Liangliang and Lijun: China's debt crisis on one couple’s shoulder
The troubles of a Henan couple have been trending on Chinese social media. After paying a hefty down payment for an unfinished apartment, they were roughed up when they complained while their social media videos were censored. They eventually decided to return to their hometown. The “most diligent, law-abiding, and optimistic citizens do not deserve the Chinese dream” reads one, bitter online comment, echoing a political slogan proposed by Chinese leader Xi Jinping.
Beijing (AsiaNews) – Liangliang and Lijun are an ordinary young couple. They lived in the central Chinese province of Henan and loved to share their lives on social media. They had trust in society and did the right things according to societal expectations, namely they got married and bought a new flat.
Their lives were completely turned upside down when the housing project that included their flat was left unfinished. For their troubles, they were beaten up by the property developer and their social media accounts were censored.
The young couple’s misfortune is one of the trendiest topics in China, as their troubles reflect a broader issue in Chinese society: debt.
In the end, the couple decided to quit their jobs in Zhengzhou, the capital of Henan province, and return to their hometown after their social media accounts were blocked in mid-November.
Ma Qian Zu, a famous blogger and columnist wrote that "the most diligent, law-abiding, and optimistic citizens do not deserve the Chinese dream," a reference to a political slogan launched by Chinese leader Xi Jinping a decade ago about the country’s rejuvenation.
The couple’s problems date back to November 2021, when they took out a loan to buy a flat in a housing project that was still under construction. They paid the down payment with years of savings and expected the building to be completed.
In the summer of 2022, real estate developer Sunac found itself in a liquidity crisis. The project stalled, but the couple had to continue repaying the loan despite not being able to move into their new home.
During the pandemic, the family saw their revenue drop and they were late in their payments. With the housing project on hold, their daughter was born last year.
The couple set up social media accounts under the name "Liangliang and Lijun" to tell their life stories and often went to the construction site to see if the project was progressing. Their accounts attracted a lot of attention online.
This summer, things seemed to be getting better. Sunac got an additional loan from the bank and construction resumed. Benefitting from debt restructuring, it was able to resume its projects.
The couple remembered that the real estate developer had promised a cashback promotion of 20,000 yuan (about US$ 2,800) on the down payment, so they decided to go to the company to ask for the promised refund.
While they were making a video near the company, they were attacked by the company's staff and their phone was seized. The incident immediately sparked discussions online.
The Zhengzhou Police announced that it had punished the attacker in accordance with the law. In a video Liangliang and Lijun said that they were satisfied with the police action, but their troubles were not over.
They uploaded another video in which Liangliang was gagged to suggest he was not allowed to speak. Since then, their videos have been censored by social media.
A month ago, the couple decided to quit their jobs in Zhengzhou and go back to their hometown. Lijun said she just wanted a safe life and was worried about their daughter's safety.
In addition, Liangliang’s employer received a phone call from local authorities pressuring the company to speed up his resignation.
China’s real estate industry accounts for about 30 per cent of the country’s GDP. The debt crisis and bankruptcies came to the fore last year, leaving housing projects unfinished across the country.
In China, property developers are allowed to sell before construction, which has left many homebuyers in the quandary of having to pay off loans to the bank.
Last year protests broke out in several cities. For Chinese authorities, the debt crisis is a factor of social unrest.
"Last generation" has become the desperate slogan of young people in China. Faced with the high cost of housing and the birth of a child, more and more young Chinese are choosing not to have children.
Last year, a video went viral in which a man who refused to be taken to a quarantine camp was warned by police that "punishment will affect three generations of your family." The man replied, "We are the last generation."
Faced with demographic decline, Chinese authorities have tried to increase the fertility rate. In September, the city of Zhengzhou announced a subsidy for couples to have children. Two months later, some parents of newborns applied to the government for these funds, but were told that the fund did not exist.
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19/10/2021 18:02
