Affordable housing will be sold or rented at below-market rates to low-income buyers
Chinese government announces new policy to encourage state-owned enterprises to buy unsold properties for affordable housing
Excess of unwanted apartments in China's property market leads to new government initiative
State-owned enterprises will use cheap loans from central bank to purchase unsold flats from developers
In recent years, China's property market has experienced a significant downturn, leading to an excess of unwanted apartments. In response, the Chinese government has announced a new policy aimed at calming the market by encouraging state-owned enterprises to purchase unsold properties and convert them into affordable housing for low-income residents. The policy involves providing cheap loans from the central bank to city governments, which will then lend to eligible enterprises. These companies will use the funds to buy unsold flats from developers and either sell or rent them at below-market rates to low-income buyers. This initiative comes after a video conference by He Lifeng, China's economic tsar, who emphasized the government's willingness to spend public money on private capitalists. The policy has been met with cautious optimism, as some experts believe it may not be enough to address the full extent of the housing crisis. Nonetheless, it represents a bold attempt by Beijing to stabilize the property market and prevent further economic turmoil.
China has nearly 4 million unwanted apartments, equivalent to the area of Philadelphia.
Behind the empty apartments, there are around 10 million more apartments that have been sold but not finished building.
Accuracy
Xi Jinping and his deputies have called on the government to buy these unwanted apartments.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(95%)
The article contains an appeal to authority when it states 'China has a housing problem. A very big one.' and 'Few experts believe that Beijing can transition to more sustainable growth without confronting all those empty apartments and the developers that overextended to build them.' This implies that the existence and severity of the housing problem, as well as the necessity of addressing it, are accepted facts based on expert opinion. However, no specific sources or evidence are provided to support these claims. Additionally, there is an example of an inflammatory rhetorical device in 'the extent of China’s real estate boom was breathtaking. The extent of its unrelenting bust, which began nearly four years ago, remains vast and unclear.' This statement exaggerates the magnitude of the problem to create a sense of urgency and importance.
China has a housing problem. A very big one.
Few experts believe that Beijing can transition to more sustainable growth without confronting all those empty apartments and the developers that overextended to build them.
the extent of China’s real estate boom was breathtaking. The extent of its unrelenting bust, which began nearly four years ago, remains vast and unclear.
Beijing is asking local governments to buy unsold homes with cheap loans from the central bank to halt an unprecedented property downturn.
Top bureaucrats have been talking about lifting ‘still-weak domestic demand’ recently.
President Xi Jinping’s mantra that ‘housing is to be lived in, not speculated on’ resulted in ruthless crackdowns.
Accuracy
Xi Jinping’s mantra that ‘housing is to be lived in, not speculated on’ resulted in ruthless crackdowns.
Deception
(100%)
None Found At Time Of
Publication
Fallacies
(95%)
The author makes an appeal to history and personal background of Xi Jinping without providing any concrete evidence that Xi has actually changed his economic priorities. This is an example of an appeal to authority fallacy.
Top bureaucrats have been talking about lifting 'still-weak domestic demand' lately, a welcome departure for an administration that believes boosting industrial production is the most effective way to lift the nation out of an economic slump. But can a person really change their world views shaped during their formative years?
