The Truth about infamous Tiananmen Square Incident

There are so many obstacles and versions about the Tiananmen Square Incident, mostly coming from the Chinese government that we feel behooved to ask,

"Is it at all possible to ever know the truth about the Tiananmen Square Incident (massacre)?"

Presently the truth has been made inaccessible and hazy, and it is far less likely that the reality will come to light until there is a real democratic system in China.

The Tiananmen Square Incident what started as a pro-democracy movement in 1989, after nearly two months deadlock, it eventually ended up being a tragedy in  which a number of people needlessly died.

To a certain extent, the government's immediate reaction was aimed to distort the fact.

"The state did give its own version of events immediately after the violence in 1989. Chinese television showed ragged protesters with black arm bands throwing Molotov cocktails and army vehicles set on fire." (Beam C 2009). 

This shows that the Chinese government wants to make people to believe that there was a rebellion.

(similar to how they handled the ramifications of 23rd July, 2011 train crash by enacting a virtual media blackout on the disaster except for positive stories)

They not only wanted to fabricate an alternate set of truth for Chinese people, they also tried to block the flow of information.

"...Some foreign journalists were subjected to an inquiry, their electronic equipment was also examined by the CPLA..." (Forney M 2001).

The COMMUNIST PARTY'S immediate reaction to this event show that their aim is to prevent the truth to come to light which also justified them to have further repression and censorship on ordinary Chinese people.

For example, they confiscated the freedom of rights to those people who want to tell the truth. "(and still continue to do so with self-righteous gusto). Free expression activist Liu Xiaobo, one of the leading figures of the 1989 movement, was recently re-arrested.

Several journalists, including Shi Tao, who was sentenced to 10 years in prison for sending an email about the Tiananmen Square anniversary in 2004, are still in prison for referring to the massacre." (RSF 2009). This, without a doubt, proves that the government less interested in allowing the spread of the facts from the inside.

In short, They don't want to disclose the facts.

Helpless, stupefied citizens showing bullets and shells to news reporters

Now, we all know (right? don't we?) that China's communist rulers (dictators) have distorted and denied the truth about what happened 20 years ago in Tiananmen Square. But they aren't the only ones. In an equally disturbing betrayal of history, Western human rights activists and liberal commentators have also twisted the sad story of the events of that fatal day, creating a fairytale version of events that bears little relation to what happened in those bloody days of June 1989.

Twenty years on, the Communist Party of China (CPC) still continues to play down or deny the seriousness of the protests and massacre. It insultingly refers to the events as the "4 June Incident" (as though something trivial or nothing had happened). It claims that "only" 241 people died, including soldiers, much to their dismay, some other reports (who?) put the number of deaths in between 1,500 and 3000.

Tiananmen Square, and the area of Chang'an Boulevard in front of it, became an army camp after more than 100 tanks came into the city overnight.

Ten armed soldiers beating a protester to death in during the massacre

Chinese Communist Party denies its citizens access to information about the events: search for "Tiananmen Square massacre" on the internet in China and you'll be told: "This page cannot be found." The truth telling pages are being put down or censored.

Tanks and a dead body on Tiananmen Square at dawn of June 4th

Western human rights groups have not indulged in such denialism, but they have employed much mythmaking of their own, airbrushing from history what they consider to be inconvenient facts and creating a neat but terribly skewed morality tale about June 1989.

The main victims were workers in Beijing suburbs - now forgotten by the West Thanks to the images propagated by groups like Amnesty and Human Rights Watch, most Westerners think the Tiananmen Square Massacre involved Chinese soldiers shooting pro-democracy students in the central square of Beijing.

Famous "students vs tanks" Image

The most famous image from the protests - that of a student standing in front of tanks - strengthens the idea that was a simple Students vs Soldiers story. This is unforgivably  inaccurate.

It is of course true that in May and June 1989 many students set up camp in Tiananmen, where they demanded democratic and economic reforms, and that some of them suffered when the CPC launched its military clampdown on 3 and 4 June. Yet there were uprisings across Beijing, and in other parts of China, and the main victims of the unspeakable violence - now largely forgotten thanks to Western human rights activism - were not students in the square, but ordinary workers miles away in the suburbs of Beijing.

The Chinese authorities sent their tanks to crush a workers' rebellion. In their fascinating book Black Hands of Beijing: Lives of Defiance in China's Democracy Movement, human rights experts George Black and Robin Munro wrote:

"What took place was the slaughter not of students but of ordinary workers and residents - precisely the target that the Chinese government had intended."

Black and Munro point out that the workers of Beijing, whose lives had become harsher as a result of Premier Deng Xiaoping's introduction of crude market reforms from the late 1970s onwards,  had "much more to be angry about than the students", and the CPC's aim was to "crush them".

The fact of the matter is that the worst state violence occurred miles away from Tiananmen Square in the western suburbs of Beijing, where, as China expert Jonathan Fenby puts it, there was a "far bigger massacre of non-students". Hundreds of workers were gunned down in the streets, which is why some people, including many Chinese dissidents, refer to the events as "the Beijing massacre" rather than the "Tiananmen Square massacre".

Military personnel cleaning up the mess

Indeed, just as the CPC's use of the term "4 June Incident"  for referring to that incident and the derogatory term "ruffians" or "rioter" for referring to the victims, gives the impression that this was a minor event, so the Western-created name of "Tiananmen Square massacre" depicts a serious city-wide uprising as a small-scale, one-square clash.

Jay Mathews, former Beijing correspondent for the Washington Post, says Western journalists have spread irresponsible stories about a square-based massacre:

"Hundreds of people, most of them workers and passers-by, did die that night", he says, "but in a different place [to the square] and under different circumstances".

Yet if you question Western representations of June 1989, says Mathews, you'll be looked upon as a pedant or worse, a Tiananmen denier. Tell journalists they have given misleading accounts and they will say:

"So what? The Chinese army killed many innocent people that night. Who cares exactly where the atrocities took place?"

In China, debate about June 1989 is curtailed by censorship - in the West it is discouraged by those who have propagated the simplistic Square story.

Perhaps feeling they have more in common with the students in the square - who, unlike many of the rioting workers, were peaceful and erudite - Western observers have made the students the central focus of the June 1989 story. Whether wittingly or unwittingly, they have pushed from public view the key victims of the Beijing Massacre.

They have also, in a terrible irony, done the Chinese authorities a favor, helping to represent what was a state-shaking uprising by thousands of workers, residents and students in Beijing and beyond as a relatively small, polite, Amnesty-style protest for "reform".

Read more: Here

The following are some Excerpts of

Living Without Freedom in China

June 2007
Vol. 12, No. 20

By Edward Friedman

It’s not easy for American students to know what it means to live without freedom. They know all the bad things about their own country—Virginia Tech, Guantanamo, Abu Ghraib, the Enron and Halliburton scandals, the LA riots, elections stolen, federal attorneys fired for pursuing criminals rather than a political agenda, etc. How democratic is America?, they cynically wonder. When you tell them how awful these other places are, they ask, aren’t you just whitewashing your own society. [ …]

China is a [malevolent] superpower. Its economy is rising, its military is rising [against  other countries, and occasionally its own citizens] and Chinese people in surveys are more popular in most countries of the world than are Americans right now. China’s going to be using this money to serve certain purposes. Among them are undercutting the power of the United States, democracy and human rights and supporting authoritarian regimes. Whether it’s Sudan or Nigeria, they can buy up the oil and governments don’t have to listen to any kind of international pressure about conforming to human rights. China has already defeated the international human rights regime.

China’s rise means that freedom is in trouble. The era we’re in is very much like the era after WWI. Authoritarian models are rising and are becoming more attractive. I can imagine a future in which unregulated hedge funds lead to an international financial crisis and this is seen as coming out of the Anglo-American countries, London and New York being the two centers of these monies. But China regulates capital, so these things are not allowed in. The Chinese model may yet look even more attractive than it does now.

In describing this Chinese rise and how I believe it has the potential of being a threat to freedom in an extraordinary way that we haven’t seen since the end of WWI, I am not trying to suggest that Chinese don’t care about freedom; people do not need a Greek-Roman Christian heritage to care about freedom. That kind of claim is parochially and culturally very narrow. The Universal Declaration of Human Rights, with its beautiful preamble, is a Mencian document (Mencius is one of Confucius’ disciples). The word “individual” never appears in the document. The language was shaped by the philosophy of Mencius because one of the crafters of the Universal Declaration was a Chinese gentleman named P.C. Chang. Of course this is December 1948, the day after the Genocide convention was passed. The communists didn’t come to power for another year.

There is no trouble in understanding freedom and human rights in any culture in the world. People living in tyrannies may in fact have a better understanding of what freedom is about than American teens, who think it’s just that you get your driver’s license in your late teens. The Chinese regime has fostered a nationalism to trump democracy. People are taught that they are threatened by democracy, that democracy would make people weak.

Party propaganda has it,

“How did Rwanda occur? Because they tried to build a democracy. If the Hutus had simply imposed their will, they never would have had that problem. If it moves in a democratic direction, China is going to fall apart; it will be like what happened to Russia, to Yugoslavia. Do you want to end up like Chechnya and Bosnia? That’s what the Americans really want. You are fortunate to be a Chinese living in an ethical, authoritarian system.”

The TV will show pictures of say the Los Angeles riots, the Sudan, and people are made frightened and confused. They’re proud to be Chinese and want to raise ethical kids. They want a country they can be proud of, certainly not like American kids.

Beijing Film Academy Animation School Dean Sun Lijun introduces China Propaganda Chief Li Changchun to Magic Dumpling President Kevin Geiger.

The Chinese are taught that American youth are smoking at an early age, use pot, have babies in their teens, watch pornography on TV, spread AIDS, get divorced, and don’t care what happens to their elderly parents. Why would you want to live in such an immoral way? This propaganda seems to work with many Chinese.

So what is growing in China is an authoritarian, patriotic, racially defined, Confucian Chinese project which is going to be a formidable challenge not just to the United States but, I think, to democracy, freedom, and human rights all around the world. China is going to seem quite attractive to many people. That is why it is so very important to understand what living without freedom really means.

—o —

[Note: Apart from customized formatting, the strikethroughed parts within the braces "[ ]" are also OUR ANNEXATIONS they were not Included in the original copy.]

Additional Information:

After the start of the Korean conflict, the United States and also its democratic trends officially became China's main foreign adversary. The war provided numerous opportunities to show Americans in an extremely unfavorable light.

► The events of the Tiananmen Square protests of 1989 (where roughly over 400 or a far bigger number of Chinese civilians were brutally slaughtered for their dissent) were an indication to many elders in the CCP that liberalization in the propaganda sector had gone too far, and that the Party must rigorously compensate for that lose.

Since then Scope China's propaganda system (xuanchuan xitong) has been a sprawling bureaucratic establishment, extending into virtually every medium.

CHINESE COMMUNIST PARTY USES Online spin doctors: China is known for using internet "spin doctors", specially trained internet users who comment on blogs, public forums or wikis, to shift the debate in favor of the Communist Party and influence public opinion.

The Chinese COMMUNIST state refers to all media work abroad as 'wai xuan', or "external propaganda." While the reality is that THEY ARE PROPAGANDISTS.

Dreadful Propaganda in the arts:

As in the Soviet Union, the CCP under Mao Zedong took socialist realism as its basis for art, making clear its goal was the 'education' of the people in communist ideology. This included, as during the Cultural Revolution, transforming literature and art to serve these ends. Pre-revolutionary song and operas were banned as a poisonous legacy of the past. Middle and high schools were targeted by one campaign because the students circulated romance and love stories among themselves.

Propaganda Poster with a helmet of a US soldier. Imperialism and all reactionaries are all paper tigers, 1965

All peoples of the world unite, to overthrow American imperialism! To overthrow Soviet revisionism! To overthrow the reactionaries of all nations! 1969

(and one its way to establish CHINESE TYRANNY AND OPPRESSION against everybody)

Famous propaganda works

Novel

"Red Crag" (红岩), a famous 1961 Chinese novel featuring underground communist agents fighting an espionage battle against the Kuomintang.

Sculpture

Rent Collection Courtyard (收租院), a 1965 sculpture depicting former landlord Liu Wencai as an evil landlord collecting rent from poor, although this depiction has been disputed by modern accounts.

Films and Plays

• Battle on Shangganling Mountain, a 1956 Chinese war film also known as Shangganling Battle (Chinese:上甘岭战役), depicting the Battle of Triangle Hill during the Korean War.
• The Eight model plays (八个样板戏), revolutionary themed operas and ballets, were the only ones allowed to be performed during the Cultural Revolution.^[49]
  • Taking Tiger Mountain by Strategy (智取威虎山), a play about communist soldiers infiltrating a bandit camp during the Chinese Civil War.
  • The Legend of the Red Lantern (红灯记), a play based on the activities of the communist resistance against Japan in Hulin during the Second Sino-Japanese War.
  • Red Detachment of Women (红色娘子军), a pre-Cultural Revolution-era play, later extolled during the Cultural Revolution, about the women of Hainan Island who rose up in resistance on behalf of the CCP
  • The White Haired Girl (白毛女), a play exploring the miseries of China peasants in 1930's China.

Songs

• "Socialism is Good" (《社会主义好》), a modern rock adaptation of which was performed by Zhang Qu and featured on the 1990s album Red Rock.

Chinese Government and Its major Issues

Summary of Communist-Party-of-China's insurmountable Problems

"China has gone through an industrialization in the past twenty years that many developing countries needed one hundred years to complete," —Pan Yue

The poignant Question is, "How sustainable is China's growth model and at what cost did it gain this economic momentum"?

Excessive capital investment: Beijing rewards provincial and local government officials with promotions if they manage their regions well. For decades, the chief measure of progress was success in providing jobs for a rapidly growing urban workforce. That usually meant building factories or adding infrastructure, whether needed or not. Such overcapacity leads to waste of scarce resources, deflation and dumping of excess production abroad.

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Financial mismanagement: Local officials force state-owned banks to finance that construction at next-to-nothing rates, with no regard for borrowers’ suitability. Inevitably, non-performing loans pile up on the banks’ balance sheets. Beijing already recapitalized the four largest state banks once, forcing ordinary depositors to foot the bill, which hurt consumption. Now bad loans are once again on the rise, a result of the $586-billion stimulus China poured through banks last year. Though Beijing could manage another bailout, it certainly can’t go through this cycle endlessly.

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Educational Flaws: Chinese colleges graduate many times the number of engineers and scientists that American universities produce, but such statistics are misleading. To meet the quotas for graduates set by Beijing, academic programs dilute their standards. They further inflate their count by counting as engineering students those studying to become mechanics or industrial technicians. The result, according to a pioneering study led by Duke University professors Gary Gereffi and Vivek Wadhwa, is that many of these graduates fall far short of the standards imposed by U.S. colleges and universities. When they graduate, many are unable to find work in their professions.

Future of China's technological capabilities

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Stifled innovation: Those engineers and scientists who do measure up -- the cream of Chinese universities or those who study overseas and return home -- often have little freedom to explore. If they work for state-owned firms or universities, Beijing dictates the direction of research and development.

China Rips Off The iPad With The iPed. If this imitation continues,one day imitation will be China's only hope (many say it already is)

Many gravitate to the more open atmosphere at private firms, but these companies can’t get loans to grow because state enterprises gobble up the capital. Beijing aims to compensate by forcing multinationals to transfer advanced technology as the cost of doing business in China, but foreign firms are fighting back hard.

Report says equipment flaws caused Chinese Rail Accident on July, 2011.

Train Wreck in China

► China's illegal copying of movies, music, and software cost companies $2.2 billion in 2006 sales, according to an estimate by lobby groups representing Microsoft, Walt Disney (DIS), and Vivendi (VIV.PA).

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Environmental degradation:One of the Big questions about China is that although China's economy has grown tenfold since 1978, but what has China's economic boom done to the environment?

The future of China is fraught with a dreadful environmental crisis. Sixteen of the world's twenty most polluted cities are in China. To many, Beijing's pledge to host a "Green Olympics" in the summer of 2008 signaled the country's willingness to address its environmental problems. Experts say the Chinese government has made serious efforts to clean up and achieved many of the bid commitments. However, an environmentally sustainable growth rate remains a serious challenge for the country.

Behind this booming economy lies rampant environmental Pollution

Water pollution and water shortages pose the most serious problems. 

In the Yellow Sea coastline, countless sewage pipes buried in the beach and even extending into the deep sea. April 28, 2008

They cause health ailments, damage agriculture, jam up hydroelectric dams, interfere with manufacturing and limit urbanization. As aquifers dry up, soil erodes, turning an area the size of Connecticut to desert every year. The resulting dust storms add to the country’s already horrendous air pollution. Beijing’s preferred solution to the problem is a massive south-to-north river diversion project. Odds are, that will make matters worse, draining water from already overtaxed southern supplies.

Xuanwei (宣威) in Yunnan province is a cancer village. Every year there are more than 20 people die of cancer. 11-year-old student Xu Li (徐丽) is suffering from bone cancer. May 8, 2007

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Corruption: Consider this fact: A recent survey found that of the 20,000 richest men in China, more than 95% were directly related to Communist party officials. One of the major reasons Beijing has such a hard time dealing with all the problems mentioned above is that so many individuals have a vested interest in keeping things exactly as they are. Communist Party officials pay for their advancement, then aim to earn back their investment. Local governments seize houses and land, sell it to developers with little compensation for those displaced, then take kickbacks from the construction companies. Academics provide kickbacks to the party in exchange for research funding. U.S. companies operating in China suffer as well.

"When U.S companies hire for research and development there, there’s a lot of pressure to put Communist Party members in key positions," says Wadhwa.

Officials stand trial in Fujian province in China's biggest corruption scandal

Beijing does make examples of particularly corrupt officials and business leaders, sometimes even executing the offenders. But the problem of corruption is endemic, says Liao Ran, a China specialist with Transparency International. “Generally speaking, the cost of corruption amounts to about 10% to 13% of annual GDP,” he says. In absolute terms, that’s a loss of $500 billion to $700 billion per year.

NO REAL FREEDOM of expression thanks to Vicious Authoritarianism and Draconian form of Administration:

Post-1949 China attracted the world attention in 1989 by the massacre of dissenters in Tiananmen Square.

Citizens of the democratic World are free to declare things that go directly against their Government's credibility (such as, government in their country is not democratically elected or their president is "Hitler-reincarnate"). But in the People’s Republic of China, such an opinion is not within the freedom of speech.

Recently it was announced in the United States that the last still alive eleven participants in the Tiananmen Square protests were shot.

In the democratic West, freedom of speech is a citizen’s legal right.

In the People’s Republic of China, freedom of speech is a bureaucratic permission given by the ruling bureaucracy. Such a bureaucracy ruled thousands of years ago (in China, for example).


China has no rural property rights. China's 750 million rural residents who lease land are at the mercy of the local and regional government as to what compensation they will receive, if any, when they are forced from the land as a result of development, infrastructure improvements, etc. Additionally they have no right to borrow against their lease, and as such they have no assets.

Migrant workers Live like slaves and are bereft of all basic Human-Rights

Wu Chunxia, who was wrongfully imprisoned in a China Henan Provincial Psychiatric Hospital for 132 days as punishment for protesting about local injustice to authorities, says the electric acupuncture needles stung her scalp and the drugs bloated her weight, giving her heart palpitations and brought on premature menopause.

In fact, the Chinese government's official figures state that more than 200,000 hectares of rural land are taken from rural residents every year with little or no compensation. According to some estimates, between 1992 and 2005 20 million farmers were evicted from agriculture due to land acquisition, and between 1996 and 2005 more than 21% of arable land in China has been put to non-agriculture use. China Regime Sends Citizens to Psychiatric Hospitals to Silence Dissent.

China, Henan Province Petitioner ruthlessly Beaten for his dissidence

The result is not unexpected, with over 87,000 mass incidents (or riots) reported in 2005, a 50% increase from 2003. Many provincial governments in China have begun to use ununiformed policemen to beat, intimidate, or otherwise subdue any citizen that dares to oppose the Party.

(Read more about restrictions on freedom in PRC here)

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And demographics: 

People in China love to have more children.

The one-child policy is challenged in principle and in practice for violating a basic human right to determine the size of one's own family.
Although, between 2000 and 2005, as many as 1,968 officials in central China's Hunan province were found to be violating the one-child policy by their leverage of affluence, as the generation of the Cultural Revolution retires, the burden of their care falls heavily on the smaller generation of the one-child policy. Thus almost a colossally high 'Dependency Ratio' will affect the economy by reducing cheap labour-power that china boasts now!

“The Chinese population is simply growing older faster than it’s getting richer,”
—says Peter Navarro, a professor of economics and public policy at the University of California at Irvine.

As fewer workers support more retirees, competitiveness will suffer. For an illustration of what this could mean, China need look no farther than Japan.


Democracy, no doubt, is a messy thing, especially when you have an electorate that exceeds 600 million people who are motivated to vote. However, democracy also helps to ensure that individual liberties are respected and that the government is responsive and beholden to the will of the people, rich or poor. A democracy also ensures accountability through impartial courts that help enforce and protect such things as property rights, environmental rights, human rights, and good governance.

So, where would you place your bet?

China's Imminent Economic Crisis Startles Economists

China Starts to feel the HEAT of an Economic Meltdown

Beijing's National Bureau of Statistics revealed China's GDP growth in the fourth quarter slowed to 8.9% from 9.2% in 2011.
 

Reuters and Associated Press believe China's economic growth this year is still falling, but is expected to have a "soft landing."
 

Other media and academics are worried that China's economy this year may actually experience a "hard landing."

On January 17, at the State Council Information Office press conference, Chief of Bureau of Statistics, Ma Jiantang spoke about China's GDP growth. Ma said, despite its decrease in 2011, GDP growth was largely in line with macro-control goals.

Ma Jiantang commented that 2011's global financial crisis should invite concerns about 2012's economic development.

Chen Zhifei, Professor of Economics from City University of New York, said, the Chinese Communist Party (CCP) always reports the good rather than the bad news. Ma Jiantang's remarks are actually a reminder of the severity of the situation.

Chen Zhifei: 

"There is a trend of decline in China's economy now. The surface fixes and false data can't be hidden any more. Overall, the conclusion is that China's economy is still in a very grim situation, which is indeed worrying."

On January 18, the Ministry of Commerce announced that China's 2011 European and American investments declined.
US investments decreased 26.07%. Pittance Investments from the EU decreased 3.65%.

On January 12, The Guardian cited Albert Edwards (Head of economic strategy from the French bank "Societe Generale"). His analysis showed, China is likely to face a "hard landing" (that is just a prelude to TOTAL COLLAPSE) in 2012 which will lead to the global economic crisis' climax. Edwards warned that the Chinese economy expended with about 10% average annual growth over the past 20 years. But with the two touches of the economic bottom in the West and China's overheated real estate market, China's economy may face serious problem in the future.

Chen Zhifei:

"With the further deepening debt crisis in Europe this year, China's economy will encounter greater challenges. From a domestic perspective, the real estate bubble and overall decline of manufacturing industries, as well as other aspects promoting economic development, will make the CCP unable to do anything. Plus the inflation, they all make a cycle, which China's economy cannot jump out of."

Bureau of Statistics' latest figures show that China's urban population reached 51.3%, exceeding the rural population,
This is for the first time in China's history.
Ma Jiantang believes that changes in population structure will play a positive role in promoting domestic demand. He does not think that local debt and real estate are the largest risks of China's economic performance.

Beijing economist, Feng Xingyuan, said that China's GDP is still dominated by the government's investment and administration (or rather, draconian oppression), which runs counter to the market economy.

In the first half of 2012, real estate may experience a major reshuffle. Private investments unable to withstand restriction measures will quit.

Feng Xingyuan:

"Last year, the restriction measures affected the overall size and growth rate of GDP. The growth rate is kept in the way of national development and people's regression. For example, the development of protection housing is in fact a form of increasing government investment to maintain GDP."

According to the released GDP from Bureau of Statistics, in 2011, China's GDP per capita is 5,000 dollars. Sun Lijian, Vice President of Economics at Fudan University believes, GDP per capita is still questionable, and can have a downward trend. Cai Zhizhou, Research Center of National Accounts from Peking University pointed out that in 2010, China's GDP per capita ranked 95th in the world.

And that China's last year figure was almost the same as that of Namibia, Africa, for 2010. Germany's Der Spiegel commented that for China, this is almost a critical value. The growing wealthy class needs to share the success with lower income class, otherwise, it will be difficult to avoid a great social upheaval.

CHINA’S ECONOMY and GOVERNMENT WILL BE IN SERIOUS TROUBLE WITHIN DECADES

WHY CHINA’S ECONOMY WILL BE DEVASTATED WITHIN DECADES

[China’s economic boom has dazzled investors and captivated the world. But beyond the new high-rises and churning factories lie rampant corruption, vast waste, and the elite with little interest in making things better. Forget political reform. China’s future will be decay, not democracy.]

Since the 1980s, the Chinese government has focused on developing an export-driven economy supported by an artificially undervalued currency. Foreign direct investment was severely encouraged while domestic consumption was limited. Massive infrastructure projects were initiated, fuelled by a growing trade surplus, with cities sprouting up in the hinterlands like some mythical phoenix. For years, the Chinese economy benefited from these policies with double-digit gross domestic product growth, vast foreign currency reserves, and ever increasing capital inflows.

The Fact is, State enterprises are miserably unprofitable. In 2003, a boom year, their median rate of return on assets was a measly 1.5%. More than 35% of state enterprises lose money and 1 in 6 has more debts than assets. China is the only country in history to have simultaneously achieved record economic growth and a record number of non-performing bank loans.

In reality, the only thing rising pertaining to China is the hype about China.

Following is the summarization of basic points as to why Chinese Economic Model is a blatant fiasco.

Well, most of the reasons for China's short-term Economic Growth are also the reasons it is most likely subject to failure.

➀ Their economy is significantly based on EXPORTS, particularly to the west, so if North Americans and Europeans cease to buy shoddy Chinese stuff, China's economy suffers an irrevocable damage.

➁ There are HUGE inequities between the poor and the worker class and the moneyed class in China, there is the old Churchill truism that the “vice of capitalism is the unequal distribution of its benefits and the virtue of socialism is the equitable distribution of its misery.” It's like that. Education, science, infrastructure are all based on the middle 60% of Chinese populace who are still extremely poor when compared to those in other countries (US/EU/Japan).

➂ A small segment of Chinese society (5-10% of the whole) may try and to a degree succeed in achieving something approaching the lifestyle of those in the west, (cars, houses/apartments, office jobs, good education) but there will be a LARGE majority which not only “won't” but could never achieve this lifestyle, they will be pissed off.

➃ Environmental devastation, in the DEVELOPED Countries particularly environmentalism gets short sheet unless something truly tragic happens (Hurricane Katrina, Exxon Valdez , drought, etc) in China, stuff like that happens EVERY DAY, whole river systems have become so toxic, that people get chemically burned by touching the water , let alone drink it or use it for cooking etc. This has gone on for the last 20 years or so. Desertification, water pollution, air pollution, ambient toxicity in the environment (lead/dioxins etc in everything in the environment)

➄ The Environment 2.0 - With global climate change/warming whatever, it may not matter that polar bears go homeless, polar bears don't have nuclear weapons so it doesn't much matter if they are desperate communist party members too.

In China that matters a great deal as you somehow have to keep 1/2 your people fed reasonably consistently (with all the problems mentioned above). Its more than likely you could understandably become somewhat emotionally sensitive to Pakistan or India or someone else laying claim to your water reserves. Wars have begun for less.

➅ Regional conflicts spilling over, Whether it's The Head of the state of North-Korea, Pakistan Chief, some Russian disaffected Generals or Nationalists in Japan or Indonesia there are going to be 4 and potentially as many as 7 nuclear armed states right next door and at least 2 of which (at the least) are not entirely friendly to Chinese interests. This is NOT an entirely happy situation under any circumstances. Any conflict between these states (India/Pakistan) , (Indonesia/Philippines), (Russia & Anybody), would be bad news and invariably involve China.

➆ Straight economics, the Chinese "stock" market is laughably corrupt, a single US citizen with a 401k may have holdings in dozens of companies in a reasonably well diversified portfolio. In China with 1.6 billion people, there are approximately 100 companies traded on their stock-market, more than a few of these are tied to the government somehow, and there is not even a semblance of the accountability that exists in other countries in the EU , US or elsewhere.

Finally, Developed countries’ (esp. USA, German, France) national destinies are linked at the hip with China’s national destiny.

➇ Eventually one of two possibilities will come true with US debt-

A- US citizenry may wake up and demand the government put a 20 year plan or something to retire 80% of the debt.

B- US citizenry does NOT demand the government retire the debt.

Either way , China will be in serious trouble,

“A”, is obviously preferable for all concerned but that's just NOT very likely (This only really hurts China a very little bit).

“B” Is far more likely and will have bad consequences, because China and Japan and most recently India are starting to buy strategically significant amounts of US debt.

The problem is that US politicians currently have an addictive relationship with tax-cuts and debt and they clearly aren't all that serious about actually paying that debt so if the intention to default on that debt became obvious for some reason there could be a RUN on US debt. US citizens would not buy stuff and the economy could be in for a nasty shock. This would ENDANGER China gravely since they've bought so much of US debt, coupled with the exports/trade hit and resurgent concern about US national interest. US would be in danger too but that pain would hurt everyone else along with us.

Alternatively, the thinking is that you can drop an economic "bomb" on the US economy by demanding debt payment or dumping that debt onto the market , either way you bite the hand that feeds and things could get ugly, if the US economy was significantly affected, you would see citizens rioting in the streets to at least appear to get an "A", situation started.

➈ Further Redounding to an already pretty gloomy future of China is a High Dependency Ratio coupled with a very High Sex Ratio. These are bound to cause VERY serious problems for Communist Party of China! Then there are political problems with Tibet and Taiwan!

Age pyramid for China. Each box denotes a five-year age group,
starting with 0-5 years in the bottom box.
Effects of the one-child policy result in smaller age cohorts in recent years.

According to Wang Feng, a professor of Social Development at Fudan University:  

“The consistently low birth rate since the 1990s will cause a noticeable contraction in newly available labor. The section of the population between 20 and 24 years of age will decrease sharply from 125 million in 2010 to just 68 million in 2020 – a 50% decline in only 10 years.”