Embattled developer Evergrande’s failure to meet its debt payments has set off a chain reaction in the property sector in China. Multiple Chinese property developers in different parts of China are experiencing defaults in construction and wage payments as well as overseas and domestic bonds and debts. In China, it is common practice in the real estate sector for the developer to pay its contractors and suppliers a certain portion of the costs upfront, while the rest of the construction and material costs are covered by contractors and suppliers as advances that the developer reimburses at a later stage. The practice of having construction contractors and suppliers pay for projects and workers’ wages in advance has been in place in China for years. However, with falling sales, restricted access to credit and a sector downturn, developers are not able to fulfill their repayment obligations on time. There have been desperate …