China faces dual economic reality of tech growth and real estate crisis

China is currently experiencing a dual economic reality characterized by rapid technological advancement and a severe real estate crisis. While the country sees significant progress in high-tech manufacturing and automotive industries—noted by Ford CEO Jim Farley as some of the most impressive progress he has witnessed—the property sector remains in turmoil.

Following the 2021 market collapse, an estimated 90 million homes remain vacant across the country. This has resulted in many unfinished residential towers and villas, often referred to as “rotten tails,” where developers ran out of funds. In some instances, impoverished residents have moved into these unfinished structures, living without basic amenities.