Part 8/15:
The housing downturn is not isolated; it ripples through the economy, eroding the middle class and shrinking disposable income. Analysts estimate that around 200 million people have effectively disappeared from China’s middle class—a drastic reduction from previous estimates of over 300 million. This loss is linked directly to declining real estate values and deteriorating income levels, which have left many unable to afford their mortgages or even basic necessities like food.