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Opinion

China Can’t Offset Its Property Bubble Easily

China Can’t Offset Its Property Bubble Easily
An aerial view shows the Evergrande Changqing community in Wuhan, Hubei Province, China, on Sept. 26, 2021. Getty Images
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Commentary

No economy has been able to ignore a property bubble and offset it and continue to grow, replacing the bust of the real estate sector with other parts of the economy. Heavily regulated economies from Iceland to Spain have failed to contain the negative effect of a real estate sector collapse. It won’t be different in China.

Daniel Lacalle
Daniel Lacalle
Author
Daniel Lacalle, Ph.D., is chief economist at hedge fund Tressis and author of the bestselling books “Freedom or Equality” (2020), “Escape from the Central Bank Trap” (2017), “The Energy World Is Flat”​ (2015), and “Life in the Financial Markets.”
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