Structural and Instrumental Power of Real Estate Companies in China and Government Regulation: The Case of Evergrande

ABSTRACT This article aims to introduce the structural and instrumental power of real estate companies in China, using Evergrande as an example, and provide possible regulation designs that can modify the Three Red Lines regulation policy. China's real estate sector has played a significant role in the country's development, and Evergrande is a prominent real estate corporation in China. The real estate sector in China possesses robust structural and instrumental dynamics. To eliminate the financial crisis in the real estate industry, the Chinese government has introduced three red line policies to increase supervision of real estate companies. Evergrande has experienced serious financial difficulties due to regulatory upgrades, which have had numerous detrimental effects on society. This article discusses the impact of the Three Red Lines policy introduced by the Chinese government on the real estate industry. Additionally, it suggests many solutions that could help with monitoring in this regard. Related Articles Shen, Y., Ieong, M. U., and Zhu, Z. 2021. “The Function of Expert Involvement in China's Local Policy Making.” Politics & Policy 50, no. 1: 59–76. https://doi.org/10.1111/polp.12450 . Li, W., Pierce, J. J., Chen, F., and Wang, F. 2024. “The Politics of China's Policy Processes: A Comparative Review of the Advocacy Coalition Framework's Applications to Mainland China.” Politics & Policy 52, no. 4: 728–756. https://doi.org/10.1111/polp.12574 . Nam, A., and Weible, C. M. 2023. “Examining Experts' Discourse in South Korea's Nuclear Power Policy Making: An Advocacy Coalition Framework Approach to Policy Knowledge.” Politics & Policy 51, no. 2: 201–221. https://doi.org/10.1111/polp.12522 .