The Economic Collapse Of China! Signs Of China's Failing Economy



in recent years Chinese economic development has undergone a series of boom and recesses making it critical for investors to differentiate between the two to realize significant profit margins and therefore positively impact the world while China's economy has indisputably grown enormous fear over the past 30 years it has been merged with waste fraud and theft of public resources by who is the government this period of remarkable Chinese economic progress has been marked with increased employment rate with hundreds of millions of the Chinese population been able to find reliable employment in the manufacturing sector in the major cities therefore being able to flee adverse poverty additionally infrastructural gains through the development and acquisition of high-speed trains state-of-the-art transport hubs advanced telecommunication systems and of modernized military have enormous li sparked economic growth even with such economic growth China's economy has been faced with massive wastage coupled with high levels of corruptions approximately 45% of Chinese GDP is gained from investments rather than consumption as were the case in the US a developed economy where 70% to the GDP is from consumption and 20% from investments even though 45% of total GDP from an investment is right considering that the economy is quickly growing with the intelligent allocation of investments in highly productive sectors this is not the case with China half of the investment is wasted in the form of ghost cities which are fully developed with modern skyscrapers apartments hotels clubs and transportation network but lacking users Chinese officials have openly and consistently denied the fact that ghost cities are a waste of investments claiming that they are built for the future generations these claims are off beam as such advanced buildings require occupants to achieve its functionality after all why were they built additionally rents from occupants are expected to meet expenses and for frequent maintenance for them to remain functional and attractively modern with time these infrastructures will become obsolete long before they are occupied leading to massive wastage of not only time but also scarce resources notably land this is just one example of resourceful wastage by Chinese investors others include state-of-the-art white elephant public structures searchers train stations with marble frontages almost empty escalators 100 foot space with digital advertisings are there almost empty or unexploited high-tech infrastructures include airports canals highways and ports accounting for immense wastage of resources China is widely a communist society therefore such wasteful projects are sanctioned by the Communist Party leaders demanding that they are vital in the creation of employment for the vast unemployed semi-skilled Chinese population these projects being ambitious are highly labor-intensive and require abundant workforce in the areas of steel fabrication glass installation and general construction in spite of these projects successfully solving China's unemployment problem the solution is temporary as the projects are short-lived with the construction cost being covered loans which may never be repaid China may report an annual GDP growth of 6.8% but the actual growth rate reduces to approximately 4.5% when the resource wastages attributing to dead or unprofitable investments are factored out China is also continuously accumulating unserviceable deaths growing overly fast and the economy the debt to GDP ratio did not sound right and ranked worse as compared to the u.s. Chinese financial fragility coupled with a failing economy was clearly exposed during 2014 20 sixteen partial collapse of its capital accounts China could have avoided such an economic crisis if she had unlimited ability to roll over and expand its debt with the implementation of policies to deal with a banking all liquidity crisis in early 2014 China had approximately four trillion dollars in its capital accounts but the amount fell to about three trillion dollars by late 2016 attributed to capital flight for fear of Chinese devaluation which occurred in August and December 2015 however the remaining three trillion dollars is not an assurance of a functional economy this is because one trillion dollars of the amount is invested in a liquid assets which include hedge funds private equity funds and direct investments such investments are long-term and may not be available on a short-term notice to protect China's currency from imported inflation the other 1 trillion dollars in China's capital reserves are held as a precautionary fund to bail out the Chinese banking system China's banking system may be insolvent due to the ability of the government to rescue them from financial turmoil but this is not free China has put aside 1 trillion dollars to bail out banks in case the undergo a period of financial mayhem the remaining approximately 1 trillion dollars of liquid reserves served to protect the economy from currency fluctuations to the yuan which greatly harbors economic development in 2016 China was losing 80 billion dollars per month to defend the yuan at the height of capital outflows if such loose could have prolonged for about a year China probably would have lost 1 trillion dollars in the year leading to a weak economy however China acted swiftly and brightly to avert this situation by closing the capital accounts leading to increased interest rates and further devaluation China's frosty trading relationship with the US has further worsened the economic situation it is eminent that such economic distress could be easily solved if the Chinese government had promoted and maintained a good trading relationship with the US the trade war between China and the US has greatly damaged Chinese exports and significantly raised the cost of imports to China such an increase in export and import duty at a time when China was counting on a more substantial trade surplus to help it finance its accumulating tense undoubtedly paints a bleak future of China's economy in coming years trade activities in China will almost be dead coupled with mounting debt that she may not be able to roll over let alone repay this will be the end of China's excellent economic success story and the start of a period of economic recession coupled weather possible as he of social unrest due to hard financial times as much as there is looming Chinese economic failure many observers openly dismiss such predictions as mere hypothesis lacking sufficient accurate data to support the thesis however this may not be the case considering analysed data from Stephen guilfoyle the director of floor operations of the New York Stock Exchange Stephen affirms that Chinese economic growth slowed to the slowest growth pace for the first time since 1992 and declined for the fifth consecutive month Stephens data based on data released by the Chinese National Bureau of Statistics paints a picture of looming economic failure the situation may even be worse from the published data as China has a long history of overstating its data to conceal the ailing economy in reality the Chinese economic situation may be worse from the release data the economic slowdown followed the abolishment of presidential term limits which gave Chinese dictator Xi Jingping the authority to serve for a lifetime to fulfill the Chinese communist ideology according to the book of Proverbs and the Holy Bible pride comes before a fall clearly foreseeing what is bound to happen to Xi Jinping's regime Xi Jinping's political ascent filled him with pride just as he presently faces the reality of a looming economic collapse and possible obliteration of any agreement around his power with the lack of accountability as US President Donald Trump continues to intensify the trade wars between the two nations by increasing the trade tariffs China should brace for the worst investing in the US markets will increasingly be hard due to harsh penalties and will undoubtedly lead to the withdrawal of Chinese corporates in the US market we have all the cards with the bank that everybody's stealing from I respect China and I respect President Xi but they've been killing us five hundred and seven billion dollars in trade deficits last year five hundred who the hell can lose five hundred then you want to do something about it you get attacked oh that's not nice that's not free trade that war was lost to a trade many years ago you know when they're saying not a free trader I said no no the war was lost but now we're gonna win it and because we have all the cards the looming Chinese economic collapse has threatened the global economy causing panic through contagion in many nations depending on China for the production of basic products additionally other developing economies notably Turkey Argentina and Venezuela are on different stages of collapse may indeed have a significant adverse impact on the global economy the looming collapse of the Chinese economy can only be alienated by reasonable negotiation between Trump and XI leading to a rational compromise on trade and intellectual property she should realize that his talk with Trump is not about ego or who should blink first it's about saving the Chinese economy therefore he should act swiftly and intelligently until now Chinese people could only dream of a vibrant economy as the spirit of a looming economic collapsed fills the air you




Comments
  1. For China to be able to sustain growth without the rest of the world, the Chinese people will have to improve their income status, which the CCP does not want.

  2. you lost me right at the start when you talked about dispacing rural folks into horrible factory jobs as "progress".

  3. In fact, In about 10 days, China's manufactory business will come to a halt, most shops will be closed, the local government will shut down, stock markets will be frozen. Rich people rush overseas, while most people will stockpile foods, people will not be working anymore…

    Happy Chinese New Year!

  4. China will still have its superior infrastructure and workforce to make things, let alone more competitively. This anti-Chinese propaganda channel just assumes the US is in a commanding position for the trade war because Trump said so.

  5. This is definitely bad reporting the stockmarket only consist of 4 percent of Chinese savings while America has 25 percent of savings invested into the stockmarket. So the stockmarket doesn't reflect their economy. While the debt is real.

  6. Chinese propaganda. They want everyone to think the worst of them.
    China now surpasses most all countries in most all categories.
    In what way is this a sign of economic collapse?

  7. How could you go so wrong on this, China was never a communist state. If you want to call State Capitalism as communism, it won’t make any difference. But at least you should have known why is this system called ‘capitalism’.

  8. Everything in China is a scam and lies. Do you know what's a good indicator of a collapsing Chinese economy? Yeah, the huge capital flight that is accelerating now with the new clampdowns.

  9. China is a ponzi scheme. No treess grow to the sky. That includes China's economy. The laws of economics will tell. A place built more on hidden debt than all of the West.

  10. I wish all good to China! But the fact is that China is slowly killing European Union and USA with huge trade deficit, they can buy EU or USA firms but we cannot buy Chinese firms, they can buy properties in EU or USA we cannot buy they there…. i dont see this as a fair deal.

  11. All market indicators do not look good for China. And fortbsor if you saying we’be been saying collapse for 20 years… different this time. The US and world is pulling away due to your crooked ways.

  12. China occupied independent Tibet…occupied independent Xinjiang….and want to occupied Taiwan…and occupying elligally SCS and claiming illigitimate navigational restriction in SCS.

Leave a Reply

Your email address will not be published. Required fields are marked *