The downfall of Evergrande sheds light on China’s struggling markets post-zero COVID lockdown policies. The Chinese property market languishes near five-year lows, constituting nearly a third of their entire economy. In contrast, real estate contributes to around 17% of the US economy. 

Global investors speculate that China’s hyper-growth construction of ghost cities is catching up, disrupting real economic growth. Comparisons to Lehman Brothers’ collapse in 2008 evoke concerns about the stability of global and domestic markets. American conservatives, particularly those with retirement investments, worry about the timing of the next financial crisis.

Evergrande retains the option to appeal the recent court ruling, and 90% of its assets lie in mainland China, a jurisdiction separate from Hong Kong. The future for foreign investors in China remains uncertain, leaving questions about potential shocks to the global economy unanswered. After multiple US bank failures in 2023 and Evergrande’s collapse, analysts raise broader concerns about macroeconomic strength, prompting conservatives to seek answers. 

Over the past year, Chinese stocks have experienced a 16.57% decline, as indicated by the Shanghai Composite Index. Analysts are expressing worries that the significant concentration of the real estate market within the Chinese economy may contribute to further vulnerabilities in the stock market. Meanwhile, the US economy, with its pronounced focus on the technology sector, raises concerns among analysts who fear that a singular large company could trigger market corrections in 2024. As conservative Americans evaluate investment landscapes, these global market dynamics prompt careful consideration.