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China real estate slump takes Japan elevator makers along for the ride

Unpaid bills from Evergrande and peers pile up at Mitsubishi Electric and Hitachi units

Unfinished residential buildings developed by China Evergrande Group. The real estate company's debt crisis has left it struggling to pay suppliers.   © Reuters

GUANGZHOU/TOKYO -- Chinese property developers' cash crunch has started to hit home for Japanese-backed elevator suppliers whose fortunes had risen with those of debt-laden China Evergrande Group and its peers.

State-owned Shanghai Electric Group said last week it had written off about 2 billion yuan ($305 million) in 2021 in bills unpaid by Evergrande. Much of this amount was owed to Shanghai Mitsubishi Elevator, a joint venture with Mitsubishi Electric.

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