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Reference Material: The Unpredictable Risks of Investing in China
A News Report From Epoch Times
(Clearwisdom.net)
Famous economist Professor Chang Ching-hsi arrived in Denver,
Colorado on August 13th after being invited to speak in the "A
Taiwanese Point of View on Global Trends and Chinese Economy" seminar held
at the Zijin Restaurant. Roughly 100 Chinese people living abroad attended the
seminar to discuss the different directions the economy is taking on the two
shores.
In his speech, Professor Chang Ching-hsi referenced economic
theory and relevant data to analyze the direction of China's economy. He also
advised Taiwanese businesses to exercise caution when investing in China.
Regarding China's reported annual GDP growth of 7-8% over the
past few years, Professor Chang used an array of facts to question the
credibility of this statistic. Professor Chang believes that it is not only
impossible for China to maintain a constant GDP growth rate of 7-8%, but that it
is also impossible for the average overall growth rate in recent years to reach
this figure. The figure may easily have been created to aid the popular notion
of "stability before everything." Yet why would the Communist Party
"pad" the growth rate statistic so greatly, yet not do so with other
figures? To this question, Professor Chang pointed out that the Communist
politicians seemed to think that the strongest evidence for justifying the
Communist Government is economic expansion, which is the idea of "expansion
is the foremost directive." A GDP growth rate of 7-8% is a figure that has
always been hoped for, but has so far been unachievable in other countries
around the world.
Looking at the growing unemployment rate in China, the ever
growing disparity between the rich and poor, the irregular and unconventional
features of the Chinese economy, the experiences of Taiwanese investors in
China, as well as other related economic data, Professor Chang predicted that
the Chinese Economy will collapse in the next five years. Professor Chang also
advised Taiwanese investors to carefully forecast the risks associated with
their investments.
After the seminar concluded, one of the attendants of the
seminar, Professor Guo, strongly advised the relevant departments in Taiwan's
Government to assume the responsibility of distributing the video "The True
Story of the Tiananmen Self Immolation" to Taiwanese citizens so as to let
people be fully aware of the dangers and risks associated with their investments
in China. Professor Guo thinks that this is a responsibility which the Taiwanese
Government must not shirk, just as the United States police would not shirk the
responsibility of warning their people about the dangers of reckless driving.
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