Once upon a time – in 2019 – tourists from China were among the best-traveled in the world. They collectively spent more than US$250 billion abroad – nearly twice as much as their nearest competitors, the Americans – and logged more than 150 million departures on international flights that year.
Another major developer, the troubled China Evergrande Group, posted a $4.5 billion loss over the same period and sought bankruptcy protection in the US last month. It gained international attention in 2021 after it defaulted on $300 billion of debt, sparking the current crisis. This has had a cascade of effects on the Chinese economy. Most immediately, as demand for construction materials and labour has fallen, hiring has cooled and consumers are tightening their belts. Local governments are also struggling to stay afloat with less revenue, with some provinces being forced to slash government salaries and benefits.