PHILIPSBURG – As the residents of St. Maarten can expect a major influx of Chinese influence going forward due to the recently announced 326 room, 450 apartment Pearl of China project to be located at Bel Air Beach, one has to become aware of the state of the Chinese economy and its fragile position in terms of accumulated debt due to the construction, housing and stock market boom and what consequences that has for all new construction projects. The big question then becomes: who will visit this hotel?
To combat the debt problems, the Chinese Government is urging their people to consume more, especially to buy real estate which has created a housing bubble which can be compared to the US housing bubble before it exploded in 2008, resulting in the financial crisis which sent the global economy into recession. Experts fear the same will happen in China if the situation stays the same.
Government (current and next one) is urged to be extremely cautious in dealing with the Chinese developers going forward with this project in order to safeguard against an unfinished and deserted building be left on our beautiful shoreline with all dire consequences for the residents of St. Maarten. What financing guarantees does the Government of St. Maarten have? What guarantees in terms of number of Chinese visitors does the Government of St. Maarten have when China’s economy is in recession? What happens when the building sits empty due to economic crisis back home in China? These are but a few crucial questions that need to be answered before construction commences.
Residents of St. Maarten are urged to become more aware of the Chinese predicament and read up on the current situation and by watching these (and other) video clips that explain the situation in detail.
The End of China Inc.? (Al Jazeera)