As a real estate meltdown ripples through the economy, small businesses and workers are owed hundreds of billions of dollars, and new projects have dried up.
Beijing wanted to cool its housing market, but created a bigger problem, as the fallout from debt-laden developers and sinking sales spreads to the broader economy.
Country Garden, China’s last big property developer to avoid default, has spooked investors after missing key debt payments, rekindling memories of China Evergrande.