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Chinese Pro-Democracy Activist Explains How Inflation Will Cause The Collapse Of The Regime

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Gus Lubin
Business Insider
Friday, December 31, 2010

Everyone recognizes the economic dangers of inflation in China. But the black swan in the room is regime change.

Prominent democracy activist Wei Jingsheng says China’s inflationary policies are causing social pressures that will lead to the collapse of the regime.

The activist, who was released from Chinese prison under pressure from Bill Clinton in 1997, says cheap yuan policy has pumped up corporate, i.e. government, profits at the cost of workers. Even with hyperinflation at the door, Beijing has refused to revalue the yuan and Chinese are at their breaking point, Wei writes at Asia News.


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China’s economic policy is not to develop China’s own economy, but to make some people rich.  Its aim is to maintain cheap labor.  So the Chinese Communist regime will not allow the Chinese currency RMB to appreciate, nor let the free flow of markets in between China and the foreign countries.  Maintaining the enormous gap between the Chinese and the foreign markets is the fundamental policy for the Chinese Communist regime to get rich in unity with the capitalists in the world.  Only an authoritarian regime could have done so.

Therefore, the existence of this authoritarian regime is the root cause of the deformed Chinese economy.  As long as China is undemocratic, this situation will continue until the collapse of Chinese Communist regime.

Don’t miss: 17 Facts About China That Will Blow Your Mind

This article was posted: Friday, December 31, 2010 at 3:18 am

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