Prof. Susan Whiting on the Wash. Post Monkey Cage Blog: China’s Evergrande is in trouble. But so is China’s top-down political economy

Many Chinese real-estate developers, including Evergrande, are getting closer towards formal default after they fail to pay off their debts. So what does the Evergrande crisis reveal about the challenges and distortions within China’s “state capitalism” model? With China's top-driven economy, the government and communist party intervene in the economy, which causes real-estate developers to rise high and fall hard. Real estate construction, property management services and related industries account for a quarter of China’s economy. Read this article to see how this crisis evolved.

Link here for the full article.