Fact Check: China's real estate crisis fuels oversupply of goods, reshaping global trade!

Fact Check: China's real estate crisis fuels oversupply of goods, reshaping global trade!

Published June 18, 2025
by TruthOrFake AI
±
VERDICT
Partially True

# Fact Check: "China's real estate crisis fuels oversupply of goods, reshaping global trade!" ## What We Know China's real estate crisis, which began...

Fact Check: "China's real estate crisis fuels oversupply of goods, reshaping global trade!"

What We Know

China's real estate crisis, which began in 2021, has significantly impacted both the local and global economy. At its peak, the real estate sector accounted for about a quarter of China's GDP. However, as of June 2024, real estate prices have seen their fastest decline in nine years, with a reported drop of 20.2% in sales compared to the previous year (Hedgepoint Global). This crisis has led to an oversupply of real estate, with estimates suggesting that the total value of unsold or unfinished homes in China could reach around 30 trillion yuan (approximately 4.1 trillion dollars) (Hedgepoint Global).

The economic slowdown in China has broader implications for global trade, particularly affecting commodity-exporting countries like Brazil, which rely heavily on Chinese demand for goods (Hedgepoint Global). As China's economy contracts, the demand for commodities such as steel and soybeans is expected to decline, reshaping global trade dynamics (World Economic Forum).

Analysis

The claim that China's real estate crisis is reshaping global trade due to an oversupply of goods is supported by various economic indicators. The crisis has led to a significant reduction in new construction, with new residential developments plummeting by 58% from 2019 to 2023 (Hedgepoint Global). This oversupply in the real estate market has created a ripple effect, impacting sectors reliant on construction and commodities.

However, while the evidence indicates that the real estate crisis is causing an oversupply of goods, the extent to which it is reshaping global trade is still debated among economists. Some analysts argue that the impact on global trade may not be as severe as anticipated, suggesting that the global economy has mechanisms to absorb these shocks (World Economic Forum). Additionally, the reliability of sources varies; while Hedgepoint Global provides detailed insights into the crisis, other sources like the World Economic Forum present a more cautious view of the potential global ramifications.

Conclusion

The claim that "China's real estate crisis fuels oversupply of goods, reshaping global trade" is Partially True. The crisis has indeed led to an oversupply of real estate and has implications for global trade, particularly in commodity markets. However, the extent of the reshaping of global trade dynamics remains uncertain, with differing opinions on the severity of the impact. The evidence supports the notion of an oversupply but suggests that the broader implications may not be as drastic as the claim implies.

Sources

  1. China's real estate crisis: impacts and measures - Hedgepoint Global
  2. Why the world should pay heed to China's real estate slump | World Economic Forum
  3. Market minute: The impact of China's ailing property markets
  4. Real Estate Crisis in China: Causes and Effects on the Global Economy
  5. China's big property market problem will take years to resolve

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Detailed fact-check analysis of: By quarterbacking Israel’s attack on Iran, Trump brought an end to a particularly demoralizing era in U.S. history The main reason Israel’s massive attack on Iranian leadership, nuclear facilities, and other targets came as a surprise is that no one believes American presidents when they talk about protecting Americans and advancing our interests—especially when they’re talking about the Islamic Republic of Iran. Ever since the 1979 Iranian Revolution, U.S. presidents have wanted an accommodation with Iran—not revenge for holding 52 Americans captive for 444 days, but comity. Ronald Reagan told Soviet leader Mikhail Gorbachev to tear down the Berlin Wall, but when the Iranians’ Lebanese ally Hezbollah killed 17 Americans at the U.S. embassy in Beirut and 241 at the Marine barracks in 1983, he flinched. Bill Clinton wanted a deal with Iran so badly, he helped hide the Iranians’ sponsorship of the group that killed 19 airmen at Khobar Towers in 1996. 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Did Iran lobbyist Trita Parsi tell officials in Tehran that his colleagues from the Quincy Institute and other Koch-funded policy experts who were working in the administration had it in the bag? Don’t worry about the neocons—my guys are steering things in a good way. It seems that, like the Iranians, the Koch network got caught in its own echo chamber. Will Rising Lion really split MAGA, as some MAGA influencers are warning? Polls say no. According to a recent Rasmussen poll, 84 percent of likely voters believe Iran cannot have a bomb. Only 9 percent disagree. More Americans think it’s OK for men to play in women’s sports, 21 percent, than those who think Iran should have a bomb. According to the Rasmussen poll, 57 percent favor military action to stop Iran from getting nukes—which means there are Kamala Harris voters, 50 percent of them, along with 73 percent of Trump’s base, who are fine with bombing Iran to stop the mullahs’ nuclear weapons program. A Harvard/Harris poll shows 60 percent support for Israel “to take out Iran’s nuclear weapons program,” with 78 percent support among Republicans. Who thinks it’s reasonable for Iran to have a bomb? In a lengthy X post attacking Mark Levin and others who think an Iranian bomb is bad for America, Tucker Carlson made the case for the Iranian bomb. Iran, he wrote, “knows it’s unwise to give up its weapons program entirely. Muammar Gaddafi tried that and wound up sodomized with a bayonet. As soon as Gaddafi disarmed, NATO killed him. Iran’s leaders saw that happen. They learned the obvious lesson.” The Iranians definitely want a bomb to defend themselves against the United States—NATO, if you prefer—but that’s hardly America First. The threat that an Iranian bomb poses to the United States isn’t really that the Iranians will launch missiles at U.S. cities—not yet, anyway—but that it gives the regime a nuclear shield. It’s bad for America if a nuclear Iran closes down the Straits of Hormuz to set the price for global energy markets. It’s bad for America if a nuclear Iran wages terror attacks on American soil, as it has plotted to kill Trump. An Iranian bomb forces American policymakers, including Trump, to reconfigure policies and priorities to suit the interests of a terror state. It’s fair to argue that your country shouldn’t attack Iran to prevent it from getting a bomb, but reasoning that a terror state that has been killing Americans for nearly half a century needs the bomb to protect itself from the country you live in is nuts. Maybe some Trump supporters are angry and confused because Trump was advertised as the peace candidate. But “no new wars” is a slogan, not a policy. The purpose of U.S. policy is to advance America’s peace and prosperity, and Trump was chosen to change the course of American leadership habituated to confusing U.S. interests with everyone else’s. 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