The Writing’s on the Great Wall for a China Crash

Contact Your Elected Officials
The Epoch Times Header

As the economy continues to implode, capital flight rises.

As the saying goes, if you want to know what’s really going on, follow the money. That catchphrase doesn’t just apply to foreign companies and investors backing out of China. It also applies to the Chinese economy.

A No-Confidence Vote

In the midst of widespread economic duress and growing social disruption, following the money trail shows how Chinese investors are voting with their wallets. Consumer spending is down, and the savings rate is up. Capital is flowing out of China any way it can, and it all amounts to a definite no-confidence vote for Xi Jinping and the Chinese Communist Party (CCP).

The CCP Tries to Hide the Facts

In true CCP fashion, the state puts the blame for its failed policies on those who point them out. Anyone who mentions the crumbling economy, for example, is guilty of endangering financial stability. Even though the CCP would consider prosecuting journalists and economists who report accurately about the falling employment numbers and the high debt levels that plague local governments, China’s worsening economic conditions are too dramatic and widespread to hide.

Of course, financial stability isn’t threatened by people talking about it. It’s the CCP that’s destroying the economy. Even recent history shows that the less involved the Party is in the economy, the better it performs.

The property market and the development sector are perfect examples, although not the only ones. Both continue to be heavily manipulated by the CCP, and both are hemorrhaging value, as financial ruin in flagship companies such as Evergrande and Country Garden contribute to deteriorating conditions in the wider economy. Completed projects that remain unsold are being demolished, work on existing projects is being halted, and other development plans are being canceled, even as the development companies owe billions to creditors.

More Than a Cyclical Downturn

The reality of what’s happening is starting to dawn on the Chinese. Many understand that the current trend is much more than a cyclical downturn, which is typical of capitalist economies. Growth in the second quarter of 2023 was reported to be only 0.8 percent. Still, that statistic is hardly trustworthy in a country that runs on graft and political favors and routinely fudges the numbers. The reported third-quarter gain of 4.9 percent is touted but not believable, given the real estate collapse, falling consumer spending, and lower exports.

Going forward, as the CCP takes more control, a stagnant economy may be the best-case scenario. Jobs in property development, related industries, and manufacturing sectors are all struggling as foreign companies leave China’s shores.

By James Gorrie

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Kamala, Please Run Again

Kamala Harris hinted she wants to run for President in 2028, despite poor poll numbers and her loss in 2024. If she runs, the big winners will be the GOP.

Rosie O’Donnell vs. Her Therapist

Rosie O’Donnell's therapist attempted to artfully introduce to her client to the possibility that Rosie's outrage might be performative. It didn’t take.

Hamas’s Stubborn Grip on Arms Signals No Desire for Genuine Peace

Hamas’s rhetoric reflects its founding ideology, prioritizing armed resistance over civilian welfare or diplomatic progress.

Off the radar

In the longstanding and brutal ledger of religious persecution, Nigeria now occupies its own grim chapter with its enduring pogrom against Christians.

The New Jackboots? A Wake-Up Call on Antifa and Fascism

An analysis of whether Antifa truly opposes fascism by comparing its tactics and behavior to historical signs and movements of fascist regimes.

Louisiana GOP State Lawmaker Announces Run Against Incumbent U.S. Senator

Louisiana Rep. Julie Emerson launches a campaign against Sen. Bill Cassidy, entering the state’s first Republican primary race in 50 years.

Trump Says His MRI Test Performed at Walter Reed Was ‘Perfect’

“I did,” Trump confirmed. “I got an MRI. It was perfect. I gave you the full results. We had an MRI, in the machine … the whole thing.”

Fox News to Air First TV Interview With Erika Kirk Following Husband’s Assassination

Erika Kirk, new CEO of Turning Point USA, will give her first TV interview next month, two months after the assassination of her husband, Charlie Kirk.

Judge Rules Charlie Kirk Assassination Suspect Can Wear Civilian Clothes in Pretrial Hearings

A judge ruled on Oct. 27 that the man accused of assassinating Charlie Kirk last month can appear in civilian clothing during all pre-trial hearings.

Trump Hikes Canada’s Tariffs by 10 Percent for Not Pulling Anti-Tariff Ad Immediately

Trump announced he will increase tariffs on Canada by 10% after ad by provincial government of Ontario misrepresented President Reagan’s speech on tariffs.

Trump Rolls Back Emissions Rules on Copper Smelters

President Trump issued a proclamation aimed at reversing a Biden-era environmental rule that enforced stricter air emission standards on copper smelters.

Donor Gives $130 Million to Cover Shortfall in Troop Pay During Shutdown

Trump announced on Oct. 23 that an anonymous donor sent $130M to cover military pay during the ongoing government shutdown.

‘Frustration’ With Canada Led to Trump Scrapping Talks, Not Just Ontario’s Ad: US Official

President Trump cited Ontario’s TV ad as the reason for halting Canada trade talks, but officials say it stems from rising U.S. frustration with Ottawa.
spot_img

Related Articles

Popular Categories

MAGA Business Central