section_path: Background/Aggravating circumstances/Evergrande liquidity crisis in 2021
section_name: Evergrande liquidity crisis in 2021
paragraph_text: Evergrande liquidity crisis in 2021
  
  In August 2021, it was reported that China's second-largest property developer, Evergrande Group, was entrenched in $300 billion (~$ 333 billion in 2023) of debt. As the company missed several payment deadlines in September 2021, it seemed likely the company would fail without government intervention, as stocks within the company having already plummeted by 85%. Since China is the second largest economy in the world and property makes up a large amount of their GDP, it threatens to destabilise the COVID-19 recession even further, especially considering China is currently deep within a housing bubble eclipsing the United States housing bubble that led to the previous global recession.