The deteriorating Chinese economy may eventually lead to political turmoil

 Direct translation

Wall Street Journal: China's economy may fall into a period of stagnation, which may eventually lead to political turmoil

Editor : Li Chengyu / https://www.ntdtv.com/gb/2023/08/19/a103769974.html / Image : The huge crisis of the CCP is being released from Zhongnanhai. Data map. (Feng Li/Getty Images)

The economy is in recession under the rule of the CCP, and the country is besieged on all sides. Foreign media also began to speak ill of the CCP. The "Wall Street Journal" reported that if the CCP fails to recover, the Chinese economy will fall into a period of painful economic stagnation, which may eventually lead to political turmoil.

Nathaniel Taplin, a columnist for the U.S. media "Wall Street Journal", recently published an article "The Root Cause of China's Economic Deterioration: People Lack of Confidence in Government Policies", taking stock of China's economic failures and pointing out that the Chinese people have lost confidence in the CCP's policies.

The article said that the economic data released by the CCP this summer can be described as "severe". The main economic data for July just released on Tuesday (15 August 2023) painted a picture of economic growth almost stagnant. The authorities responded by cutting two key policy rates and announcing that they would no longer publish the youth unemployment rate.

The article pointed out that China's economy has taken a sharp turn after "releasing the epidemic prevention measures". The most convincing explanation is not the objective reasons such as "declining exports, drying up of foreign investment, and weakening of the overall job market", but the residents' confidence in the future prospects and their main financial problems. Confidence in the safety and value of asset housing has been lost, possibly permanently.

The policies implemented by the CCP cannot be blamed for this situation. The authorities' "dynamic clearing" epidemic prevention policy and the rectification of the Internet technology and education and training industries have led to a sluggish service industry. At the same time, the CCP authorities’ crackdown on developers’ financing, Evergrande’s debt explosion and the ensuing long-term downturn in the property market have dealt an unforgettable blow to many families, even most families. Chinese residents have responded by boycotting the housing market and paying down debt on an unprecedented scale, again focusing on precautionary savings.

The article said that China's economy has been hovering on the verge of outright deflation, and another large developer, Country Garden, seems to be teetering. If the Chinese authorities cannot prove to the people that it is still capable of taking strong action to protect their interests, "China may be plunged into a period of painful economic stagnation, which may eventually lead to political unrest."

The so-called "strong actions" suggested by the article include a large-scale consumption stimulus plan, providing stronger support for developers, and promoting "shanty town renovation" projects, etc.

However, the CCP’s official media has just denied the practice of “distributing money to residents to stimulate consumption”, and the authorities have not shown any intention of helping developers. As for the large-scale construction to stimulate the economy, many economists believe that it has long since failed.

It is quite rare for the international media to so openly speak ill of China. Some analysts believe that this may be related to the political confrontation between the CCP and the West, as well as the gradual separation of international financial groups from China.

Image : Twitter screenshot

Veteran media person Yan Chungou recently posted on Facebook that the CCP is facing a crisis of collapse, and this year it has become an international consensus, with more and more similar comments. Even U.S. President Joe Biden has publicly stated that the Chinese economy has become a "time bomb."

Yan Chungou said in the article that the current financial crisis in China has triggered economic and political crises. Although the CCP has strengthened violence and high-tech surveillance for years, even the police in some areas cannot pay wages. If the scale of civil protests in the future increases, the bigger it gets, the harder it will be for the CCP to save itself.

He said that the CCP is trying its best to delay the social crisis, such as not allowing real estate developers to liquidate, because they are afraid of triggering a chain reaction. But the real estate crash is a matter of time. The longer it is delayed, the larger the scale of the thunderstorm may be, and the more violent the "falling dominoes" effect may be triggered.

He believes that the collapse of the CCP is inevitable, the question is only when and in what form the collapse will occur. Now the CCP’s fortunes have bottomed out, and it will not last long. Chinese people must be fully mentally prepared, this day will not be too far away.