There are many global political and financial issues in play at the moment including AUKUS, Quad Alliances, Covid, the climate change 2050 agreement, and diplomacy with China who is our biggest trading partner.
Far greater minds that mine will opine on how these will impact on Australia. One other issue that is being closely monitored is the potential collapse of Chinese property developer Evergrande, which is carrying approximately $US300 ($A410) billion in liabilities giving them the unenviable tag of the most indebted property developer in the world.
Adding to their woes is an oversupply of housing with reports of anywhere from 30 million to 40 million empty apartments across China held by either private investors or developers as unsold stock.
In August 2020 Beijing introduced the Three Red Lines policy to reduce debt, limit runaway apartment pricing and lift standards. The property industry comprises about 20% to 25% of China’s economy, and it underpins much of its activity. Any slowdown created by the crises in confidence and contagion effect of an Evergrande collapse could have a broader impact across the country and more globally.
Needless to say the political and financial issues are being delicately managed in Beijing with some saying they are too big to fail, but as we knonw government intervention comes with its own problems.
