China’s rise as a modern nation has been nothing short of remarkable the country’s leaders often and proudly tell the world that in just a few decades they’ve lifted more than 600 million people out of poverty but China’s economy is Sloane cracks in the system are starting to appear and it’s the Chinese people who are facing the pain some economists warn the country’s building boom never delivered real prosperity that government spending has been poorly managed even downright reckless wet your finger and stick it in the wind and find a useless project in China the unchecked spending has left behind ghost towns anger and uncertainty I’m Steve Chow in this episode of 101 needs to investigate if this is the end of China’s economic miracle in northeastern China a grand new city has risen out of farmlands this ition Phu locally known as new foo schwimmer it’s entirely deserted a ghost town of epic proportions 22 square kilometers of emptiness with the economy faltering construction ground to a halt last year leaving empty strip malls and newly paved roads leading to nowhere since agony ha ha we meet maangchi June a taxi driver who agrees to show us around take a lawyer’s office no not at all let me go in shit June grew up in Altru Shrek the original city a few kilometers away he believes the government has squandered taxpayers dollars and squandered their future his future officials spent hundreds of millions of dollars building the new zone selling the place is a way for residents to enjoy a modern lifestyle she drinks as people aren’t buying the sales pitch how absolutely bizarre say – is it anyway – a genielle my life little buddy got hurt let our little hi for 30 years she joined worked at the city’s aluminum mill nearby but in 2014 as China’s economy slowed he was laid on rather than massive building projects he believes money should have been spent on helping retrain workers instead he’s had to fend for himself from making $50 a day at the factory she joined now averages less than 10 Yallah showing you lots of what I’m not reminded to tarf you can own it are two local da from a yarn alize yeah your thoughts on its ugly head made with Hannah she’s missing her today whatever we visit one of the city’s development officers its reception like the rest of the town is deserted inside we find a model of what new foosh limb was supposed to look like it’s a grand vision of office towers and stylish residential living the centerpiece of town is called the circle of life a 60-story structure made from three thousand tons of steel it costs sixteen million dollars to build that was meant to attract tourists but they like the residents are yet to materialize even more troubling is that hundreds of deserted cities like this can be found across China

there’s an eerie feeling walking through these abandoned buildings it’s like time has come to a standstill according to the government China has more than 2 billion square meters of empty residential space that’s enough to house more than a hundred million people these empty shelves have in many ways become symbols of a wild spending spree that some say has gone on far too long get in the car drive on any highway get off on any exit and ask the first person you run into where is the development zone and you will be directed to a KERS and acres of empty high-rises economists and stephenson young spent 20 years in China and witnessed the boom years but now fears the country’s economy could collapse China has huge debt problem if the problem is that it’s just relied on the same methods for a really long period of time of spend spend spend and she says that with all the bad investments the country’s debt is mounting at an alarming pace in 2005 China owed 164 percent of its GDP today it’s almost double this mountain of death is piling up faster and the economy is growing if China had been willing to give up that hyper growth then it might have avoided the potential for a serious crash and the serious debt crisis but it didn’t and it won’t it’s not just the ghost cities that point to overspending this office building in the shape of an ancient coin cost half a billion dollars showing there’s no limit to the fanciful dreams turned into concrete reality elsewhere a replica of Dubai’s palm island development meant to be a retirement home for seniors the construction here too has ground to a halt then there’s this water park the 30,000 square metre playground cost more than 300 million dollars to build and was scheduled to open in the summer of 2015 it was supposed to provide the world’s best aquatic experience the sheer amount of waste here is shocking it’s taking considerable time and money to mix the concrete to forge the steel to make the bricks even to design the architecture of these buildings and instead it’s all been left to ruin Stevenson Young says the building projects we’ve seen are just the tip of the iceberg it’s a craziness on a level that you haven’t seen elsewhere in the world and you you have to think that that’s going to create a crisis of a level that hasn’t been seen elsewhere while officials aren’t keen to talk about failure such projects are too big and too numerous to ignore government economic advisors ouchy jr. Nixon China has a problem yo Ashiya Kavita certain local governments and parties might not have planned well an apartment once they go bankrupt it’s going to be really difficult to pay back the loans Omaha I’m afraid we will need to take further steps in order to solve this debt issue ng ensuring a stable economy is seen as crucial to the survival of China’s Communist Party its leaders have long held an unspoken social contract with the people leave the governing to us and we will make you rich but at this year’s annual Party Congress even the leaders had to admit to making monetary missteps erosion suna sheesh our government indeed interfere in some unnecessary things they have held back economic 50 but still officials deny the notion the nation is in financial trouble only John watching gee we are fully confident of China’s long-term economic growth as long as we continue to reform and open up China’s economy will not suffer a heart lending endo to prevent that hard landing China is taking a controversial gamble despite the looming debt problems it’s encouraging citizens to take on even more debt loot by more real estate and clear the oversupply the question is can they afford – traditionally Chinese were good savers but increasingly families are accumulating debt at a

frightening rate from 2007 to 2013 household debt rose by more than three hundred and thirty percent that’s the highest rise anywhere in the world in yet another newly built town it’s certainly business as usual we find developers hard at work trying to sell their projects hey take one hey are you knightmon hey daikon we’ve heard that some developers and agents are so eager to sell they’re offering ways to obtain fraudulent mortgages and yeah we meet a man who says he’s been selling real estate for two years Jamia does have a fun fun funky junky old as you know non-college og Hopp using hidden cameras our producer and I pose as a couple interested in buying a home buying property in China used to be one of the safest investments but the bubble has since burst in many of these small cities that’s not the story our agent is telling us he says the price has already risen tenfold okay but he claims new buyers like us can still make a hefty profit and he can easily help us get a mortgage so my god what what do not for me cool long down to when we tell him we don’t have any income earnings to show the bank’s he suggests we fake a letter of employment guys always handing over the other changing done yeah no actual thing together while the holiday are you sold about you are bilingual nor so without the only dummy not murder what he’s suggesting is a crime then he goes further okay Bob Finnell I got to the side of a mine well periodic losses were bad Shenandoah so these are our moons attendant indefinite falsifying sale certificates is also illegal the realtor claims this is common practice the possible result the kind of debt that caused America’s subprime disaster now could be happening all over again here in China home buyers here are often told house prices will continue to rise and they can sell at a profit instead many of these new properties are virtually worthless most people remain in denial it’s really kind of a fascinating thing to watch how you can move all over this country and for a long time people had really a kind of um it’s kind of like an a mass delusion another sign that people are in serious debt is a proliferation of loan sharks the men admit they charge back-breaking interests for their loans belong to provided of it what God get is your black boy over so why didn’t you go through with your daddy of 100 yeah I’m fully open good you gotta do it out yeah joy upon parking or we going for the yeah it’s China’s leaders that are encouraging his people to take on debt and for some it’s leading to these kinds of shady loans and bad mortgages we find an excuse to leave one of those worried about paying back her mortgage is the ocean shop she runs a scrapyard in old Fisher – out him up join the boom times Jun Shah was encouraged by the government to take on debt and buy into the real estate dream in her case she bought two apartments one for herself and one for her elderly parents but now she can’t

afford the mortgages and the threat of bankruptcy hanging over her is making her physically sick cunt some tea water water being louder be another whatever sign what the earlier since our daily don’t go powder and hoping to hear everyone’s hi sign yeah laughs we’re gonna good here now yeah why you tomorrow camera and my drummer boy after watching that I’ve had a chance Budhia channel Daniela with the economic slowdown first rap yard is failing steel used to be a surefire business and for two decades business was booming for junior there was an endless demand from government-funded building programs and a steel mill next door bought anything she could sell them sizzle in banja say we can touch a hot zone Sasol Daniel on orality plan another leadership mightier miter oh wow Chiana sorry Jessie koala had a pretty good by partial pressure and that’s had a direct impact on her workers she can now only afford to hire them part-time coming right for my channel I will meet Kendall lion they make me a number to a quoi Sicily your chorus on Java like I yeah June Shaw now cooks for her workers to try and ease their financial pain to make up for not being able to pay their full wages generously she also offers us lunch sentence Wutai Donnelly even though with money so tight she counts every cent so it’s a city – as always sandwich a dosa so usually they’re just some hot but yet I never came home hmm and Piazza what’s what he plows June Shaw and her workers aren’t the only ones struggling to survive the collapse of industry and the loss of jobs is fueling anxiety and anger across the country just weeks ago in China’s southwest these miners went on strike far from sharing in the promised prosperity they find themselves struggling to survive so will many single visitor need you to watch see don’t push out on the moonlit sit up walrus with his hand is younger area hopefully she don’t forget your woman album good DJ today the UN action the strike here was quickly shut down and most of the leaders have been arrested threatened with losing their jobs many of the miners return to work but during shift change we managed to talk with one protest organizer who avoided jail that’s all on him incognito saw your clothes on her woman trench on the general what am I wrong sure Bing has spent his life in the mines but it’s a life that’s getting tougher with less work and less pain what finally made them walk off the job was learning the company had cheated them out of their medical and retirement farms meaning I think since she all right sirenoid to go to Vienna Shantae is a real essential put overweight children well thanks G Segundo under Chinese law companies must cover such costs because of the toll this work takes like many coal dust is embedded under shipping skin and in his lungs he’s also broken every bone in his hand what Shang Natasha do when you gently on the tea on the fire so they own is Jewish Satan chakuda she’s feeling good onion hello Shu Xiang janosh with her show to the GU er agenda are to them they come from do fearing his bosses will discover us at the mine he leads us to a nearby house where other miners have quietly gathered to speak to us say new Mensa side say at kuang homes all go Sonya with a Polish rustle yeah she’s singing you should Siobhan you GT by here Sonya these miners no just meeting with a journalist could get them arrested but they insist on appearing on camera to tell the world what’s happening I know today’s young to go ham sandwich rolling good woman jaggery to go winch sunny she’s hair should I – Sasha Zack

we buy fire which i’ll Rosa water you go you what edu cocoa board what’s that – young we work with this is like whatever Sonia can leave where Catalan is Radha – Jabar bajalia you will know me gelatine Jamil to me you let another innocent child for many time is running out one man shows me his medical certificate he has lung cancer although he will announce any move don’t do it they don’t know the national attention other usually yo-yo comes to your honeymoon school generally these are the village house dorothy ackridge am I sitting – Chan mmm shut up I’ll tune it out you mean but the miners worried about more than their medical insurance they worried about how much longer they’ll have a job at all many already have been laid off or made part-time China’s slowing economy in a shift away from polluting energy sources has meant a slump in the demand for coal ash as a channel would ya – no Jenna to each other hygiene jogging for Google comfort fall out woman you shall one I added to happening in living room meeting woman I’m eating well the only housing they can now afford are small rooms like this which they share together they feel left out of China success even gangjae show hey so one genie member bloomie the Congo Tommy Segundo I usually tell the Ranger Ranger you’d eliminate on it with a chart type in Shaba mile affilorama woman and solution tell Charlie Minaj anaconda to be me Lydia were Charla diesel momenta women sheet ocean hakuna mutata if there is no condom are you telling me anemia say Shan Shan Shan for sure Sally Latoya oh my suka will come tomorrow Sonia Sonia Sonia ma woman champagne so twisted Omar Hammami a single feature in 2015 a record number of people took to the streets in protest the government has done it’s best to shut down demonstrations arresting and intimidating protesters in but their answer to the economic slowdown won’t help the workers far from it economist Sally Jewell says the days of popping up big industry are over Nisha sure sure sure talent portion recall the businesses that have over capacity of without good futures zombie enterprises jankoji la Konishi Alana they must be shut down from your perspective has development come too fast for trainer John boyega China’s a very big country and development is very unbalanced Tasha CNET imagine the perspective of the central government is we need to modify the old structure of development into a new one Jing Zhi farter at the top bad loans mounting debt if the slowdown has been painful for the Chinese what does this mean for the world China is roughly sixteen percent of global population and it’s been consuming roughly 50% of global resources that’s going to stop that will be hugely impactful to Australia Canada Brazil Indonesia all of these people and there’s a huge chain of consequences meanwhile those who made China’s boom possible will pay the highest price for the national spending spree that’s the tragedy of the political system this emergence from poverty of China since the 1980s all these people working in all those factories with all these dreams seeing their bank accounts mount seeing a future for their children way better than they ever had and those hopes you know that the party managed to suck in that capital throw it into empty apartments and those are the people who will be heard back in foosh one former factory worker turned taxi driver maangchi June says he stopped believing the leaders promises seen year to Jimmy Allah to him and the mythology a mini hunter one behind I ran a machine he really father nothing why would cool the magenta around here yeah she’ll choose the two I guess but I’ll give it a mother we do the toe

vision he says he hopes he’s wrong and the government will fix things but for now it’s hard for him to see a bright future for his country