In recent days, the Chinese Communist Party has upped its rhetoric and belligerent stance toward the United States. There’s a good reason for this. The CCP is scared to death over losing control.
This fear is palpable. When you see organs of the CCP peddling conspiracy theories about how the Wuhan virus may have actually started in the United States and was spread by the military in order to bring China down, then you know the CCP is frightened.
The party has good reason to be afraid. The Chinese economy is hanging by a thin, thin thread. China watchers estimate the country lost $144 billion in the first week of the Lunar New Years celebrations. Industrial productivity has fallen by more than 13 per cent. Investment is down by about 25 per cent. Retail sales are down by a similar amount. China’s GDP will likely contract by about four per cent in the first quarter.
But that’s not the worst of it. Manufacturers are starting to flee China like rats jumping off a sinking ship. They’re coming to see that the risks of producing in a country that cannot contain a virus outbreak is not worth the benefits of cheap labor that can be found in any number of developing countries.
That is the reason the CCP sat on reports of a novel corona virus. That is the reason China arrested whistle blowers. That is the reason the CCP wouldn’t let the West see data. That’s the reason China kept US health experts out of the country for two months.
China lied to the world because it knew that news of yet another virus outbreak undermines its number one claim to fame – namely, that it can deliver prosperity. But the horror of the Wuhan virus could only be covered up so long. Eventually the truth would come out.
Now, China is in no position to recover from this body blow. It’s debt is staggering. Private companies collectively owe more than 300 per cent of annual GDP. Companies cannot borrow to stay afloat. Bankruptcies are increasing every day.
To top it all off, when the West recovers from the Wuhan virus which China unleashed on the world because of incompetence, government after government will move to ensure their economies and their people are not threatened ever again by the CCP.
China’s people will see a steep fall in their standard of living. Food prices are already rising. They will rise more. Inflation will climb. Exports will decline.
Considering the level of anger in China right now, it’s easy to imagine uprisings and outright challenges to the CCP’s rule.
The CCP, of course, will respond with brutal suppression. That is what Communists do. The CCP doesn’t care about us and it certainly doesn’t care about its people. It cares only about power.