Is China falling badly from the property crisis? | Will the China-Taiwan war overwhelms the world?

Shocking disclosure about property crisis in China:

Shocking news came out about China, which has made its mark around the world. It is reported that China seems to be falling badly from the property crisis. The impact of this crisis is being feared all over the world. The situation is that Chinese banks may also have to bear a huge loss of $ 360 billion.

What is such a situation? China's real estate sector is in debt, so investors are keeping their distance from the companies in the sector. Due to this crisis, the wealth of several billionaires has been reduced. The situation is that amidst changing circumstances, Asia's richest woman has lost half her wealth, and Yang Huiyan's wealth in China's property market has reduced by more than $ 11 billion in the last year.

Country Garden's majority shareholder is Yang Huiyan, the most important thing about this whole story is that Country Garden is one of the few companies in China's real estate sector. Those whose financial health is directly affected by the property crisis. The loss of investors' trust is being suffered.

China was focused on real estate development for rapid economic growth. Because of this, companies in the real estate sector started many big projects by taking loans from them. Although many projects were not practical, causing damage to the real estate sector, at one time many projects in China were becoming famous as ghost towns because no one lived in these projects with all the amenities too.

Now many projects are incomplete real estate and affecting further projects. Many real estate companies are on the verge of bankruptcy due to the non-payment of loans. China's real estate has a debt burden of $300 billion. Real estate and related industries are said to account for a third of the GDP of $17.50. It is a major means of investment for the middle class.

Tibet accounts for a third of the total debt of Chinese banks, due to which the loan default by property developer Ever Grande Group last year was a major setback. Ever Grande's share price had fallen sharply due to the news of a serious crisis. The Asian Development Bank has cut its growth forecast for China amid further deteriorating conditions amid further deteriorating foreign investment in China. China's economy is now expected to grow at 4.6% in 2022.

ADB had previously estimated 5.1%. Let us tell you that in the second quarter, China registered a year-on-year growth of only 0.4%, which is the lowest since the start of the epidemic. Increased inflation in the US and the weakening of the yuan against the dollar may increase China's troubles. Investors are also worried about China's stock and bond markets.

Will the China-Taiwan war overwhelms the world?

There is going to be a war between China and Taiwan. Troubled by the continuous infiltration of China, Taiwan is now ready to fight. However, the surprising thing is that Taiwan is a much smaller country than China. Where is China with a population of 135 million and Taiwan with a population of 23 million? 

Nevertheless, Taiwan is ready to declare war on China. If there is a war between the two countries, who will win and who will lose? But the loss can happen to many countries of the world including India. Today we will discuss where Taiwan stands in front of China and how this war will affect the world. China's expansionist policy has become a headache for the countries around it. 

A small country like Taiwan has shown China its status. The Chinese army was constantly taking stock of the attack by infiltrating Taiwan's airspace with their 150 jet fighters. Taiwan warned that these actions of China could bring disastrous consequences for regional peace. Taiwan will do whatever to defend itself. Now the question is whether the world needs to be afraid of this war.

Will China's attack on Taiwan make any difference to India? To understand this, first of all, it is necessary to know how important is the business relationship with Taiwan for India and the rest of the world and why. Taiwan is the only country in the world that is considered to be the uncrowned king of the world of technology. Taiwan is the leading product country of advanced semiconductor chips in the world.

80% of semiconductor chips worldwide are made in Taiwan and South Korea. The semiconductor chip is considered to be the brain of any electronic device. This is such an important industry in Taiwan, on which all industries from fighter aircraft to solar panels and video games to medical equipment depend on this chip. That is, there is hardly any device in your house that does not have a chip made in Taiwan.

Like India or other countries of the world, China is also dependent on the advanced semiconductor chip made in Taiwan. These are special chips on which semiconductor circuits are built. These chips are made of silicon. The life of almost all the technical products of the world resides in these chips. As far as business is concerned, according to the Department of Commerce, in 2019, 18% of the trade between the two countries, that is, between India and Taiwan, had increased to $ 7.2 billion.

Taiwanese company Foxconn does a huge business in India. At present, India imports semiconductors worth $ 24 billion i.e. about ₹ 1.7700000 crores. Which is estimated to reach about $ 100 billion i.e. about ₹ 7.3800000 crores by the year 2025. However, India is preparing to make semiconductor chips in India as well, for which help will also be needed from Taiwan.

Do you remember the time of covid, the country, and the world had to face a lot of problems due to a lack of chips? Therefore, it is obvious that if Taiwan is attacked, then business in Taiwan can come to a standstill and in such a situation it is sure to have some effect on the economy of India and also on the rest of the countries of the world.

As far as power is concerned, it is obvious that China is much more powerful than Taiwan. In simple words, China's military currently has 20 lakh soldiers, while Taiwan's military has 1.70 lakh active soldiers, much less than China. The number of fighter planes in China is 1200, While Taiwan has a total of 288 fighter jets, China has 5250 tanks, Taiwan has only 1110 tanks, and China has two aircraft carriers.

That is sea vessels on which planes can fly and land, while Taiwan does not have any such warship. China has 79 submarines, while Taiwan has only four. And most importantly. The area of ​​China is 95.96 lakh square kilometers. Whereas the level of Taiwan is an area of ​​35980 square kilometers and this fight can be done for this land.

Regarding Taiwan, there is a growing apprehension that both China and America may clash over Taiwan. It was clearly said from China that if the Speaker of the US House of Representatives Nancy Pelosi visits Taiwan, then its army will not sit silent. According to the news agency Reuters news, this new warning has been issued by the Chinese Foreign Ministry during a press briefing.

However, if there is a war, then the troubles will not reduce for China because even though China is powerful, it needs semi-conductor chips too. Before jumping into such a war, China needs to curb the war going on inside its home with its people, because the condition of China's banks has not improved yet. 

The economic condition of China is not good. If there is a war from above, India and America from other countries may also come forward to help Taiwan. Therefore, this issue has to be resolved through talks. If you have any questions, please comment on our site www.tradeipohub.co.in.