Anyone who has been following the news of the Chinese Communist Party and the state of China’s economy recently will have noticed that two major events have taken place in China. First, Xi Jinping‘s administration is using all means to eliminate the huge bubble in China’s real estate market at all costs, using the CCP’s unique “campaign-style” approach to clear loans and basically cut off bank loans from entering real estate. As I have analyzed before, the CCP is now economically at a loss, and there are only two options left: to take the initiative to burst the bubble or to wait for death, and obviously the CCP has chosen the former, but it is obvious that the CCP government simply cannot afford the consequences of doing so.
The so-called personal bankruptcy regulations, which have little meaning other than to give the CCP face, are simply a drop in the bucket; after more than ten years of the CCP’s haphazard ravages, the Chinese market has long lost its ability to adjust itself in the early stages of the economic crisis, and the huge energy accumulated in the process is beyond the capacity of any society to bear.
It can be said that both China and the CCP are sitting on the crater of an active volcano that is about to erupt, and all dictatorial regimes facing the crisis of their own survival will choose one way to save themselves: to put the whole country and countless human lives on the table of foreign wars, which has a slim chance of winning, in the hope of trying to make a last stand, and it is obvious that none of them has succeeded.
Then the Chinese stock market plunged during the “two sessions” of the Communist Party, which would never have happened in the first place. However, this Time it actually happened, which shows how alarming the actual economic situation in China is, and how pale the so-called “great victory” China achieved in Wuhan pneumonia is; furthermore, in recent years, China has been in a trade war with the United States because of the Chinese Communist Party’s war-wolf diplomacy and the Western countries’ bad blood, which makes the already ongoing industrial transfer “fast”. On top of that, China’s empty finances, its doomed economic plan and the destruction of the rule of law and freedom in Hong Kong have added to its woes.
It can be said that China’s economy is at the end of its rope, and in order to preserve the Communist Party’s faltering regime, Xi Jinping’s administration can only, as we have seen, propagate nationalism in an attempt to grab what they think is the last straw, and all those who use nationalism are bound to be coerced by nationalism. The CCP is following the same track of militaristic foreign wars, without exception.
As the stagnant time starts to flow again, the CCP’s chariot will surely take the whole China unscrupulously on the road to destruction, as Mao Zedong successfully used political struggle to train gravediggers for the Red Empire he built.
I just wonder if this time East Asian civilization will truly emerge from the Middle Ages, instead of wallowing in the heyday of the old dream and continuing to eat the past.
Let’s talk about the failed economic policies of the Chinese Communist Party
- “One Belt, One Road”
In 2013, through the so-called “One Belt, One Road”, it actively negotiated with neighboring countries and tried to pull them to join through various interests.
The specific ways include lending large amounts of low-interest or even interest-free loans to these developing countries, whose domestic economic situation is not very optimistic, to support their economic construction; using various means to obtain the rights to use various infrastructure and land from local governments; and encouraging Chinese enterprises to set up factories and branches in these countries.
However, this seemingly good work is actually problematic: lending loans to local governments to hire Chinese companies to carry out economic construction is actually swapping their own funds from left hand to right hand, creating debts out of thin air, adding to the already sluggish local economy, and being questioned by the international community for transferring excess capacity and attempting to hegemonize debts; in the process of signing agreements, the CCP is suspected of being unscrupulous In the process of signing the agreement, the Chinese Communist Party is suspected of being unscrupulous, and there have been incidents in which it is suspected that the Chinese Communist Party used the agreement to force the signatories to make political concessions, which makes the fairness of the agreement doubtful. choose to renege on their debts, and even use various means to recover previously lent developed land from China through the unsoundness of their own judicial and administrative systems, condoning conflict and nationalism between their domestic populations and Chinese companies.
At this point, the “Belt and Road” project, which consumed a large amount of foreign exchange reserves of the Chinese Communist Party, basically ended up as a failure.
2, all kinds of so-called “free trade test zones”
This is not explained, in a word: no people in the yuan, free trade test zone no freedom.
3, “Xiongnu New Area”
In order to solve the problem of overpopulation in Beijing and other places, the Chinese government decided to circle a piece of land in Hebei province.
Although the Chinese government has taken this matter very seriously, Xi Jinping has mobilized various “teams” to develop the area. However, this plan is obviously a failure, except for the success of the local real estate market volatility for a short period of time, it can be said that basically nothing has been achieved, and in recent years, there is not much news and propaganda, it can be considered that the Chinese Communist Party has once again succeeded in draining the Chinese treasury.
4、US-China trade war
If the previous ones only serve to deflate the Chinese treasury and waste public money, then this one can be considered a big bleeding of the Chinese economy.
In 2018 the Trump (Trump) administration announced the start of tariff increases on some products, hoping to revive the U.S. domestic manufacturing industry through this method, a plan that targets all over the world, even the U.S. NATO allies are inevitably affected by this. Of course, almost all the countries hit are wailing, protesting the Trump Administration‘s actions, but only stop there, and there is no real action, after all, people under the low eaves, have to bow down. Only the Chinese Communist Party directly responded to the war head-on by imposing tariffs on U.S. products, triggering the U.S.-China trade war.
However, after a few rounds of exchanges, the Chinese Communist Party began to look a little powerless, revealing its colorful and vain reality. In theory, this time should show weakness to end this no chance of winning the trade war, Chinese Vice Premier Liu He also went to the United States to negotiate, but the Chinese Communist Party may be out of face for the reason of resolutely refused to reach a compromise with the Trump administration, negotiations failed, after a period of truce war again, and then repeatedly until the end of 2019 early 2020, can no longer continue to bear the cost of the Chinese government can only be forced to sign The first phase of the agreement to import a large number of U.S. products.
This trade war has accelerated the already ongoing industrial shift, resulting in a massive outflow of foreign capital from China, which is definitely not good for China, which made its fortune by taking over labor-intensive industries and remains a major pillar of its economy, with an extremely unbalanced industrial structure. You could say that it fundamentally damaged China’s economy. More seriously, this basically destroys the possibility of China’s continued economic development and industrial restructuring, and can be said to have given the Chinese economy a fatal stab.
- The CCP destroyed Hong Kong’s status as an international financial center
For the Chinese Communist Party so acted for a variety of reasons, the outside world have a variety of speculation, but the fall of the Chinese Communist Party before we will probably never know it, so I have reservations, here will not be too much detail, directly explain the consequences.
The first is the most obvious, Hong Kong broke out a massive protest march, the economy was more or less affected, coupled with the late Hong Kong financial status rating decline, of course, the most serious or “one country, two systems” was destroyed, so that Hong Kong’s financial status to a high-altitude speed drop.
The second point is once again a heavy blow to foreign investment in China, because Hong Kong was once a trusted conduit for foreign capital to enter China, but now the Hong Kong law is dying a little bit, see the situation is not good foreign capital naturally have to withdraw, which will not only hit the economy of China and Hong Kong will also be a large number of foreign exchange reserves of Hong Kong.
The third point is to cause the people of Hong Kong to leave, there are two types of people, one is the pro-democracy faction that left Hong Kong after the protest subsided, and one is the people who feel dissatisfied with the status quo after the economic downturn in Hong Kong, the former may not necessarily, but a significant part of the latter must be at least a small savings of rich people, and then the property prices in Hong Kong is notoriously high …… The first thing you need to do is pray that China really has that much foreign currency to save the Hong Kong dollar, or to resist the massive withdrawal of people leaving Hong Kong, otherwise those Hong Kong dollars in your hands will become waste paper.
The fourth point is to make China’s international credit loss, full of sanctions, this is the future of China’s economy is definitely the head of the stick, the future of China’s difficulty in attracting foreign investment will certainly be greatly increased.
The following is another point of personal speculation about the reason why Xi started to promote the fugitive regulations.
I personally think that in fact Xi Jinping did not want to destroy Hong Kong at the beginning, he just wanted to pass this law to make it easier for him to arrest those political opponents who escaped, as well as people like the owner of Causeway Bay bookstore who wrote his secret news in Hong Kong, but could not consider the consequences, and only around the ass-kissing staff, see Hong Kong people protesting in the streets do not know how to stop the damage, but layers and layers of additional code, and finally succeeded in the official forced the people to rebel and destroy the Hong Kong as a financial center.
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