As the U.S.-China trade war escalates, collateral damage for real estate in New York (and what about the next step?)
An 8/1/19 article in The Real Deal, Tallying the trade war, cites summer trade tensions between the United States and China--and subsequent tariffs--as having impacts on the real estate industry, given the cost of imported construction materials.
That's coupled with a decline in United States investment by Chinese companies and, I'd assume, some increased wariness by companies like Greenland USA, already enmeshed in projects like Atlantic Yards/Pacific Park.
One volatile commodity is steel, the cost of which has risen for imported steel, but then declined after new domestic production and imports from adjacent Canada and Mexico, according to The Real Deal.
What if things escalate?
The article was published before President Donald Trump purportedly ordered U.S. companies out of China--a power experts significantly question but do not completely discount, as the New York Times reported 8/24/19.
Presumably if that were to actually occur, even in part, and cause enormous disruption regarding international production and trade, there might be a reciprocal response from China, which surely has even more power, given the significant state ownership in firms like... Greenland USA and its parent, Greenland Group.
That could offer either a prod or a legal excuse for Greenland to sell more of Atlantic Yards/Pacific Park and/or partner with other developers, or even... to pull out. That's just speculation, as of now, but, remember, this is a "never-say-never project."
That's coupled with a decline in United States investment by Chinese companies and, I'd assume, some increased wariness by companies like Greenland USA, already enmeshed in projects like Atlantic Yards/Pacific Park.
One volatile commodity is steel, the cost of which has risen for imported steel, but then declined after new domestic production and imports from adjacent Canada and Mexico, according to The Real Deal.
What if things escalate?
The article was published before President Donald Trump purportedly ordered U.S. companies out of China--a power experts significantly question but do not completely discount, as the New York Times reported 8/24/19.
Presumably if that were to actually occur, even in part, and cause enormous disruption regarding international production and trade, there might be a reciprocal response from China, which surely has even more power, given the significant state ownership in firms like... Greenland USA and its parent, Greenland Group.
That could offer either a prod or a legal excuse for Greenland to sell more of Atlantic Yards/Pacific Park and/or partner with other developers, or even... to pull out. That's just speculation, as of now, but, remember, this is a "never-say-never project."
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