Wu Jinglian, a famous Chinese economist, said that experts raised by the Chinese Communist government only “make up words”, such as framework, restructuring, supply-side, demand-side, etc. A bunch of new words will appear after a while, but the problem is still not solved and is still there.
On May 19, Tencent Finance published an article in which famous Chinese economist Wu Jinglian criticized the Chinese Communist Party’s economy.
Wu Jinglian pointed out that the Chinese Communist Party has raised a group of experts who only create new words but do not solve problems.
According to Wu, the phenomenon of “whole words” in China’s economic research is noteworthy, such as framework, reconstruction, supply side, demand side, etc. A bunch of new words will appear after a while, but the problems are still there without being solved.
According to Wu Jinglian, this is closely related to the superficiality of China’s economic research, which is characterized by “whole words”. Because the “whole word” appears to be profound. Using “words” that people have not heard of in the past can show the profundity of his research and knowledge, but “finishing the whole word” is not the same as a solution.
Wu Jinglian said that China’s economy is following the path of Japan’s failure. In Japan, the prevalence of financial speculation and the trend of financial short-termism caused serious problems with the liquidity of the host banks, especially during the Asian financial crisis, which caused a serious liquidity crisis in Japan. Enterprises had already used out their long-term loans, and it was impossible to return them to the banks; the maturity mismatch between deposits and loans of banks became more and more serious, and as a result, the capital chain was broken. Coupled with the cross-shareholding among enterprises, the crisis spread and transmitted so violently that it eventually dragged down the Japanese economy, and it never recovered.
According to Wu Jinglian, the key problem that destroyed Japan’s economy was finance, the inevitable result of the supreme financial capital being divorced from its focus on serving the real economy. But in China, not many people are willing to admit such logic. The reason for not admitting it is that the education they received and the textbooks they read do not have such a theory. This is the sad thing about Chinese economic research – theory to the point of ignoring reality.
Wu Jinglian added that don’t really think that Japan is in recession; in fact, Japan is lying in wait and Japanese high-tech products, represented by robots, are surging ahead.
Wu Jinglian said that back in China, the key problem of the Chinese economy is still the financial problem, the problem that the Chinese financial market is getting farther and farther away from capital formation. This problem cannot be solved, and it will still take time for the Chinese economy to change for the better.
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