On the Facebook page of Xie Jinhe, the chairman of Caixin Media, Xie Jinhe discussed the recent comments of Li Daokui in the Hong Kong Economic Review on Dec.4.
Economist Li Daokui pointed out that the next few years will be the most challenging period for the Chinese economy since reform and opening up.
Xie Jinhe said it is highly unusual for a domestic economist to tell a major government-supervised newspaper that China “will live a difficult life.”
Xie Jinhe said that the Chinese Communist Party (CCP) wants to borrow the mouths of economists in their system to mentally help the people understand that our “supposedly powerful country” is facing difficulties, so let’s stop drinking and daydreaming and start tightening our belts. He said that it is a signal for a future life of exploitation.
In the commentary, Li Daokui pointed out that China is in trouble.
First, China’s debt is as high as $8 trillion due to real estate companies and local government debt.
Second, the prolonged epidemic has caused production lines to flee China, disrupting and removing the supply chain, which may be the long-term trend.
Third, Europe and the United States are accelerating carbon neutrality and achieving net-zero emissions. China’s measures are too fast and could cause more damage.
Xie Jinhe said that the three core views Li Daokui pointed out are China’s problems. Therefore, according to him, the Chinese economy will face many difficulties in the immediate future, but New talk reported the end is more optimistic.
However, so far, experts who dare to create a grim look at the Chinese economy openly are rare. Last year, Cao Dewang of Fuyao Glass was the first to say that China would be in trouble, but he soon became silent. This time, Li Daokui’s words will gain more attention.