After a lengthy period of lockdowns and strict enforcement of the “zero covid” policy in many provinces and cities, the property market has frozen in China. Besides, the wages in many places have decreased, another indicator showing the Chinese economy has fallen into crisis.

According to Bloomberg, the Citigroup analysis team led by Griffin Chan reported that as of July 12, buyers of 35 development projects in 22 cities had decided to stop repaying their mortgages regardless of the damage to their credit records. The cause was project delays and falling real estate prices. As of 2021, there are as many as 186,000 delayed housing construction projects in 24 key cities in China. 

According to a Voice of America report, Shenzhen has always attracted teachers with high salaries in the past. The salary was up to $44,478 for master’s and doctoral students from Beijing and Qinghai, and they also enjoyed many welfare subsidies. However, severe pay cuts began in March, with some salaries shrinking directly to $11,860-$14,825 and some year-end performance bonuses reduced by 60%.

 China’s Caixin.com also said that civil servants in many coastal areas were experiencing a wave of pay cuts, with the coastal areas hit hardest. However, the article was deleted shortly after publication.

“Voice of America” reports expert Xie Tian谢田, a professor at the Aiken School of Business at the University of South Carolina, said China is now facing a shrinking manufacturing industry and financial and real estate crises. The three situations together have caused economic development to freeze.

Xie also commented on the significant salary cuts and retirement benefits for civil servants and pointed out this was a big problem with the finances of the local government.

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