China’s Response
Apart from this, many big real estate companies are being forced by the government to repay a portion of their debt instantly. And a new team has been formed in China to detect corruption all the State-run Banks, National Financial Regulators and the companies, are being scrutinised to detect corruption. To see the level of corruption in each of them. This is an interesting point, because many people imagine that there is no corruption in a country with a dictatorship.
Because they assume that the dictator would severely punish corruption. But this isn’t the case actually. In fact, it is the countries with outstanding democracy, that faces lower levels of corruption than compared to dictatorships. Because in dictatorships, people are hesitant to question anything. There are no independent agencies to check whether there is any corruption or not. Whistleblowers are oppressed. There are no reliable independent media to scrutinise the corrupt officials.
That’s the reason why we see corruption in countries like China. Today, the property rates in Beijing and Shenzhen are so high that they are 55 times the annual income of the average Chinese citizen. Suppose your salary is ₹100,000 per month, and you earn ₹1.2 million annually.
The average price of the apartment then would be ₹66 million. It will take 55 years’ worth of your salary to afford an apartment in your city. Can you imagine this? This is happening in China. You may think it is possible to buy houses by taking loans, but in China, there’s a rule that one can get a loan of only 60% of the total amount. Thus, the down payment will have to be at least 40% of the total amount. Which wouldn’t be possible.
