Expert Analysis: Why the CCP Intends to Lift Foreign Exchange Purchase Restrictions
The Chinese Communist Party‘s Foreign Exchange Bureau recently said that it is studying the relaxation of RMB outbound restrictions. In addition to the removal of the annual limit on foreign exchange purchases by domestic individuals, each person will be allowed an annual quota of $50,000 to invest in overseas securities and insurance.
In other words, currently each person can only exchange $50,000 per year, which can only be used for overseas travel, study and living expenses needed for overseas work, but now the limit is lifted, and the use can also be used for overseas investment. The new residents in China can use $50,000 per year of their domestic savings to purchase overseas securities and insurance. Assuming a Family with three adults, the family can use $150,000 per year for overseas investments.
In layman’s terms, domestic residents can give their money to qualified domestic institutional investors who help invest it in overseas markets because their RMB outbound limit has been increased, meaning that the previously limited limit has been relaxed.
In response, Xie Tian, a professor at the University of South Carolina’s Aiken School of Business, said it is very unlikely that it will actually be implemented and that it will just be put out to stabilize the people’s money.
“Because now the foreign exchange funds fled especially a lot, many people are in any way, at any cost to the funds and property into U.S. dollars to exchange out, which is the loss of U.S. dollars to the Chinese Communist Party, put out this wind, those who are anxious to escape the money will think that later will be liberalized, will be assured that the money will remain in the country, to reduce the pressure of the pulse of the yuan for foreign exchange, so that the dollar assets, the dollar outflow The trend has slowed down, this is a cunning consideration of the Chinese Communist Party.”
In addition, it is not ruled out that it uses this to fish and feel the bottom, “to see how many people still have this ability.”
Li Hengqing, director of the U.S. Institute for Information and Strategic Studies, said that the CCP is now worried that the foreign currency has increased by more than $100 billion in the past few months, and that this money cannot be used to buy chips, highly sophisticated weapons such as aircraft engines and many weapons and equipment because of U.S. restrictions. If the foreign exchange reserves do not play a role, that is actually a big risk.
“Now the Chinese Communist Party hopes that after the liberalization, these entrepreneurs’ money can be invested in high-tech products in the United States, I believe the approval of foreign exchange will be very convenient, because they especially want to be able to buy out American high-tech products and high-tech companies, so that the technology directly back to China, this is now exactly what they are missing. Now that it’s making a lot of foreign exchange in its hands, it really wants to be able to play a role, it wants to solve this problem and let out some wind first.”
Xie Tian said that if it really wants to implement the liberalization there is another possibility, is especially for the powerful to open an opening, and then after the exchange, and then seal this opening. It is not ruled out that it is part of the sinking ship plan.
Xi Jinping‘s “comprehensive poverty eradication” bull is blown
After Xi Jinping’s declaration of “China’s comprehensive poverty eradication”, “poverty” has become a sensitive topic and the media is not allowed to report it. The private sector has seen an overall decline in income over the last year, with the lack of money for medical care worsening and the amount of aid available to poor students decreasing dramatically.
Radio Free Asia reported on the 26th that it interviewed Mr. Zhou, who was involved in the construction of Wuhan Thunder God Hill Hospital. He said that because of the Epidemic, he and most of his workers were unemployed for almost half of last year, a situation that is very common in his hometown, including himself, those families who were already in difficulty, more than more difficult this year, but simply can not apply for low income insurance.
Official media reporter Li Feng revealed that although the official slogan of the so-called two no worries and three guarantees was put forward, saying that the rural poor should not worry about Food and clothing, and have the guarantee of compulsory Education, basic medical care and housing security, it only takes one major illness to return to poverty completely. And under official political pressure, the media dare not report such negative news, and even private relief platforms have been restricted.
According to Ms. Zhu, a medical worker from Hubei, the situation in the inpatient departments of major hospitals can be considered one of the indicators of whether the population is really out of poverty. Every day, there are patients and families who are desperate without money to pay their bills. In large hospitals like Wuhan Central Hospital, for example, patients who cannot afford to pay their hospital fees, or even borrow from friends and relatives, still find it difficult to continue. Especially after last year’s New Crown epidemic, many seriously infected people with damaged bodies, even if they recovered a Life, the follow-up treatment has left many families in deep distress quickly.
Chen Hongtao, a senior media figure in Henan province, cited his own situation as an example to confirm the seriousness of the problem of poverty caused by disease in the country. He said the official high-profile publicity victory out of poverty, but the actual situation is only the figures out of poverty.
Zhejiang lawyer Wu Youshui pointed out that the official high-profile announcement of the total elimination of poverty, but the reality is that, even in the developed eastern regions, the so-called pension of the elderly in rural areas who lost their ability to work is only 78 yuan per month, while in the more backward areas of the west, the situation is even more serious. But under official pressure, the word “poverty” has become extremely sensitive.
A survey by Radio Free Asia of a number of poor student aid departments, including Yunnan University, found that in a recent semester, tens of thousands of students applied for aid, but in the end less than a fifth of them received only a few thousand dollars a year in state aid and various local subsidies, and aid from the private sector also fell sharply from the previous year.
Suning Tesco acquired by state-owned enterprises, the trend of nationalization of private enterprises is irreversible
Suning Tesco, a private Chinese company, issued an announcement this Thursday (Feb. 25) after suspending its trading on the Shenzhen Stock Exchange, saying that Zhang and Suning Electric are planning a share transfer, with plans to transfer nearly two and a half percent of its equity. Market sources said that Suning Tesco stake will be transferred to a number of state-owned enterprises in Jiangsu and Guangdong. Analysts believe that China’s private enterprises have reached the end of the road, while state-owned enterprises will also “go back to the old way”, operating conditions back to the past.
Radio Free Asia reported that the financial scholar Commander lamented the fact that Suning Tesco was forced to sell out due to its debt woes. He said that the transfer of Suning Tesco to a state-owned enterprise was expected: “It shows that the appetite of state-owned capital is getting bigger and bigger, and Suning will become a state-owned capital holding company. Now suddenly it is rumored that Nanjing and Jiangsu State-owned Assets Supervision and Administration Commission want to take a controlling stake in this company, indicating that Suning’s top management may be under pressure from the Chinese (Communist) government and forced to make a critical choice. Suning is going to be forced to cooperate and make compromises with the government if it wants to survive in China.”
The commander said to the Chinese Communist government wants private enterprises to serve the government completely: “To make China’s private giants, to be able to serve including the 14th Five-Year Plan, major development strategies, I hope that these private enterprises can want to be obedient like state-owned enterprises.”
Zhejiang Wenzhou, a garment factory managers Wang Li, said: “In the past few years, the big move into the people, the government seized a large number of private enterprises resources, many enterprises are no way, long ago, can not do. The theory of so-called communism is that the means of production must be nationalized. You do not have the means of production, private enterprises certainly can not develop.” “After the state-owned enterprises screwed up the private enterprises, they further spoiled the means of production, and eventually the state-owned enterprises then killed themselves. State-owned enterprises definitely won’t work, and economically speaking, it’s 100 percent possible that any monopolistic enterprise will eventually lead to collapse.”
The atmosphere of the latest meeting of the Political Bureau of the Communist Party of China is bizarre
On the 26th, the CCP Politburo held a meeting that was supposed to set the final tone for the upcoming two sessions, but Xinhua’s public report ignored the concluding remarks for 2020 and was ambiguous about the outlook for 2021. The report of the Politburo meeting, however, did not mention a single word about 2020. Describing the situation in 2021, the Politburo meeting said, “The epidemic is still spreading globally, the international situation has more unstable and uncertain factors, the foundation of China’s economic recovery is not yet solid, and economic and social development still faces many difficulties and challenges.”
Commentator Zhong Yuan recently wrote that the past year was undoubtedly the biggest scar for the top echelon of the Communist Party of China, with only words mentioned and only muddled by the recognition of poverty alleviation. The top echelon of the CCP is actually avoiding the 2020 fiasco.
The Politburo meeting no longer dares to play up the “moment of crisis” and tries to downplay the current situation. The low profile of the outlook for 2021 truly reflects the real state of mind of the CCP top brass who cannot find a way out at this moment.
The fact that the political bureau meeting discussed a “regulation on the work of grassroots organizations in colleges and universities” also reveals that the top of the CCP is worried about the social backlash. 2020’s blunders are hard to cover up, and there is no countermeasure for 2021, the college students who see no hope for their future should be the group most likely to raise their arms, and the CCP has to guard against it.
The three major secrets of Hua Guofeng’s life that the party media dare not report
The first major secret: Hua Guofeng is the eldest son of Mao Zedong
The first secret is that Mao Zedong is the eldest son of Hua Guofeng, who met and lived with a woman surnamed Yao when Mao was in Changsha in 1920. In 1921, Yao gave birth to Hua Guofeng; two years later, Yao died of illness. After that, Mao always entrusted relatives to raise Hua Guofeng, and let him take the adopted family’s surname of Hua, named Hua Guangzu. After the victory of the war, the name was changed to Hua Chengwu; during the Communist civil war, the name was changed to Hua Guofeng.
The company’s name was changed to Hua Guofeng after the war. In 1968, Hua Guofeng became the first secretary of the Hunan Provincial Committee and the director of the provincial revolutionary committee. Whenever Mao returned to Hunan, Hua Guofeng accompanied him.
In addition, Hua Guofeng went to Beijing two or three times a year on the pretext of reporting directly to Mao on local work. 1971, after the Lin Biao incident, Mao transferred Hua Guofeng to Beijing as a member of the Politburo, Vice Premier and Minister of Public Security, and asked him by name to attend the Politburo Standing Committee meetings. 1976, before Mao died, in order not to “overturn” the case after his death, he gave the power to Hua Guofeng. The first of these is the first Time that a person has been appointed to a position of power.
In the early 1980s, Hua Guofeng wrote to the Politburo of the CPC Central Committee, requesting that his birth name be restored and changed to Mao, but was rejected by the Politburo because it was not good for the party, for Mao, or for Hua Guofeng himself. Since then, Hua Guofeng has written several times, hoping that he could claim his ancestry, but he was still denied.
The second big secret: Hua Guofeng had already proposed to resign from the party during his lifetime
Commentator Zhou Xiaohui said another secret of Hua Guofeng that the Chinese Communist Party has been covering up is its long-standing withdrawal from the CCP. As early as 2001, The Japanese newspaper Asahi Shimbun exposed the news that Hua Guofeng had already quit the party during his lifetime. According to a foreign news report, Hu Jintao had hosted a meeting on Hua Guofeng’s request to resign from the party. At the meeting, Hua made his attitude clear firmly, which made Hu embarrassed.
In public, the Chinese Communist Party officials were tight-lipped about Hua Guofeng’s resignation from the Party, but they did not dare to deny it publicly. On November 6 of that year, at a Foreign Ministry press conference, a Japanese journalist asked Zhu Bangzuo, the spokesman for the Foreign Ministry, “Did Hua Guofeng ask to resign from the Party?” Zhu Bangzuo said, “This question is not within the scope of my answer, don’t ask such questions at the Foreign Ministry press conference in the future.” At that time, some media analysis said that Zhu Bangzuo’s dodge was an indication that the incident was not an empty talk.
Huaguofeng arrested the “Gang of Four” official media dare not report
In addition, the article pointed out that the “Gang of Four” incident is a major event in the history of the Chinese Communist Party, but Hua Guofeng has never publicly talked about and expressed his views. And the Chinese Communist Party media did not mention a word about it, what is the reason?
Li Haiwen, the editor-in-chief of the Chinese Communist Party’s Personal History of Major Historical Events, wrote an article saying that Mao Zedong considered the Gang of Four “not a big problem” during his lifetime and specifically said, “Don’t make a big deal out of it. Not to mention the issue of dealing with the “Gang of Four” on the agenda.
But Hua Guofeng arrested the Gang of Four a month after Mao’s death, including Mao’s legal wife Jiang Qing, a move that proves Hua Guofeng did not really adhere to the principle of “two mortals”. Ironically, after his resignation, Huaguofeng was accused by the Communist Party of making a mistake in adhering to the “two cardinal principles”, a mistake that Huaguofeng admitted.