China’s Big Bet or Disaster Declaration? Social Unrest Escalates

Central Bank quietly issues notice, declaring the start of a disaster. Changchun, reports of police killed, arms swat teams deployed, snipers positioned on rooftops. Two alarming scenarios reappear in China. Chongqing chip giant Xiandi shuts down, 400 employees laid off. CCP medical insurance scandal, men get uterus exams, women get prostate checks. Chinese biophysicist rebuilds lab to promote genetic weapons. Scholars warn of social harm. It's all covered in today's China truths. Central Bank quietly issues notice, declaring the start of a disaster. On August 30th, 2024, the People's Bank of China quietly announced on its official website that it had net purchased 100 billion yuan, approximately $14.05 billion, in government bonds for the month of August. This announcement has sent shockwaves through international markets, signaling a significant shift in China's monetary policy. Since early this year, there were signs that the Central Bank might intervene in the bond market, with official hints appearing as early as March and April. During this period, authorities also deployed experts to calm public concerns, emphasizing that Central Bank purchases of government bonds were not equivalent to printing money, but rather intended to stabilize the market. However, the announcement on August 30th confirmed that the Central Bank had indeed already net purchased 100 billion yuan in government bonds from the primary market. Public opinion widely perceives this move as a historic turning point, indicating that the Chinese Communist Party has officially entered an era of unanchored money printing, raising concerns about an impending economic crisis. Analysts have noted that while China's government bonds are issued by the Ministry of Finance, the Central Bank is now directly buying these bonds, effectively moving funds within the same system. Under the CCP structure, the Central Bank governor's authority is far below that of a department head within the Ministry of Finance, limiting the Central Bank's leverage in these transactions. As a result, the Central Bank's bond purchases are viewed as a form of unrestrained monetary easing, akin to unanchored money printing. In a broadcast, self-media personality Chan Chan explained that the Central Bank's net purchase of 100 billion yuan in government bonds equates to injecting the same amount of base currency into the market. This shift means the Central Bank can now print money without any anchors, deciding the amount based solely on government needs. Previously, the Central Bank's money printing did not directly support government finances, but now, printed money flows straight to local governments rather than banks or markets, highlighting the aggressive expansion of the Central Bank's monetary role. Historically, the CCP's approach to money printing has evolved significantly. After 1979, the process was anchored to the U.S. dollar with the Central Bank printing RMB while simultaneously purchasing foreign exchange, adhering to certain rules and backed by foreign exchange reserves. From 2014 to 2024, the CCP adopted a mixed strategy, lowering banks' reserve requirement ratios, releasing RMB previously pegged to the U.S. dollar and using policy banks to mortgage government and local debts to the Central Bank, thereby printing money and injecting it into the market. Over the past decade, this approach has allowed the CCP to expand its money supply in a semi-controlled manner. However, starting in August 2024, with the Central Bank's direct purchase of government bonds, the CCP's money printing has become completely unrestrained. The Central Bank can now print as much money as desired, raising the specter of hyperinflation. Since the founding of the CCP, the excessive issuance of RMB has led to multiple economic disasters. After 1957, Mao Zedong's ambitions of exceeding the UK, catching the USA, and rushing into communism prompted the Central Bank to ramp up money printing during the Great Leap Forward. Official CCP data shows that the RMB supply skyrocketed from 18.2 billion in 1955 to 47.4 billion in 1959, a 2.6-fold increase. The consequences were catastrophic, three years of economic turmoil and tens of millions of deaths due to starvation. In the years following 1979, the CCP again unleashed massive liquidity, increasing the RMB supply by one-fifth annually for three consecutive years, which spurred inflation in 1984. Despite these warning signs, the authorities continued to accelerate money printing, with growth reaching 31% in 1986. This led to hyperinflation between 1987 and 1989, contributing to the unrest that fueled the 1989 student protests. During this period of hyperinflation, panic buying became widespread. Goods were quickly snapped up from store shelves, with some individuals hoarding hundreds of kilograms of salt at once. Bank runs ensued as angry depositors overturned counters in local banks. Today, the CCP has fully embraced unanchored money printing. Chan Chan noted that typically, only governments facing severe economic collapse and desperate for liquidity would adopt such measures. The central bank's recent bond-buying actions serve only the government's interests, providing little benefit to the public. Ordinary citizens could face skyrocketing prices for basic necessities like vegetables and meat, and this unanchored money printing is expected to become a routine practice, printing 100 billion yuan each month and funneling it directly to local governments. As large-scale canal projects are underway across China, questions arise about the source of funding. The answer is clear, unrestrained money printing. People might go hungry, inflation might be ignored, but the government cannot run out of money. Changchun, reports of police killed, arm swat teams deployed, snipers positioned on rooftops. Public resistance against authorities in China is becoming increasingly frequent, with another violent incident occurring on September 2nd in Changchun, Jilin. According to online reports, the incident happened in Zone C of Wanda Wenhua Mansion on Hongqi Street, where a dispute between a homeowner and property management escalated. When the property management called the police, the responding officer was killed by the male homeowner, who then seized the officer's gun, fired shots, and took two hostages. Videos circulating online depict a large number of heavily armed special police and riot officers storming the residential area, with snipers on rooftops wielding machine guns and taking aim. The area was cordoned off, attracting a large crowd of onlookers. Some reports claim that two officers were killed. Currently, it seems that information about the incident is being suppressed on China's social media platform Weibo. Searching for terms like Changchun Hongqi Street Police Killing or Changchun Police Killing only leads to unrelated content. On the X platform, some social media accounts raised doubts about the incident, questioning why a community officer mediating a dispute would be armed, noting that Chinese police rarely carry guns and suggesting that strict gun control among police makes the situation unusual. They urged waiting for more details to clarify the incident. Two alarming scenarios reappear in China. Overnight, China has rapidly rolled out the smash pots and sell iron policy across various regions, sparking fears of a resurgence of the Great Leap Forward and Cultural Revolution. Some observers believe that a major upheaval that could threaten the Chinese Communist Party regime is on the horizon. This policy gained momentum after the CCP State Council issued a directive late last year requiring 12 key provinces and cities, including Tianjin, Inner Mongolia, and Liaoning, to implement smash pots and sell iron measures. On August 28th, Changchun's Bishan District established a dedicated task force, and by September 1st, videos showed Changchun Medical Technology School smashing and selling off thousands of desks and chairs, still 80 to 90% new, as scrap metal. The rapid shift from policy to action has highlighted the severity of the local debt crisis and drawn comparisons to the disastrous Great Leap Forward steelmaking campaign. In response, many are worried about whether China might be on the brink of repeating these historical events, especially as economic conditions worsen. Meanwhile, on August 30th and 31st, severe heat led many schools in Changchun to close, but Tongliang No. 1 High School remained open, prompting students to protest on campus. Their slogans, Taking a Break is Not a Crime, Rebellion is Justified, evoked the revolutionary fervor of the Red Guards during the Cultural Revolution. Commentator Chang Ping, writing for Deutsche Welle, pointed out that in October 1958, People's Daily published an editorial titled Let Backyard Steelmaking Bloom Everywhere, which led two-fifths of the nation's labor force into steel production, with households smashing cooking pots and everyone mining. The movement resulted in millions of small blast furnaces being built nationwide and directly contributed to the Great Famine. Chang Ping warns that the current smash pots and sell iron approach may carry broader implications. He talked about how authoritarian governments can use such drastic measures to manage debt risks, enforce city lockdowns during epidemics, suppress private businesses, arrest human rights lawyers, and even pursue aggressive moves like liberating Taiwan. Adding to the chorus of concern, self-media figure Quantum Leap suggests that the policy reflects Xi Jinping's deepening despair. In a post on September 2nd, Quantum Leap reiterated his earlier prediction that the CCP's economic and political crisis would escalate exponentially, pushing the regime into a disintegration phase by 2024, with a full-blown crisis by the end of 2025. Quantum Leap argues that Xi Jinping's decision to adopt smash pots and sell iron tactics confirms his prediction that these events are coming true, as the economy plummets further into an abyss in the second half of this year. He believes the CCP is already in a state of de facto disintegration, which will become increasingly evident by the end of the year. Chongqing chip giant Xiangdi shuts down, 400 employees laid off. China's major chip manufacturer Xiangdi Xian, based in Chongqing, announced its dissolution on August 30th, terminating all 400-plus employees and causing a major industry stir. Although the company later claimed it was only undergoing structural adjustments due to external pressures, experts believe this was an attempt to downplay the impact and prevent market panic. Xiangdi Xian's abrupt closure follows the collapse of a 500 million yuan, about $70.3 million, financing deal, leading to shareholder lawsuits and frozen accounts that cut off funding. Once valued at 15 billion yuan, $2.1 billion, and hailed as the China NVIDIA, the company had launched GPU products Tianjin No. 1 and Tianjin No. 2. The Chinese Communist Party has been heavily backing the semiconductor industry, but increasing U.S. restrictions on chip technology have intensified challenges for Chinese firms. Chinese-Australian scholar Zhang Xiaojing noted that as the U.S. and Western nations tighten technological restrictions, the CCP is finding it increasingly difficult to acquire advanced products and technologies. Companies like Xiangdi Xian struggle to secure clients and orders, complicating their survival. Zhang added that the CCP often sets domestic firms like Xiangdi Xian against global giants like NVIDIA, but despite claims of self-reliance, these companies often depend on foreign technology, hindering genuine progress. Meanwhile, Lan Xu, a U.S.-based commentator, pointed out that China's tech sector faces systemic challenges rather than just technical hurdles. He argued that the CCP's use of high-tech development to threaten global freedom and democracy naturally leads to resistance from democratic nations, limiting the high-tech breakthroughs the CCP aims for. On September 1, Xiangdi Xian issued another statement denying steps toward dissolution or liquidation, despite market pressures. Zhang Xiaojing noted the broader economic difficulties in China, contrasting government boasts of rapid growth with the reality of widespread business closures, including those of firms like Xiangdi Xian. Commentator Lan Xu concluded that the CCP's ambition to replicate global scientific achievements with a single-handed approach is unrealistic, even with national resources. As China attempts to develop technology that threatens the global order, it faces mounting international resistance, stifling its high-tech industries. Meanwhile, Bloomberg reported that the Dutch government plans to further restrict ASML's chip manufacturing equipment exports to China, with Prime Minister Dick Schoef stating that ASML's economic interests would be considered in these decisions. CCP medical insurance scandal, men get uterus exams, women get prostate checks. The Chinese Communist Party has officially disclosed that hospitals across China are engaging in fraudulent activities to claim medical insurance funds. Reports reveal that some hospitals are conducting prostate examinations on female patients and gynecological exams on male patients. According to the National Medical Insurance Administration, 30 hospitals and provinces, including Zhejiang, Jiangsu, Liaoning, Heilongjiang, Shanghai, Jilin, Shandong, and Fujian are involved. Notably, 10 hospitals in Zhejiang were named with the first affiliated hospital of Wenzhou Medical University performing 1,263 such reared exams. In a shocking case, the People's Hospital of Liaoning City in Hunan was found to have reimbursed 1,674 instances of gynecological exams for male patients within a year, including hysteroscopy procedures. These revelations have sparked heated discussion from netizens who claim this is how the medical insurance fund pool is being drained by hospitals and pharmacies. Current affairs commentator Xing Tianxing pointed out that such fraudulent practices are not isolated but widespread within China's healthcare system, highlighting severe corruption. Xing said that these actions represent just the tip of the iceberg. He further noted that the CCP is blaming individual doctors or hospitals for these issues. However, the systemic corruption within the CCP's medical system is the true culprit. Xing argued that while the responsible doctors should face consequences, the complicit hospital administrations and the broader system must also be held accountable. Xing concluded that the real victims of this corruption are ordinary citizens seeking medical care who are extorted by hospitals and doctors without any assurance of protection. Chinese biophysicist rebuilds lab to promote genetic weapons, scholars warn of social harm. He Jinkui, the Chinese scientist previously sentenced to three years in prison and fined 3 million yuan, nearly $422,000, by a Shenzhen court for illegal medical practice and other charges connected to the gene editing of babies, is once again making headlines. After his release in April 2022, he reestablished his laboratory in Beijing, focusing on affordable gene therapies for rare genetic diseases. Recently, reports indicate that he has secured new investment and reopened a lab in Yaxhoubei Science and Technology City in Sanya, Hainan Province. A search for Yaxhoubei Science and Technology City in Sanya on Douyin in early August showed that the National Laboratory of Sanya Yaxhoubei was recruiting talent with a master's degree or higher, offering salaries between 200,000 and 700,000 yuan, approximately $28,100 to $98,400. The updates also included reports of Hainan Provincial Party Secretary Feng Fei visiting a scientist at the National Laboratory, along with news confirming He Jinkui's new lab setup in the same location. Additionally, videos have emerged showing him advocating for the development of gene weapons. He suggests that China should create super soldier units through human gene editing, a proposal that has sparked significant public backlash overseas. Some of these videos were posted on Douyin, where he claims that gene weapons could become the core weapons in future global conflicts, potentially altering the course of wars. He confidently asserts that units of gene-edited super soldiers would exhibit overwhelming combat power. In one of the videos, He Jinkui introduces a newly joined graduate student tasked with research in genetic disease prevention and treatment through gene editing. These videos were shared by a Reddit user who highlighted his controversial return to gene editing and his ambitions to use these technologies to develop mutants and gene weapons for China to challenge the West. Publicly available information reveals that He Jinkui was previously an associate professor at the Southern University of Science and Technology. He gained international notoriety in 2018 for editing the genes of fetuses, resulting in the birth of two gene-edited baby girls, which drew severe criticism for violating social ethics. He was later described as a CRISPR rogue in the scientific journal Nature and was featured in Time Magazine's list of the 100 most influential people in 2019. In December 2019, He Jinkui was sentenced to three years in prison and fined 3 million yuan, nearly $422,000, by a Shenzhen court for illegal medical practice and other charges connected to the gene editing of babies. Political commentator Tang Jingyuan, in an interview with NTD, spoke about He Jinkui's recent promotion of gene weapons, stating that the CCP's antisocial and anti-human system often produces scientific mavericks like he who ignore basic moral and ethical boundaries by treating humans as products to be modified at will. Mr. Tang argued that He Jinkui's comments reflect the essence of CCP ideology, focused on world domination through technological violence. He warned that the so-called super soldiers created through gene editing are mutated beings lacking human moral essence and posing a severe threat to society. Tang also expressed concerns about the ethical implications of his experiments, questioning who the human subjects are and who is providing them, suggesting the potential for serious criminal offenses. Further scrutiny of his Douyin account revealed a series of recent videos, including claims that the US is developing gene weapons and urging China to respond in kind. However, some of the videos related to gene weapon war appear to have been deleted. Don't forget to comment in the section below to share your opinions on today's topic with us. If you find the information helpful, please share this video with a friend to watch together. 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