China’s real estate implosion leads to ‘toxic nationalism’ divergence

China real estate, China’s real estate implosion leads to ‘toxic nationalism’ divergence
image from cnn.com

YEREVAN (CoinChapter.com) – The escalating situation on the Taiwanese border could be a ploy to divert attention from the internal “ticking debt bomb.” As CoinChapter earlier covered, the debt-ridden real estate market in the People’s Republic of China is on the verge of collapse.

Property prices are over the roof against the weakening purchasing power of citizens. According to China Real Estate Information Corp (CRIC), total sales of China’s top 100 developers had plunged almost 40% as of January 2022.

According to a Bloomberg report, China’s housing sale has fallen yearly for 11 months straight, constituting a new record. In addition, the Chinese economy struggles with $6.8 trillion of outstanding mortgages. However, homebuyers are now boycotting mortgage payments of unfinished properties, putting the banks under a heavy financial burden. 

Given China’s weakening banking system and real estate market under looming default, Beijing might be tempted to switch gears, focusing people’s attention on an ‘external enemy,’ boosting nationalist ideology.

Thus, a closer look at the brewing conflict between China and Taiwan is warranted.

China vs. Taiwan; military assault ahead?

In 1895, after the Treaty of Shimonoseki, officials in Taiwan declared independence from China. However, China’s People Liberation Army (PLA) considers Taiwan a Chinese Province. Thus, China could construe a possible attack not as an invasion but rather as an act of rebuilding its “border integrity.”

Moreover, U.S. Speaker Nancy Pelosi’s recent Taiwan visit triggered extended military drills, building the pressure for the U.S. to respond. However, President Biden said he was “not worried” about Beijing’s actions. “But I’m concerned they’re moving as much as they are,” he added.

Several analysts did not share President Biden’s calm demeanor. For example, Duan Dang, a regional security analyst in Vietnam, asserted that the U.S. is expected to act.

If the US doesn’t do something militarily to push back China in Taiwan Strait and re-establish a credible red line, it will be very bad! Frankly, no one in the region is going to believe in US commitments anymore.

said the analyst.

On the other hand, PLA’s Eastern Theatre Command commented it “continued joint training under real war conditions.”It added that Aug. 8 drills focused on anti-submarine warfare and naval strikes and featured multiple destroyers and combat aircraft.

Taiwan faces internal tension

Meanwhile, according to the latest developments, Taiwan’s Beijing-friendly opposition party Kuomintang, or the ‘Chinese Nationalists,’ has sent its deputy leader to China on a trip that Taipei warns “risks sowing internal division” as PLA continues its drills on the Taiwanese border.

Some diplomats, like Andrew Hsia, justified the visit as an act of support for Taiwanese citizens living in China. Moreover, the opposition party asserted they had planned the visit for weeks before the drills on the border. But given the crisis in the Taiwan Strait, it will probably prove highly contentious all the same.

China ramps up ‘toxic nationalism’

As mentioned, the ongoing propaganda might be a ploy to divert public attention from the ballooning internal crisis. After Pelosi’s visit to Taiwan, Chinese media made an effort to underscore the importance of Chinese culture in the ‘estranged province.’

Chinese CCTV recently broadcasted a video showing the streets of Taipei carrying names of other Chinese provinces. “Every road leads home!” a caption under the video read. “Here, every street is filled with the yearning for home!”

The video intended to draw ‘homesick’ feelings from the audience. But the Taiwanese side might not take it with the same sentimentality.

Given Taiwan’s complex national identity, the propaganda might hit home for a specific audience while alienating others even more. However, according to polls by several Taiwanese universities, most of the country’s population does not see itself as ‘predominantly Chinese’ and does not want to be a part of China.

Also read: Chinese depositors clash with police in Bank of China protest. 

The tension on the Taiwanese border might not result in a full-blown military attack. However, given the ongoing war in Ukraine and the resulting strain on the global economy, another hotbed of conflict might prove detrimental to the already frail geopolitical stability.

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China real estate, China’s real estate implosion leads to ‘toxic nationalism’ divergence

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