Very simply put, the Communist Party absorbed the failing sector. It's really that simple. When you have a planned economy, you have money set aside to do these kinds of things, i.e., expropriating unprofitable and crashing sectors of the economy. Housing is a public good and should be treated as such, rather than a commodity.

[–] Rextreff@lemmygrad.ml 4 points 3 months ago (4 children)

So what happened to the peoplel? Did anyone lose a lot of their savings or something?

[–] Xiisadaddy@lemmygrad.ml 15 points 3 months ago (1 children)

As far as i know the rich billionaire who owned the company was told youll pay to finish building every home youve promised to people from your own pocket or youll rot in prison.

[–] JaredLevi@lemmygrad.ml 9 points 3 months ago

Based!

[–] cfgaussian@lemmygrad.ml 14 points 3 months ago* (last edited 3 months ago)

I think the general principle that China applies in cases like this is to make sure that the average person who may be affected is bailed out and insulated from any major negative consequences while the people at the top who made a lot of money creating this situation shoulder the costs. Basically the diametric opposite of how this sort of thing goes down in the West.

[–] davel@lemmygrad.ml 12 points 3 months ago

[–] JaredLevi@lemmygrad.ml 6 points 3 months ago

That's a great question, I don't know enough to speculate but as I understand it the housing debt is centralized with the governments central bank rather than private banks, and I believe that means they would have no problem writing debt off if need be. Just like they've done with certain loans in the BRI. But who knows.