Not at all what’s happening. China’s government privatized real estate and was the engine of the bubble by disallowing localities from taxing and only allowing revenues via land sales. See above how central planning in the CCP has forced massive debt upon localities.

State banks backed Evergrande’s with cheap credit and govt guarantees.

Local officials were promoted for hitting GDP growth targets - see above how they put localities deep in debt by speculating on real estate.

The CCP gave households social credit for moving to cities and buying real estate.

The CCP is not protecting consumers in the aftermath. They won’t let consumers out of mortgages for unfinished condos because they don’t want the crisis to worsen - effectively bailing out developers.

Not sure where you came up with the idea that China is acting in the interest of its citizens rather than the state. That’s not a fundamental characteristic of an autocratic socialist state.

The citizens with real estate were the speculators. They gambled on being able to squeeze even more out of the next guy and they lost. In the US, we would just have taxed the kids (again) to bail out the homeowners (again). I have a hard time calling that more responsible.