Chinese Economics Thread

[Red Moon]

Lol good luck with that shit from ever happening. The rat f...k who's escaped China into the U.S. will yet become another political refugee escaping the supposed hell hole, no freedom China and all the babling idiots a.k.a. blathering politicians will use this guy to amplify their anti-China crusade.

Most western countries don't see or look at the CPC as a legitimate government plain and simple. So any extradition request would always be looked down or interpreted as the illegitimate state apparatus trying to squeeze a criminals freedom. If the governing authorities would play the decent thing with China, the opposition funded by the blob a.k.a. NED and other American, Indian etc. funded org would crucify that politician, that politicians party until they're diminish and replaced by the defender of freedom.

The greedy bastards want to make money from China, from Chinese people yet despises the government that made the economic miracle and profits for these greedy corporations and countries government which is the CPC. The reason is it wants more, it wants to own China as it tried to do back in the 19th century. To dominate the Chinese is their goal period.

On the bright side, they will commit the same crimes in the US.

 

[SanWenYu]

What happened to the owner of the Henan bank involved in the scam incidence ?

I read through the last 7 or so pages and most discussion were on the scammed victims and how they tried to get their money back from the government. There were just one or two references to the owner absconded with the money to the US.

If that is true, or for that matter, any other country, then China should very publicly ask that the ill gotten money be frozen and be returned, together with the criminal, to China. Any procedural delay by the host country, especially Western countries, will be viewed very negatively by Chinese citizens. China can turn around this PR disaster into a victory by exposing the host country as a haven for commercial crime criminals from China.

To the Chinese public, the US and Canada are well known as the two biggests hideouts for the Chinese criminal on the run.

Have you heard of the Operation Fox Hunting in China? It is specifically to get those Chinese criminals wanted by the Interpol to surrender themselves to the Chinese authority from where they are hiding, including countries with which China does not have extradition treaty, and countries where law enforcement is weak.

Having the Interpol to issue warrants on those criminals is as publicly as China can go in seeking cooperation from the host countries, barring extradition treaties. Yet the US, and its accomplices, take this as opportunity for bargaining with China. They usually drag their feet in working with China. Most cases hardly move after years of delay. Some even took decades to complete. They also often use "political oppression" as an excuse to altogether refuse to extradite certain criminals. Guo Wengui, for example, has been wanted by the Interpol since 2017.

Lü Lei, the mastermind behind the Henan rural bank scams, will likely have his name added to the list of outstanding warrants.

On the other hand, it is hard to tell what the US, Canada, and other countries to a less degree, will end up with in long run. This many criminals who have escaped their due punishments are poison or even ticking bombs to the society. Apparently Guo Wengui is now a troublemaker, for example. Reap what you sow.

 

[dingyibvs]

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?

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.

Multiple members of my family have fallen for similar scams, including my parents. I have zero sympathy for them. I warned them that those 10-20% guaranteed returns are garbage, that there is no such thing. They argue that the borrower has collaterals, that they've seen the deeds to the houses they use as collaterals, etc. I don't care, there is no investment that can guarantee that level of return. There must be a way for them to weasel out of it, and it must be a scam. And guess what, they all turned out to be scams, and they all managed to weasel out of it.

With that said, I agree with you that the handling of the situation has been very poor. If they think that people are rightfully owed their money, say it and and delineate the process for them to get the money back. If they don't think that they're entitled to the money, say it as well and state clearly why that's the case. If they're still trying to decide between the two outcomes, then state what kind of information or process will help them make the decision. A lot of people are involved, and for many it's their life's savings, there should be some sort of clarity.

 

[KYli]

Small depositors should be protected. Those with millions invested that got 10% return annually not so much. The thing is Henan government probably doesn't know how much monies were left and how much were siphoned out of the rural banks and how much assets that they can confiscate and seize.

In the end of the day, Henan government is under no obligation to repay many big depositors. So Henan government should try to repay each depositors up to 500,000 yuan per bank first. After that, Henan government would try to repay the big depositors but don't make them whole. Making big depositors whole again would create moral hazard that is detrimental to the Chinese financial system.

 

[zhangjim]

Ahh okay, you tried your best to explain the situation with the constraints of a language that you may or may not be too intimately familiar with in this case the English language. And perhaps essence of what you were trying to convey, explain along with the intricacies are maybe lost in translation.

Let me then make an apology for making an inference to your motives and misunderstanding the crux of what you have been trying earnestly to explain.

I should not focus on arguing with others. It would be better to introduce some of the current risks of rural bank.
But I can't sort out and explain the core elements of the whole thing in such an organized way as that friend.
Driven by personal emotional factors, I paid more attention to the failed crisis public relations treatment.

In China, people also calmed down and analyzed the course of this matter, but they still couldn't agree with the way the government handled it on July 10.

 

[Rettam Stacf]

To the Chinese public, the US and Canada are well known as the two biggests hideouts for the Chinese criminal on the run.

Have you heard of the Operation Fox Hunting in China? It is specifically to get those Chinese criminals wanted by the Interpol to surrender themselves to the Chinese authority from where they are hiding, including countries with which China does not have extradition treaty, and countries where law enforcement is weak.

Having the Interpol to issue warrants on those criminals is as publicly as China can go in seeking cooperation from the host countries, barring extradition treaties. Yet the US, and its accomplices, take this as opportunity for bargaining with China. They usually drag their feet in working with China. Most cases hardly move after years of delay. Some even took decades to complete. They also often use "political oppression" as an excuse to altogether refuse to extradite certain criminals. Guo Wengui, for example, has been wanted by the Interpol since 2017.

Lü Lei, the mastermind behind the Henan rural bank scams, will likely have his name added to the list of outstanding warrants.

On the other hand, it is hard to tell what the US, Canada, and other countries to a less degree, will end up with in long run. This many criminals who have escaped their due punishments are poison or even ticking bombs to the society. Apparently Guo Wengui is now a troublemaker, for example. Reap what you sow.

The key point is that many Chinese citizens who were financially devastated by these people will have a new "appreciation" of what the West harboring these criminals have a direct impact on their lives.

China, if handling it correctly, will turn the public wrath (at least most of it) back on the culprits and those countries perpetrating such criminal activities by providing them a safe haven.

Putting the names on the Interpol list is not enough. Call in the ambassador to demand their return. Like to see the scam victims protesting at the foreign embassy.

 

[NiuBiDaRen]

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[Coalescence]

I don't think it is "wait and see". It is just time consuming to sort out the tens of thousands of bank accounts and all the relevant transactions. As another forum member mentioned previously, the ordinary deposit accounts will have their balance recovered to certain amount from the insurance which is required by law. But the investment accounts will suffer loss from the inherent risk. They must be dealt with differently and accordingly.

Yes, it takes a while to sort out all of those bank accounts, but couldn't the government at least give an update on the situation to calm the people down? In my opinion, it would have been easy to have an official go out and say that the problem is caused by a scammer backed by corrupted individuals in the local government, and those who have deposits are insured or not affected, while those investors accounts will take time to be sorted out.

Either way, its a good opportunity to see who are the bad apples in the local government, who are the fools or bad actors that jump on bandwagon during and after the matter is resolved, and how foreign forces get involved or try to co-opt to this situation to their benefit. After this incident, there would be more data to formulate strategies to prevent and resolve these incidents in the future, and find who to invite for some "tea".

 

[SanWenYu]

Yes, it takes a while to sort out all of those bank accounts, but couldn't the government at least give an update on the situation to calm the people down? In my opinion, it would have been easy to have an official go out and say that the problem is caused by a scammer backed by corrupted individuals in the local government, and those who have deposits are insured or not affected, while those investors accounts will take time to be sorted out.

Either way, its a good opportunity to see who are the bad apples in the local government, who are the fools or bad actors that jump on bandwagon during and after the matter is resolved, and how foreign forces get involved or try to co-opt to this situation to their benefit. After this incident, there would be more data to formulate strategies to prevent and resolve these incidents in the future, and find who to invite for some "tea".

Yes this could have been handled much better from the beginning if the local governments had some PR training. Unfortunately, such skills are seriously lacking among them.

This problem has been pointed out for years. CPC and the governments at all levels have been learning and changing. For example, we have been seeing more and more government branches adding the position of spokesperson and having more news briefings, many hotline phone numbers and social media accounts published, etc. But it's been slow and many are only on the surface so far.

And, as usual, there are bureaucrats who are arrogant and stupid at the same time.

 

[SanWenYu]

The key point is that many Chinese citizens who were financially devastated by these people will have a new "appreciation" of what the West harboring these criminals have a direct impact on their lives.

China, if handling it correctly, will turn the public wrath (at least most of it) back on the culprits and those countries perpetrating such criminal activities by providing them a safe haven.

The government does tell the victims and the public in general where these criminals are hiding and why they are still on the run.

These criminals found and took advantages of holes and cracks in the Chinese laws and the Chinese governments. What's more important and urgent for China is to fix the problems in its own system.

Putting the names on the Interpol list is not enough. Call in the ambassador to demand their return. Like to see the scam victims protesting at the foreign embassy.

China might have already done this but did not get the wanted result. I don't know. And catching those criminals is probably a low priority to the Chinese government anyway.