China is one of the major economical players in today’s international market. China’s economy is the “seconds largest in the world after the United States” (Joseph, 63). This is a striking achievement due to fact that China is a “developing country”. China has achieved a great amount of success through the collaboration of political and economical regimes. The economical growth in China led to “one of the biggest improvements in human welfare anywhere at anytime” (Kristof, 15). Currently, China is experiencing a real-estate bubble. This eventually will hit a climax, disrupting the real-estate market within China. This real estate bubble that China is undergoing is considered one of the "biggest housing The U.S. economy would greatly be affected by the outcome of Chinas real-estate bubble. If China is placed in a situation where the economy begins the run in a downward spiral "Growth may slow to 8.7 percent by the end of 2011" (Leung, China Must Pare Stimulus). If China's property sector goes through a downturn, “the demand for things like cement, steel, concrete, aluminum will all be affected" (Cambreleng, China property market dip). The Chinese housing market is currently in a difficult period. Currently the Chinese "property markets exhibit significant risks of a bubble" (Huang, China Beyond the Miracle Part 3). This exposes the necessity to resolve the issue. Governmental policies have attempted to solve the issues. The current restrictions "on housing purchases are only a second-best policy option" that is controlling the real-estate economy. (Huang, China Beyond the Miracle Part 3). Ironically, the difficulties China is having with the real estate issue coincides with governmental polices. Such has the tightening of monetary policies and restrictions on housing purchase. There is a possibility that housing prices may decline by “10-30% during the current cycle” this depends on the policy restrictions and policy adjustment made by the government. (Huang, China Beyond the Miracle Part 3). The main question is how the bubble has not popped yet for China. According to studies it is believed that the household
Related Documents: Essay on China’s Real-Estate Bubble
Topic: Real estate crash in China Name: Cookies Class: DEC 25 (3) Subject: writing explanation essay Date: March 7th, 2013 Commodity prices are constantly changing all over the world especially in countries which are developing rapidly such as China. One of the main variations has been shown at housing market. Carried out by the national bureau statistic, housing prices have raised 7.8 percent in 70% large an medium-sized cities of China. Urbanization is…
Residential and Commercial Real Estate in US Markets: The Real Estate Sales and Brokerage industry is projected to find solid ground during the five years to 2018, as rising home prices and sales and construction combine with rising homebuyer demand. Furthermore, consumer spending will drive business expansion, and investor confidence in real estate will help raise commercial transaction volumes. During the next five years, industry revenue is forecast to rise at an annualized rate of 4.1% to reach…
government tried to set up 14 coastal cities to attract foreign investment, but foreign companies do not understand China's policy, so this stage that China does not get enough FDI. The second stage is from 1992 to 1996. FDI has developed rapidly in this period, because of big market size, low labour cost and preferential policies in China. (Zhang, 2001). Most of the FDI is attracted to China's secondary industry. However, the proportion of tertiary industry grew rapidly from 2005. Specifically, from 1979…
architectural triumphs. Cheng Dapeng’s work Wonderful City (2011-2012) the scale model illustrates the infectious rate of growth in the city as high rise buildings go up only to be replaced with bigger and better versions and the ongoing state of real estate lying fallow as investments when there is an ever growing need for accommodation. Works such as CBD (Zhou Jie 2010) and Wonderful city (Cheng Dapeng 2011-2012) illustrate how the messages the artist wish to convey are similar as unchecked urban…
Economy China’s economy is the second largest in the world after that of the United States. The Chinese economy made a strong finish to a difficult 2012 after its growth rebounded in the fourth quarter, setting a stage for a good start to this year. For 2012 as a whole, Chinese growth was 7.8 percent, its slowest in more than a decade, dragged down by global woes and a domestic campaign to deflate a property bubble. But the economy closed off the year with a jump to 7.9 percent year-on-year growth…
Macroeconomics Final Project “China's Impact on the U.S. Economy” Darelys Rodriguez Professor: Miguel A. Pinzon China's Impact on the U.S. Economy: China has 1.36 billion people, more than any other country in the world. China's economy produced $13.39 trillion in 2013. It's the third largest in the world, after the United States ($16.72 billion) and the European Union ($15.83 billion). China is still a relatively poor country in terms of its standard of living. Its economy…
amid a scandal which saw his wife convicted for the murder of British businessman Neil Heywood. The verdict was handed down by the Intermediate People's Court in Jinan, Shandong province. Passing sentence the judge told Bo that he had damaged China's national interests and the interests of its people, wrongfully using his position in power to receive bribes totalling 20 million Chinese Yuan ($3.2m; £2m). He rejected Bo's claims that his confession to the crimes was acquired through illegal means…
and most of them inject the money into overinvested real-estate market. However, the boom in the real-estate market is thought to be a bubble, a major price decrease in real estate market can lead to a disaster in the whole finance market and cause a selling-off of the currency, leading the country into financial turbulence. The Brevis Report points out that the aviation industry counts on the support from finance institutions, if China’s finance market sneezes, the aviation market will get…
financial crisis between 2007-2009 had an enormous impact on changes in labour productivity. In China average productivity growth fell from 12% a year between 2003 and 2007, to less than 9% between 2008 and 2012. Although growth is still strong, China's GDP per worker is only 17% of USA’s. Some countries however, saw improvements in productivity last year In the Russian Federation, things took a turn for the better in 2010 (+3.8%) as well as 2011 (+4.2%,) after dropping a stunning 5.2% in 2009.…
Rent-A-Center enters China 08/17/14 Joel Chagadama Dr. JAMES GLENN FIN 535 Summarize the business that you have chosen, and provide a two to three (2-3) paragraph justification as to why China would be a viable market for the selected business. Rent-A-Center is the largest rent-to-own operator in the United States with roughly 32% market share based on store count as of June 30, 2014 and employs more than 18,990 people. Rent-A-Center, Inc. which is based in Plano, Texas was conceived…
