Question $8$

Read the article below from CNN $($Oct $26,2021)$:

"China's real estate crisis isn't showing any sign of letting up$.$

Embattled conglomerate Evergrande rattled global markets in September by warning it could default on its huge debts. Since then, more developers have made similar public confessions, unnerving investors and raising fears of contagion across the vast sector.

It's unclear how the crisis will be resolved. The companies could try to restructure their debts and work things out with their lenders. They could also seek bailouts from the Chinese government."

Real estate is categorized under the "Investment $($Fixed Capital$)"$ for GDP $-$ you learned about $5$ components of GDP in this class and other classes. Based on the information presented in the table below. Should the Chinese government care about the real estate industry?

Yes, Chinese president has many real estates in China.

Yes, Chinese economy largely depends on the investment portion

No$,$ China can survive well with its export.

No$,$ China should focus more on domestic consumption, not Investment.