Chinese Economics Thread

[zhangjim]

Just imagine if the central government didn't outlaw crypto nonsense in China, the howlings and the screaming from some greedy idiots in China would have been worse. And yet, there was some persistent and lamentable comments that were made against the government rule expressing strong disagreement saying that the government rules were too suffocating for not allowing citizens the space to operate and "invest" blah blah...and the result so far has been catastrophic in the west, especially for the many folks that has been convinced to invest all their money in that scheme. @zhangjim you ought to be more restrained, introspective with your comments and not react so emotionally clouding your judgment by treating or looking at the government in the worst possible light. I do not deny that the government could have handled this issue differently but that's a far different matter to inferring some sort of meltdown that their action is a step away from deploying tanks against the people. You're quite susceptible and impressionable enough to be recruited by the NED types, Foreign intelligence operators because what you expressed, your mindset, you're disillusionment from the system, mistrust of the government, not to mention you're naivety and well intentioned care for your like minded Chinese are some of the components/traits and hallmarks perfect as their candidate.

In general, this incident was caused by a serious crisis of trust.Two puzzling "mistakes" in a row have greatly triggered panic.The previous abuse of health codes has caused terrible consequences.

You will find that this financial crime with a wide range of influence has made things more serious and difficult to deal with under the consistent operation of the local government to prevent petitions

Due to historical lessons and the characteristics of "people's power", such law enforcement means need to be used with caution.If it is not an extremely serious act of violence, the act of dispersing the people is usually not taken.That's the theory, at least.

From the result, this is definitely a failed crisis management method：
1、The act of blocking the news completely failed, and all foreign media were reporting the matter, while the domestic media had no news - although everyone learned about the incident through Weibo.

2、Exacerbate the rift between the people and the government.I'm not the only one who is disappointed.More serious violent conflicts were not uncommon in the past，the consequences of the government's unwillingness to clarify social hot spots are often very serious(although not comparable with the United States).
In Weng'an, Guizhou Province, the protester was beaten, which eventually led to large-scale violence, and the government building was burned.

Some people worry that there will be more large-scale protests and conflicts on July 20（Zhengzhou rain disaster Memorial Day）in the future.Maybe the government is already on the alert.

Honestly, if you find that the crisis communications tactics used by the government have not improved significantly in the intervening decade or so, and still exacerbate things into violent conflict, disappointment is inevitable.

 

[coolgod]

Look at that absurdly high-interest rate investment (7% for 2 month fixed) from the frozen account banks, the people definitely know these investments are sketchy. Meanwhile zhangjim is still complaining about govt and crying for the investors who want a taxpayer bailout.
Zhangjim logic: we got scammed, so we will scam all of the chinese taxpayers back.

 

[Egg roll]

The first two photos are from some ppl in the henan telegram chat group, goal is to blackmail central chinese government and people by holding protest with english signs and sending video to foreign media.
The third photo is about how to scheme and force government to bail them out by allying with the "middle class", i.e., the protest organizers are multi-millionaires who lost to the investment scam.

Blackmail central Chinese government and people and sending video to foreign media??? Why are they trying to draw the foreign media involved? Are they trying to draw the attention from the NGO or NED? Why do I have a feeling they are seed of traitors waiting to burst out. If China in the future going through a difficult time, will they be the first one to betray and suck up to the external force?.

 

[Lnk111229]

Those idiots try to blackmail Central gov is just want to compare how hard their body with DBP10 bullet. Needless to say results is not pretty.

 

[tygyg1111]

Personal responsibility and accountability can't be always assigned to the government. It's not there to solve your dumb assery, human avarice, most especially greed for being enticed with wanting to get rich scheme.

Karen syndrome - not just limited to white ppl

 

[zhangjim]

Zhangjim logic: we got scammed, so we will scam all of the chinese taxpayers back.

Makes sense since he claims to be a local from Henan whose family got financially scammed. He also claims to see too many things without results I guess that means he wants compensation.

I feel badly insulted.I have been emphasizing that this is a serious public relations crisis.It has been nearly 10 years since what happened to my family. All this reminds me of those unpleasant things in the past
Before that, the use of health codes to restrict protesters made the government lose its moral advantage.Then there are two "coincidences" in succession.This fueled the panic and quickly spread the conspiracy theory that the government was harboring the perpetrators.

Finally, let things end in violence，let foreign media report this matter around the world, and angry rumors are spreading rapidly in China.

Now，do you think this matter is handled successfully?

Blackmail central Chinese government and people and sending video to foreign media??? Why are they trying to draw the foreign media involved? Are they trying to draw the attention from the NGO or NED? Why do I have a feeling they are seed of traitors waiting to burst out. If China in the future going through a difficult time, will they be the first one to betray and suck up to the external force?.

This is called "告洋状（Enlisting the support of foreigners）" in China.
This is an extreme measure of last resort because it will be seen as a traitor in collusion with foreign countries.
People who use this strategy will take great political risks，this means being spurned by society and being blacklisted.There is no doubt that this is an unpopular and outdated method.

However, this is closely related to China's petitions, because many problems are handled very inefficiently, and local governments have strict punishment measures for "illegal" petitioners.Therefore, some people will take advantage of the fact that CPC is very concerned about its international image to seek pressure from foreign media and governments.

 

[tygyg1111]

Makes sense since he claims to be a local from Henan whose family got financially scammed. He also claims to see too many things without results I guess that means he wants compensation.

If someone is dumb enough to sign up for one of these schemes, they deserve the loss. At the very least, would it not cross their minds to try to understand how the scheme worked, if it could be sustainable?

 

[zhangjim]

Can anyone run me through on the Henan bank case ? Is this a case of mutual fund failing, but investors are demanding the banks to pay their capital instead ?

But how serious is this to cause a protest ? There are funds failing all the times, doesn't have to be fraud, investors have to read the prospectus carefully know the investment objective and risks.

Unless these funds are falsely promoted as deposit-level safe, I don't see how 9-10% yield funds can be considered totally safe by risk-averse investors. There should a reason why they are only available by these unknown local banks.

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I don't know if you understand Chinese.

I need to clarify again that what I hate is the incompetent public relations handling method of the government,the end of violence is doomed to make everyone a loser.

Bank executives and shareholders colluded with each other to make a fake system with real procedures.The perpetrator used the name of the bank to cooperate with the network platform to deceive the victim into depositing money in the "bank".This caused the user to operate normally, but the money did not enter the real bank account.
So the bank also denied these "deposits".

This kind of crime is unprecedented, and the government is at a loss about it.To make matters worse, the principal criminal of the case was once arrested, but was soon released and quickly fled abroad.
It is also worth pointing out that rural banks cannot sell financial products，this means that the regulator is derelict.

This incident shocked the financial industry greatly, which triggered a crisis of public trust in banks.Banks have always been arrogant in shirking responsibility, which makes people more anxious.

Then the government's bad handling turned things into the worst.

 

[NiuBiDaRen]

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I don't know if you understand Chinese.

I need to clarify again that what I hate is the incompetent public relations handling method of the government,the end of violence is doomed to make everyone a loser.

Bank executives and shareholders colluded with each other to make a fake system with real procedures.The perpetrator used the name of the bank to cooperate with the network platform to deceive the victim into depositing money in the "bank".This caused the user to operate normally, but the money did not enter the real bank account.
So the bank also denied these "deposits".

This kind of crime is unprecedented, and the government is at a loss about it.To make matters worse, the principal criminal of the case was once arrested, but was soon released and quickly fled abroad.
It is also worth pointing out that rural banks cannot sell financial products，this means that the regulator is derelict.

This incident shocked the financial industry greatly, which triggered a crisis of public trust in banks.Banks have always been arrogant in shirking responsibility, which makes people more anxious.

Then the government's bad handling turned things into the worst.

Admit it: you were one of the people who fell for the scam.

 

[Michaelsinodef]

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I don't know if you understand Chinese.

I need to clarify again that what I hate is the incompetent public relations handling method of the government,the end of violence is doomed to make everyone a loser.

Bank executives and shareholders colluded with each other to make a fake system with real procedures.The perpetrator used the name of the bank to cooperate with the network platform to deceive the victim into depositing money in the "bank".This caused the user to operate normally, but the money did not enter the real bank account.
So the bank also denied these "deposits".

This kind of crime is unprecedented, and the government is at a loss about it.To make matters worse, the principal criminal of the case was once arrested, but was soon released and quickly fled abroad.
It is also worth pointing out that rural banks cannot sell financial products，this means that the regulator is derelict.

This incident shocked the financial industry greatly, which triggered a crisis of public trust in banks.Banks have always been arrogant in shirking responsibility, which makes people more anxious.

Then the government's bad handling turned things into the worst.

From reading the various posts up til now, I still think it's clear what has to be done by ordinary people.

Which is to WAIT some more, instead of immediately panic and then start saying government bad, didn't handle properly etc.

Legel procedings, investigations etc. takes time, not to mention there might be a need to actually shake up the local government in those villages/towns etc.