In recent days, is China’s economy deflation or inflation? A lot of discussion. Although the Chinese Communist Party has repeatedly claimed to be out of the epidemic, it is hard to hide the economic crisis caused by the US sanctions and the shift of industrial chain.
China’s consumer price index fell 0.5 per cent in November from a year earlier, the lowest in 11 years and the first negative growth since October 2009. Meanwhile, the producer price index, or PPI, fell 1.5 percent year on year, marking the 11th consecutive month of negative growth.
But the public’s experience of life seems to run counter to the economic data of the Communist Party’s statistics bureau. It is reported that in the last one or two months, the price of ginger, garlic, liquor, pork, some vegetables and fruits has been rising.
Xie Tian, a professor at the University of South Carolina’s Aiken School of Business, said that the CPI and PPI published by the Statistics Bureau of the Communist Party of China (CPC) are not credible, especially the CPI.
Xie Tian, a professor at the University of South Carolina’s Aiken School of Business: “But the reality is that the people, the people, don’t feel that way. In many places, prices are rising for everything from meat to fruit, but the Communist Party can play the game by printing money, creating inflation, and flooding the market. Now it looks as if the Communist Party has managed to get through this economic crisis by creating inflation and printing money.”
In fact, Xie said, China is still in a deep recession in manufacturing related industries, especially in south China and northeast China, where unemployment is very serious.
Xie Tian professor at the university of south Carolina Aiken business school: “the industrial chain of outflow continues, U.S. sanctions or to stop, and now is not only to smic, the Chinese oil company, cnooc, has begun to sanctions, chip, huawei mobile phones in China now, all chips crisis, now sanctions are beginning to see the effect.”
Xie stressed that the US election is still in a close race, and once Trump is re-elected, he will strengthen sanctions against the Chinese Communist Party in his second term. In the next step, sanctions will be imposed on private commercial aircraft manufacturing and aviation industry.
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