Friday, August 14, 2020

Repay US debts or recognize the Republic of China? The Chinese Communist Party owes US$1.6 trillion of debts

Reporter : Song Yue / Editor : Cai Hong / Publisher : Sound Of Hope

Ref : https://www.soundofhope.org/post/411388 / Translation, editing : Gan Yung Chyan, KUCINTA SETIA


As tensions between China and the United States are looming, US Senator Martha McSallyraised the issue on 13 August a resolution adopted to recover more than $1.6 trillion in sovereign debt and interest from US bondholders. These debts are debts that existed for a hundred years before the CCP established its regime. Jonna Bianco, president of the American Bondholders Foundation, expressed "very excited" about this. Chinese netizens also laughed and said that the CCP will have a headache again: Is it to pay back the money, or to recognize the legal existence of the Republic of China?

According to Fox News, this proposal to recover more than US$1.6 trillion in sovereign debt from the CCP was initiated by Senator Martha McSally of Arizona and Senator Martha Boo, Republican of Tennessee. Co-sponsored by Marsha Blackburn, Republican Representative Mark Green of Tennessee will also bring it up in the House of Representatives.

McSally stated in response to the proposal: "The CCP has repeatedly failed to fulfill its obligations to the United States and has taken away American families' money and jobs." "Well, that's the end of the abuse! We request the CCP to hold responsibilities over their release of the coronavirus (SARS-CoV-2) to the world and over its debts. We request the CCP to repay the 1.6 trillion U.S. dollars owed to American families.”

Jonna Bianco, president of the American Bondholder Foundation, commented, "We are very excited." He owns 95% of the agency rights of thousands of bondholders in the United States. "We are pleased that our Senate leadership, a member of the House of Representative,-has expressed support for holding the CCP accountable, which is in line with the US message to the president: to hold the CCP accountable."

As early as 1912, the Republic of China issued such bonds backed by gold. In 1949, the CCP established its regime in mainland China, and the government of the Republic of China retreated to Taiwan. However, the CCP has never recognized the Republic of China and claimed that Taiwan is part of the CCP state. According to international law, the successor government is responsible for the debts of its predecessor government.

Chinese netizens shared their views on the news and said, "This is a ruthless trick!" "The Chinese Communist government is legally and illegally demarcation!" Tang Jingyuan, a commentator on "Hot Interaction" of NTDTV, also laughed on Twitter and said that the CCP will have a headache this time.  Is it to pay a lot of money, or to recognize the legal existence of the Republic of China?

The Epoch Times reported that, according to bond risk companies Moody's, Standard & Poors and Fitch’s rating of corporate entities’ bond risks, technically, due to repayments to some bondholders Instead of repaying everyone, the CCP government is actually in a selective default state, so it should not be allowed to enter the international bond market before repaying the remaining bonds to the holders.

There has also been a precedent for payment in history. In 1987, British Prime Minister Margaret Thatcher ordered Beijing to pay British citizens their shares, otherwise they would lose access to the British capital market. Finally, Li Xiannian, the then chairman of the Chinese Communist Party, reached a settlement agreement of 23.5 million pounds.


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