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Interesting SCMP article about China's northeast. For years I've been telling clients that for all the promises of convergence, China is becoming two increasingly different regions.
https://www.scmp.com/economy/china-economy/article/3298265/chinas-rust-belt-regions-risk-being-left-behind-coastal-economies-surge?module=top_story&pgtype=homepage
Interesting SCMP article about China's northeast. For years I've been telling clients that for all the promises of convergence, China is becoming two increasingly different regions.
https://www.scmp.com/economy/china-economy/article/3298265/chinas-rust-belt-regions-risk-being-left-behind-coastal-economies-surge?module=top_story&pgtype=homepage
Comments
The "good" China, consisting of 6 or 7 coastal provinces is relatively wealthy, has diversified economies with high but (mostly) manageable debt, and a growing working-age population.
The "bad" China, which includes the northeast, is much poorer, much less diversified, has an unmanageable debt burden, and accounts for more than 100% of the decline in China's working-age population.
Among other things, apartment prices may be near to bottoming out in the former, whereas in the latter it is hard to imagine demand being able to absorb the current supply excess except over many, many more years.