Recession and Backlog: Houses, Cars, Phones & Liquor No Buyer Left; High IQ Crime Rate Skyrockets

Numerous Taiwanese businesses have departed from Kunshan, Suzhou, a top-100 county in China, resulting in economic downturn and a housing market collapse. On May 7th, the Kunshan government issued a notice condemning two real estate projects, Dream Moon Garden and Upper Garden, for unauthorized substantial price reductions of 30% for 30 units during the May 1st sales event. Upon further examination, it emerged that the renowned property firm Vanke was behind the price cuts, suggesting that even Vanke's properties are struggling to sell, and the entire Kunshan housing market is in distress.
China is currently grappling with not only a stagnant real estate market but also a myriad of products that are facing considerable difficulties in sales, resulting in severe inventory backlogs. One such example is the Honor Huawei smartphones, with a staggering 10 million units remaining unsold and languishing in warehouses. Even BYD cars have been found stored on the second floor of unfinished buildings, unable to find buyers for extended periods.
China's economy is grappling with formidable challenges. Previously, the government had placed great hope in the technological transformation, but now, with that avenue no longer feasible, the focus has shifted back to the real economy, including low-end industries such as catering and street vending. During the first meeting of the 20th Central Finance and Economics Committee on May 6th, President Xi Jinping called for an acceleration of efforts to create a modern industrial system buttressed by the real economy. The renewed emphasis on the importance of the real economy after decades of reform and opening up in China signals that it is confronting grave difficulties.
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