China’s Evergrande Liquidation Signals Deeper Economic Crisis

The liquidation of Evergrande, the world's largest indebted property developer, raises concerns about the future of China's economy and its real estate sector.

• A Hong Kong court has ordered the liquidation of Evergrande, two years after the company defaulted on its massive debt.
• The liquidation is part of a broader crackdown on the private sector and government collusion, fundamentally altering the relationship between the Communist Party and the business community.
• Other major real estate developers, like Country Garden, have also defaulted, indicating a larger crisis within China's real estate sector.
• The crisis has led to a record-low economic growth rate in China, affecting consumer confidence and spending.
• Experts warn of the potential for a prolonged economic downturn, drawing parallels to Japan's 'lost 30 years'.

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