Book your ticket to happiness with Sun Express Airlines. This is

is CBS, I in the world, I'm John Bachelors. The People's Republic of China, the miracle is gone.

The economy is in free fall.

What we're looking at here is... The economy is in free fall.

What we're looking at here is the People's Republic of China must do dramatic things quickly

in order to compensate for the unemployment, for the dip in growth and housing. I welcome Victoria

Hexig. She is an analyst for Geopolitical Futures, a subscription site. She is in Budapest and she has the language so she can help me

understand how it is that the Chinese Communist Party in Beijing is going to

account for those 20 million residences without occupants now, bought, paid for, sold, what is to be done?

Victoria, a very good evening to you, Thank you. You present that what she

Jinping and his counselors are deciding is to go to Maoist remedies. What does

that mean for housing? Good evening to you.

Good evening, John. Thank you for having me. Yes. So China's real estate sector has been in the global

attention for three years now despite several rounds of proposed

reforms and implemented reforms like mortgage lending, urban renovation

projects and also construction of cheap housing.

The Chinese leadership has really struggled to stabilize housing investment and prevent

major real estate firms from defaulting. and now the leadership and she himself are really frustrated with the lack of success and a new strategy has just been announced by she himself and it's it's somewhat similar to to the Maoist ideology that emerged in the 1950s, 1960s and well into the 1970s as well.

So this strategy includes and well into the 1970s as well.

So this strategy includes purchasing distressed properties

to convert into government housing

and constructing more subsidized housing

...