There have been many instances of General Secretary Xi Jinping and Premier Li Keqiang “disagreeing” with each other, with many media describing them as “disagreements” and “struggles”. Li Keqiang, in fact, both of them are to protect the party to “extend Life“.
But China’s real estate “gray rhinoceros” is getting stronger and stronger by the CCP, and Taiwanese scholars point out that in view of this, the CCP’s attempt to protect the party and “extend its life” may become a mirage. And the Chinese Communist Party has been firmly on the crooked path of Venezuela’s transformation from rich to poor for many years, and has learned all seven of Venezuela’s crooked tricks.
Meanwhile, the Chinese Communist Party is signing a 25-year comprehensive cooperation agreement with another evil regime, Iran. But these countries are unreliable, and now Russia is limiting wheat exports to China in response to domestic demand, while purchasing wheat from Australia is skyrocketing.
The Communist Party’s red line is meant to be stepped on! U.S. Senators propose several sensitive bills to target the Chinese Communist Party. The first department store on the mainland to withdraw from the market, 10 tons of Gold payments inexplicably missing.
Different tone is not a power struggle, Xi Jinping and Li Keqiang are doing one thing
The Chinese government’s political party has been in the midst of a political war, but the Chinese government’s political party has been in the midst of a political war. For example, in the case of poverty eradication, Li Keqiang only said what a State Council premier should say, using data to remind what needs attention, but this is neither a political struggle nor a disagreement; Xi Jinping, on the other hand, treats poverty eradication as a comprehensive political task, so there will be political statements and arguments. According to Cai Wenxuan, “they are just speaking different words from different positions.
Photo: Cai Wenxuan, a researcher at the Institute of Political Science, Academia Sinica
Cai Wenxuan said, “But this difference will not cause a conflict between Li Keqiang and Xi Jinping because Li Keqiang has much less power than Xi Jinping. After Xi Jinping shouts to stop, he (Li Keqiang) can only touch his nose and walk away.”
Cai Wenxuan said that after Xi Jinping himself became the head of the central deep reform group and the head of the economic leading group, Li Keqiang’s power in the State Council and the power of the Politburo Standing Committee has been partially hollowed out, which is basically “whatever power Xi Jinping gives him, he will do. Li Keqiang’s power in the economic field is less than that of his predecessors, so he is a premier of the State Council with little economic power and no ability to talk to Xi Jinping about “differences.
Cai Wenxuan also said that even if Xi and Li have what he called different tones, they are only differences in the technical aspects of the economy, but the general political guidelines are not different.
Independent commentator Tang Jingyuan also said, Xi and Li are essentially the same, the goal is to keep the CPC from falling, to “extend the life” of the Chinese Communist regime, even the essence of the economic line is similar, both called state capitalism.
Venezuela’s seven crooked tricks to turn from rich to poor, the Chinese Communist Party has learned
China is a country with a large population, and if the Venezuelan phenomenon occurs, it will cause global turmoil. In fact, China is also running wildly along the same path as Venezuela, with increasingly standardized movements and postures.
Photo: Venezuelans take to the streets, raising their hands against Maduro’s regime
Venezuela ranks first in the world in terms of oil reserves and was once the richest country in South America. The Venezuelan economy is now on the brink of extinction due to the insistence of two Venezuelan presidents on the path of socialism.
According to German media reports, in the 10 years between 2010 and 2020, prices in Venezuela have risen more than one million times, and bus tickets have risen from $2 (bolivar) a piece in the past to $2 million a piece today. More than 80 percent of the country’s population suffers from malnutrition (except for the military and officials).
Current affairs commentator Ancient Wind analysis, summarized the seven crooked tricks of Venezuela from rich to poor.
One is to firmly follow the dead-end path of socialism.
The second is to amend the constitution to abolish the presidential term of office to create a personal dictatorship.
The third is to turn private enterprises into nationalized.
Fourth, the enemy of the United States, with the dictatorship of the country.
The fifth is the printing of money to cause Inflation in the market.
Sixth, the abolition of the separation of powers system.
Seventh, successor Maduro relies on loans to keep the government running.
The ancient wind emphasizes that the Chinese people in power, for their own selfishness, not only did not learn a lesson from this, but also drew a diagram from a gourd, and what is more terrible is that many Chinese people are still singing their praises in the face of the perverse practices of the people in power. It is really pathetic!
Powerless to return to heaven! If China’s real estate collapses, the Chinese Communist Party will not be able to protect itself.
Wu Yijun, the founder of Jui Shi think tank, wrote an article in the Taiwan media recently, pointing out that if China’s real estate collapses, the Chinese Communist Party will not be able to protect itself. The Chinese Communist authorities see the Chinese real estate gray rhinoceros growing stronger and stronger, but fear that because of shaking the huge interests of the Chinese Communist Party, it is unable to completely solve the problem, but also makes the Chinese Communist Party in a dilemma, deep in a vicious circle.
Even though the CCP authorities are aware that the financial market is moving against the real economy of China and that the asset bubble may burst, they can only talk about it as usual, but it is difficult to turn back.
Guo Shuqing, chairman of the China Banking Regulatory Commission, has warned twice in three months that “China’s real estate has a dangerous tendency to become financialized and bubbly, and is the biggest ‘gray rhinoceros’ in the financial system.
Guo Shuqing pointed out at the State Council’s press conference on “Promoting the high-quality development of the banking and insurance industry” that “the ‘gray rhinoceros’ problem is that many people buy houses not for living, but for investment or speculation, which is very dangerous.” “Holding so many properties, if this market comes down in the future, there will be a great loss of personal property, loans can’t be repaid, and banks can’t collect loans, principal and interest, and a great disruption of economic life occurs.”
According to China’s Daily Economic News, the total market value of China’s 50 listed real estate companies shrank by RMB 800 billion last year compared to 2019. More than 470 bankrupt real estate companies went bankrupt last year, according to an announcement by the People’s Court of China, and even though news of rising Home price speculation in primary and secondary cities continues to rumble, the industry is actually wailing, especially for small and medium-sized real estate companies.
According to CreditSights, a bond research firm, the offshore debt of Chinese real estate companies soared this year to $53.5 billion, more than double last year’s $25.4 billion, notably the majority of which were dollar-denominated bonds, at $47.6 billion.
To add insult to injury, the Chinese central bank and the Ministry of Housing and Urban-rural Development drew a red line to avoid a series of “mines” by real estate companies, setting out new rules in August last year on the “three red lines” of financing for real estate companies, prohibiting them from lending in an attempt to tighten their ability to raise capital.
Last December, Guo Shuqing published an article on “Improving the Modern Financial Supervision System”, emphasizing that real estate has become the biggest “gray rhinoceros” in China’s financial risk, with 39% of China’s banking sector loans being real estate-related loans, and a large amount of bonds, equity, trusts and other funds flowing into the real estate sector.
Guo Shuqing pointed out that of the more than 130 financial crises that have occurred in the world over the last century, as many as 100 have been related to real estate, and in 2008, for example, before the U.S. subprime mortgage crisis, U.S. real estate mortgages exceeded 32% of U.S. GDP that year. In contrast, 39% of the current Chinese banking sector loans are real estate-related.
Chinese financial research institutes point out that China’s real estate market value has reached 356% of GDP back in 2018, much higher than the 126% of the U.S. and 208% of Japan. And from 2010 to the end of 2020, China’s real estate mortgage-to-GDP ratio (real estate leverage) surged from 15.9% to 40.1%, already well above the pre-subprime mortgage crisis level in the U.S. (32%).
At the 2019 Boao Real Estate Forum, Shao Yu, chief economist at China Eastern Securities, noted that China’s total real estate market capitalization reached $65 trillion, about five times its GDP, compared to Japan’s housing bubble, which accounted for only 215% of its GDP at its peak, making China’s total real estate market capitalization arguably the largest bubble in history.
Russia curbs wheat exports as Chinese purchases of Aussie wheat soar
China bought 479.3% more wheat from Australia in the first two months of the year than it acquired in the same period last year, but China’s overall imports from Australia fell slightly, the latest data from Chinese customs showed.
The latest preliminary figures for February released by the Australian Bureau of Statistics on Wednesday showed that its grain exports, including wheat, were A$1.3 billion for the month, the highest monthly export value on record.
Australia’s wheat sales to China remained strong, although they declined after December’s record high sales worth A$248 million, the largest monthly wheat export volume ever to any single country.
Meanwhile, exports from major wheat markets such as Russia and the Black Sea were reduced by dry weather, and Russia curbed exports amid a crackdown on domestic grain inflation. Demand for wheat is also high after prices for other feed ingredients such as corn and soybeans have soared.
Chinese Communist Party red lines are meant to be stepped on as U.S. lawmakers propose several sensitive bills
Three important things happened on Capitol Hill on Friday, two involving U.S.-Taiwan relations and the other involving U.S.-China trade. U.S. Senators Marco Rubio (R-FL) and Jeff Merkley (D-CA) introduced the Taiwan Relations Enhancement Act bill.
Photo: U.S. Senator Marco Rubio (R-FL)
The bill calls for the establishment of an inter-ministerial Taiwan Policy Working Group, upgrading the U.S. representative in Taiwan to a level that requires Senate confirmation, establishing a U.S.-Taiwan Cultural Exchange Foundation, promoting Taiwan’s membership in international organizations, developing ways to protect U.S. businesses and non-governmental organizations from coercion by the Chinese government, and responding to China’s power manipulation actions against Taiwan.
In a second action involving Taiwan, a bipartisan group of members of the U.S. House and Senate sent a joint letter to U.S. Customs and Border Protection (CBP) in support of their establishment of the agency’s preclearance agency in Taiwan.
Another bill introduced by the legislators is a legislative bill, the Fair Trade with China Implementation Act, which aims to protect U.S. assets from China, oppose China’s control of U.S. assets, and deter China’s economic aggression. The bill is sponsored by Republican Senators Rubio and Josh Hawley (R-CA).
Rubio said, “China’s Communist Party continues to take offensive actions that weaken our economy and hurt American workers. It is more important now, than ever before, that we repel Beijing‘s malicious actions that undermine America’s economic security and national security.”
Rubio emphasized that “how we respond to the growing challenge posed by the Chinese Communist Party is the single most important geopolitical issue of our Time, and it will shape the 21st century.”
In Open Alliance, China and Iran Formally Sign 25-Year Comprehensive Cooperation Agreement
On Saturday (March 27), the Chinese Communist Party and Iran officially signed a 25-year agreement that includes political, strategic and economic cooperation. The document was signed by Chinese State Councilor and Foreign Minister Wang Yi and Iranian Foreign Minister Zarif in Tehran.
Iranian state media quoted Wang Yi as saying that “relations between the two countries have now reached the level of strategic partnership and China seeks to improve its relations with Iran in a comprehensive manner.”
Photo: Chinese Communist Party Foreign Minister Wang Yi and Iranian Foreign Minister Zarif
According to its contents, “China has agreed to invest $400 billion in Iran over 25 years in exchange for a stable supply of oil to fuel its growing economy,” the New York Times described on Saturday. The report mentioned that the Iranian side did not make public the details of the agreement before signing it. But experts say the agreement is largely unchanged from an 18-page draft obtained by The New York Times last year.
That draft detailed $400 billion in Chinese investment in Iran over the next 25 years in dozens of areas, including banking, telecommunications, ports, railroads, health care and information technology. In exchange, China would receive regular, heavily discounted supplies of Iranian oil, according to an Iranian official and an oil trader. The draft also calls for deepening military cooperation between the two countries, including joint training and exercises, joint research and weapons development and intelligence sharing.
China’s first department store delisted, executives missing 10 tons of gold money missing
The first department store in the mainland, Harbin’s Qiu Lin Company, was announced to have its listing terminated with a huge loss of more than 5 billion yuan (RMB, same below). Before the delisting, Qiu Lin company experienced the loss of executives, billions of dollars of goods missing so far strange events.
Qiu Lin Group announced in the afternoon of March 26 that the company’s shares traded on March 24, 25 and 26, 2021 for three consecutive trading days with an accumulated 20% drop in daily closing price.
Earlier, in the evening of March 11, Qiu Lin Group issued an announcement saying that the company received on the same day the SSE’s “Decision on Termination of Listing of Shares of Harbin Qiu Lin Group Company Limited”, according to the relevant regulations, the SSE decided to terminate the listing of the company’s shares.
Qiu Lin is a century-old company, which became a Communist state-owned enterprise in 1953 and was listed on the Shanghai Stock Exchange in 1996, but its performance continued to decline. After experiencing two consecutive years of losses at that time, Qiu Lin Group became a private enterprise from a state-owned enterprise in 2004.
In February 2019, Qiu Lin Group said that Chairman Li Ya and Vice Chairman Li Jianxin were out of contact. Qiu Lin issued an internal control audit report, saying that the possibility of recovery of accounts receivable and depository of the gold business unit established by the company in 2018 were at significant risk, and a bad debt loss of 3.694 billion yuan (RMB, same below) was accrued, which was equivalent to 10 tons of gold based on the gold price at that time.
However, as of today, the whereabouts of the chairman, vice chairman and 10 tons of gold payment of the company are still unknown, and there is no explanation from the Tianjin Public Security Bureau of the CPC, which issued the freezing of shareholders’ equity at that time.