Some Chinese state property developers stiff their suppliers, defying edicts and worsening slump

by He Huifeng at

  • State-backed property developers, feeling the pinch in a stagnant market, are not paying suppliers and contractors the balances they are owed
  • Government has urged state firms to settle their debts, but many stall, exacerbating an already painful slide in a major economic sector

For two years, Richard Zhang has travelled to Shenzhen every few months. It is a trip many make, usually to spend leisure time in the gleaming metropolis, built in decades and a monument to China’s rapid development.

But he is no tourist. He has travelled across Guangdong province from the capital of Guangzhou to demand a state-backed construction and development firm pay what he is owed.