The End of China Inc? | 101 East

The End of China Inc? | 101 East

China’s rise as a modern nation has been
nothing short of remarkable the country’s leaders often and proudly tell
the world that in just a few decades they’ve lifted more than 600 million
people out of poverty but China’s economy is Sloane
cracks in the system are starting to appear and it’s the Chinese people who
are facing the pain some economists warn the country’s building boom never
delivered real prosperity that government spending has been poorly
managed even downright reckless wet your finger and stick it in the wind and find
a useless project in China the unchecked spending has left behind
ghost towns anger and uncertainty I’m Steve Chow in this episode of 101
needs to investigate if this is the end of China’s economic miracle in
northeastern China a grand new city has risen out of farmlands this ition Phu
locally known as new foo schwimmer it’s entirely deserted a ghost town of epic
proportions 22 square kilometers of emptiness with the economy faltering construction
ground to a halt last year leaving empty strip malls and newly paved roads
leading to nowhere since agony ha ha we meet maangchi June a taxi driver who
agrees to show us around take a lawyer’s office no not at all let
me go in shit June grew up in Altru Shrek the
original city a few kilometers away he believes the government has
squandered taxpayers dollars and squandered their future his future officials spent hundreds of millions of
dollars building the new zone selling the place is a way for residents to
enjoy a modern lifestyle she drinks as people aren’t buying the sales pitch how
absolutely bizarre say – is it anyway – a genielle my life
little buddy got hurt let our little hi for 30 years she joined worked at the
city’s aluminum mill nearby but in 2014 as China’s economy slowed he was laid on
rather than massive building projects he believes money should have been spent
on helping retrain workers instead he’s had to fend for himself from making $50
a day at the factory she joined now averages less than 10
Yallah showing you lots of what I’m not reminded to tarf
you can own it are two local da from a yarn alize yeah your thoughts on its
ugly head made with Hannah she’s missing her today
whatever we visit one of the city’s development
officers its reception like the rest of the town is deserted inside we find a
model of what new foosh limb was supposed to look like it’s a grand
vision of office towers and stylish residential living the centerpiece of town is called the
circle of life a 60-story structure made from three thousand tons of steel it
costs sixteen million dollars to build that was meant to attract tourists but
they like the residents are yet to materialize even more troubling is that
hundreds of deserted cities like this can be found across China there’s an eerie feeling walking through
these abandoned buildings it’s like time has come to a standstill according to
the government China has more than 2 billion square meters of empty
residential space that’s enough to house more than a hundred million people these
empty shelves have in many ways become symbols of a wild spending spree that
some say has gone on far too long get in the car drive on any highway get off on
any exit and ask the first person you run into where is the development zone
and you will be directed to a KERS and acres of empty high-rises economists and
stephenson young spent 20 years in China and witnessed the boom years but now
fears the country’s economy could collapse China has huge debt problem if
the problem is that it’s just relied on the same methods for a really long
period of time of spend spend spend and she says that with all the bad
investments the country’s debt is mounting at an alarming pace in 2005
China owed 164 percent of its GDP today it’s almost double
this mountain of death is piling up faster and the economy is growing if
China had been willing to give up that hyper growth then it might have avoided
the potential for a serious crash and the serious debt crisis but it didn’t
and it won’t it’s not just the ghost cities that point to overspending this
office building in the shape of an ancient coin cost half a billion dollars
showing there’s no limit to the fanciful dreams turned into concrete reality elsewhere a replica of Dubai’s palm
island development meant to be a retirement home for seniors the
construction here too has ground to a halt then there’s this water park the
30,000 square metre playground cost more than 300 million dollars to build and
was scheduled to open in the summer of 2015 it was supposed to provide the
world’s best aquatic experience the sheer amount of waste here is shocking
it’s taking considerable time and money to mix the concrete to forge the steel
to make the bricks even to design the architecture of these buildings and
instead it’s all been left to ruin Stevenson Young says the building
projects we’ve seen are just the tip of the iceberg
it’s a craziness on a level that you haven’t seen elsewhere in the world and
you you have to think that that’s going to create a crisis of a level that
hasn’t been seen elsewhere while officials aren’t keen to talk about
failure such projects are too big and too numerous to ignore government
economic advisors ouchy jr. Nixon China has a problem yo Ashiya Kavita
certain local governments and parties might not have planned well an apartment
once they go bankrupt it’s going to be really difficult to pay back the loans
Omaha I’m afraid we will need to take further steps in order to solve this
debt issue ng ensuring a stable economy is seen as crucial to the survival of
China’s Communist Party its leaders have long held an unspoken social contract
with the people leave the governing to us and we will make you rich but at this
year’s annual Party Congress even the leaders had to admit to making monetary
missteps erosion suna sheesh our government indeed interfere in some
unnecessary things they have held back economic
50 but still officials deny the notion the nation is in financial trouble only
John watching gee we are fully confident of China’s long-term economic growth as
long as we continue to reform and open up China’s economy will not suffer a
heart lending endo to prevent that hard landing China is taking a controversial
gamble despite the looming debt problems it’s encouraging citizens to take on
even more debt loot by more real estate and clear the oversupply the question is
can they afford – traditionally Chinese were good savers but increasingly
families are accumulating debt at a frightening rate from 2007 to 2013
household debt rose by more than three hundred and thirty percent that’s the
highest rise anywhere in the world in yet another newly built town it’s
certainly business as usual we find developers hard at work trying to sell
their projects hey take one hey are you knightmon hey daikon we’ve heard that
some developers and agents are so eager to sell they’re offering ways to obtain
fraudulent mortgages and yeah we meet a man who says he’s
been selling real estate for two years Jamia does have a fun fun funky junky
old as you know non-college og Hopp using hidden cameras our producer and I
pose as a couple interested in buying a home buying property in China used to be
one of the safest investments but the bubble has since burst in many of these
small cities that’s not the story our agent is telling us he says the price
has already risen tenfold okay but he claims new buyers like us
can still make a hefty profit and he can easily help us get a mortgage so my god
what what do not for me cool long down to when we tell him we don’t have any
income earnings to show the bank’s he suggests we fake a letter of employment guys always handing over the other
changing done yeah no actual thing together while the holiday are you sold
about you are bilingual nor so without the only dummy not murder
what he’s suggesting is a crime then he goes further okay Bob Finnell I got to
the side of a mine well periodic losses were bad Shenandoah
so these are our moons attendant indefinite falsifying sale certificates
is also illegal the realtor claims this is common
practice the possible result the kind of debt that caused America’s
subprime disaster now could be happening all over again here in China home buyers
here are often told house prices will continue to rise and they can sell at a
profit instead many of these new properties are virtually worthless most people remain in denial it’s really
kind of a fascinating thing to watch how you can move all over this country and
for a long time people had really a kind of um it’s kind of like an a mass
delusion another sign that people are in serious debt is a proliferation of loan
sharks the men admit they charge back-breaking
interests for their loans belong to provided of it what God get is your
black boy over so why didn’t you go through with your daddy of 100 yeah I’m
fully open good you gotta do it out yeah joy upon parking or we going for the
yeah it’s China’s leaders that are
encouraging his people to take on debt and for some it’s leading to these kinds
of shady loans and bad mortgages we find an excuse to leave one of those worried
about paying back her mortgage is the ocean shop she runs a scrapyard in old
Fisher – out him up join the boom times Jun
Shah was encouraged by the government to take on debt and buy into the real
estate dream in her case she bought two apartments one for herself and one for
her elderly parents but now she can’t afford the mortgages and the threat of
bankruptcy hanging over her is making her physically sick cunt some tea water
water being louder be another whatever sign what the earlier since our daily
don’t go powder and hoping to hear everyone’s hi sign yeah laughs we’re
gonna good here now yeah why you tomorrow camera and my
drummer boy after watching that I’ve had a chance
Budhia channel Daniela with the economic slowdown first rap yard is failing steel
used to be a surefire business and for two decades business was booming for
junior there was an endless demand from
government-funded building programs and a steel mill next door bought anything
she could sell them sizzle in banja say we can touch a hot zone
Sasol Daniel on orality plan another leadership mightier miter oh wow
Chiana sorry Jessie koala had a pretty good by partial pressure and that’s had
a direct impact on her workers she can now only afford to hire them part-time
coming right for my channel I will meet Kendall lion they make me a number to a
quoi Sicily your chorus on Java like I yeah June Shaw
now cooks for her workers to try and ease their financial pain to make up for
not being able to pay their full wages generously she also offers us lunch
sentence Wutai Donnelly even though with money so tight she counts every cent so
it’s a city – as always sandwich a dosa so usually they’re just some hot but yet
I never came home hmm and Piazza what’s what he plows June Shaw and her workers aren’t the
only ones struggling to survive the collapse of industry and the loss of
jobs is fueling anxiety and anger across the country
just weeks ago in China’s southwest these miners went on strike far from
sharing in the promised prosperity they find themselves struggling to survive
so will many single visitor need you to watch see don’t push out on the moonlit
sit up walrus with his hand is younger area hopefully she don’t forget your
woman album good DJ today the UN action the strike here was quickly shut down
and most of the leaders have been arrested threatened with losing their
jobs many of the miners return to work but during shift change we managed to
talk with one protest organizer who avoided jail that’s all on him incognito
saw your clothes on her woman trench on the general what am I wrong sure Bing
has spent his life in the mines but it’s a life that’s getting tougher with less
work and less pain what finally made them walk off the job was learning the
company had cheated them out of their medical and retirement farms
meaning I think since she all right sirenoid to go to Vienna Shantae is a real essential put
overweight children well thanks G Segundo under Chinese law companies must
cover such costs because of the toll this work takes like many coal dust is
embedded under shipping skin and in his lungs
he’s also broken every bone in his hand what Shang Natasha do when you gently on
the tea on the fire so they own is Jewish
Satan chakuda she’s feeling good onion hello Shu Xiang janosh with her show to
the GU er agenda are to them they come from do fearing his bosses will discover
us at the mine he leads us to a nearby house where other miners have quietly
gathered to speak to us say new Mensa side say at kuang homes all go Sonya
with a Polish rustle yeah she’s singing you should Siobhan you GT by here Sonya
these miners no just meeting with a journalist could get them arrested but
they insist on appearing on camera to tell the world what’s happening
I know today’s young to go ham sandwich rolling good woman jaggery to go winch
sunny she’s hair should I – Sasha Zack we buy fire which i’ll Rosa water you go
you what edu cocoa board what’s that – young we work with this is like whatever
Sonia can leave where Catalan is Radha – Jabar
bajalia you will know me gelatine Jamil to me you let another innocent child for
many time is running out one man shows me his medical certificate he has lung
cancer although he will announce any move don’t do it they don’t know the
national attention other usually yo-yo comes to your honeymoon
school generally these are the village house dorothy ackridge am I sitting –
Chan mmm shut up I’ll tune it out you mean but the miners worried about more
than their medical insurance they worried about how much longer they’ll
have a job at all many already have been laid off or made
part-time China’s slowing economy in a shift away from polluting energy sources
has meant a slump in the demand for coal ash as a channel would ya – no Jenna to
each other hygiene jogging for Google comfort fall
out woman you shall one I added to happening
in living room meeting woman I’m eating well the only housing they can now
afford are small rooms like this which they share together they feel left out
of China success even gangjae show hey so one genie member bloomie the Congo
Tommy Segundo I usually tell the Ranger Ranger you’d
eliminate on it with a chart type in Shaba mile affilorama woman and solution
tell Charlie Minaj anaconda to be me Lydia were Charla diesel momenta women
sheet ocean hakuna mutata if there is no condom are you telling me anemia say
Shan Shan Shan for sure Sally Latoya oh my suka will come tomorrow
Sonia Sonia Sonia ma woman champagne so twisted Omar Hammami a single feature in
2015 a record number of people took to the streets in protest the government
has done it’s best to shut down demonstrations arresting and
intimidating protesters in but their answer to the economic slowdown won’t
help the workers far from it economist Sally Jewell says the days of popping up
big industry are over Nisha sure sure sure talent portion recall the
businesses that have over capacity of without good futures zombie enterprises
jankoji la Konishi Alana they must be shut down from your
perspective has development come too fast for
trainer John boyega China’s a very big country and
development is very unbalanced Tasha CNET imagine the perspective of the
central government is we need to modify the old structure of development into a
new one Jing Zhi farter at the top bad loans mounting debt if the slowdown has
been painful for the Chinese what does this mean for the world China is roughly
sixteen percent of global population and it’s been consuming roughly 50% of
global resources that’s going to stop that will be hugely impactful to
Australia Canada Brazil Indonesia all of these people and there’s a huge chain of
consequences meanwhile those who made China’s boom possible will pay the
highest price for the national spending spree that’s the tragedy of the
political system this emergence from poverty of China since the 1980s all
these people working in all those factories with all these dreams seeing
their bank accounts mount seeing a future for their children way better
than they ever had and those hopes you know that the party managed to suck in
that capital throw it into empty apartments and those are the people who
will be heard back in foosh one former factory worker
turned taxi driver maangchi June says he stopped believing
the leaders promises seen year to Jimmy Allah to him and the mythology a mini
hunter one behind I ran a machine he really father nothing why would cool the
magenta around here yeah she’ll choose the two I guess but
I’ll give it a mother we do the toe vision he says he hopes he’s wrong and
the government will fix things but for now it’s hard for him to see a bright
future for his country

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About the Author: Oren Garnes


  1. How is Steve Chao even allowed to film inside of China's walls ? I am amazed they have not barred him yet. Great reporting. I hope it continues.

  2. Internal debt is money you owe your self. In this case, it is RMB based and can be quantitatively eased if necessary (and since China is already "beyond cash" and is an economy of accounts) without the need to print actual paper. As long as there is enough food, goods and services produced for domestic and international consumption, the Chinese central bank will use it's surplus capital and technology thru internationally accepted Yuan based deals ( as well as the returns on it's world wide investments -Smithfield ham to give an example) to purchase necessary imports. This excess in domestic production need not result in any long term or permanent economic damage. I am tempted to remark that the ominous music behind this construction expenditure can be played behind capital and real estate projects in emerging wealthy economies worldwide. I will also note that China hasn't spent a trillion dollars in various standoff wars during the past 20 years like some economies I know. Rather thru these projects, China has scaled its ability to build world-class infrastructure on a MASSIVE scale and in so doing stands meters above just about every other nation on earth in its ability to "make it so"; not only within China but abroad as well. Stop and think about that for a moment. With respect to the coal miners. The United States faces similar problems. Tell me, what are the real industrial and economic needs of a retired Chinese coalminer?. What impact will meeting the needs of their humble level of consumption have on a huge economy like China? There certainly is a surplus of shelter. And, seemingly no dearth of mian bao and digitally delivered Taobao circuses. I might also note that there is no Republican party there to block the distribution of 21st-century economic productive surpluses. China has no lobby that has a need to maintain an ideological adherence to a false notion of economic scarcity, The CCP has the ultimate say in terms of curbing any disruptive and hardship manipulating sector that seeks to marginalise labour and grab it all in the name of a free market.

  3. My heart goes out to the working people. Another socialist/communist success story. And this is what American socialists like Bernie and company want for America. This video should be required viewing in every HS and college in the US. Thank God for giving us Trump!

  4. They keep building n doesn’t care about poor people….modern life style is for rich people not for poor. What kind of development is that. But China keep on building not only in China but also in other countries. All this huge buildings are ghost house now. Waste of money….spend spend spend

  5. Communist central planning doesn't work. It squanders scarce resources, bankrupts countries, and destroys civilizations. It also requires a compliant, obedient citizenry. It is inhuman and anti-human. Yet in the US, apparently 50% of the voting population thinks that Communism would be just great. Half the country is bent on suicide.

  6. This mass delusion is due to corruption of CCP. In the end, the people suffers and CCP officials with their families will move overseas.

  7. They over stepped their booming success and hypertension their own society cost of living and strangled their own people's with such extravagant over buildinglization. Communism and socialism is not key or answers too great nations wealth or prestige but the people are the wealth and nation natural nature balance.

  8. China printed out over 50 trillion dollars worth of money of which 16 trillion was used to pay construction companies to build these empty cities. 25 trillion was used to invest in the NYSE, in American companies thru front corps. The rest was used to buy U.S. govt bonds. Printing out money never fixes problems, only creates additional economic problem like devaluation and hyper-inflation.

  9. The ONLY reason why China had any rise to anything at all is because of the huuuge influx of American technology, American money, and American ideas… and most importantly, American SECRETS of which China stole. China is a paper tiger, both inside and out. Their government is nothing, and their military is pathetic.



  12. Um…I have to say I felt a shiver of deja vu listening to the back ground music …it reminded me of the news films of WWII and propaganda films of Vietnam era…creepy.

  13. People like you in the west has been telling the whole world that China is going down for decades, but it never came, there's a lot of unoccupied places in China, But it is still under control, that's bare reason that it is being put to halt, because the central government found the problem. and you people will only pick on tiny incident to represent the whole China, Why don't you go Shenzhen, Shanghai, Beijing, Guangzhou, etc. It's really sick to see you people keep on using this kind of tactics to create more problem to the world.

  14. China is running out of ideas, money, and useless ghost cities. A false Economy will always collapse, no solid foundation in China, that’s Communism for you.

  15. Brave men . . Showing their faces . . The difference between the 2 countries . . Workers in the US can and will speak against and about their employer . . . In China , things are worked out . . . In a different manner . . . Definitely brave . . .

  16. China's ghost towns with all those funny shaped structures making good places for Triad hideout. China's doom and gloom is coming soon. Its bubble will burst if it does not work with US. Make no mistake, If China wants to save its economy, it'd better not fighting against Uncle Sam's recommendation. Don't be self-centered and greedy – even though these traits are in your genes – but start to cooperate with the world .

  17. "Chinese business ethics" is an oxymoron. Most Chinese businesses are corrupt to the core. They use practices that are fraudulent at best. The Chinese government is the same. Well, worse, actually. It's the Chinese people who suffer, so that a few corrupt individuals can thrive.

  18. China is doing well.
    Smart planning, smart thinking, smart investing.
    The west, is so jealous of China and they care to see China, the way they want it.
    The biggest problem in the West, is homelessness.
    In China?
    China knows, housing comes before, the manufacturing of people.
    Do the West consider this as smart planning?
    Never in a million years.
    Speak about the problem of homelessness in the West and make it a better news worthy story than the garbage on China.

  19. What about the great investments China have the world over?
    The only country with investments here and there the world over?
    Europe, US and the West dont have the scope of investments China have.
    Why is peoples medical ailments attributed to Chinas economic flaws if that is the case?

  20. Power of evil selfish and greedy selfish will all Destroyimg and damage Because they abused threaten the innocent people and threaten victims of politics action,and lots were suffered and killed Because of their criminal activities to Destroyed innocent children.

  21. Bite more than they could chew! And this is what you get! They should have only built one city at a time and sold it as it went along! This is insanely wasteful! Look at all the poor people all over the planet!?

  22. I admire the courage of the taxi driver and the miners talking about the injustices and inhumane treatment of the authorities to them but i also worry for their safety. CCP and Xi Jin Ping where is equality and justice?

  23. The bubble of communism us about to burst now in china and in future in Russia too.It's pure evil that took lives of tens of millions of locals.those who created this horrible thing will try their level best to disappear.but they must be punished.those who were maosy tung's advisers and propaganda advisers.

  24. must be cheap now its deserted, can foreigners buy it? might be worth something someday right? no? maybe in 20 years? come on… sure its got to worth something by then

  25. these qataris casually took some of the video time to show a picture of abandoned construction work on dubai palm island project

  26. one of the miners got lung cancer, what are the chances the cancer are work related? and the company doesnt pay the medical bills

  27. Yes guys, you are right that we are crashing with a big smile. Trust me that is ture. My grandfather just takes his pension and enjoy his life. My parent just have themself house and do the leisure work. You guys see that is not good right. HaHa!

  28. I just read few comments,,and discovered the ignorance,,,,lack of knowing,,including the commentator,,,, just bc u see some empty buildings in few cities,,,,I said few cities,,,,it tells me how little u really know about China,,,even if ur Chinese….u and a whole bunch of experts that give their opinions,,it's irrelevant,,,,yyy ,,,bc u will never know what the government goals are….they know what their doing,,,,they will. Achieve their goals,,,,like they did for last 30 yrs .
    Stay tuned,,,,,,u will see
    Iittttttt. !!!!!!!!

  29. China lifted 600 million out of poverty in China. How many people in other countries did they put into poverty with those same policies. China's economic "miracle" was the result of Chinas overt criminality against it's own citizens and the Free world in general. Wake up and smell the coffee, folks. Chinas leadership is NOTHING to emulate and everything to reject. The CCP is the American Mafia with Chinese characteristics. It is in bed with drug cartels around the world to provide either drugs like fentanyl or precursors to methamphetamine. China is a rogue state that is bribing and strong arming it's way to world domination.

  30. China feeling the pain they and Mexico have inflicted on US workers with their extremely lopsided trade policies. WAH! ??

  31. 1:05 China's economic miracle?? As if it's a divine act of providence? This was caused by a collaboration with socialist-communist American grabblers taxing people out of business and out of the country. And it's only a miracle the grabblers are still able to walk the streets.

  32. What a contrast to see the rotten rich mainland Chinese in Canada driving super luxury car to protest. It makes me feel so angry and sick.

  33. It used to be a noble country, until Lenin introduce to the world: communism and being culpable too, China and the others embraced it.

  34. What happened to the iron rice bowl? That's a real question. I thought communists were supposed to take care of people. In exchange for freedom, but still. This is not the only place I've recently heard that China doesn't take care of people, especially in old age. And this was all three years ago. I wonder how much worse it's gotten by now.

  35. Since this pathetic and biased report was done three years ago the PRC has gone from strength to strength. The Nation is one where engineering excellence is second to none. No other nation has tackled the awesome projects to connect and develop their country the way the PRC does. Why don't you do a story on why 130 plus people die in the US every single day of prescription opioid use and the why there are mass shootings almost every month there? Or a story on the crumbling infrastructure in the USA? Al Jazeera has a poor reputation for balanced journalism. You are the ones in terminal decline.

  36. A Mafia for no better word has taken over China starting with the most successfully triad boss Mao Zedong. Using greediness Western business have developed a very efficient business model on the same principle of drug running , buy cheap, enhance it and sell to the West. Same pattern using greediness find cheap labor, use labor and sell to the West and in the meantime to poor have been made to submit to the mafia class.
    The joke is over and tariffs of 100% on goods should be put on China and destroy the power of the mafia class elite as we did with the USSR.

  37. Let me be your teacher :

    Overspending in 2005 was 165 percent of GSP in China !!!

    The estimate of overspending in China has already trebled in 20019 !!!


    Just see what is happening in USA !!!

    Just see what is happening in Europe !!!

    Just see what is happening in …

    The best economists are at a loss in the world !!!

    Jai Shree Radha-Krishna !!! Jai Shree Sita-Ram !!! Jai Shree Gauri-Shankar !!!

  38. The invesment is belong to usa, europh… So, china goverment didn't pay everything fo usa invesment… Investor run away without benefit

  39. Haha China is very big very very big. Just pick up one smaller town or colony and try to project whole picture what a rubbish thing.
    I am living in China there is highest demand for new apartments and houses people are paying millions of dollars for the purchase of small homes.

  40. Economic stability can't be build, without includind the Human Rights of own people. Without respecting the Climate change, International rules, without respecting the different Nations, as their cultures and the people in a globalized World.

  41. this is the exact reason top down, (authoritarian) economies are a farce. They parasitise and live off of capitalist societies all over the rest of the world. This is ridiculous, and will end in disaster, like all communist anti-religion societies everywhere and for all time. socialism sucks bernie baby.

  42. Its a fake economy that used money from a free country U.S.A. to subsidize its government to waste money. Its not free market so no one is involved except gov't officials that are so corrupt that they are not even held accountable for the waste. China has the most people in the world yet they are not included in real development.

  43. The American subprime disaster was a Democrat Party led idea that was based on stupidity like the Democrats themselves. Communism and Socialism is Fraud.

  44. Communist governments don't know how to plan the economy, what a shocker… Idiots. Ghost cities are a perfect representation of a deep Chinese characteristic that anyone who's lived there for a while will come to recognize, its superficiality without substance. Nice cities are the result of many factors, the Chinese think that if they just skip all the steps and go straight to building the nice looking buildings all the people will come, this is truly a level of stupidity that boggles the mind, how simple minded are these people.

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