate by sales volume is experiencing a debt crisis, which is indicative of the Chinese property industry in general. The Country Garden Yunhe Shangyuan site, located on the outskirts of the 14-million-person city of Tianjin, is experiencing a debt crisis that is indicative of the Chinese real estate industry as a whole.

They haven’t paid since Chinese New Year (January). Reuters quoted a worker, who quit his job at Yunhe Shanyuan last week. “We are all concerned,” he said. Workers who live in the dorms at the site claim they went months without being paid.

According to Reuters, Country Garden is liable for $191.7 billion with 3121 projects in China. Since the debt crisis began in 2021 companies that are responsible for 40% of Chinese home sales defaulted on debt.

China has major economic issues that it can’t ignore. The youth unemployment rate is on the rise. The developers are not only failing to pay their employees but also their investors. China – the Chinese Communist Party – is ordering warships and aircraft to fly provocative missions along the Alaskan coastline, with Russian craft.

CCP has routinely covered up the problems with China’s real estate market and economy. State-controlled media lie about China’s economic situation. They can’t hide these things forever. News is always spread in some way. YouTube vlogger Serpentza – who I’ve written about in the past – documented the rise in China’s ghost towns a year before. He has receipts with videos of ghost cities and a detailed description of how the Chinese Government artificially supports prices. Take a look.

The CCP also tries to stabilize the Chinese stock exchange by taking other measures.

China Securities Regulatory Commission has proposed a number of steps to help support a market that is at.CSI300, a nine-month-low. These include cutting trading costs and supporting share buybacks.

The regulator stated that it was unsure if stamp duty would be reduced. This measure has been discussed in recent months, but the CSRC claimed to have no control over the matter, as the Ministry of Finance is responsible for this.

The CSRC has also proposed other measures, such as enhancing the development of equity funds, studying plans for extending trading hours and improving the attractiveness of listed companies.

These problems are not unique to China. In fact, China and Russia share many of the same economic problems. Both countries have autocratic leaders who not only control their economies, but also the information released about them. Both countries are facing a desperate demographic trend. Neither the Chinese nor Russian population is reproducing at a rate that can be considered a replacement. China’s real-estate bubble is a symptom of the CCP’s desperate efforts to stabilize the situation.

Historically, a country with a strong military and a dire economic situation is likely to have a bad outcome, both for that country and for its neighbors.