Communist China continues to deceive the world with a false economic recovery from the coronavirus by fabricating its gross domestic product (GDP) figures.
China’s GDP expanded 4.9 percent year-on-year in Q3, faster than the 3.2-percent growth seen in Q2, official data showed earlier this week.
For the first nine months of the year, fiscal revenues fell 6.4% from a year earlier to 14.10 trillion yuan ($2.12 trillion), while fiscal expenditures dropped 1.9% to 17.519 trillion yuan, the finance ministry said on Wednesday.
Also, in the latest World Economic Outlook report released earlier this month, the International Monetary Fund which is the CCP’s running dog projected China’s economy to grow by 1.9 percent in 2020, 0.9 percentage points above the IMF’s June forecast, making it the only major economy that will see positive growth this year.
Analysts at Wells Fargo point out China continues to lead the global economic recovery by “aggressive monetary and fiscal stimulus as new confirmed cases are minimal.”
“China’s success in containing the virus has allowed its economy to rebound more quickly, and with relatively less policy support, as compared with other large economies,” said former senior US Treasury official Stephanie Segal, a senior fellow at the US-based Centre for Strategic and International Studies.
Any economists with common sense would not portrait a positive picture when tens of millions of Chinese youth are losing their jobs and migrant workers have to return to their rural fields to find a living after countless factories are closed in eastern cities.
Even Chinese Premier Li Keqiang said more than once that he himself has never believed in the Statistics Burea’s GDP numbers.
One example is how the Communist government is holding the country’s real estate bubble. In the past few months, dozens if not hundreds of investors have lost their deposits in a Foshan-Sanshui property project Times Qingcheng as they were trapped in a Ponzi scheme with fraudulent and misleading promotion. Each customer suffered a loss of 20 to 200 thousand yuan. And the income was included in the government’s GDP. This is not an isolated case.
Today, we can easily see empty factories in the Zhujiang River Delta and the Yangtze River Delta, the most industrially developed areas in the country. Many of the once busy shopping centers in big cities like Guangzhou and Nanjing are left without customers.
According to South China Morning Post, Fuhua Clothing Factory is partially shutting operations at its Shenzhen factory, which supplied global brands including Adidas, Speedo, Nike, and Reebok.
The closure comes as large parts of China’s formidable exporting machine stutter due to the impact of the coronavirus on international demand, the Hong Kong-based newspaper reported.
It is no doubt that Covid-19 has pushed Chinese factories to the brink of shutdowns; and a global trade war has dealt a fatal blow towards its manufacturing. This has resulted in not only decreased export volume to the US, but also to other countries facing American pressures to reduce global dependency on Chinese manufacturing.
In July, Japan’s government started to pay its firms to move factories out of China and back home or to Southeast Asia, part of a new program to secure supply chains and reduce dependence on manufacturing in China.
In June, Samsung announced the closure of its last smartphone factory at Huizhou in South China.
Conveniently, as Chinese manufacturing began its decline, other Southeast Asian countries nearby started quickly gearing up to take over some of China’s businesses.
Vietnam, for example, made massive efforts to grab everyday apparel manufacturing. Popular sportswear brands like Nike and Adidas have rapidly re-allocated a vast majority of manufacturing and footwear base to Vietnam, from China.
Only these two weeks, we saw tens of thousands of young technical workers line up at the China-Vietnam border customs, waiting to leave the country and look for jobs in Vietnam.
According to Forbes, Thailand has seen an increase of about 19.7% export volume from the US, specializing in automotive, food and beverage, and natural rubber manufacturing. Thailand also offers some competition to China in electronics manufacturing.
Indonesia has also emerged to be a new player in the space – appearing particularly attractive for companies seeking to relocate from China. President Joko Widodo of Indonesia has been incredibly keen to jump on the Chinese manufacturing exodus by presenting close to $1 Bil in federal investments through the creation of an industrials park in Java, Indonesia.
India, another global superpower with a quickly expanding consumer base and previous manufacturing know-how, is also attempting to reclaim a spot as a world exporter. India already has a massive auto, food, and apparel manufacturing base.
Mexico and Brazil have also grabbed the spotlight and gained huge manufacturing market shares in the automotive space for both internal country production as well as export purposes.
When more and more China’s exports are rejected by countries like the United States, the CCP government has to shift to a street-vendor economy which they gave a good name of “self-sufficiency.”
According to Xinhua, Xi Jinping and other CCP leaders will meet on Oct. 26-29 behind closed doors to lay out the 14th five-year plan, a blueprint for economic and social development, offering clues on how the leadership plans to pivot the world’s second-largest economy to be more self-sufficient.
With the new five-year plan, the CCP government seeks to balance growth and reforms to avoid stagnation amid an uncertain global outlook and deepening tensions with the United States.
Sustaining steady growth will be the priority, even as expectations grow that top leaders could announce fresh reforms to spur domestic demand, innovation and self-reliance under Xi’s new “dual circulation” strategy, according to Reuters.
“Current market estimates are for a growth target in the range of 5-5.5%, while we think 5% would be a reasonable number, with China needing 4.5% annual GDP growth to achieve high-income status by 2025,” Morgan Stanley economists led by Robin Xing wrote in a note this week.
Xinhua said the future plan will have its emphasis on poverty alleviation, pollution control, preventing and defusing major risks, as well as improving people’s lives, so as to ensure that the goal of building a moderately prosperous society in all respects will be accomplished.
The CCP is good at making fake and empty promises and it has been very successful to send out the messages.
Xi Jinping’s surprise announcement last month that China as the world’s biggest polluter plans to be carbon neutral by 2060 has upended energy policy in a country that relies on coal for more than half its power.
Many naive and light-minded economists and politicians in the west just easily believed in what Xi said. But it will be a fact that the CCP won’t survive by the year 2060.
The advantages of the CPC’s leadership and the socialist system have been further demonstrated over the period, offering a powerful political guarantee and impetus for China to embark on a new journey toward fully building a modern socialist country, Xi said earlier this week.
Earlier this year for over three months, the Yangtze River area, the country’s major grain basket, experienced the worst floods in 70 years and suffered a food shortage. But the CCP reported a “bumper harvest”.
The CCP is a joke, the same as President Xi is a joke.
By Winnie Troppie