Why Evergrande Collapsed - Our Chinese Houses Crumbled
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- เผยแพร่เมื่อ 26 ส.ค. 2024
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We explore our Chinese apartments, and how the downfall of Evergrande was written on the wall of every tofu building in China. This is only the beginning.
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@George Washington Well I had to upvote a guy that came back from the grave just to say that. I knew you would wake up eventually, after all that turning over in your grave you did in the last 200 years.
FOMO.. Fear of missing out
Any property that can be collapsed with a sneeze and a Big Fart isn't worth Xit. 😊
I Love you Guys really a Little journay now for Little over 2 YEARS what a coincidence i discovered the Channels 2019 and since then ITS Been a Ride with Beauty and true UGLY .....TRIBUTES from Germany. Looking Forward to See you around discovering Europe and Translating even Here a Lot of crap going on
Come to clean the apartment and it's collapsed
When the news broke about Evergrande literally the first thing I thought about were those videos you guys made a couple years ago calling the Chinese real estate bubble. Was really looking forward to this follow up; thank you.
Same, I actually watched a couple of their old videos for kicks
The emperor has no clothes on.
Same
@@mybad8805 The emperor is dressed as Pooh the bear
I was telling friends and relatives about this 7 years ago and they thought I was crazy lol
I'm a certified concrete inspector and experienced materials inspector. I can't give an inspection by sight but I sure as hell can give an opinion based on what I see. I was in china and there were high rise condos that were going up near where I was staying. I went over just to watch what was going on because of my experience in the construction industry. The concrete that I saw was incredibly runny (very high slump) and there is no way that I would want to live in anything constructed from concrete that looked like really runny oatmeal. The poor quality is just insane.
I have concrete experience and what you say is dead on the money!
Just wanted to throw this in.Due to the cultural corruption sea sand was used to make concrete.Its going to get alot uglier in china.
The problem is THEFT. The spec is so many bags of cement to so much water, sand and aggregate. But they STEAL the cement... No inspections with core samples, or because of the endemic corruption, they bribe the inspector.
You have a nation of 1.3 billion WITHOUT honesty, ethics and integrity (and therefore self-respect).
It's a surefire recipe (in the long run) for failure and stagnation.
China believes its own hubris, yet it is a house of cards; they don't have the ethical foundation to build a thriving successful society and country to last.
My kid was in Vietnam and a building construction started next door. It was a poured concrete 3 story house. What shocked me was the pile of long tree branches next to the foundation. Actually the pile didn't shock me but the fact tree branches were used as rebar!! If I hadn't seen the multiple photos I'd not believed it. The climate in VN rots everything even if properly made but tree rebar was a Ripley's Believe It or Not.
Do you have video tutorials speaking on construction-side concrete methods/tech ?
In highschool I was often getting summer jobs in construction. Still love the smell of wet concrete so much cooler in summer.
Italy got 1000 year old stone houses that people still live in. Maybe we all could learn something there.
You can see in the background video that the old Chinese village buildings are fine. They last hundreds of years as well.
This is not an ethnic problem. It happens everywhere that socialists gain power.
@@DrCruel it's nothing to do with socialism, it's just shitty construction. It happens everywhere, and I say that as a building contractor.
It just gets really bad where there are huge construction booms because of property market bubbles because everyone is making money on whatever junk they pump out no matter what it is. Same thing happens in all the western countries too whenever it's allowed to.
@@DrCruel there are buildings like that all over Sicily. Mafia related. Not nearly as bad, but new Sydney apartments have construction problems, builders are now allowed to hire the people certifying the construction is good. That was a change brought in by a free market government.
@@stevem815 my dad bought a brand new condo on staten island for crazy money in the 80's, 2 years later you can see all nailheads pushing out, thin walls, leaks, real trash. but still sold for big profit 10 years later 🤷♂️
This is absolutely true. I lived in Wuhan for 5 years and journeyed all over China and saw the same thing. I lived in a villa (or a McMansion as we called it) and once saw a 2nd floor patio collapse across the street from us. The front of the complex had a magnificent fountain at the front and never worked once since the day most of the units were sold. I worked for a large building materials company making cement and we were astounded when market research showed that the average lifespan of a building in China was only 20 years. That’s good for our business but where are all these people going to go when their apartments are falling down or being torn down? This is an across-the-country time bomb ticking now.
"People in China believe there's no way property prices can ever go down."
That's how you know it's a bubble. When people get angry when you talk about systemic risks. That's true for property, stocks, gold, crypto, technology, tulip bulbs, and everything else.
Hey my 10,000 tulips are going to be worth a lot of money one day.
@@Zebleblic And your Beanie Babies too!
But... but... It's too BIG too fail!
lol tullip bulbs. nice!
also Donny and especially Ivanka !!
My uncle who has built 2 personal properties in the US is building a home in the mainland. And he's had to step back and let the wife manage it because the things the contractors were doing drove him insane. Sometimes the contractor would show up to his property with no tools, or using the wrong materials, lack of common sense etc. Also apparently central heating and cooling does not exist in China? They had to redo the entire floor plans just so his house could have modern, 'western-style' HVAC. The neighbors would call him and his wife stupid and senseless for stabilizing the soil with gravel and cement before paving the driveway. These people are arrogant farmers with no real knowledge of what they are doing.
Arrogant and stupid sums it up
wtf are these dudes talking about? so 1 million dollars is what he said for a 700sq ft apartment? he said dollars, so my question is where do the 2 billion chinese live? they all live in the streets? this makes zero sense
Woah, look at Mr. Rockefeller laying a sturdy foundation for his house! What next, are you grounding your electricity?
@@breakingames7772 stop spaming that same comment over and over, get creative
@@Ryfinius lol. No kidding right ? ..lol
I had first hand experience seeing this in China. Specifically in the surrounding areas of Shanghai. Taking the fast speed train, 300kph train around the city. You would see these clusters of Buildings out in the middle of nowhere. I had the chance to visit one of these ghost cities. They are put up over ancient farm land. The people that have spent hundreds of years farming the land were given 4 Apartments to sell as payment for their land and one to live in.
And yes i visited one of these cities.
Well, there was no heat, no hot water. Apparently south of the Yellow river, they were not required to install heat. this extends to Hotels etc. It was 50ish deg F and everyone was sitting around in winter coats. Cooking with fire outside. They had no way to pay for Gas or electricity to run the Apt they were given. It was very troubling to see. All these people displaced and their lively hood taken away with no way to make a living. When i asked about it. I was told the Chinese economy was based on how many buildings were built each year, or concrete poured. I looked at my wife and said this economy will collapse in less than 10 years. It was astounding to see.
You would be on the bullet train and see a cluster of buildings in the middle of no where, 2 min another cluster etc and so on. And also, the train was basically empty. Most all were unless you were probably within 30min of the main City.
Dont get me started on the main Cities. Inside them where "Tourists" go. Looks amazing but if you looked close enough eg. the sidewalks were falling apart, cracked, loose tiles etc. It was as if no one did any maintenance. And this was downtown Shanghai. You would turn the corner down the street away from the Tourism and it was a shadow realm. I know there are Cities like this everywhere. But this was on a whole different level. I'm not trying to act like something similar doesnt exist in Cities like NYC Detroit etc. But unless you have been to China you really cannot argue this. I have been there 5 times to different provences and Cities. The best place i have been was Xiamen. That is a coastal college town, but it was the most "Normal" and i had a great time there.
If anyone wants to know more feel free to ask me. I spent a bunch of time in China and Taiwan.
My coworkers said same. They asked about this wall that was block after block and no one would tell them why. Later they found out, the homeless live behind these walls . They were hiding the truth. Unfortunately I cannot recall which city it was.
I appreciate you sharing your observations, most economists discussing China right now have never even been there, let alone seen what you have.
OK, I'll ask: since you were in Taiwan and China: How much differs the attitude of the people? I would expect that Taiwan is much more "normal" than China with actual altruism i.e. people helping you when you are falling on the street, do maintenance on their buildings, do not sell you literal poison for food etc. (From all what i have seen about China so far it seems like their society lacks any kind of altruism that you see in most western countries. I would be interested in if you can confirm this and how different Taiwan is in this regard).
@@vampir753 i bet taiwan are much2 better than china mainland oh i mean west taiwan
@@vampir753 please excuse the delayed reply. I got pretty sick for about a week. And no it wasnt the Covid.
As for the people. the people in Taiwan were much more friendly as a whole. When i would go out by myself and walk around Taipei I would have always have very nice people coming up to me to talk to me. Thanking me for visiting their country, asking where i was from etc. They were very excited to see me and show me some of their favorite spots for local food etc.
China was the complete opposite and was actually told by my wife, who grew up in china Taiwan. Not to go outside after Dark and to stay with the group when we were walking around. Everyone from china pretty much just walked around with their heads down minding their own business. This was my experience in Shanghai and the surrounding areas. I will say the City of Xiamen was much more friendly. But im thinking thats bc it is more of a touristy/college type City. The Bar we went to that was on the beach, the name escapes me atm, was actually owned by a man from Texas. I met him that night he was very nice and happy to see someone from the States. JJ's Bar and Grill is the spot.
My nephew used to live in Qing Dao in a brand new 3 bedroom apartment which he was paying $150.00 a month. My son went to visit him, about 6 months after my nephew moved in, and it was already falling apart. He said in the lobby and halls there were holes developing in the walls, and inside the holes it was stuffed with newspaper. My son saw a repairman stuffing more paper in the wall, and covering it with what looked like plaster. Crappy build, crappy repairs. I had allot of friends living in China back between 2008 and 2018, but fortunately they all got out before everything went crazy there.
Dang. 3 years of wear on those buildings looks more like 30-50 years with zero maintenance on a properly built structure.
Or more. I'm pretty sure there are buildings made of bluestone that would be better than that after 150 years.
Dude it looks like there was a war in that neighborhood.
@@GiantTech so who should we believe and why? you? don't let me laugh. Also, if someone is a con artist, there should be something in it for them. Please explain yourself.
That's what I say it's way more than 3 years. What street is it I want to find out and prove this 2 wrong
@@GiantTech Tofu Dreg construction is a very well known thing in China, you will hear it talked about among chinese people all the time. it's not just these 2, this is a very well known thing.
In 2010, I went to Pinghu for work (2 hours south of Shanghai), and we did a test-drive event at an abandoned resort right on the ocean. It was less than 5 years old and falling apart. I can't imagine how many villages they bulldozed just to build it. Makes you angry.
"We're not experts in economics"
It doesn't take an expert in economics to realize that bazillions of dollars invested in crumbling vacant eggshells must eventually have some kind of repurcussions.
In fact, economics experts are pretty much the only people who can believe otherwise.
Economists can't see the forest for the trees. They're not down on the street observing these crumbling hulks for themselves; they're sitting in plush offices looking at numbers on spreadsheets.
@@Doggieman1111
Yet their principles describe reality and predict trends in macro scale. The Chinese housing bubble was also what the spreadsheets pointed out. Massive malinvestment.
But the economists have been warning about this housing bubble in China for ages. Its literally a repeat of what happened to the Japanese economy. Massive amounts of wasted spending and investment into dead end projects + a demographic collapse led to the lost decade. Investors like Chanos have seen it coming.
@@Doggieman1111 economic experts have been predicting this for fucking decades, it even became kind of a meme how everyone keept saying that China's economy was going down the drain yet it never seemed to happen
Until it actually happened
@@Doggieman1111 tell that to Milton Friedman. and many other economists.
you're describing a subset of economists.
and crunching numbers is essential to the practice too, fyi.
Interesting video, I talked to a chinese foreign student once and he was shocked how the USA had old building and cars and was proud of how in China everything was "new". Now I know why everything is new because the construction is so bad they have to keep building and rebuilding.
I worked in a training school and was told when I arrived that they would be relocating because there was a fear that the school was in an old building, hurting the school's reputation. The building was 5 years old
@Andy Man Yeah, and the mainlanders have little but indifference or contempt for such old things. As Hessler has pointed out, there is no university research conducted on the "Great Wall". It's only documented by volunteers, usually retired. Liang Sicheng studied at Chicago before he could return to the RoC to do his field research to identify what are the manmade structures that you refer to
The US doesnt really has old building compared to Europe. Heck even my father lives in a House that is 500 years old.
@@mrn234 *Parts of the house are 500 years old.
@@annarboriter no
Some of these properties would be perfect for filming a post-apocalyptic film
haha, i immediately thought the same thing, great for big shots of an abandoned city that's falling apart due to lack of upkeep because most of the humans are gone.
Judge Dredd
Ooooh business opportunity!!! Well, something might be better than nothing.
i bet you can even make scenes like the one in batman were he kicks someone through the wall
But the ccp wont allow that cuz it makes them look bad
I was at a conference in 2008-2009 where a rep from Lone Star Funds said when he was in China if an agent took him towards buildings that didn’t have AC units in the windows he’d tell them to turn around. No AC means no residents. Speculation has been going on for a long time.
That’s an interesting straightforward low-tech benchmark for human occupation from a distance. Depending on the buildings designs you’d expect from a distance, combined with climate, you’d expect people to want to pay extra to keep cooler than the building would naturally provide.
Next year after he left: “The fake air conditioner business is booming. Nobody knows why so many people want cardboard ACs!”
OK, here in europe we don't use AC neither. But the House we build last for centuries...
@@msnhao based on what the video shows, that is a logical progression!
Another tip, just drive by at night and look for lights in the apartments.
This was very interesting. I've a bit of history in the Vancouver B.C. area and real estate there is so expensive because many Chinese people buy property there and never actually come and live. This has driven the price of real estate out of reach for most Canadians in that area. Market distortions . . . .
When you showed us all that decaying housing in China, both new and old, I asked myself, "How long can a real estate market possibly last, when the houses fall apart in just a few years, and no one repairs them?
Here in NZ, I live in a 100 year old wooden home, albeit after massive earthquake repairs, but most of the house is that old. I'd expect it to last another 50 years at least. And NZ homes are considered not to be permanent.
Good luck with satanist woman president.
@@MastarCheef1337 How original.
It shows how much their minds are in a bubble. After years of denying their lying eyes under communism, IS IT A SURPRISE. I had a chinese boss in a vineyard talking about how good the place was and I would feel like saying "what vineyard are you talking about? You've got 300 meters of CONTINUALLY dead grapevines in areas here". They would break off at ground level and start swinging in the wing and leave a big scratch line in the dirt where the stem was blowing back and forwards.
When I lived there I observed: an innate unwillingness to maintain properties or any other capital investment; no zoning; no inspectors; no trade standards; no legal penalties; and made guys (Party members) doing whatever they want.
"Made guys" sounds appropriate
Welcome to Communism, where some are more Equal than others...
The problem is the cronyism. People would demand better standards if there wasn't so much crooked interference by the government (see rent-seeking).
Lots of zoning, inspectors, trade standards and legal penalties.
What there is NOT is enforcement.
Well that's great that the real estate market is collapsing. Hopefully Armageddon is next on the agenda. Fingers crossed 🤞🤞🤞
I really liked those old videos of new buildings falling apart.
A vision of a future Post-Wh1t3 society.
Excuse me? China only has amazing buildings. How could you possibly know what China's apartments look like if you haven't been here? These people are just defaming the great China, they know nothing
This comment is about to get underrated status.
Same as what Newsom wants in CA. ✅🤡
@@QuixEnd Great joke! Underrated tbh
The 2008 financial crisis was set up by similar problems with real estate and lending. A few analysts asked the American banks and lending institutions (before the collapse), "What do your algorithms predict if real estate prices drop, even slightly?" The answer was "Our computer models aren't set up to take that into account." China's present crisis is similar and could lead to a world wide recession again.
Fortunately the world isnt as dependant on china as it is on the US, it was going that way but covid + the trade war + just the general attitude of the chinese goverment has caused plenty of companies to leave china and invest in other places which will probably cushion the blow
It's still likely to cause problems specially on countries that relly more on chinese products but in general it's not going to be as bad hopefuly
There is a good movie with Christian Bale about it i think its called "The big short"
@@mrn234 Yeah those guys bet it would happen. They are currently not short a quid.
@@newperve yup its crazy how complicated and layered all this stuff is
@@carso1500 I think that a lot more of the world depends on Chinese manufacturing than you think. I go out of my way to try and not buy anything made in China and it's really hard to do that sometimes. Start paying attention to where things are made more often and you will see what I mean.
when a wooden house would be more solid than a concrete one, you have a big problem on your hands...
When I was in Chengdu I stayed in a house (actual house, not apartment) in a gated community that had an RMB 8-figure entry price. Even that place has uneven flooring and tiles coming unglued. Then there's Global Center; USD$500M to build and 5 years after opening there were buckets in the foyer to catch the falling water when it rained.
Wow, this is an entire "ripoff" society. You'd have better luck in the Macao casinos than hoping for long term appreciation. They've wasted all that effort (and whatever materials) and will have nothing to show for it in 10 yrs time.
This is a echo of the 60s in China where the govt wanted metals, so people got all their pots taken. Of course, you can't make steel with pot metals, so again, shitty result and all wasted. Their condition will be lower every time they do cycles of this. This is even crazier than I had ever thought in terms of speculation.
Its made in china no wonder
Hey guys, have you heard anything about counterfeit or adulterated cement? I have a friend who recently left China for NZ, and he told me that the last place he lived had poured concrete walls that were just spalling and crumbling after two years because the sacks of cement used to make the concrete were diluted with inert material. They'd look OK when you stripped the forms, but it didn't take long to start deteriorating. Dangerous a hell.
That can happen when using unwashed beach sand, There are reports of mass ocean dredging for sand for construction. Washed river sand & clean aggregate and Portland cement makes the best concrete for general use, high Mpa is expensive to mix and should be batch and cured pour site samples sent for lab testing.
@@DukeOfTwist Yeah but cement was mixed with something else. For all we know they could have mixed it with dirt or ground stone or something.
@@abyssstrider2547 they fill the walls with coarse sand you can find videos of people breaking through walls with their hands
@@carso1500 Oh wow.
@@abyssstrider2547 There are two common things that are added to cement: fly ash and ground granulated blast furnace slag (there are others). These materials - in the presence of enough cement - act like a weaker version of cement and bind to the cement when it reacts with water to form concrete. These materials are known as "pozzolans".
It's fairly common to use some of one of these pozzolans. It saves money because it replaces cement in the concrete mix and usually doesn't significantly weaken the concrete.
But if you use two much of it then the concrete will be significantly weakened which can result in premature failures.
I don't know of anything else you could or would add to concrete that would enable the concrete to not collapse immediately.
However if spalling has been observed then probably the rebar has been rusting as this is one of the few things that causes spalling. Rebar corrosion is usually because the amount of concrete between the rebar and the surface of the concrete is too small - this condition is called "insufficient concrete cover". Designing and constructing to the right amount of concrete cover is neglected to save money because it's cheaper to make thinner walls and you can still have them handle the design loads.
It’s truly painful to see the waste of resources expended on these blights on the landscape and society. They are worse than worthless as a waste not only the resources on building them but the necessary further resources to remove them at some point in the future, or they’ll just be a dangerous, overgrown wasteland full of traps for the curious.
Was in Beijing about 3 years ago and drove through one of these concrete ghost towns. Miles and miles of bare 50 story concrete buildings. No windows or doors. Just poured concrete. The whole area was completely abandoned.
This makes a lot of sense. I had a friend who rented an apartment in the US. The property was bought by Chinese immigrants who later started intruding into the apartment without his permission. He told me one time he woke up from sleep to find them going around on his balcony to take measurements. This was after he had a big fight with them, telling them they were not allowed to go into the apartment without his permission. The fact that they had used a ladder to climb onto the balcony was baffling. He moved out after his contract ended and that situation actually made him look into buying a house.
No this makes no sense, wtf are these dudes talking about? so 1 million dollars is what he said for a 700sq ft apartment? he said dollars, so my question is where do the 2 billion chinese live? they all live in the streets? this makes zero sense. they have to live somewhere near cities to make all the crap we buy
@@breakingames7772 why do you keep asking the same question on every comment? Are you CCP shill or something?
Lol I would’ve beat the fuck out of them. (If they were in my apartment of course) I’m not a fighter
@@breakingames7772 and yeah why do you like China so much lol
@@bigbeartanner I would have killed them with conversation with a beer and my birthday suit. I would squat, it’s rude to show the soles of your feet after all.
I know a Chinese girl who had purchased a apartment in China before she moved to Australia for study. She decided to stay here and became a Australian citizen.
She then discovered she could not sell, rent out or give away her apartment as she was no longer a Chinese citizen. It now sits empty.
Well..that sounds quite dodgy - takes ages to become a citizen, she didnt have to become a citizen but could have stayed a permanent resident, China doesn't allow its citizens to give up their Chinese citizenship anyway and its really only done in extremes such as refugees and she could have sold, rented or gifted to her family
Did she become a citizen in 2-3 years or what?
@@JC-zv3cv China prohibits dual citizenship, if you obtain citizenship from another country, you're no longer a Chinese citizen (when convenient for them).
I lived and worked in China for years and I completely agree. The Apartment we lived in, the basement had a huge crack in the basement that they have had to fill in several times each year.
Who would have thought, starting the wildest kind of capitalist economy in a country led by the most despotic communist government would lead to some kind of contradictions? 🤔
Yes , who would have thought , communist tyrants getting a taste of mega money and Not behaving well .
@@christinebeames2311 😉
Around 2009 a book was published which was titled "This Time it's Different: Eight Centuries of Financial Folly" by Carmen M. Reinhart and Kenneth F Rogoff. It's a really good book which compares various financial crisis going back to the Middle Ages. The authors are still with us. I think future editions will need to be updated to include China's real estate bubble.
Many of the previous economic disasters had one thing in common. People; often self proclaimed experts, would claim "This time, this situation is different. Forget the old rules of market valuation. This new economic miracle has little or no similarity to past disasters." They were always wrong. So, it should come as no surprise that the claim that Chinese real estate would never decline in value is also turning out to be false.
I´ve bought property in China. Because the apartments get rotten so quickly I bought it new and sold it 5 years later at 3x the price. The day I bought it I already knew I would sell it. As you guys said the apartment was provided with naked floors, and water pipes (only cold water) sticking out. There was western style toilet though.
The toilet waste pipe just went to the street.
...so you just described a literal Ponzi scheme...you made it out of this one with a profit...now talk about the one you lost your ass in...
@@puzer1 yeah for real
You're part of part of the problem Alec
@@peskyjay1091 Nope. I am an investor who bought a property, lived in it, and sold it later on. I don't like to pay rent that's all.
You guys have much better idea than many of the academic intellectuals about what is really going on in China. Nice work!
China kind of reminds me of the Mistborne trilogy by Brandon Sanderson, where the whole world is run kind of ham fisted, but roughly staying afloat, until the end of the series where it all just collapses under its own weight.
I wish the U.S. government would change our laws about selling real estate to non-U.S. citizens. By allowing rich people from all over the world to buy American land, that forces us and our children, grandchildren, to compete at higher prices just for us to live in our own homeland.
Idk this is a really tricky one to me. As much as I know that would be the right thing to do for Americans. I am a trust fund kid.(Not a kid tho I am a parent in my mid 30s). But that's because the Chinese have been buying all the property where I grew up and my parents inherited and bought land.
I woukd say non-resident instead of non-citizen. I know several people have jumped through all the hoops and followed all the laws but are still striving to get US citizenship. These are exactly the people I want buying a home near me, far more than investors buying property US citizens or not. To me the important part is weather or not the property is occupied.
Molotov cocktails exist.
@@MachineMan-mj4gj no you have to build one. Which is illegal to even think about. So don't do it unless you want serious time in prison 😜
Why
You don't like competition?
We lived in Shanghai (Pudong New Area) for 4 years (2012-2016) and both of our apartments were crumbling to bits, and they were only 10 years old. They were loaded on the inside with expensive marble and expensive fittings, but the buildings themselves were rickety and cheap.
I lived in Shanghai too, in a 100 years old house built by Spaniards in Jing'An. The house was perfect, I couldn't complain about it, and I didn't understand when my friends complained about theirs. Just some of us living in houses built by French, English, German or Spanish didn't complain.
@@m.m.7514 The REALLY wealthy areas had single-family homes with private lawns, like maybe out towards Jinqiao. I remember a lot of those stucco houses with the spanish-tile red roof cladding. Those often WERE nicer builds.
But the apartment compounds... YIKES.
This was in the making for years. I remembered that initial video directly.
Timing is pretty funny, I just had my apartment bought by a new investor and we had a scheduled get together and house tour the same day this video came out. And unlike serpentzas experience, my new landlord actually preferred if I stayed instead because the house was in good condition after 4 years and I've never missed a rent. In Finland a tenant with a good reputation can actually raise the value of the apartment tremendously from the investment standpoint. In other words the value of the building goes up if people actually live in it or use it, as it should be.
Finland sounds cool
Yes but Finland's economy isn't built almost entirely on a gigantic scam ponzi scheme, as China's is.
Yea no fucking shit the value of a property is maintained if someones living there, nobody should need anybody telling them this
For the past 2 years I had been recommending over and over to Chinese friends to dump property investments and put their money into tangible stock like semiconductors. However, the herd mentality kicks in... "My friends all invest in property, so it must be great for me to do it too" Now its all about "ooh...why an I having such bad luck? How could I have foreseen this?"
Yes there is great profits making fake semiconductors. The Chinese stock market isn't much less of a rigged game. Between lack of government controls, to the fact that the communist government can change the rules, takeover any company, ban crypto with the stroke of a pen, with a huge dollop of endemic corruption leaves Chinese savers with few if any wise, legitimate ,safe investments.
@@stevep5408 LoL the difference betwen crypto and the topic of the video is that the crypto is much bigger version of the same "problem" that people are blinded by the idea of "free profits".
China baned crypto because contrary to this, noone in China was in charge = bribing politicians to not see a problem in it...
While living in China for nearly seven years, I saw this same ignorant idea play out as I was told over and over "Housing prices ONLY GO UP, so I must buy ASAP." I asked a friend "What will you do when your overpriced apartment value crashes?" He said "Impossible, impossible!"
...lol, did you even watch the video?...these guys on the ground literally told you there was zero safety in the Chinese stock market...the smart Chinese aren't investing in Chinese real estate, they're investing in the US and Canada...those markets will have a reckoning of their own but at least the tangible properties aren't disintegrating in 3 yr span...
@@puzer1 We already had our real estate crash in 2008. I suspect that we'll repeat in a few years but hopefully not as bad as 2008's. Same with our stock market, but based on observation, the stock market tends to recover more quickly.
I have been there.. I spend over two weeks traveling by rail, boat, bus and plane. And yes, this is true. I was almost afraid to walk on the streets...not because of the people, who were quite nice, in a distant sort of way, but because of the wiring on the electric poles in the larger cities. I've seen plates of spaghetti looking more organized.
Ha ha ha. Love the spaghetti imagery.
I love how they describe 700 sq ft as "tiny". In London and Manhattan, that would be described as generous. LOL
I don’t often comment. Just wanted to thank you guys for all the videos you are doing to update everyone. You offer so much useful and interesting insight.
I live in a house in western india,which was built with lime mortar and bricks,,it is 65 years old,and still more stronger than new cement concrete rcc buildings,,
Our forts are more than 1000 years old,and still as strong as 1000 years back
I love the brick architecture in India and the surrounding countries where it is quite commonly used. Very beautiful and pleasant to live in.
@Sen Se What're they built out of?
Holy crap, that was just a 3-year-old building? Heck, I own a 10-year-old building, never did renovations and it's still as good as new.
Quality speaks.
I'm living in a 114-year old house (US).
Most of my relatives live in 300+ year Old appartments (Denmark)
I live in 160year old brick bulding, in slightly seismic area due to mining (2-5 Richter scale) and is in better shape than those.
My building is a Glasgow tenement finished in 1889.
And it is _prestigious_ condition.
Wow, I had the same thing where we'd get constant real estate agents knocking with clients trying to come in and see the property. When I asked our "landlord" she told me not to let them in or she'd sue me (empty threat, I think, but we weren't letting them in anyway) - I imagine she wasn't the owner and was subletting it to us, and didn't want it to get sold. These ones, at least, stopped coming after we started getting angry.
When i was in Beijing i worked at a school in the middle of a new apartment complex and until they sold every apartment it was great beautiful lawns flowers wonderful streams running everywhere with wonderful fish swimming around but as soon as it was sold fully everything changed grass died flowers died and one day they drained the streams and netted the fish and that was it paradise gone.Take the money and run.
I guess they don't believe in paying for maintanence
Glad you guys brought this up! It really ties in with all the videos you've done on the shoddy constructions and empty cities.
I know a Brit who bought an apartment to live in Foshan next to Guangzhou, he told me at the time that the price would skyrocket because it was going to be near the new high speed rail station in that big Guangdong project to link every cities around the Pearl River Delta with high speed train every 10 mins like a metro. Little did he realize that the price had already risen the moment it was announced that one of the high speed rail station was going to be near there, and not once it was built. He missed on the initial rise and now the city of Foshan has implemented measures to limit real estate speculation, so his flat is worth less than it was when he bought it LMAO.
Conversely, when we were looking for our first home, the agents took us to a rather nice house with a long stretch of clear land over the back fence (in the middle of suburbia). Told us it had been zoned for a major new road for many years but that 'It'll NEVER get built". Yep! I use that road regularly now along with heaps of others!
He obviously hadn't heard of the efficient market hypothesis
It's happening here in Australia. The houses going up are getting dodgier and dodgier. The customer has no idea that the "builder" is paying 16 year old drug addicts to putt your house together. Not to mention the quality of materials used
Quality of materials is a worldwide problem. The trees that made all the old houses don't exist anymore. Native lumber is gone. Bricks used to be made types of clay that have played out for easy harvesting. On and on and on. Now we have materials that are comparable or better, but it's more expensive. Noone wants to pay the cost. That's on the buyer. So's the 16 year old drug addict building the house. I have talked to too many carpenters with decades of experience getting out because there's no money in it. Home owners and buyers are unwilling to pay for the expertise. Get what you pay for. Unwilling to pay 100% more for a house built by a crew of old guys that have been doing it for years and years that know their craft, you get the 16 year old drug addict. You can go out and buy a piece of land, hire a truly competent crew, souce best materials, it'll just cost three times as much.
Drug addicts have been building your houses for generations, even the nice/well built ones.
Ned Kelly your politicians. They deserve it.
Hahahaha mate that's pretty harsh funny, true but harsh hahaha
I am not as well-versed in Chinese cultural norms as you two. However, I am a former US government official. I worked in the US Foreign Service, in a number of countries in the US Near-East Asia bureau in the early-mid 2000's, when China was just starting to ramp up their expansionist policies. I know enough about Evergrande and its inevitable crash to believe that two things will likely happen: 1. When the crash occurs due to the payment default, China will conduct a cyberattack on Western businesses and likely their stock markets. 2. As a distractor, they will become much more aggressive towards Taiwan. Yesterday, 3 October, China performed their most aggressive military posturing to-date, flying 52 bombers and fighters into Taiwan airspace. This action is directly aligned with the upcoming Evergrande default that will have a major effect on global markets. And as the two of you know all-to-well, China's actions and reactions in the near future will be about saving face, as is the culture of China, even prior to the rise of the CCP. I'd love to hear your thoughts on these possible scenarios I pose. Feel free to even reject my futurist outlook as uninformed conjecture; I won't be offended.
When you're young as long as you got internet it's a cyberpunk aesthetic, when you're older it just becomes a shithole apartment.
You've just summed up my rental history. 😃
WOW, those abandoned villas literally look like it survived a war. How do those buildings ;degrade that fast?
Shoddy construction with sub-par materials
And no maintainance.
All it takes is watching them do the construction and everything will become clear.
They are made in China.
Acid rains from all the polution in the air and concrete with so little cement in it that the acid rain can easly flush all the chemicals that normaly holding the particles of sand together.
I'm fascinated to hear about "the real China" from a foreigner's perspective.
Very insightful, thank you for this.
I used to live in Australia. Lots of Chinese invested there. I came up with the idea of building a building with no finishings, except a block of gold epoxied to the floor. I thought I could sell these out in minutes.
And you would have been 100% correct. Base metal coated in gold would also work, for reference
I love how everyone thinks someone else is the bigger sucker. Everyone knows it’s a con job but they still think they’ll get out in time.
The CCP leadership has been stashing their money in overseas real estate for years now.
That's the problem with FOMO, even normally smart people do the weirdest shit in the face of what is clearly a bad investment
That’s something every bubble has in common, people just keep thinking “there always will be a bigger fools who will pay much higher price”. Until, you know, they realize they are the one.
Funny how that is almost universal in gambling, bubbles, speculation...I think it is the greater fool or something but - people in it always think they can time it and get out at the top. It is strange how human psychology does not understand that is one of the biggest reasons why bubbles are bad and the house usually wins...people are smart but many just stiĺl fall for it because they are not the ones running the gamut.
Unfortunately, the Chinese people have no experience with "bubbles". This will be their first to pop. The CCP will interfere in their markets even more that the US government interfered in its markets. Some of us tried to warn the US population about a real estate bubble that began to form in 2003. Industry insiders like me were surprised that the markets continued for as long as they did without crashing because when you looked at the fundamentals, they detached from reality five or six years before the markets finally imploded. As time went on, the absurdity that was happening around the globe in terms of how assets were underwritten versus what was realistic was astronomical, but that said, it is nothing compared to the utter absurdity in China. There is no way China gets out of this and they will not be able to cover it up. Its way too insane. Unfortunately, this means the world is in for a rough ride over the next few decades. Buckle your seat belts boys and girls! Looks like we are headed for a sh*t storm!
"You owe me money."
"Would you take a parking space as payment?"
"Where is it?"
"The future..."
Make sure it's not one of those tandem spots where you'll be blocked or you'll get a call at random times to move your car out of the way
It's basically a scrip dividend
How about a grave site by the old oak tree?
Does it come with a fortune cookie?
underrated comment
Whenever the Chinese Real Estate bubble conversation comes up I always mention your guys' ride videos. Nothing like seeing someone ride for 20 minutes through empty high rises to drive a point home.
I find your idea of a “tiny apartment” hilarious. Mine is 83 square meters in the Paris suburbs and I consider it a good-size apartment.
But the average family size in China and France differs....
What's Chinese for 'chambre de bonne' ?
You could live in there with a wife and 2 kids. If you're alone it's almost too big to be honest.
@@G-Mastah-Fash I’m not alone...
Your entire homes like the size of my bedroom and bathroom and i just live in a trailer
First a ship named Ever Given owned by a company called Evergreen clogs up the Suez Canal. Now a real estate giant named Evergrande is collapsing, taking much of the Chinese economy with it. I think the lesson here is never begin a business undertaking's name with "Ever." Ever.
So arrrrgh, do you think 'Nevergrande' or would be better, a bit like Neverland.
Maybe Chinagrande would be a better warning?
Titanic, it's unsinkable!
Postpone that drive through the Everglades...
@@kevinslattery5748 And Arianna Grande had two people shot at one of her concerts.........in Britain???!!
@@kevinslattery5748 Two words: CHI NA
When I was living in Nantong, Jiangzu I had a friend named Ever who had women's fashion stores all over that province. They were titled EVER CLOTHES, I thought what a bland name and suggested she use FASHIONS BY EVER.
You guys are really giving us a unique perspective into this entire thing. It wasn’t really as clear to me before
A reminder that the fraudulent Chinese housing market was unleashed upon the world. Chinese people with their unearned wealth would flee to other nations and buy up homes there in huge amounts using their funny money.
its just 25 cents for each Chinese person..its ok...chill out Man!
70 m2 might be tiny for the US but it's actually a perfectly normal size for a 2-bedroom flat in Europe, for example. In bigger cities people live in much smaller flats than that.
The truth is whether they like it or not, the Chinese government is working to improve the quality of life for the average citizen contrary to so call western democracy.
In Canada that's about as small as 2 bedroom apartments get. But here in Vancouver there are plenty that size. A normal 2 bedroom is ~100m^2. Smaller spaces would be fine if we could get smaller appliances like you have in Europe though - it's just that most of the buildings that are cheap are from the 70s.
Mostly occupied by lower class residents though
@@yvesderival634 I'm gonna have to press 'Doubt' on that, as someone in a western democracy(Norway) that is in fact keeping quality of life quite high.
@@Darca1n The whole idea is to put the Chinese government down.I live in a western-style democracy. Things are not perfect as they pretend to be. Why can we be fair and square? Thank God, the Chinese don't send mercenaries to Mali and Haiti to kill innocent people.
These dudes got balls of steel! I love watching their stuff. Soooo interesting!
The 2008 bubble happened the same way. People were told "it's a sure thing". Thing is, there is no such thing as a sure thing in economics.
Death and taxes are a sure thing.
Hopefully their military equipment is just as crap
It is. You couldn't believe the things that equipment does terribly wrong.
Sadly a lot of it is not garbage. A lot of their equipment is just as capable as dangerous as the United States or Russia or any major power.
@@humansvd3269 it's cheap and stole technology they don't truly understand, besides the average chines soldier is under protected because they rely on zergling rush tactics, the corruption and the low quality of their soldiers, since they've grown in the most polluted country on this planet.
@@nosotrosloslobosestamosreg4115 if you steal the technology then you could probably make a cheaper but just as effective. They may still use a conscript for but they're just really trying to sway away from that.
@@humansvd3269 They copied and made cheaper but can't keep up without stealing again. China has been twice ahead of us in technology rightly after our civilization collapses but when we restarted the engines we skyrocket.
That nord vpn ad spooked me so bad
Shout out to Oklahoma where it’s a great deal for property. The cheapest rent I’ve seen in the capitol city is $450 for a 1-bed 1-bath with a 1/4 acre back yard, and in a good area near schools. I’ve seen 5-bedroom 3-bath houses with huge backyards in gated communities for $130K to own. Some places, people only pay $900 property tax, and own a nice property.
This is by far the best video on why Evergrande like situation happened! You guys showed this almost 1.5 yrs back.
I'm in the process of buying a 100-year old traditional Japanese house and it's in better condition than these 3-year old Chinese houses. From the moment I arrived in China (Guangzhou), I've felt like most every "new" building already appeared old and structurally unsafe.
The only way you're going to get a structurally sound new building in China is if you build it yourself, or import a pre-build (such as Tomoku Hus).
Better off living in a shipping container with windows at that point.
Your "traditional Japanese house" will be grabbed by Emperor She's political friends in a few years. Don't expect any compensation, just leave or you'll be put in a zoo with no visitors except the organ harvesters.
@@robertscheinost179 what
@@BIackCadillac What what?
In the US, our market-based economy imposes discipline. In 2008 the real estate market crashed, folks went out of business and were liquidated.
This was the correction. Eventually, sanity was restored.
I am absolutely loving these videos. So glad I discovered you guys
It would kill me if I worked in construction having to build something you know isn't structurally sound just to make money and cut cost with the cheapest material that barely holds up against physics.
This is a really great point. What’s going on when you can trust hundreds of thousands of construction workers (at every level) to design and build stuff like this? And what does that do to them?
There’s something here. A cultural as well as economic difference that comes down to - you take pride in your work, but the people who built these structures see no reason in doing so.
@@edoboleyn The Great Leap Forward has a lot to answer to. Anyone with education and indeed know-how was seen as decadent and bourgeoise - that and anyone who would tell CCP agents that ' this is a bad idea. So much knowledge was lost and so many ancient artefacts and buildings were demolished so that was also lost. Not to mention generational trauma being a thing with everyone from before the 1960s being touched by the ensuing famine.
Are you forgetting how China sold fake baby food to families, the babies passed away before the families figured out there was no nutritional value in the fake powder. And the tainted pet food, that also killed many pets……..all for profit!
Besides construction, what other industries have huge profit and could be putting that profit before the wellbeing of people??? Big pharma?
It would kill you inside and potentially kill other people with the building.
@@edoboleyn They're soulless drones, that's the only way I can explain it. I couldn't live with myself knowing I built a house that'll collapse onto the residents in 10 years. That's just fucked, I'd rather be a vagabond than work in a job like that.
Dang, you guys called it years ago. I remember watching those videos in disgust. Now it's time to pay the piper.
Buying sight unseen is common in Australia.
We've also got an enormous property boom happening.
There are many chinese people buying up land in Australia and we were renting a house from a real estate agent, and while living there we found out a young rich chinese couple bought the house without going through it, they only saw a photo. This is while they still lived in china. After a few months of renting it they decided to sell because they saw the property prices go up and wanted us out before they found a potential buyer. We had signed a lease for a few years, and we were pissed and told the real estate agent about tge problem who also got pissed because they were lied to by the chinese couple. We ended up doing the same thing as what Winston did , got the people who wanted to view the house sign a contract that they would keep us on as tenants or they could not come in. After the house came off the market we had to explain the law was on our side and they had to do what we said about who comes into the house etc. We had made them sign a contact stating that they would not sell while our contract was still in play. As a renter we had more rights on who comes into the house than the chinese owners, which the chinese owners did not even know the aussie laws. Even the potential buyer were lied to as they were told they buy the house without tenets being in it. By law they had to tell the potential buyers we came with the house, alot of them were also annoyed at the chinese couple for not disclosing everything. When other people came in to look at the house we did everything to scare the potential buyers from buying it. The chinese couple did not like us doing that.
Its very common for chinese land developers buying land and property and to get around the laws, they either "donated" to the local governmet, council that they can not demolish the shopping center to build there home, they would stop maintaining the building so it will be such a hazard it would eventually have to be demolished. Fortunately the council knew what was going on and recieving may complaints from residents, the chinese company was forced to upkeep the shopping center and ended up selling it at a loss. Its a common practice by chinese land developer's, some times it works. China wants to slow over take Australia, they have said so, either buy us out or breed us out. That aint happening as aussies are a stubborn lot. The government was going to sell the largest cattle station in Australia 1.6 million hectares to a chinese developer, The public protested and the government went back on the offer.
Can you guys please do anotther one of these on the Chinese energy crisis?!?! I learned SOOOO much from this video
If I were walking around those buildings, I'd probably keep my motorcycle helmet on so a piece of material doesn't fall and hit me in the head.
Similar story in Vietnam. Buildings are very poorly constructed. I moved into a newly completed house and within weeks it had settled and a massive crack appeared in the ground floor wall through the entire building and almost toppled the wall around the front yard. The lights and power outlets stopped working. Some had never worked. Paint bubbled and came off the walls. Varnish rubbed off the stairs simply by walking on them.
The first decent rainstorm drained all the water from the roof down the central stairway, thereby flooding the entire house from top to bottom. The floors were cheap wood, so they rotted almost immediately as a result. The landlord tried to blame me for the floors by saying I had been "jumping on them".
I moved after only a few months as arguments with the landlord became almost daily as he tried to blame me for the increasingly appalling state of the building, or devised nonsense ways to try to jack up the rent to cover repairs.
The final straw was when a friend came to stay, he said that "the more people living in the house, the higher the rent, just like a hotel." Well, that's not how leases work. It's also not how hotels work. He wouldn't let it go. I was tired of the endless arguing and moved out.
It would be interesting for you guys to cover the purely financial side of things. Supposedly, Evergrande was offering its employees Wealth Management Products (WMP) which seem similar to corporate bonds, except they offer high rate of returns (~25%). Of course, Evergrande never paid off any of these WMPs that they issued to their employees and now part of the fear is that they will also default on their overseas bonds (as well as commercial paper). I know you guys spoke about the speculative real estate bubble in China, but have you ever known people that bought WMPs? Are they almost never paid back by the company that issued them? Will we see other Chinese companies collapse under their own astronomical debt like Evergrande?
You guys do the most fascinating videos on China I've seen and probably know more about China than most so called western experts who've never even been there. Fascinating. Thanks.
18:00 we also had that same exact experience (even looks nearly identical) where the water pools stopped just months later and so basically you had worthless blue-tiled caverns full of rusting sharp metal and litter. I have never seen working outdoor escalators past the 6 month mark and ours also became rusty danger-stairs.
@@Keepskatin That's a very bad take. Most first world nations are the most heavily developed in terms of military strength. So, wishing for a catastrophic economic collapse is kind of dumb, because we know where that road leads.
@@Keepskatin You show a very childish naivety. Captialism gives you the opportunity for wealth, if you are prepared tom put the effort in. Presumably you want something nothing?
This was so good. I wish I have seen it earlier. Thank you guys for your work.👏👏✌
I use to live in China. I'm from the USA and my best friend there was British. We use to walk around a lot and drink because we were bored out of our skulls most days. I said to him, "This is a Ponzy Scheme" as we looked at the buildings. They were new and already falling apart. Turns out, it was a Ponzy Scheme that would make Ponzy blush. These ghost towns were even in big cities like Shanghai and Beijing.
I've often wondered: Since so many properties were just empty, was squatting much of a problem? Would anybody even notice if it were?
Nobody is homeless in a Communist Utopia that has solved all of modern lifes problems by lying and Jail
They still hire old like uncles to guard the buildings. Watch from the channel The Proper People their urbanx videos of abandoned Chinese buildings.....really binge worthy!
I doubt squatting is a problem. Unlike in the US, I don't think squatters have any rights in China. They'll just drag your ass out, lol.
@@addanametocontinue not all areas in the us have squatters rights....not where I live.
I wouldn't squat in any of those buildings unless I really had to go really bad.
I always thought it was interesting that the Japanese-built buildings (from when they occupied) in my husband’s city were known to be the sturdiest buildings in the city. Even the neglected old Japanese buildings were in better shape than the “modern” Chinese ones. I was like, why don’t they just copy the Japanese buildings? He told me that the Chinese people had tried to pave the main street in town, which was cobblestone, also built by the Japanese, and they tried to tear out the cobblestone but couldn’t do it bc it was too sturdy. (They couldn’t blow it up either.😂) So they just paved over it.
@Mike in Halifax but it's a much better constructed story.
Hell old Soviet era apartment blocks are holding up better then these CCP ghost cities...
Just copy the Japanese? Of all the unusual things I've heard about the collective Chinese psychii, a disdain for anything about Japan is the one thing I can understand. It's not *logical* by any stretch, but it's understandable.
@@mfree80286 The true irony being that they are behaving more and more like imperial Japan in the lead up to WW2, while thinking they're the morally superior ones.
They pave over cobblestone in Europe as well
This is sad. Im from South Korea (Canadian currently), and we owned an apartment in Seoul. Shit is over 50 year old. Theres been talks for reconstruction or renovation of the complex for about 10 years now, but the government wont give the permit to reconstruct the complex because its too sturdy lmfao. Even real estate companies and construction contractors are hesitant to break it down because its just so costly and hard to do. Housing prices are prob double in chinese cities than ours, and theirs is turning to piles of rubble in less than 10 years.
"200 thousand dollars is expensive" meanwhile in Australia where apartments are selling for over a million
Maybe one day people will be making videos like this about Sydney. Sounds like there's some pretty dodgy construction going on here too.
I actually went to a friends apartment in Strathfield and the buildings were in a pretty bad way and they would have only been 10 years old at most. They had loads of scaffolding up to repair facades and balconies and you could see cracks in the walls everywhere.
That video from 2018 I remember watching that when you first uploaded it and I'm still here watching your videos thanks for the years of great content. Stay awesome 👍
That is why average Canadians can't afford to buy homes.
It's hurting our Kids too in Australia. We passed Federal legislation at the start of the pandemic that no foreign investment can proceed without oversight, down to one Dollar!. We knew they'd come after people/businesses suffering from shutdowns. Pity we didn't do it forty years ago.
@@brettkemp4219 It was even more ridiculous in Canada. The government knew the Chinese were not paying taxes on their real estate flipping but did nothing because they were a racial group. Can't be seen as being racist.
@@larrydugan1441 That's right Larry, don't upset the woke/Marxist mobs regardless of the consequence. I'm sorry to say but your Prime Minister is not helping you guys at all. Australia is in a fight with the new "master race" at the moment. We'd had enough of the meddling and demands if we wanted to stay in their good books. There are other trading partners and we're better off without their financial ties.
@@brettkemp4219 Vic is hurting everyone. They are all trying to leave and buy houses in other states, driving up the prices
The problem is Larry, our western governments have sold us down the road to China.
8:28 -> A 200 square meter house is huge(in europe it usually means 4-5 bedrooms, 2-3 bathrooms and a big livingroom), it isn't a tiny apartment but a full sized multiple generation home . 200 sq. meter = 2000 sq feets .
Agreed. What are they talking about? 200sqm is huge for an apartment and a medium sized house. How much room do these guys need? It's not like they have a family of 5.
I tought that was a conversion error.
This seems awfully familiar to what's happening now in Australia... huge housing bubble about to pop
So they build the homes they live in with the same quality standards they do in the manufacturing sector? Consistency guess.
Not a very accurate statement. A lot of well manufactured goods come out of China too. Sometimes it's easy to get on the band wagon and diss something/someone to look good at the time but facts should be the driving force in your thinking.
@@grantadamson3478 your opinion I guess. Their are thousands of manufacturing companies in China and the ones that do produce quality products like Apple or Samsung products are at the demand of the foreign owners of the company. There will be a few outliers but generally 99.9% of them are junk. It’s cultural. For whatever reason the Chinese and many Asian countries are not known for quality.
@@SMarti018 No. It's not an opinion it's a fact. Samsung haven't been manufacturing their products in China since 2019 so that's not correct either.
From the underwear you are wearing to your Ebike and a myriad other products that are either made under license or not most popular consumer items coming out of China are good quality. Sure there is rubbish too but that is only a small percentage.
I work with electronics produced and designed in China. I seldom have any issues with quality and the pricing is very good.
@@grantadamson3478 If you don't constantly monitor, you can expect some corners to be cut where it's perceived it's invisible. It's hard to cut corners in electronics because the only hard costs are on parts that are critical, and it's hard to cut corners with clothing because even an economized machine-produced item is usually acceptable looking and wears well enough.
It is the realm of "good enough", which is true to the phrase... the items are good enough. But you better be on your toes with receiver-side QA, or you'll end up shipping something daft without knowing and ending up like Harbor Freight, exchanging *years* worth of stock in Chinese produced vehicle jack stands because the supplier's machinery wore out and nobody bothered to stop the line and fix it.
@@mfree80286 You would be surprised at the varying quality of electronics. It's not a case where it either works out of the box or it doesn't.
Corners are easily cut and you don't find this out until the system is up and running and then you find they didn't perform the solder dipping process correctly or a thousand different ways of cost cutting techniques that late present themselves as problems. Unless you actually know how electronics are made you wouldn't understand. We don't have time to test all components.
I'm just saying that some very good and cheap products do come out of China and to dismiss them as a market would be stupid.
70 m^2 is a decent size. The size of North American apartments just makes everything else look small.
If you can move to the country and build there, you can spread out more, then work from home too. My wife son and myself live in 745 sqm of a single level, surrounded by green fields. I can recommend it.
Ironically, American homes and apartments need to be bigger than Chinese apartments so we can store all the crap we buy. And most of the crap we buy is made in Communist China!
Some friends of mine bought two three-bedroom houses and a barn on THIRTY-TWO hectares of land (mostly forest) in 2000 for $180,000. I'd guess the place is like $350,000 now.
It's 3 times bigger than my current apartment in Poland ;)
Some culture shock there for sure. My house is 200m² and is considered a BIG house here. Anything above 100m² for an apartment is considered luxury and typically reserved for penthouses. (Sweden)
Having a building sold out from under you as a renter happened to me in Saskatoon, Canada, until I got sick of the Calgary rat-faced real-estate weasels that were flipping buildings, and bought a house in the country. This is not just a Chinese problem. What's worse is that we went to NDP MLA Pat Atkinson and told her we wanted rent controls. She turned around, went on TV, and said, "My constituents don't want rent controls." She had talked to the building owners only. She never came around to talk to us tenants.
As a German who has no idea about building houses but lives in a country where houses are really build to last, I don't understand how fast a lot of Chinese buildings that actually look solid from the outside "disintegrate" (really searching for a term here). The street I lived in my childhood looks pretty much 90% the same as 30 years ago and to be honest most people in that street didn't even do a lot of renovations. Even 30 years ago most of the buildings were already 30 year old, but were still in good shape.
Because they are built from bricks.
The Roman buildings are still there 2000 years later.
I discovered you guys a few years ago because of those videos you guys did of the new building crumbling, and glad I did, because you’ve been very informative during the last year and a half, plus very entertaining 🙏🏻
what about the five brand new apartment blocks that Evergrande built that were demolished a couple of weeks ago because they were in a dangerous condition. Apparently the underground carparks were flooded with water
They were unfinished and 11 years old.
@@einfelder8262 11 years old is still considered brand new.
@@JapanMonAmourTheJapanHouse In what definition of brand new? I could understand considering them relatively new but brand new I'd say only describes the first few years.
@@JapanMonAmourTheJapanHouse Rubbish. 11 years out of a 70 year maximum tenure is most definately not brand new.
@@einfelder8262 has it been lived in? If not its brand new
One of the biggest problem is the presentation that the CCP gives to the West. After being in Nanjing and Beijing, I began to understand these things you talk about. I saw how terrible infrastructure was and how regular Chinese people just had to deal with it.
When I came back to the states and tried talking about this with friends or family, the more they were convinced how “you’re just hating, we saw on TV and National Geographic how amazing their building skills are and what they are capable of- what you say doesn’t match”. This happened time and time again to the point I just gave up talking about it because what I saw was “biased” and didn’t really depict China.
tell them, they saw a documentary bcs government approved the footage. bad coverage would mean no documentary. logic101
This is crazy. These videos popped into my head as soon as i heard about evergrande.
Same here in Australia. The apartments built by Chinese labor in Sydney NSW are falling apart & saying job done when not fully completed.
This is one of your most interesting videos in a LONG TIME.
That ad read was amazing, I’ve never seen such ingenuity during a yt ad