Spend enough time talking about the economy with Serious People and the conversation will almost always turn to China. What are we going to do about China? How can we compete with China? We must be more competitive with China! China. China. China.
Funny thing about China. For all of China's supposed economic dominance, it appears a significant number of Chinese are considering United States' most down-and-out city as an alternative to their homeland.
The news of Detroit's bankruptcy has investors are salivating over Detroit real estate deals on the Chinese microblogging site Sina Weibo.
Quartz: China has the most expensive housing on the planet. Plus, capital controls make it difficult to invest large sums in overseas stocks or property. That’s why when a CCTV broadcast aired in March—after the emergency takeover was announced—saying that for the price of a pair of leather shoes, you could buy two Detroit houses, Chinese investors got excited.
Millions commented on the CCTV post about Detroit on Sina Weibo. As one user put it, “Seven-hundred thousand people, quiet, clean air, no pollution, democracy — what are you waiting for?”
This wasn’t just talk. Wei Kefei, an organizer of a Beijing property fair, told the Global Times in March that deals were picking up. ”Some people did rush to buy houses in Detroit, betting on the US economic recovery, which they believe will boost development in the auto industry,” he said. A Mandarin-speaking Detroit broker reported getting 3am phone calls from interested investors. Detroit mania was enough that China’s Ministry of Foreign Affairs warned citizens about investing risks. And it had a point; there are slews of hidden costs that buyers take on.
True, most of Detroit's fabled $100 houses aren't worth a c-note or your trouble. However, compared to "the most expensive housing on the planet," surely these Chinese home buyers might find something to their liking at a relatively affordable price in Boston-Edison, North Rosedale, East English Village, Corktown, or Palmer Park.
Nice homes, clean air, and if you're looking for job, the working conditions at Shinola are way better than Foxconn.
