Part 5/10:
The Parallels with China's Real Estate Bubble
The situation with EVs echoes China's infamous real estate boom and subsequent bust. Major developers such as Evergrande and Country Garden once seemed “too big to fail,” benefitting from government bailouts until mounting debt and unsustainable practices led to their collapse. Now, experts warn that the EV industry may be heading down a similar path.
Although on paper, Chinese EV sales look robust, behind the scenes, the industry suffers from structural flaws—overproduction, fake sales, and questionable manufacturing practices. The supply chains are often based on opaque data, and many suppliers continue to provide parts to these companies despite knowing the financial instability or lack of genuine demand.