The Evergrande group, the second-largest developer in China, has been liquidated by a Hong Kong court due to $300 billion in liabilities as well as inability to pay interest on its loans. As a result of this, China is in a concerning standpoint.Since the advent of the great shift in manufacturing in China since the 1980’s, the quality of life has risen. The government of China is now facing a dilemma of whether to save the heavily subsidized foreign investment regime in the manufacturing sector or appease its base and bail out the development sector to save more personal investments for the Chinese citizenry.
Meanwhile, international manufacturing companies are seeking supply chain security, lower-cost labor, intellectual property rights protections, ease of market access, as well as common business language. The global realignment is shifting towards regionalization rather than stricter protectionary regulation.
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