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

is CBS, I and the World.

I'm John Batson with Gordon Chang at Gordon G Chang, my colleague and friend,

and we welcome our colleague and friend, Anne Stevenson Yang, her new book,

Wild Ride, China's short-lived experiment in capitalism, I highly recommend.

Anne and I have enjoyed talking about the range of her research over the years.

Right now we're coming up to date, however.

Property in China right now is a hole in the pocket of the Chinese people. China's property

foreclosure surge as growth slows. This is a Bloomberg headline, but it's an

understatement. I've been reading that the solution so far, according to the

Chinese Communist Party, is to make it all public housing, to go from 5% to 30% public housing with these unfinished tall towers around the

country and a very good evening to you. Bloomberg has discovered that

foreclosures are surging, so they're clearly

not at the frontier of this thinking. My reading is that China has not found, the Communist

Party has not found a solution.

Is that correct?

Good evening to you, Anne.

Good evening, John.

I like that analogy, the hole in the pocket because, you know, a lot of those empty towers are unfinished but already purchased.

So they really, and the developers kind of ran away with the pre-payments.

So the government has to find a way to finance the construction in order to keep people

happy. But you know the more money they pour in the pockets of the of the economy the more slips out like a sort of

...