China's Construction Giant Declares Bankruptcy

"China Evergrande" has declared bankruptcy in a U.S. court as a "heavily indebted" company with $330 billion in debt, symbolizing the crisis in China's real estate market. According to Reuters, the bankruptcy filing aims to protect itself and its subsidiary Tianji Holdings. This declaration strengthens speculation that issues in China's construction sector could negatively impact global economic growth. Investors are concerned that the financial crisis of this major Chinese construction company could spill over into other sectors. Concurrently, following a series of defaults by China Evergrande on its $330 billion debt, which led to a crisis of unfinished homes across China, a bankruptcy case was opened for the company. The financial crisis of China Evergrande, which operates in real estate, has also caused stock prices to plummet in many countries around the world. Previously, Kristalina Georgieva, the head of the International Monetary Fund, stated, "As the engines of global growth, namely the United States, Europe, and China, are weakening, 2023 will be a tough year for most economies around the world." The U.S. Treasury Secretary met with six female economists in Beijing, and her trip aimed to stabilize relations with China amid intense competition between China and the United States over intellectual property.