Part 5/12:
One of the most critical challenges is the real estate downturn. Major developers such as Evergrande and Country Garden have defaulted, and property prices are falling fastest since 2015. As the property market accounts for roughly 30% of China's economy, its stagnation hampers growth across multiple industries, including construction, commodities, and local government revenues derived from land leasing.
Attempts to revive the sector—easing mortgage rules and encouraging bank lending—have had limited results. The public’s diminished desire for property as a wealth store means recovery will likely be gradual, hinging on broader economic support measures and possibly a shift toward price stabilization rather than rapid rebounds.