If you have to ask you don't follow stock market very closely or at all? Maybe I'm misunderstanding what you're questioning?
You said the effect is negligible. I question your declaration. I'm witnessing these supply shortages first hand. No supplies, means no production, means nothing gets done. Can't have cash flow if you're not producing and trading.
Evergrande is defaulting on their loans and bonds related to their real estate holdings. They don't produce anything per say that would effect US supply chain that I know of.
They are dumping their real estate at below market value to pay creditors. This will cause a crash in Chinese real estate. They also aren't paying their contractors which can cause them to default as well.
This also has a compound effect of lowering wages and reducing purchasing power of contractors, laborers, and foremen.
Real estate is too expensive because materials and transportation have gone up too much. They're operating at a loss to maintain cashflow, a lot of businesses do this, especially now, short term pain for long term gain.
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