China’s Real Estate Crisis Deepens Under Pressure From Trade War

Beijing keeps housing prices artificially high to counter the impact of the trade war.

Residential buildings under construction by Chinese real estate developer Vanke in Hangzhou, in eastern Zhejiang Province, China, on May 9, 2024. STR/AFP via Getty Images

Commentary

In a real estate market already plagued by oversupply, the U.S.–China trade war is forcing the Chinese Communist Party (CCP) to keep housing prices artificially high to avoid a banking crisis.