China’s policy of “zeroing” the epidemic may cause an economic crisis

The Chinese authorities have recently begun to strictly enforce the policy of “reducing the epidemic to zero” in response to the resurgence of the Corona virus in China. This strict control has disrupted the Chinese consumer chain and caused the economy to decline.

According to the CNBC news channel on August 19, due to the lack of workers in major business centers such as Shanghai and Beijing, exported goods are stuck at the ports. The production speed of Chinese factories has also slowed down or even stopped, and companies such as Tesla and iPhone have implemented automatic rotation systems in the production chain.

In addition, factors such as abnormal weather conditions, production crises and abnormal demand patterns have also caused supply chain disruptions.

CNBC news channel reported on August 18 that Goldman Sachs, an American multinational investment bank and financial services company headquartered in New York City, projected China’s economic growth rate of 3.3% in 2022 to 3.0%. If it is expected to fall, the Japanese financial and stock control company Nomura (Nomura) has predicted that China’s economy will fall from 3.3% to 2.8% in 2022.

Economists at both banks said China’s policy of “zeroing out” of the virus outbreak had dampened Chinese consumer spending and led to a decline in real estate investment in July. They also stressed that Beijing’s ability to take appropriate measures may be limited.

Mr. Kaiser Mijit, a doctor of economic sciences and an economist from Uyghur intellectuals in the United States, was interviewed by our radio station about this. He said: “China’s policy of ‘reducing’ the epidemic has increased unemployment. “China has implemented a policy of lowering interest rates when borrowing from banks, which is one of the measures taken to prevent economic collapse.”

Goldman noted that China’s sudden interest rate cuts will not prevent the Chinese economy from collapsing. They argue that the Chinese government will not only face economic constraints in this process, but also a number of political problems.

Dr. Anders Kor, an American political affairs expert, was interviewed by our radio station about this. He emphasized that China’s policy of “zeroing” the epidemic in response to the Corona virus and its pandering to the US and Europe about Taiwan played a critical role in China’s economic decline. He added: “China’s economy is expected to fall by 3.0%. This is too low for China. This certainly means that there are many problems in China’s economy. Recently, it is very common for foreign companies that have invested in China to cut ties with China. They are moving their companies to safer countries where their production chains are free of forced labor. In particular, companies from countries that are China’s largest export markets, such as the United States and Europe, are moving out of China. As it is known, China is facing economic crisis in various ways, but the policies adopted by Xi Jinping do not seem to be able to save China’s current sinking economy.

According to Goldman’s analysis, the Chinese authorities will use all means to eliminate the virus epidemic in China before the 20th Congress of the Communist Party of China, which will be held soon; Increase the employment rate, pacify the Chinese people and maintain social stability; It is aimed at ensuring that Xi Jinping is once again the “supreme leader” and remains in power.

Mr. Anders Kor continued on this matter and said: “Xi Jinping is clearly planning to serve as the General Secretary of the Communist Party of China for the 3rd time and even rule the Chinese regime for life. He wants to become the emperor of China, and that is the crux of the matter. He is trying to concentrate all the power in his hands. But it cannot deal with economic, national security and other issues on its own. Another problem is that China is trying to expand its borders and influence the world, not self-defense. Not obeying the policies of the UN and other international organizations. In order to win support at the UN, member states are being lured to their side through capital. But China is also supporting dictators like Russia and Iran. China’s own people do not want a dictatorial regime. No one wants to live under genocide and high-tech surveillance, but wants to be free to live their private lives in peace. This is China’s problem, as well as Xi Jinping’s problem, and the problems that lead to economic debt.

Mr. Kaiser Mijit emphasized that China’s strict control is not only to control the virus epidemic, but also to control the Chinese people.

According to the report of the Chinese government-run “China News” network, the total number of asymptomatic infected people in the Uyghur region has exceeded 3,000. Strict persecution and quarantine measures have been implemented in many places in the Uyghur region, and the general siege has not continued.

According to the information spread on social media and the live data collected by our radio station from the Uyghur region, residents in the Uyghur region are prohibited from going outside, and their daily life has become difficult. Vegetables and fruits are left unsold in the markets. Due to the 3-month quarantine and strict blockade measures in Shanghai, production in Shanghai has stopped, daily food and daily necessities have risen sharply, and even famine has occurred. In the process, it is known that Shanghai’s economy has suffered a severe recession.

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