- Joined
- Feb 27, 2020
Honestly depends. Not every Chinese company is involved with real estate, but when ~65% of your domestic economy is based on it (compared to ~10% of the American economy) you will be looking at fallout in unrelated sectors. Whether that fallout extends over here is the elephant in the room. American exports will be affected since Chinese demand would slacken, but whether it also translates into increased costs for Chinese exports is anyone's guess (since western economies are constrained more by logistics than actual supply currently).
Only thing you can bet on is that no one knows what's going to happen - and if you haven't already done your Christmas shopping you should probably rectify that very soon.
It's not directly related to the evergrande stuff but the entertainment investments in china are desperate to move out, especially animation and games, since the CCP have been pushing insane new rules. They knew a crackdown was coming but they still refused to budge until now, thinking the rules wouldnt be so bad
Or they won't be available for any price. Debt runs the world and if the Chinese credit market has a heart attack all those factories will be shuttered. They won't be able to aquire the raw materials to build.
They're going to be getting their raw materials from afghanistan, it's the whole reason america was pulled out so bizarrely and messily in such a rush