As China's unemployment rate hiking and GDP reduces to its lowest level in a decade, China is facing a critical period of merging social unrest.
From Bloomberg: China property slump
House prices in Shanghai, Shenzhen and Guangzhou are plunging, and the global economy may grind almost to a halt next year because of it.
Construction of homes, offices and factories fell at least 16.6 percent in October after rising 32.5 percent a year earlier, according to Macquarie Securities Ltd. That's squeezing an economy already slowed by recessions in the U.S., Japan and Europe that have cut demand for exports. Building is the biggest driver of China's expansion, contributing a quarter of fixed-asset investment and employing 77 million people. Real estate investment is now close to zero. Construction will contract 30 percent next year after expanding 9 percent in the first three quarters of 2008.
In 2005, China vaulted past the U.K. to become the world's fourth-largest economy, after expansion averaged 9.9 percent annually for the previous 30 years. GDP has increased 69-fold since free market began in 1978. China accounted for 27 percent of global growth last year.
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