By Shannon Liao
Epoch Times Staff
The Chinese Communist Party will collapse in three stages in the next three
years and its reign will come to an end by 2016, according to the Hong Kong
magazine Frontline, which focuses on Chinese politics.
According to Frontline, the first to go will be China’s economy, in 2014; in
2015 the “political structure” of the Party will be destroyed; and in 2016, the
entire society will fall apart, the article says, citing historical precedents.
With a big enough trigger, the collapse could arrive earlier, it said.
Economists are seeing a reverse in global capital flows—money is moving out of
China—which may trigger financial upheaval, Frontline said.
Among all the threats, the most lethal three are the real estate bubble, shadow
banking, and local government debts, because of how pervasive and large-scale
they are, says Dr. Frank Tian Xie, a business professor at the University of
South Carolina Aiken.
China will see negative investment growth next year and monetary injections into
the system won’t improve the situation but are still necessary for maintaining
the chain of local debt, according to the report.
According to the article, the Chinese economy’s crisis originates from political
problems that will make themselves apparent in a 2015 collapse. Many complex
vested interest groups in China disregard the fate of the Party or the nation
and are only concentrated on accumulating wealth, Frontline said.
According to the Hong Kong report, these vested interest groups are more willing
to see the end of the Chinese Communist Party than follow the reforms suggested
by Xi Jinping and other current top leaders, because they have prepared their
own exit strategies.
As a last resort to save itself, the Party may use a multinational corporation
to funnel money back to China and maintain the Chinese yuan while discontinuing
the use of foreign exchange savings and U.S. bonds, Frontline Magazine
speculated in a June issue.
The subject of a Party collapse has been popular in the past year, with a
China-centric apocalyptic novel published in January titled 2014: The Great
Collapse becoming the number one bestseller in a Hong Kong store for banned
books.
Translation by Frank Fang, Ariel Tian, and Janet Chiu.
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