CEBRI/CEBC Webinar on Evergrande Crisis is Featured in Media

  • Asia
  • 07 october 2021

The webinar 'The Evergrande Crisis: The New Chinese Economic Model', convened by CEBRI, in partnership with the Brazil-China Business Council (CEBC) on the 5th of October, was featured in the press, with articles published in key Brazilian newspapers, among them, Folha de S. Paulo, Valor Econômico, O Globo and Agência Broadcast. In total, 439 mentions were registered.

Evergrande is China's second-largest real estate developer, currently $304 billion in debt, representing nearly 2% of China's GDP. Experts who attended the event, such as Member of CEBRI's International Advisory Board, Ambassador Marcus Caramuru, argued that the crisis is an immediate result of the Chinese government's regulatory offensive. The strategy consists of an attempt to reduce the level of indebtedness of the civil construction sector and its weight in the composition of that country's GDP. According to Caramuru, China's reform agendas reveal Xi Jinping's ambition to stay in power.

According to Fabiana D'Atri, Economist at Bradesco, the changes in the Chinese growth model that reduce leverage in the real estate sector are in line with the Chinese government's social agenda, with a focus on technology, the environment and social issues. "Reform measures are aimed at qualitative, not quantitative, change. It is a process that necessarily undergoes a slower pace of growth and that is the challenge. We give up vectors such as energy production from polluting sources and the reduction in the participation of the real estate sector, but there are still no ready alternatives for a new scenario", stressed the economist, who predicts that the Chinese GDP in 2022 will be below 5%.

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The webinar 'The Evergrande Crisis: The New Chinese Economic Model', convened by CEBRI, in partnership with the Brazil-China Business Council (CEBC) on the 5th of October, was featured in the press, with articles published in key Brazilian newspapers, among them, Folha de S. Paulo, Valor Econômico, O Globo and Agência Broadcast. In total, 439 mentions were registered.

Evergrande is China's second-largest real estate developer, currently $304 billion in debt, representing nearly 2% of China's GDP. Experts who attended the event, such as Member of CEBRI's International Advisory Board, Ambassador Marcus Caramuru, argued that the crisis is an immediate result of the Chinese government's regulatory offensive. The strategy consists of an attempt to reduce the level of indebtedness of the civil construction sector and its weight in the composition of that country's GDP. According to Caramuru, China's reform agendas reveal Xi Jinping's ambition to stay in power.

According to Fabiana D'Atri, Economist at Bradesco, the changes in the Chinese growth model that reduce leverage in the real estate sector are in line with the Chinese government's social agenda, with a focus on technology, the environment and social issues. "Reform measures are aimed at qualitative, not quantitative, change. It is a process that necessarily undergoes a slower pace of growth and that is the challenge. We give up vectors such as energy production from polluting sources and the reduction in the participation of the real estate sector, but there are still no ready alternatives for a new scenario", stressed the economist, who predicts that the Chinese GDP in 2022 will be below 5%.

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11 october 2021
  • Institutional