Weekly Report of The True Economy Inside China

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Food Crisis

Communist China’s pork import continues to increase; 670,000 tons of strategic pork reserves have been released in 2020

Customs data on Dec. 24 showed Communist China’s pork import in November increased by 39.4% from a year ago to 330,000 tons. The cumulative annual pork import as of November was 3.95 million tons, an increase of 115% from 2019. The China Merchandise Reserve Management Center also announced an auction of 20,000 tons of frozen pork from its strategic reserves scheduled for December 30. This auction will be the 38thauction in 2020. Communist China has released 670,000 tons of pork from its stockpiles this year.

http://www.cngrain.com/Publish/1/676038.html

Corn imports in November increased by 1142.2% year-on-year

Communist China Customs released the latest statistics showing that China imported 1.23 million tons of corn in November, an increase of 1,142.2% year-on-year.  In the case of a significant increase in imported corn over the quota, on Dec 24, 2020, the state temporary storage of corn special bidding trade was held in the Heilongjiang branch, this transaction released a total of 956,000 tons of temporary storage of corn, the turnover rate of 100%. At present, the temporary storage of corn is frequently and intensively put into the market, and the cumulative amount of corn being auctioned has reached 1,290,800 tons.

https://finance.sina.com.cn/money/future/fmnews/2020-12-24/doc-iiznctke8178431.shtmlhttp://www.cngrain.com/Publish/1/675938.html

Feed grain will become the most serious food security problem Communist China facing in future

On Dec 30, a report from China Grain pointed out Communist China’s future food security problem will be from feed grain, especially soybeans and corn. Soybean is the variety with the largest gap in China’s grain varieties and requires importing 80 to 90 million tons every year which will still remain at a high demanding level in the long run.

Cngrain: Communist China Soybean Import (10,000 tons)

Meanwhile, corn imports will also set a record high. According to customs data, corn imports from Jan to Nov this year were 9.04 million tons, an increase of 122.7% year-on-year, far exceeding the import tariff quota of 7.2 million tons.

Cngrain: Communist China Corn Import (10,000 tons)

Supply Chain Shortage

Communist China’s next one of the most important “national policies”: overcome the core technology of advanced chips

The Central Economic Work Conference was held in Beijing from December 16th to 18th. The main task is solving a batch of “stuck neck problems” as soon as possible, especially advanced chips. On Dec 28, Communist China’s National Development and Reform Commission and the Ministry of Commerce rolled out the 2020 edition of the Catalogue of Encouraged Industries for Foreign Investment (FIE). To encourage chip R&D and production, foreign Investors can enjoy the tariff exemption policy for imported self-use equipment within the total investment; For FIEs in encouraged industries in the western regions of China, the Corporate income tax can be reduced by 15%; land can be preferentially supplied for encouraged foreign-funded projects with intensive land use.

https://finance.sina.com.cn/chanjing/cyxw/2020-12-28/doc-iiznctke9029084.shtml

Communist China’s coal inventory for power plants is at a high alert level

As of December 28, the national inventory of coal for power plants was 132 million tons and can only be used for 17 days, which is at a high alert level. Affected by multiple factors such as cold wave weather, the demand for electricity in Hunan and Jiangxi provinces grew rapidly. The cumulative electricity consumption of Hunan and Jiangxi in Dec was increased by 17.2% and 19.07% year-on-year respectively, which is the highest in the same period in 6 years. Hunan’s coal inventory is 3.369 million tons, available for 25 days while Jiangxi is 2.487 million tons, available for 16 days.

https://finance.sina.com.cn/china/gncj/2020-12-30/doc-iiznctke9251701.shtml

The Price of Raw material

Refined oil prices expected to rise for the fourth consecutive time in 2020December 29 was the eighth working day of the price adjustment cycle for refined oil products in Communist China. It is expected that domestic gasoline prices will increase by 100 yuan per ton on December 31, marking the fourth consecutive price increase in 2020.

https://www.sohu.com/a/441305488_803358?scm=1002.590044.0.10646-1931&spm=smpc.ch15.content1-n-2.4.1609275218787dIo87PE

The CCP expects to increase coal imports

The national development and Reform Commission will appropriately increase coal imports according to the supply and demand situation. According to data, since December, national electricity generation and consumption have increased by about 11% year-on-year, and the growth rate has increased by 6% over the same period last year. The power consumption of 20 provincial power grids increased by double digits, and the cumulative load of 15 provincial power grids hit a new high for 137 times. Whereas, from January to November this year, Communist China’s coal imports were 264.826 million tons, down 10.8% year-on-year. In November, 11.67 million tons of coal were imported, a decrease of 2.06 million tons from the previous month, and a year-on-year decrease of 43.8%.

https://finance.sina.com.cn/china/2020-12-29/doc-iiznezxs9466894.shtml

Real Estate

Second-hand property prices in Suzhou have dropped slightly month by month, with transactions shrinking significantly in 2020

Suzhou is one of the top ten cities in China in terms of GDP and is known as the “strongest prefecture-level city” in the economy. However, in 2020, according to data from Chain Home, the price of Suzhou’s second-hand property showed a slight drop month by month, from nearly 28,000 yuan/square-meter in February to more than 24,000 yuan/square-meter in November 2020. Besides, the transactions of the second-hand property market in Suzhou are much lower than ever before. In fact, in 2019, the Suzhou property market is very hot, the heat was once among the top in the country. But in 2020, not only second-hand property but also new property sales are equally cold. For example, in Suzhou’s Xiangcheng District, the sales office staff of one new property said that now you can enjoy a lot of preferential policies, such as down payment installment, which means that the down payment can also be paid in installments, in addition to a one-price discount.

https://money.163.com/20/1231/11/FV625L6100259DLP.html

Brainwashing Chinese People

Chairman Mao Zedong’s 127-year-old birthday reappears with fanatical worship (video available via the link below)

On Dec 25 and 26, tens of thousands of people gathered at the Mao Zedong Statue Square in Shaoshan (Mao’s hometown) with flags of Communist China everywhere. Many people knelt down and worshipped a bronze statue of Mao as if worshipping god. With increased tensions between Communist China and the U.S., the CCP arranged the return cabin of Shenzhou 10 spacecraft to exhibit in Shaoshan to show off its power, creating a wave of fanatical worship to Mao, mainly due to Mao’s tough diplomatic style.

Corporations’ Situations

Exchange settlement among Chinese foreign trade companies slowed down

According to Reuters Beijing (December 28), exchange settlement by Chinese foreign trade companies has slowed down. In previous years, Chinese foreign trade companies, especially private companies, used to conduct exchange settlement at the end of the year for wages and year-end bonuses. However, the situation is changed this year. Many believed the decrease in exchange settlement is due to the continuous appreciation of RMB, which is manipulated by Communist China since the end of May 2020. Companies are unwilling to settle because they will incur a loss when settling at the current exchange rate.

https://es.reuters.com/article/dollar-yuan-insight-1228-mon-idCNKBS29303B

Online education company Xuebajun went bankrupt

At the end of 2020, another online education company Xuebajun went bankrupt. A Xuebajun educational administration director said in a circle of friends that he was informed on the afternoon of December 26 that part of Xuebajun had been acquired, which was equivalent to bankruptcy, and all teachers and course planners had been dismissed. Xuebajun asked employees to return their mobile phones to the company to prevent staff from continuing to contact parents and students. According to the chat records provided by a parent, the course consultant was still urging her to renew the fee one day before the bankruptcy. Spontaneous statistics by parents show that the remaining class fees are mostly between 10000 and 30000 yuan, with the highest reaching more than 60000 yuan. Due to the high amount of tuition, there are many parents who have chosen to pay in installments and are unaware that they have signed a training loan agreement with a 3rdparty financial platform introduced by Xuebajun.

https://finance.sina.com.cn/chanjing/gsnews/2020-12-28/doc-iiznezxs9419572.shtml

Financial Crisis

Communist China’s FX reserves are at risk and its foreign debt surpasses $2.3 trillion

On Dec25, Communist China’s State Administration of Foreign Exchange announced that China’s foreign debt (including both domestic and foreign currency) balance was $2.3 trillion at the end of September, an increase of $162 billion from the end of June, the seventh consecutive quarterly increase. The international financial community generally believes that China’s current $3 trillion foreign exchange reserves are a warning line for China to maintain its balance of payments. China needs more than $2 trillion to import goods, services, and technology each year. However, the short-term foreign debt to be repaid within a year reaches $1.3 trillion, and foreign exchange reserves are insufficient.

https://www.backchina.com/news/2020/12/27/724240.html

Henan Investment Group to issue 500 million yuan ($76.43 million) corporate bonds

According to a document published by the Shanghai Stock Exchange on Friday, Henan Investment Group intends to issue a short-term unsecured corporate bond of 500 million yuan ($76.43 million) on December 29, with a term of 360 days.  Since the default of Yongcheng Coal on Nov 10, there have been no state-owned enterprises in Henan for 45 consecutive days to issue bonds. Some netizens claim that no one actually wants to buy them, and the market demand has fallen to freezing point.

https://www.sohu.com/a/440618698_130887

Local government bonds issued reached 6.26 trillion yuan ($0.96 trillion) in the first 11 months

Data released by the Ministry of Finance on Dec 24 shows that the total amount of local government bonds issued nationwide from January to November 2020 was 6.26 trillion yuan ($0.96 trillion) ,exceeding the previous historical high of 6 trillion yuan in 2016.

http://finance.people.com.cn/n1/2020/1225/c1004-31978635.html

Depositors will not get refunds in some cases when a bank goes bankrupt, Securities Regulatory Commission urges residents to convert their savings into investment

The total amount of savings in China is close to 200 trillion yuan ($30.6 trillion). Communist China’s Deposit Insurance Regulations clearly state that when a bank fails, only those with deposits of less than 500,000 yuan ($76,573) are fully protected. The financial products sold by banks on behalf of the insurance companies, fund companies, and trust companies are not protected. At the same time, the Communist China Securities Regulatory Commission held a special meeting recently to promote the conversion of Laobaixings’ savings into investment and help expand domestic demand.

https://cj.sina.com.cn/articles/view/1655703524/62b007e400100vi0xhttps://www.epochtimes.com/gb/20/12/27/n12647857.htm

Communist China strictly controls the risk of Internet deposit products

The end of each year is usually a key time point for banks to solicit deposits, but at the end of 2020 small and medium-sized banks have been hit hard by strict regulations. Recently, some local regulations issued documents to clarify that all types of banking institutions under its jurisdiction are not allowed to absorb deposits through third-party Internet platforms. The senior regulatory authorities have also made several statements warning about the risks of Internet deposits. More than a dozen Internet platforms, including Ant Financial, Tencent Wealth Management, Jingdong Financial, Du Xiaoman Financial, Ctrip Financial, and Lufax, have taken down their Internet deposit products.

http://www.xinhuanet.com/money/2020-12/31/c_1126929823.htm

The first issuance of convertible perpetual bond in Communist China’s commercial bank

Recently, Chouzhou Commercial Bank and Ningbo Commercial Bank issued 3 billion yuan and 1.5 billion yuan of convertible perpetual bonds, used to supplement their core capital. Caijingxiang reveals the convertible perpetual bond means the principal is not repaid and only interest is paid at the beginning. When the interest cannot be paid, it becomes equity. The difference from the previous perpetual bonds is that when the latter cannot repay the interest, it can only accept an unconditional write-down. The final purpose of this new type of bond is not to pay back!

Communist China’s central bank to include non-bank financial entities in supervision

On Dec 30, the People’s Bank of China issued “Measures for the Supervision and Administration of Anti-Money Laundering and Anti-terrorist Financing of Financial Institutions (Revised Draft for Solicitation of Comments)”, which expanded the scope to non-bank payment institutions, small loan companies engaged in the online small loan business, consumer finance companies, loans companies, and bank’s wealth management subsidiaries, etc.

https://cn.reuters.com/article/china-cen-antimoney-laundering-1230-idCNKBS2940XQ

Communist China launched an antitrust investigation into food delivery giant Meituan

On December 28, according to a reporter from China Economic Weekly, the Beijing Intellectual Property Court has launched an investigation into alleged monopolistic practices of Meituan, a Hong Kong-listed food delivery giant. This antitrust investigation is said due to Meituan’s blocking of Alibaba Group’s Alipay on its app this July.

https://finance.sina.com.cn/stock/zqgd/2020-12-29/doc-iiznezxs9642862.shtml?cref=cj

Digital Currency Pilot

On the first day of the New Year, the 20-million-yuan digital RMB red envelope is here

On the first day of 2021, the Shenzhen government conducted its second digital currency pilot in Futian District. By the way, the first digital currency pilot was in Luohu District.This pilot is funded by the Futian District Government of Shenzhen, and a certain amount of money will be issued in the form of digital RMB red packets to citizens’ digital RMB wallets through a lottery, and these citizens can hold the issued digital RMB red packets to spend at participating merchants within the validity period.  The amount of each red packet is 200 RMB and the number of red packets is 100,000, totaling RMB 20 million. The lottery was held at 0:00 on January 1, 2021.

https://money.163.com/21/0101/14/FV8VQR7H002580S6.html

Propaganda

Communist China’s propaganda that Chinese steel companies’ profits are being swallowed up by the British and American financial oligarchs

Chinese steel companies suspect the four largest iron ore producers are bidding up prices, arguing that the price of iron ore has risen by 60% this year, but steel price risen by less than 10%. The rise in iron ore prices is unreasonable and unsustainable. Communist China has a huge market but lacks bargaining power in the international iron ore pricing mechanism. China is highly dependent on imported iron ore, so it looks like all Chinese steel companies are working for four giants iron ore producers, but it is the financial capital of the UK and the US standing behind these giants.

https://www.sohu.com/a/440537084_313480

Communist China spokesperson issued a statement on some U.S. politicians’ stigmatization of CCP’s United Front

On December 25, in response to the recent announcement by US Secretary of State Pompeo and others to impose visa sanctions on Chinese United Front Work Department officials, a series of remarks accusing CCP of using the “united front” to “infiltrate” foreign countries and other stigmatizing united front remarks. The spokesperson of the United Front Work Department of the Central Committee of the CCP issued a statement and emphasized that certain American politicians have been keen to concoct and hype various anti-CCP issues and have repeatedly slandered the united front and its work led by the CCP. Inverting black and white and fabricating facts, we strongly condemn and express firm opposition.

http://usa.people.com.cn/n1/2020/1228/c241376-31981145.html

An important article by Xi Jinping published in the Journal—Seeking Truth: Building a Community of Human Destiny Together

The first article of Journal-Seeking Truth published on January 1, 2021, is the speech of “Building a Community of Human Destiny Together” delivered by Xi Jinping, General Secretary of the CCP, at the United Nations headquarters in Geneva on January 18, 2017.

http://www.qstheory.cn/dukan/qs/2021-01/01/c_1126935865.htm

Lying on Updated Population

Communist China’s precipitous decline in population

On Dec27, at the “China and World Economic Forum” hosted at Tsinghua University, Feng Xuming, a deputy director of the Department of Comprehensive Economic Strategy Research at the Chinese Academy of Social Science and a researcher at the ACCEPT Institute of Tsinghua University, pointed out the significant decline in Communist China’s population. Overall, 150 million fewer people were born between 1990and 2019 than those born between 1960 and 1989. The declining population will likely have widespread impacts on the economy including shrinking housing demand in certain regions and increasing pressure on social security and medical insurance. Some industries such as automobiles, energy, education, medical services, pensions, and insurance will also be affected.

https://view.inews.qq.com/a/20201228A0KGP400

[ G-Translators-Financial Team]

Miles Guo on the real situation of the Chinese economy

Hello honorable fellow fighters! Today is January 2, 2021. Have you worked out? Have you spread the truth about the CCP virus and the Hong Kong crisis? In 2021, I just heard things about the domestic real estate, about the few remaining export-oriented factories in the coastal areas, the power bill, and then the so-called power shortage, and then about the real estates not being allowed to sell even when people want to, and about banks almost going bankruptcy now.

Brothers and sisters, and the domestic fellow fighters, I can understand the messages you sent out. There are some words that I, Miles, cannot directly say. I believe you understand better than me and you know better than me regarding the situations around you in China. What is the current situation now? It is not just a lack of food and flour. Is real estate valuable? Is it possible for it to be valuable? Brothers and sisters? Then it is normal to lose electricity. Fighting for coal, now they are fighting for coal. Didn’t they [the CCP] brag that they will fight with Australia? They have killed all private entrepreneurs as well as arrested all those who have been doing coal business their whole life? Without the coal mines of those private entrepreneurs, without the coal mines in Australia, what do you [the CCP] still have? You, the CCP has nothing but the “pickled cucumber” [non-functioning penis], what else do you [the CCP] have? Right? What is the use of making a fake “dildo” economy?

So, brothers and sisters, this is an inevitable result. It won’t work without this. Can the banks be good? How could the banks be good? Can you withdraw money [from the bank]? Is it possible to go abroad? Are you allowed to go abroad? Can you take your money abroad? Can you spend your money abroad? Alipay and Red Packet in WeChat will not exist in the future. All of them are under the control of the party. The CCP is now playing with a lot of virtual currency. This time I heard that the so-called Central Working Conference clearly regards the virtual currency as a sharp weapon when the country is at risk. Treating it as a sharp weapon means cheating the ordinary Chinese for money. Therefore, brothers and sisters, don’t listen to their bullshit.

Additionally, many of our Chinese compatriots ask whether President Trump won or lost and are waiting for China’s economy to get better. Brothers and sisters, please don’t be naive. The New York stock market will kick out the CCP [companies] without hesitation. Do you think they can come back? Whichever party is coming into power…100% that it will be President Trump. Whichever party is coming into power, please stop dreaming, the biggest victims of the war between the U.S. and the CCP are our compatriots. Do you think the CCP is still capable of making trade rampage around the world just like what China’s economy looked in the past three decades? Trading anywhere in the world with no one who dares to stop them? Does China really have a GDP of 13 trillion or 14 trillion a year? Impossible!

The expert said that it is impossible for China to reach the 13 trillion GDP – the line of life and death – in the next decade or the next two decades. Even if the CCP were still there and achieved 13 trillion GDP, it would still be impossible for it to survive for 2 years. This is God’s will. We are not only taking down the CCP by the U.S., by the insiders of the CCP but also taking down the CCP with the help of God. What is the current situation of the domestic food stock? Think about it, my fellow fighters, what is the current situation of the supply chain? Look at it by yourself. Hence, for those fellow fighters who have fled the CCP, please show your gratitude to God. Those fellow fighters who have fled the CCP after listening to the Lude Media and the Whistleblower Movement (WM), please be thankful to the WM and the Lude Media. This is not a joke, my brothers and sisters. For those who have stayed in the Western countries, please have a long-term plan.

With respect to the situation of the pandemic in these several days, we feel it is more difficult and tougher in 2021 than in 2020, and even more threatening to life. Europe, Asia, our country that has been kidnapped by the CCP, and the U.S. have all shifted the focus toward the election of President Trump. After the election, the biggest problem will be the pandemic. What are the changes that the new virus has brought in? Now every country is providing reliefs. I can tell you that in half a year or one year, what relief can they provide? Will it be affordable? So, staying at home and staying alive is more important than anything else.

From today to tomorrow, many people in Washington D.C. will not sleep. You will see many people skip sleeping. Last night, from 3 o’clock to 5 o’clock you saw the economy [in China] was wailing. The messages I got from America from 7 o’clock to 9 o’clock were all focused on Washington D.C., about the 48-hour fight. My brothers and sisters in arms, this kind of restlessness and uncertainty in the world’s economy and politics has never happened before. I asked many people and they said that you could not find this kind of global restlessness in history, and it has never happened under the common destiny of the world.

Therefore, fellow fighters, please stay alive in 2021. Please be united and cherish your health and your family. Please love your family. The other day I saw a fellow fighter saying… our fellow fighter in Spanish said that he/she will send a gift to his/her mother and father. This is really really great. Please take good care of your family. Family is the most important thing now. Then please take care of your fellow fighters. Your fellow fighters are gifts from God. Please treasure your brothers-in-arms. Then every farm should take the opportunity to unite our fellow fighters and help our fellow fighters to grow stronger and bigger. Anything else is just bullshit. The New Federal State of China will succeed, the WM will be powerful, and the CCP will be taken down. God is pushing us to take down the CCP. Just now many American friends told me, “Miles, after this battle in Washington is ended, we will spare no pains to take down the CCP with you!”

Source: https://gtv.org/getter/5ff0931187fabe2daf2f597d

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