How could they be the world leader if there is no transparency or rules to go by? People would not know if their investments would be safe.
11/24/2023
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China’s ‘black box’ causing HUGE economic problems – ‘the lack of transparency is a serious threat’© GB News (CA)
The economic crisis in China “is one of faith of the Chinese investor” in their own system of government, according to a specialist who warns that the country is threatened by its “lack of transparency”.
Brian Kennedy – chairman of the Committee on the Present Danger: China – said the economic downturn across the country is caused by a scarcity of accounting standards, dubbed a “black box” where the country does not have financial rules to abide by.
Expert Ruchir Sharma said the country’s decades-long run of growth has come to an end as its share of world GDP is set to shrink by 1.4 per cent over two years.
In nominal dollar terms, which Sharma argues is the most accurate measure of an economy’s relative strength, China’s share began decreasing in 2022 following a spate of strict Covid measures.
Kennedy said the downturn is really a “lack of competence”.
He added: “So the crisis in Communist China right now is one of faith of the Chinese investor in their own system of government.
China’s ‘black box’ causing HUGE economic problems – ‘the lack of transparency is a serious threat’© GB News (CA)
“And so this downturn is really a lack of a lack of competence that the Chinese consumer is actually part of a a real economic system.
“And I think that’s a real threat to to Communist China, their lack of transparency.
“They talk about being you know a market based economy or a market based with social socialist characteristic.
“But in reality, as I say, it’s a black box and that that black box right now is creating huge economic problems.”
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