China between ‘common prosperity’ and economic crisis

Head of state and the Chinese Communist Party Xi Jinping could be confirmed for a third term of office this week. He’s pledged ‘prosperity for all’. But China is showing signs of economic fatigue. Evergrande, one of China’s biggest real estate companies, is crumbling. One reason is increasing state intervention in the company. With Chinese real estate prices going through the roof, Beijing has decided to restrict lending to real estate companies. The idea was to rein in runaway prices and make accomodation affordable again. The government’s insistence on tightening regulations has also affected other sectors. For over a year the Chinese leadership has been introducing new laws and regulations affecting the country’s domestic technology platforms.