Free Porn
xbporn
Monday, July 22, 2024

Some of China’s state-owned property developers are tightening their grip on suppliers, violating the law and worsening the recession

Must read


“Construction was completed in 2019 and the school started enrollment in 2021,” he said.

“However, we have not received the final payment yet. We have advance funds [from the firm’s capital] This is to pay workers’ wages and other expenses. ”

China’s economic regulator put strong pressure on Requires state-owned enterprises (SOEs) to pay small suppliers, mostly private companies, on time.

But Zhang and his construction company co-founder Tony Lu are reaching the end of their patience.

The delays have been so extensive and hurt Lu’s business that his company may have to file a lawsuit against the developer next year. With the company on the brink of bankruptcy, there are no other options left, he said.

Payment arrears are a chronic problem in China, but the situation has become even more dire this year due to the country’s fragile economy. In particular, the private sector, which is commonly relied upon to drive growth and create jobs, not back yet For complete fitness.

Mr. Lu and many of his Zhuhai peers are disappointed as developers have devised new ways to circumvent the payment requirements, despite strict warnings from the government.

Capital funds for payroll payments are already in short supply. [Why do] we have [to give] Does it cost developers more money?

Tony Lu, Zhuhai

Regarding the middle school, Zhang said, “More than 10 subcontractors for this project, including installation of air conditioners, construction of foundations, and laying of bricks, have not received payments.”

“The company will only say it needs to go through an internal process, which will take several years.”

One developer came up with a clever workaround, Lu said. The plan is to provide apartments to suppliers with only a down payment of about 1 million yuan (approximately US$139,684) per unit. Then, in theory, you can sell the apartment and make a profit.

However, the real estate market is lagging behind; Prices are falling steadily According to Lu, doing so would result in a loss of 4,000 yuan per square meter under the current market conditions due to the lack of buyers.

“Capital funds for payroll payments have already been exhausted,” he added. “[Why do] we have [to give] Does it cost developers more money?This turned out [was used] This will further delay payments. ”

10:57

Booms, busts, and borrowing: Has China’s housing market slumped?

Booms, busts, and borrowing: Has China’s housing market slumped?

What’s even more outrageous, he says, is that this process is an implicit prerequisite for subcontractors to increase their chances of winning future contracts from developers.

Local governments also acknowledged that solving the problem is difficult, especially when it comes to construction.

According to documents obtained by the newspaper, economic authorities in major cities in southern China have noticed a significant increase in account balances owed by state-owned enterprises to private companies, leading to a “severe strain on corporate funds.” I admitted that there was.

To make matters worse, some large companies “maliciously delayed payments” and “used their dominant position in the market by refusing to sign contracts or accept inspections of construction work.” ” the official admitted.

China avoids “triangular debt” quagmire by demanding state repayments

The regulator also stated that lack of statistics Private sector assessments have led to inaccurate assessments, and the digital divide has only slightly improved with the results of September’s regional audit.

In the central province of Henan, an estimated 9.56 billion yuan was found to be owed by local governments and state-owned enterprises to small and medium-sized private enterprises.

Meanwhile, in the more prosperous eastern Jiangsu province, the local audit bureau announced that 12 cities were in default on debts worth 1.62 billion yuan. The rest was owed to private companies for 562 construction and government procurement projects.

In the same month, the Inner Mongolia Autonomous Region, which is suffering from a heavy debt burden, announced that it would issue a special refinancing bond worth 66.32 billion yuan and use the proceeds to settle overdue corporate debts.

Jay Wang, who is employed by the private sector as a subcontractor for state-run power supply companies and real estate developers, also pointed to the difficulties the private sector faces in winning orders.

“Qualified private companies used to be able to bid on state-owned investment projects, but now private companies can only win projects through multiple tiers of subcontractors, who are also subordinated to state-owned enterprises,” he said. “

“As a result, revenues for private companies have decreased significantly.”

As a result, the investment capacity of the private sector is severely limited. fixed asset investment In the first 11 months of 2023, real estate investment from the private sector fell by 0.5% year-on-year, with overall real estate investment falling by 9.4% over the same period.

According to a report released by the Bank of China, the average collection period for accounts receivable for private industrial enterprises increased from 43.6 days at the end of 2019 to 64.2 days in August 2023, while the average collection period for state-owned enterprises increased by one year. . Approximately 5 days in the same period.

It turns out that there is almost no essential difference in the wording. [of policies]However, the economic situation has changed significantly

peter chiu

Government measures have been wide-ranging, but the results have been mixed. Peter Chiu, founder of the Globalization Center think tank in Hong Kong, said at a forum in Guangzhou in early December that China had introduced 131 measures to support private enterprises over the past 18 years.

“After a little research using ChatGPT, we found that there were very few substantive differences in the wording. [of the policies]But the economic situation has changed a lot,” he said.

Li Mingbo, deputy director of the Guangzhou Greater Bay Area Institute, said at the same forum that private entrepreneurs as a whole still lack confidence.

“Current policies do not address some of the issues that private entrepreneurs are most concerned about,” Lee said.



Source link

More articles

23 COMMENTS

  1. Hello would you mind letting me know which web host you’re utilizing?
    I’ve loaded your blog in 3 different browsers and I must say this blog loads a lot faster
    then most. Can you recommend a good web hosting provider at a fair price?
    Many thanks, I appreciate it!

  2. What’s Taking place i am new to this, I stumbled upon this I’ve discovered It absolutely
    helpful and it has aided me out loads. I
    am hoping to contribute & help other customers like its aided
    me. Good job.

  3. Whats up very nice web site!! Guy .. Beautiful .. Wonderful ..
    I will bookmark your blog and take the feeds additionally?
    I am satisfied to seek out so many useful info right
    here in the put up, we’d like develop more strategies in this regard,
    thank you for sharing. . . . . .

  4. Link exchange is nothing else however it is just placing the other person’s weblog link on your page at
    proper place and other person will also do similar in favor of you.

  5. whoah this weblog is wonderful i love reading your posts.
    Keep up the good work! You know, a lot of persons are searching
    around for this information, you can aid them greatly.

  6. It’s the best time to make some plans for the future and it’s time to
    be happy. I’ve read this post and if I could I wish to suggest you few
    interesting things or tips. Maybe you can write next
    articles referring to this article. I want to read more things about it!

  7. Thanks for your marvelous posting! I truly enjoyed reading it, you may be a great author.
    I will be sure to bookmark your blog and definitely will come back
    later on. I want to encourage that you continue your great work,
    have a nice weekend!

  8. Thanks for every other informative blog. The place
    else may I get that kind of information written in such an ideal means?
    I’ve a challenge that I’m just now working on, and I’ve been at the glance out for such info.

  9. Just want to say your article is as astounding. The clarity on your post is simply spectacular and that i can think you’re
    an expert in this subject. Well along with your permission let me to snatch your feed to stay up to date with imminent
    post. Thank you 1,000,000 and please keep up the gratifying
    work.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article