China’s FINAL SOLUTION For Its Economy…

China's economy is in a nosedive. I've been wondering what the solution would be. Now I know. And it's worse than I could have imagined. Welcome to China Uncensored, I'm Chris Chappell. Well, China's got a problem. If you've been watching, you know the Chinese economy is in dire straits. During last year's civil service exams, 2.8 million young people were fighting for just 38,100 jobs. Officially, the economy grew just 4.3% during the last fiscal quarter, one of the lowest rates on record. And remember, those are the official numbers. Even a top Chinese official said these numbers are man-made and unreliable. So you know it's actually worse than the return on investment for Supergirl. Meanwhile, widespread pay cuts are driving down consumer spending. So spiraling domestic consumption is wrecking China's economy. The brilliant minds behind China's communist state-planned economy have tried to work around it by ramping up manufacturing. But as you can see, that has started to collapse, too. Because when none of your consumers are buying, and you try to dump everything cheap on the international market, eventually you hit a saturation point. There's only so much cheap Chinese crap the rest of the world can buy. On top of that, the EU is cutting China off from the international market with tariffs and anti-dumping, anti-subsidy probes. So no domestic consumption, manufacturing is collapsing. About the only other thing China's economy had going for it was the real estate sector, but that's been in a nosedive since the bubble burst in 2021. Basically any graph about China's economy looks like a game of chutes and ladders that's all chutes. So what is an authoritarian regime to do? Well, communist problems require communist solutions. Turning China into a prison state. Yeah, more of a prison state. You see, those with money or the resources might want to get their money out of China and take their money with them. That is quickly becoming not an option. It began in July with the purge of this guy, former securities regulator Fang Xinhai. This guy was a big deal in China's financial world, educated in America at Stanford, worked at the World Bank headquarters in DC, a financial technocrat with an international outlook. He was basically one of the guys responsible for turning Shanghai into the international financial center it is today. And I'm leaving out a whole bunch of his accomplishments. And yet now, he's been purged for quote, serious violations of discipline and laws. You can tell how serious it is by how vague and nonspecific it is. And he's not the only one. That same month, the Party officially expelled Ma Xingrui. He was in charge of Xinjiang, but before that, he was a major figure in China's defense industry, part of China's military-run space program. Another extremely talented technocrat. What does this have to do with China's economic woes? Well, you see, when Xi Jinping first came to power over a decade ago, he didn't have a political faction of his own. So he had the idea to pull talented people from China's private or industrial sector and put them into key positions of power. These were talented people, and most importantly, they weren't wrapped up in the complex web of political factions vying for position in the Chinese Communist Party. The problem is, because they are smart and talented, they might have their own ideas on how to run things. And having your own ideas? Under communism? That just won't do. Remember in 2020, when then-China's richest man Jack Ma thought he could criticize Chinese regulators? He said they stifle innovation. How did Xi take that? Jack Ma was essentially disappeared for five years, and lost more than half of his wealth. A communist government cracking down on the most skilled and productive people? Has that ever happened before? Yeah, China doesn't have a First Amendment as much as they have a Fifth Amendment, meaning if you use free speech, you're getting punched in the face. This serves a couple of purposes. One, it tells these rich, powerful technocrats—at least the ones that haven't been purged yet—that their opinions are not welcome, and they'd better stay in line. Two, in the case of guys like Ma, where do you think all their wealth went? No way a cash-strapped communist government would just steal from productive people. When has that ever happened before? And three, the CCP doesn't really like to admit that their policy decisions, their brilliant state-planned economy, isn't actually doing all that well. And so the guys who were once upheld as the great technocrats of China become scapegoats. Bye bye. But now, the pieces of the puzzle are really falling into place. On the same day Fang went away, the Supreme People's Procuratorate revised an insider trading interpretation. God, that's probably the most boring sentence I've ever said. But this is what the CCP does. It hides earth-shattering revelations in boring bureaucratic speak. I'll spare you the jargon, but what this means is, in practice, that previously, senior officials, financial executives, and politically connected business elites all had a better sense of what was actually going on with China's economy than all the fake numbers that officially get pushed. So if you knew part of the economy was going south in a big way, you might say, liquidate your assets and move it abroad before the bad news went public. But with this new insider trading interpretation, that's not allowed anymore. These people now just need to watch their assets go up in a puff of smoke. Or else. And most importantly for the Party, the money stays inside China. And yes, communists are just now trying to stop elites from insider trading. Hmm, it's almost like communism isn't actually for the working class at all. But you know, as much as the Party hates to admit it, individual people do have value. Especially those with talent. So you can't just trap the money inside China. You need to trap the people, too. And China is becoming one giant prison. Well, for some, it already was. But there are reports that state-owned enterprise executives, public sector employees, university personnel, and even rank-and-file civil servants are facing a new wave of passport confiscations and increasingly stringent exit controls. It's especially bad in cutting-edge tech sectors, something the Party in particular holds dear. Holds dear and just won't let go. In March, China just flat-out banned the co-founders of Manus AI from leaving the country. The executives were told they could not leave China due to a regulatory review. In May, Bloomberg reported that China expanded travel curbs to top AI talent at private firms. Doesn't really make it sound like there are actually private firms in China. Government agencies have begun imposing restrictions on individuals involved in advanced AI work and considered strategically important to the country. And in late July, China unleashed new exit and entry regulations across the entire tech sector. The noose has been tightening. The techno-noose, which I guess is a LAN cable. As much as the Communist Party likes to portray China as the future, when your elites are desperate to get out of China, you know something is very wrong. At the very least, it's a dystopian future. China under the CCP is a sinking ship. And now, the Party is holding a gun to people's heads and telling them they can't get on the lifeboat. But this tells you something about the Party. They know the collapse is at hand. And rather than putting their energy into trying to fix the problems, they want to drag as many people down with them as possible. Marx was right when he called it the specter of communism. I think we need an exorcism. And if you want to join a group of fellow anti-communist exorcists, join the China Uncensored 50-Cent Army. Which you can do by simply going to ChinaUncensored.tv and clicking that orange button to subscribe. And when you join me, you'll get awesome stuff like exclusive episodes, live streams, a vibrant chat community, and the chance for me to answer your question on the show. Today's question comes from Comrade Lars Rocha. The recipe book, how's that coming along? This is something I've only talked about on ChinaUncensored.tv, so now I'll make it public. Like a lot of people, over Covid, I've packed on quite a bit of weight. But I've managed to lose over 35 pounds. That's a small child. Or a kind of big dog. So I'm writing a book about how I did it with loads of recipes, and I aim to have it come out at the beginning of 2027, New Year's Resolution time. So stay tuned. Thanks for your question and your support, Comrade Lars. See you on ChinaUncensored.tv. And if you'd like to join us, click this button or the link below and become a subscriber. Once again, I'm Chris Chappell. Thanks for supporting China Uncensored.