[The Epoch Times, July 16, 2022](The Epoch Times reporter Liang Yao interviewed and reported) Recently Sri Lanka faced a national bankruptcy crisis, and the president announced his resignation. Some analysts believe that the crisis facing the CCP is actually far greater than that of Sri Lanka.
Sri Lankan Prime Minister Ranil Wickremesinghe told parliament on July 5 that the country was bankrupt. At present, the country’s food prices are soaring, people’s livelihood materials are in short supply, and the fuel crisis is serious. Many people have left their homes in despair and went to other countries. Sri Lankan President Gotabaya Rajapaksa announced his resignation on Thursday (July 14).
China’s Belt and Road Initiative accelerates Sri Lanka’s bankruptcy
Chair Professor, Aiken School of Business, University of South CarolinaXie TianSpeaking to The Epoch Times, Sri Lanka’s bankruptcy is due to excessive borrowing and high levels of corruption. Sri Lanka’s overall debt is as high as 51 billion US dollars, and the country has only 22 million people, which shows that the country’s top-to-bottom corruption is very serious. The CCP’s “One Belt, One Road” project has intensified the crisis in Sri Lanka and hastened bankruptcy.
He said: “Sri Lanka’s staggering corruption has actually given the CCP a chance. More than 60 of them are related to the ‘Belt and Road’ initiative, which actually increases the financial burden on the country and makes it difficult to support.”
“The CCP is actually very good at taking advantage of this opportunity, because as long as it has a prime minister or a president, the following can do whatever they want. For example, the investment in the Hambantota port under the ‘Belt and Road’ initiative does not rule out that the CCP obtained the contract through bribery. Such infrastructure projects have left Sri Lanka with debts and no profits. It is the accumulation of these debts that bankrupted the country and ruined the government.”
The evil of the CCP regime far exceeds that of the Sri Lanka regime
At the same time as the crisis in Sri Lanka, Chinese state-owned banks are also facing a real estate storm and a repayment crisis. Real estate development projects in many places in China have been suspended, and owners of unfinished real estate projects have fallen into desperation, and they have been forced to cut off their supply by name. Affected by this, A-share bank stocks continued to plummet, with nearly 700 billion worth of market value evaporated in just ten trading days.
In addition, there has been a violent crackdown on bank depositors’ rights protection in Henan. The four local village banks suffered thunderstorms, affecting more than 400,000 depositors, with a total capital of nearly 40 billion yuan, and the average principal amount of a single account was around 100,000. The low solvency of local governments is widely suspected, raising risks across the financial and banking system.
Xie TianHe said that the situation in China is much more complicated than that in Sri Lanka. The problems include bureaucratic corruption, political retrogression, and deprivation of people’s rights. The evil of the CCP regime far exceeds that of the Sri Lankan regime.
“For example, it has become a crime for Henan depositors to go to the bank to withdraw money. The CCP has maintained stability. This has never happened in Sri Lanka.”
Xie Tian believes that, in fact, the suffering of the Chinese people far exceeds that of the Sri Lankans. The CCP not only collects money, but also commits perverse acts and brutal murders, which far exceeds the current situation in Sri Lanka.
“China’s state-owned banks have gone bankrupt”
Director of Human Rights Watch of China currently in exile in the NetherlandsMa YongtaoHe told The Epoch Times that the credibility of the national bank under the CCP’s rule has been bankrupt in many people’s minds.
He said: “I have a netizen who has never met, but he keeps the domestic RMB worth 10,000 euros with me. This shows that in the netizen’s mind, the credibility of the Chinese state-owned bank is not as good as that of netizens who have never met. “
Ma YongtaoHe said that after the implementation of the epidemic clearance policy in China, the proportion of Chinese people migrating overseas has increased significantly. Many people have chosen to flee China because they have lost confidence in the CCP.
Xie Tian believes that official corruption and abuse of power in the CCP are widespread. Local banks have generally seen officials conspire to get away with money.
“These officials must have taken the money away, and they are probably no longer in China. These officials are guarding themselves and stealing, leaving a huge black hole.”
A run on the tide may lead to serious consequences
Xie Tian said that China’s rural banks are similar to the previous savings houses. When they were established, the CCP said in a document that they should be managed and guided by the China Banking Regulatory Commission, just like the institutions of commercial banks. But there is no real incorporation of it into the banking system and there is no deposit insurance. Some bank deposit items have become financial tools, and there is no guarantee of repayment.
He said: “This phenomenon has already occurred on a large scale in China, but Zhengzhou, Henan Province was the first to have thunderstorms. The same thing happens in all provinces, but people may not realize that their money is gone. This hole Once it is torn apart, it will cause more depositors to withdraw funds and run, and things like Henan will definitely spread across the country.”
He said that if one of the 400,000 depositors in Henan saves 100,000 yuan, that is 40 billion, and the national scale is at least 100 billion or 1 trillion. “It’s very scary.”
“Now the 400,000 depositors in Henan have shouted, ‘The CCP is a mafia and bandits’, and have started to defend their rights and protest. Even if only 20% of the people in the country go to run on the bank, the CCP’s state-owned banks may not be able to fill this hole. The result was a nationwide revolt.”
Responsible editor: Tian Qing#