Opinion: (Lang Xianping, international economist, professor at the Chinese University of Hong Kong): “Lang Xianping, a famous Chinese economist, exposed ‘the inside information of Chinese economy’ in his speech on 22nd October. Based on his own data, China’s GDP has not only not increased, but has shrunk by 10%. He even predicted that China will go the same way as Japan in terms of economic development since the government is already deep in debt – maybe even by 36 billion – and doomed to go bankrupt.
“In his speech he said, ‘Only in China do we see such a terrifying investment market. Our stock market has been in continuous decline, yet other markets, such as the real state, automobile, luxury, and antique markets have been expanding rapidly. Our nation is sick, deeply sick.’
“He pointed out, ‘The data published by the National Statistics Bureau is all fabricated. Economic growth of 9.1% is not true, and inflation rates of 6.2% are not true either: They’re at least 16%. All the policies that the government is releasing are to “heal” the “sick” economy, but actually they’re no use whatsoever. China’s economic situation is treacherous!’ He added: ‘China is already headed for a recession. From early July, Chinese manufacturing PMI was the lowest in the world.’
“According to him, China is going to become the poorest country in the world. There are three serious mistakes in our policies, and one of them is the high taxes and dues. The direct taxes and indirect taxes paid by entrepreneurs last year took up 70% of Chinese PBT, and individual income tax took up 81.6% of average income tax. We have the highest tax in the history of man.
“‘Overcapacity in China has a long history, and has been alleviated by high worldwide debt,’ he said. ‘However, if Americans can no longer afford it due to the economic crisis, our overcapacity will become a nightmare. Our consumption capacity can only absorb 30%, which will lead to too many surplus products and force many businesses to go out of business. If the global financial system collapses, many countries will no longer be able to develop in an indebted way – hence, our surpluses will become a huge problem.’”