Editor’s note for Wednesday, September 15, 2021

My thoughts today:

The real estate industry in China has created some of the world’s richest people, and is also responsible for some of China’s worst inequities, and many other social and political ills. So surely it must be in the crosshairs of China’s currently hyperactive regulators?

Indeed it is: “Beijing continues to mercilessly squeeze property developers,” says the Wall Street Journal. But it’s not going to be easy for the Chinese government to balance its many goals: property is also the main investment and economic stabilizer for most urban Chinese, and a linchpin of the economy.

The difficulty of fixing the enormous debt bomb that is Evergande, one of the country’s largest real estate developers, and the government’s so far unsuccessful attempts to rein in property prices are two examples of the conundrum.

Do you have thoughts on this? Please email me! We’re currently researching Evergrande, and the nascent regulatory moves to transform the way the industry works in China. We’d love to hear from you if you have insights or anecdotes that could help illuminate one of the most important, murkiest (and dirtiest) businesses in the Chinese economy — just reply to this email to reach my inbox.

Our word of the day is insufficient evidence (证据不足 zhèngjù bùzú).

—Jeremy Goldkorn, Editor-in-Chief