‘Zombie Company’ Apocalypse Looms in China | China Economy and Trade



zombie companies in China they're bad for economic growth and they're eating up money like a tasty brain but there's just no easy fix for China's coming zombie apocalypse welcome back to China uncensored I'm Chris Chappell zombies they're running amok in China and now I'm not talking about World War Z the book version where the zombie apocalypse is triggered by organ trafficking in China I'm talking about Chinese zombie companies and they're not as easy to kill as the Chinese Communist Party would like that's according to a study called the mystery of zombie enterprises stiff but deathless China's zombie enterprises are state-owned companies that are consistently unprofitable companies that in a free market would go bust but in China's state-managed economy they're artificially kept alive thanks to what the study's authors called repeated blood transfusions which makes them seem more like vampires than zombies vampires zombies these blood transfusions are state-sponsored loans and subsidies they're what make these failing zombie companies stiff but deathless these zombie companies are a problem for China's economy as a whole because they're unproductive they don't innovate and they don't contribute to economic growth just like real zombies the persistence of zombie enterprises not only occupies precious resources of the study says but also causes financing problems for other enterprises and lowers the production efficiency of the whole industry as this Legion of the undead stumbles along thanks to Chinese government subsidies it hurts productive companies by eating their brains or at least by eating up resources that productive companies would otherwise get according to the European Investment Bank UBS China's economy is becoming less and less efficient partially as a result compared to a get it go it now takes twice as much capital to create the same amount of GDP growth it's hard to pin down the true number of zombie firms in China because well the Chinese Communist Party is not real good at transparency in the same way that a brick wall is not real good at being a window official data from the state-owned assets supervision and administration Commission or si si si says there are about 2,000 zombie companies run by the central authorities but that's just a fraction add in all the zombie companies overseen by local governments and you get at least 10,000 but even that number is not easy to pinpoint because officials aren't really motivated to do accurate reporting this is a case where these local governments it seems a number of them have drawn up lists of zombie companies in their jurisdictions but are holding back on revealing those to the bank's and it's also the case we've heard that banking regulators and some of these provinces are also being kept in the dark and that was back in 2016 at the time there was a broad push to fix broken parts of the Chinese economy and Premier Li Keqiang launched an initiative for the active and safe disposal of zombie enterprises but fast forward three years and that still hasn't happened earlier this month the head of China's biggest aluminum producer warned that zombie enterprises are hampering China's economic transformation the zombie apocalypse is so nigh that Xi Jinping himself recently vowed to slay the zombie hordes once and for all he warned that China must be on guard against grey rhinos which are highly obvious yet ignored threats which is weird because in other countries people think of rhinos as endangered species that should be protected anyway back in December 11 top Chinese regulatory and policy making bodies got together and pledged to get rid of zombie companies by 2020 just like Premier Li Keqiang pledged to do back in 2016 but this time it's be for real and these regulators promised to publish a list of zombie companies within three months so that was December let's see January February March hey that's three months and no list instead we got only a statement on March 9th from Xiaoyu Ching head of the state assets regulator and he was like everything's fine state-owned enterprises are totally independent market players although I'm not sure I trust a guy who judging by this photo is probably an actual zombie himself I know what you're thinking that's just a joke that photo probably just had bad lighting no I'm serious I've looked through a lot of photos of Shia Ching and I'm pretty sure he's an actual zombie either that or he's personally giving blood transfusions to the zombies vampires zombies Xiao said that anybody who claims there's a systematic arrangement for state-owned companies to get subsidies from the Chinese state is spreading fake news because these companies are self operated self financed self sustained self disciplined and self developed except he's lying and he probably wants to eat your brains remember that report the mystery of zombie enterprises stiff but deathless turns out it's not that big of a mystery why zombie companies especially the biggest ones continue their long march of the undead brains sorry I meant jobs zombie ferns might pile mountains of bad debt on the banking system and hurt the economy in the long term by being unproductive but in the short term they provide jobs for the Chinese Communist Party jobs and economic prosperity are the only reasons they're still in power just ask driver Wang Wei he blames his lost job in the coal industry on the Chinese regime they laid off 1.8 million workers in several zombie enterprises I borrowed more than I could afford just to buy this truck says driver Wang Wei now no work I'm angry with the government so Wang Wei thinks the Chinese government is going the wrong way I guess you should know zombie companies operate on a simple formula they exist as a direct result of the resources and credit endorsements they receive from the government and the companies that offer a greater number of jobs receive more government subsidies and there are more poorly thought-out incentives local officials get job promotions if they meet employment targets in their regions so as long as a company provides jobs local officials try to protect it from getting shut down and as a result local officials hide bad companies from central regulators who might want to put them on lists of zombie companies to be eliminated sometimes local officials even help them get more loans through hidden off-balance-sheet transactions SNP is Jessica saying using some pretty colorful language to describe the risks around there saying that the debt that they are talking about this potential debt is like an iceberg with Titanic credit risks put that on top by the way of what we know are the official numbers in terms of debts GDP here in China 260 percent at the very least debt to GDP and it pretty comes out as some pretty frightening numbers and for people who've been around the block a few times like this retired businessman China's plans to kill off or restructure its horde of zombie companies is doomed to fail but come but the veneer could look at you and tell you some people go engineer you to go give it to em tell em a deal which do you achieve the trigger with that's injured to the chunk for the shooting weights ha-joon you just hold your she'd wanna do that before yeah and nobody wants to change themselves so what do you think about China's zombie company apocalypse leave your comments below and now it's time for me to answer a question from a member of our 50-cent army who supports China through the crowdfunding website patreon Shawn Connelly asks does the 50-cent army pledge level in any way refer to the Chinese company Tencent and if yes what is the deeper meaning behind it good question Shawn the term 50-cent army doesn't have anything to do with 10 cent or the rapper 50 cent the original term refers to how the Chinese Communist Party pays online commenters to manipulate public opinion by posting things online that support the party line in Chinese they're called the womb out dong which means 50-cent party they're sometimes also called the 50 cent army originally the name came about because they were supposedly paid the equivalent of half a Chinese dollar 50 cents per post when I first launched our patreon site back in 2015 I decided it would be clever to create our own group of supporters and call it the China uncensored 50 cent army I asked fans to contribute 50 cents or more per episode to support the show a year later credit-card companies made a new rule that the minimum pledge had to be $1 but I kept name 50-cent army thanks for your question Sean and thank you for joining the 50 cent army possibly by accident and thanks to all my 50 cent army soldiers who support China uncensored it's only because of your support that we've been able to keep this show going for so many years once again I'm Chris Chappell see you next time




Comments
  1. This is one channel that accomplishes two goals with seeming effortlessness behind which lies mountains of hard work: highly informative, and very funny.

  2. China is counting on exploiting other countries that are part of one belt one road initiative. Like it did with Venezuela and it's oil! The interest in the money loaned has to be paid back in oil… just the interest ,not the principal. What is the interest on billions…enough to pretty much own that oil!!

  3. The easy fix to chinese zombie companies(and the democrat answer to everything) is to have ALL the chinese citizens move to the U.S..

  4. State owned companies are as self financed as the USPS is. Thing is once they run out of money then the government rushes in to bail them out of bankruptcy to keep them going. Just stop doing that and the problem solves itself.

  5. Do Chinese CCP members hair grow grey??… It's always well kept and black even that of Winnie the Pooh
    Oops Xi pin pooh

  6. As soon as they said that that guys name was Wong Wei I died laughing and couldn't focus on anything the narrator was saying.

  7. Are our comments being edited so only comments politically correct get to stay up long enough for any YouTuber's to read them… uncensored…? In from North America the land sold over and over again as their governments carry out the dictates of the cash proud malevolent. As fake immigration…!
    YVO https://youtu.be/opQ1_O-TXmY

  8. China Uncensored has vast become the demon they fain to defeat…! "Have it become standard practice of all anti communist to ruthlessly forget that state run under any name or ideal is still responsible for over-site's in mandates and the time effort and cash to correct these mistakes! which have in balances many good peoples lives…! Have it become standard practice to covet those who have riches so much that we train our people from very young to cast themselves entitled to call the rest of us manually made redundant by syndicated flash mobs of people calling their poor and needy zombies…? "Stop weaponizing our children"! YVO https://youtu.be/opQ1_O-TXmY

  9. "Just like real zombies"…? Chris says in this video but only if you consider any one who needs help the evil dead…! is that the final word from China uncensored or are you worse than anything Communist have ever demanded we all be school'd on. The test being your very life but first all those who dare show you love are now well on the road to becoming one of your elitist's evil dead.

    "Stop weaponizing our children"! YVO All the cash in the world is not worth one persons life and never will be. Bottom line zombies have been designed to train our youth to grow up ready to better accept the seperation of classes or cast syndicates for genocide…! https://youtu.be/opQ1_O-TXmY

  10. @ 0.50 you say "…companies that are consistently unprofitable. Companies that in a free market would go bust."
    Kinda like, Facebook, Tesla, and others.

  11. You bustard westerner want to kill us muslims hear it islam is the religion of father of mankind hear it its the din e ibrahim none of you even chinese as well as hindu can destroy islam verily they will try to extinguish the light which we gave to you but they cannot even if they can and it will illuminate even if they hate it

  12. american gov did the same thing even balled out companies that moved to china…its fucked up ..also america has the same problem,you can look at compaines that run off tax money and never turn a profit..same shit,the worlds system is totally fucked

  13. Zombie is ubiquitous. Every corners of the world, that says without words. If you want a good zombie as pet, you can get the best species in USA. US is ideal home for many a zombies..

  14. Sounds exactly like what going on here in the USA, except the Zombie Company workers are government employees.

  15. I have a question Chris, how do you say get woke go broke in Chinese? Maybe You can tweet it to comrade xi ? IDK it might help with the zombies.
    Its either that ,or send him a really big flame thrower.
    What can i say, i have a soft spot for whinny the pooh! I'd hate to seen him get eaten by zombies.

  16. Oh man the world is heading into funky territory.
    The western banking system is snowballing a giant crisis that will make 08 look like a childrens birthday party, and china is basically one big government built bubble fake economy.
    Funky funky times. Stay safe everyone.

  17. Some Western companies are also zombies, they feed on the FED printing money machine free money

  18. It seems that every country is maxed out in debt. My question is – who are they in debt to? Sounds like a house of cards.

  19. ''Kurt Kışı Geçirir Ama Yediği Ayazı Unutmaz'' Turks Can't Be Easily Destroyed How happy is the one who says I am a Turk

  20. Heyheyhey and does not give-away to blackmailing USA banks, not donate we must bankrupt inst except ZOMBIE banks feeding – sudo-communism -antyidea of communism – giving only to threatening banks? Happy Lehman to come again from your control, wait a second what fucking control government bankrupt so none to control. Am I confused by amount of debility side-squint (USA schizophrenia-stop side squint you are not two fucking continents doggy) association of dog putting nose into other dog shit for minerals justified? Thank you Chris-little China helper, try to ask neighbors what is honor of printing out money, yes call to China to get instructions. Maybe stop calling to lick them heals , strait to bed to licking feet because you not control your shit, must shitting down with begging for rolling your bonds into someone else bad, and blame him – shitting down with smuggled inflation. Salts licking for another lickthosefeetsfor rollingUSAobligations?
    You got problem since USA got no honor of printout, any else substitution, blaming attitude and being two faced doggy of private blasphemy anti-economy?
    You believe in private blasphemous mocking Capi_FUCKY-talisman will shine in your rectum forever!!! (it really will not)
    (unjustified, very unjustified) [you got no REASON in your economy -that means stealing by export of empty money, by flood and inflation, and still stealing that China bonds, must do roll, must do loose a little bit more]. Chris dog time to face it you masking lack of honor of printout by lack of dignity.
    And that grimaces if see your own made shit in front of your face that is Freud mechanism of projection guilty are there there there you you you just only not prosecutor? Will you fucking pay for Microsoft copy of Xerox OS that should not be copied, you haven't notice by falsification Windows fall apart more and more, not you wish to believe in the ,myth and get its returns of using working hypothesis? Dick with no balls all that your economical scum makeup leaking whore of administration above that fucking (not soap anyone eyes with war cost that is Morgan monopoly and looting aggregate, you ever had honor to face ). So have a nice everyday ball of dog shit propaganda consumed in your best audio in the word and so plenty medias, buy self all rubber S/M suit, nothing like USA products consume to the last crunch of wafer. Little beep of cost flooding that Africa till under biological survival. You would accept of course statement that you are casual USA bitch with no honor whatsoever, well except that you eating shit – stupid dog? See I am leaving you a pattern vindicate Morgan. Or your economical shit-beeps will be only your coneseur. I do not ever fucking blame China for you bankruptcy caused by 1933 sponsoring of Hitler – Coca-Cola IBM Morgan Rockefellar + others, ever recognized broken protocol, bitch in shit pie of looting, boil yourself in shame of truth, boil yourselfe in your shit soup. Well if shit = Dollar wouldn't lose it value 50% every 20 years, maybe you would not have student debt Chris because it work better not for sudo-communism '''give-away-to-rich' … if … shit… dollar…. wouldn't be…… fucking 40% weighted at printout by means of blasphemous work, now mr Chapel who is the whore (USA citizen) to cover that, many energies invested to slam other side of the worlds, see , YOU ARE BLIND (maybe bling bling rich -BLIND)
    Report on blind to kennel (studio) bark in dab position onto yourself. Maybe will help Chris, only maybe I do not know how to cure man of being BITCH it is you always giving own and someones back in trouble, one time haven't support military poor country and those rich loosing approx. 1/2 / 2000tonnes of gold, silly they selling it 50tonnes at NY market. Now now bite your tail and run again how you had adsorb it, ignorance is bliss. Assure you that not. You are counting everyday more Coca-Corpaine issue blessed. But you got no pride honor or citizen bereavement, your citizenship is famously reporting UFO at neighbor and laugh and children accidental gun suicide, explain adults carefulness, leader. You forgot rotting shit of bankruptcy in the drawer next to your bed should be removed from children reach too. Bitch. But there fucking problem and care for my own ever will pass that net of comfy sarcastic lies about someones economical condition face? Fucking empty dollar internal DARPA steroid(inject it Trillion) keeps you pendulum legsi and wait to rolling you over sponsor? Try to live on the own not reminding self prosperity of slavery – till now you got those tastes. So who got doggie rope, mr Morgan bu but Chris is silent bitch licking his crotch till see thorough.
    Really dog behave from behaviorism.

    You USA sponsored Hitler what you haven't processed by law after war, you got patents of war with avoidance of its creator, you always support only fascist war – only for money Rohinga , Kurdi? you do not give a fuck for any shitting peace USA want money at war – banditism. Afte war you accepted loads of looting shit and Soros -NY "victim heritage" Jews -Morgan hand of papers with jumping gobs gimme money. And what you are fucking doing Chris sending wisdom from NAZI scientist upgraded country, much fucking enlighten? What you are bastard of Dr. Green, Mengele experiment of brainless shiny teeths propaganda male-cunt? Help Vietnam 4th generation of victims of Agent Orange, bitch! Stop fucking barking, someone will just kick your snout (look America is two continents Idiot, maybe NCA-man, Morgan economical shit little PAC-MAN. You can call yourself Morgan little economical shit/turdeater but stop schizofrenical side squint-two continents man, maybe your mother got two storey-ass. instead, another hiding fact. Get fat riding 7 liter car, get back on mall trolley that how you look at your mouth expedition to China, Wal_Mart fattie got right to e-trolley get fat because too big car, understand, suffer bitch. Just fuck of with your blasphemus just in decades worh only toilet roll, non stop loosing – robbing people, week to have not balls Chris. Bitch.

  21. " Driver W(r)ong Wei" …you can't make this stuff up..! Although many Chinese drivers fit that descriptor…in China…and when they arrive in western cities… few are so aptly named

  22. Hay, we have the same thing in the US, only it's the MIC and the GOP that have driven up the US national debt to $22 TRILLION, which they use against the US from within!

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