China’s economy *was* slowing down. But now it’s getting back on track. How does it do that? And what does it mean for the US trade war? Welcome back to China Uncensored. I’m Chris Chappell. Good news everyone: China’s economy seems to be stabilizing. That’s based on official economic data from the first quarter of this year. “More now on those growth numbers out of
China overnight, which seem to signal stabilization in the world’s second largest economy.” But wait, you say, good news about China’s economy from China Uncensored?! Aren’t you a CIA-backed anti-China propaganda
outfit whose goal is to hurt the feelings of the
Chinese people? Well, don’t worry! Because none of those things are true. Including China’s economic rebound. “It comes after that country flooded its economy with stimulus money.” That is to say, the reason China’s economy seems to have
stabilized is that the central government has been pumping billions of dollars into it. “Beijing flooded the financial system with
money in a whatever-it-takes approach to arrest
a slowdown.” Because in China, they don’t just deal with slowdowns. They arrest slowdowns. And throw them in labor camps. Anyway, the Chinese Communist Party is deeply concerned about economic slowdowns. Its political model for the past 40 years
has been: We’ll let people make money, so they don’t complain about our authoritarian system. But as soon as people can no longer make as much money, they might start to question the Communist Party’s rule. I mean, who would go for a communist party that doesn’t help you make money? So what have Chinese central authorities been doing to pump up the economy? They’ve been pushing banks to make more
loans. Last month, Premier Li Keqiang called on China’s state-owned commercial banks to ramp up their loans, especially to MSEs— that is, micro and small enterprises. Chinese banks have already issued a record number of loans this year. New bank loans totalled 865 billion dollars between January and March. That’s 20 percent more than a year ago. On top of that, the central government has been encouraging local governments to
issue bonds, which means they’re borrowing more money. Local governments have raised $100 billion
dollars in new bonds in the first quarter. That’s *700 percent* more than a year ago. Which is crazy, because just last year, “the same local governments were scolded for borrowing too much and hiding their debts.” But for now, all this economic stimulus is
working. The Chinese economy appears to be stabilizing. And this is important for Chinese leaders. Because they don’t want to “appear weak while the trade negotiations [with the US]
continue.” Originally, Trump wanted to have a new trade deal with China by March 1— otherwise he promised to increase tariffs
on Chinese goods. That would hurt China’s economy a lot. But the whole trade deal thing is complicated. The US has been pushing the Chinese Communist
Party to make real structural reforms in how the Chinese economy operates. And those are no fun. So China has been procrastinating. It’s like when your mom wants you to clean your room, and not just shove everything into the closet like you usually do. The US wants China to declutter their economy, Marie Kondo style. Do those state-backed export subsidies really
spark joy? Lucky for China, Trump knows how hard it is to let go. So he delayed the March 1 deadline for the
tariffs— at least until he could meet with Chinese
leader Xi Jinping in April. But then that April meeting never happened. And now it looks like it could be pushed back
to June. Like I said, procrastinating. And by June, it’ll be summer, and do you really want to put spend your summer doing trade negotiations? Wouldn’t you rather be at the beach? Never mind. The beach is terrible. Wait…that must be Trump’s strategy! He wants to make sitting in an office and doing paperwork all day seem appealing! But in order to get there, Chinese leaders have to offer the kind of free market reforms the US wants. So the US may not be happy about the fact
that Chinese state-owned enterprises are the ones picking up a lot of the slack in this recent economic activity. Plus there’s the whole issue of needing an enforcement mechanism to stop anyone from cheating on the trade deal. Which won’t be easy. And what if the Chinese Communist Party decides that the trade deal doesn’t spark
joy? So will US trade negotiators look at China’s
recent stimulus as a sign that China’s economy is strong
again? Or will the US see this stimulus as a weakness, and use it as leverage to force the Chinese
regime to make more concessions? That’s unclear. But regardless, “the [Chinese] government simply cannot
afford to think about the medium term and must focus on short-term continuation
of the credit bubble.” Yes, short-term thinking is the way to go. So for now, China’s economy is stabilizing. But eventually, the long term will come. And in the meantime, all the debt they’re creating is a ticking
debt bomb. And time bombs tend to explode at some point. Unless you’re MacGyver. But hey, that’s a future problem, right? So what do you think? Leave your comments below. And now it’s time for me to answer a question from one of you— a viewer who supports China Uncensored through the crowdfunding website Patreon. Rodney Hall writes: I appreciate that you guys would like to maintain a semblance of privacy in your personal lives, hence the fact that you don’t talk over much
about yourselves (except for Chris and his student debt). But Matt is so low key that I’ve become curious
about him. I think the most significant personal facts he’s revealed are that he is a blond and has
a living room. Care to elaborate? Nope, that’s pretty much all there is to
Matt. He’s blond and has a living room. Really Chris? That’s it? I’m a complex human being. Ok, fine…tell me one interesting thing about
yourself. I…I like alpacas. Thanks for your question, Rodney. And thank you to all of my amazing supporters— my 50-Cent Army— for contributing a dollar or more through our Patreon website. Your support is what keeps us going. Even Matt. Once again, I’m Chris Chappell. See you next time.

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100 thoughts on “China Pumps Up Economy—But at a Cost | US China Trade and Business News | China Uncensored”

  1. Now my question is, will the White House mistake this as meaning the Chinese economy is strong? Or will they understand that it's only a matter of time before the debt bubble bursts in the Communist Party's face?

  2. chris, do an episode on the effects of Venezuela's economic shut down on china. you know, because they were supposed to get all that oil and whatnot? i'm kind of going off the idea that the problems in Venezuela were good because it blocked chinky china from getting the oil while securing it for the US.

  3. Your job is to be anti China,no matter what. Don’t you get fed up making a fool of yourself doing that job?Something like being the clown, Gordon Chang.

  4. 跳梁小丑,酸吧你,你背后的金主爸爸高兴的很。看你的嘴脸每天活在负能量的世界里真开心呢。

  5. As an American teacher working in China, I have learned that Chinese are horrible at remembering their past, and planning for the future. They are a "Now" society. If the CCP is only conducting business in the NOW, they would apparently have no long term plans. A simple example of this comes from my students. They love to remind me that China has over 5000 years of history. When I ask them to give me some details of their history, they are clueless. When I ask them about their personal future, such as what they want to study at university and what jobs they would like to have, they are very general in their comments. Ask them what they will do this weekend, there are many details. China and their policies are often reactive versus proactive.

  6. Folks don't disrespect the people of their fat pig dictator. They don't understand freedom of international water, intellecture property, against corporate espionage, children birth, christians and internet. Remember until then they're in hostile control by the 🐖 communist henchmens. They're.copy and paste people. Hopefully God would illuminate their brains.

  7. I really don't get the point of the trade war, the chinese economy is quite much a bubble, but that's the way the CCP is doing the economy, and it eventually will crash; but by engaging into a trade war you are only affecting US's poor people and China's poor people, who the fuck is paying for the trade war? poor people. Now chinese goods and materials are more expensive which are paid in taxes, goverment intervention is never good for capitalism, Trump isn't doing a favour, he is just collecting more tax money.

    A true capitalist doesn't engage into protectionist policies, that's what china does, the trump administration is behaving more like china; what the trump administration should do is the total opposite, make it easier for American entepreneurs to access the Chinese manufacturing market and protect its entrepenuers from legal actions and patent infringment; a trade war doesn't fix this.

  8. I heard China rolled out a gold backed Yuan… does this mean all that gold hoarding was for this? got rid of the Central Bank leaching off their economy. What ever happened to Trump and getting rid of the Federal Reserve, Central Bank and coming out with a gold backed dollar…. to much corruption in the USA? China's economy is better than that of the USA. USA 110% debt to equity, China 40% debt to equity… or was that fake news?

  9. you guys checked out this guy
    https://www.youtube.com/watch?v=8RKfg5s6oI4he has been kinda crushing
    you of late in good provoking china analysis? This story tells a lot about the nature of weakness in the PLA.

  10. Ha Ha Ha…if anyone believed this inflated figures released by CCP, this mean the trade war helped China economy to growth. Let’s keep impose d tariff to help China bounce back to double digit GDP growth by next year!

  11. The first step of a Chinese revolution is to bring down the great firewall. From there, freedom of information will do it's part

  12. the borrowers are borrowing to the borrowers who are paying the borrowers from borrowing, the perfect economy.

  13. who cares about America !!! Make china great again take america down free health care in the USA free housing food and you can tell the US government to fuck off then break all the laws then get a FREE ride to go home and don't forget to tell all your Friends !!!!!!!! HELP TO MAKE AMERICA A SHIT HOLE !!!!!

  14. YES!!!….."Short term thinking"…….That's exactly how we want the Chinese to operate.

    I'll be looking forward to that bubble bursting and China having a real recession (2 or more quarters of negative economic growth). …….Schadenfreude……I will be gleeful.

  15. I thought you didn't get ad money but I watched an ad before the video was played. I am sure you know how to disable youtube ads in your studio if you're not getting paid for them.

  16. Well there are some other facts to consider
    a) China is borrowing far less than the USA.
    b) China has an ongoing trade surplus.
    c) They have taken steps to cooperate more with the Russian and European economy, they are still investing in strategic areas around the world.
    d) The Chinese industries are changing from low tech to high tech.
    e) China is investing enormus sums in higher education.

  17. The USA launders almost 1tr a year into their economy via defense spending. Despite tax dollars not being allowed to contribute towards GDP, they simply evade it by laundering them threw defense contractors.

    If the world ever force a revaluation of the US investment rating minus 1tr a year from their economy it would rate as junk and collapse.

  18. I think China sucks in just about every way possible… the government, that is… and only some of the ppl. Thats not even bad, tho… I think MOST the ppl in my country suck!

  19. IF U See THIS " CHINA UNCENSORED" IT is not a porn site with the BALD HEAD as director. NO, IT IS A TRUMP SPONSORED PROPAGANDA CHINA BASHING CHINA. HA HA HA 🙂

  20. The west countries pump money into their economy. Qualitative easing they call it here in the Uk. Hypocrites! But I do really enjoy your videos

  21. That 34 trillion in debt that China has is in the Chinese Yuan, make it into USD and it turns into around 5 trillion, far below the American 22 trillion, so calm down Patriots

  22. The USA Eurozone and Japan did that too but the difference here is that like the aforementioned cases
    Chinese currency is not used so much by the international market just abt 1-2% transactions are made in the Chinese renminbi
    Which means that there is not much demand for there currency in the international markets which would mean the inflation caused due to money printing Will mostly
    Fall upon it's local citizens
    But here is the tricky part
    At least 10-20% renminbi is backed by us dollar which means in part they are relying on the never
    Ending demand for the us dollar
    But that's only 20%
    Also I don't think there is any successful example of currency printing at the level of per capita GDP that china has currently and has worked it's way successfully out without causing hyperinflation
    Overall I think it should be interesting to see what happens

  23. This reminds me of the fact that the Japanese economy is two-thirds of the United States, and that americans are imposing economic sanctions on Japan to slow Japan's growth. Now the United States is doing the same thing for China because they want to protect their hegemony.

  24. They're making a bubble that's gonna burst.. think a depression is coming? Cuz the US is heading that way to…😒

  25. LMFAO… YOU TALK ABOUT CHINA PUMPING BILLIONS INTO THEIR ECONOMY…. MEANWHILE THE INBRED CUNT TRUMP PUMPS $1.7 TRILLION INTO LARGE US CORPORATIONS WHO ENSURED ONLY 0.3% MADE IT TO THE MIDDLE CLASS…. FFS JUST BECAUSE YOU GET A CHOICE OVER WHICH CORPORATE CRIMINAL PANDERING PUPPETS "REPRESENT YOU" DOESNT MEAN YOU HAVE A DEMOCRACY… HOW WELL IS THE US GOVERNMENT REPRESENTING 300 MILLION AMERICANS STRUGGLING TO STAY ABOVE BANKRUPTCY?  WAKE THE FUCK UP FOLKS

  26. Hahahhaa Chris you are fortune teller. Communist party arrest millions of Tibetan and Xinjang people kills in labour camp. Most of Chinese cheap product are made by prisoner. I stop using made in China product and they taking people land and selling to big corporate office to set up factory. Stop believing China and soon communist party collapsing.

  27. We've been waiting and predicting the collapse of China for the last 30 years…. at what point should i stop believing this crap?

  28. it never exactly 'slowed down' more than half a percent growth or something. nor does it make sense to say it's 'stabilising'. of course it's not stable, it's growing.

  29. I see a TV clip of someone on an unidentified and undated tv program claiming China has flooded the economy with stimulus money. Is this supposed to be evidence? what are the figures?

  30. Canadian tire and a half of the Walmart parking lot people are going to get back to work and a bigger size of my hand you believe that I will have to get back your nose and throat you believe that I have been working on the redaction the year of the rooster and the redaction

  31. I've just found this channel and I absolutely love it. Binge watching videos.

    The format is perfect – concise, yet incredibly well researched and informative, interspersed with genuinely funny comedic breaks. So much so that this is the first channel I've even considered sponsoring on patreon. I'm broke af now but soon as I get a job I'll be a patron.

    Excellent channel, great work guys, keep it up!

  32. The Chinese economy is artificial? Great! that means they'll go into a recession soon… Wait a minute, that'll be more devastating than America going into recession and will hit countries like Australia and New Zealand like a Chinese bullet train. Well damn. On the Bright side India will do good.

  33. When the Govt runs an economy and the media of course they will tell you the truth. Govt always has the best interest of the Citizens at heart. Right Russia, China, Venezuela, Cuba, NorK? RIGHT?? Any ideology where you must build a wall to keep people INSIDE instead of OUTSIDE is the wrong political ideology. Democrats: "NUH-UH."

    Chicoms have nothing on Commiefornia. Tyranny and debt, YAY….

  34. "CIA-backed"?
    if that were true, i'm sure they would've done a better job and this channel wouldn't have less than a million subs

  35. What is stoppung china from just doing the same thing over and over again what does the debt matter if they just never care to pay it back. They can just fake money basically forever cant they? Forgive my ignorance.

  36. This comment section has me shaking my head. Everyone in here thinks there smarter than economists. If some of you know so much please stfu, run for public office and solve our economic problems. You jackasses are trying to prove to the next that you know more and are smarter. All these f-ing geniuses and you’re here wasting your knowledge.😂😂😂

  37. You should read "The Accidental Superpower","The Absent Superpower" and "Disunited Nations" by Peter Zeihan.

  38. Prepare for swap for balance but will you be ready for China and All World inflation interest deal of good industirial balance reasons but you –> All USA got 40% of Morgan interest LOOSE at printout so "all seeing economical continental sidesquint Americans" how anythe-FUCK-REASON except start from inflationinterst you do have to have to pay that TOTALITARIAN SHIT MOUNTINE OF UNPAID OBLIGATION YOU EXTORT PEOPLE AND PAYED TO SOME SHIT ORGIN, SHIT TREATING PEOPLE EXTORTS extreme overengaged and sudointelectual – money they have anyway, and bancrupted YOU FUCKING ATE AN ECONOMICAL LEG OF AFRICA, covered with wars and stimulus by a PERSONNEL ROTATION AT CANNON FODDER STRATEGY. DollMorgan rhetoric easied significantly Chris now it is not dragging worldwide wounds just chewing some zombie snaks isnt it it is, whos, huh indolent mumbling sarcasm. Can you find USA one good point except all measures right cutting China flood of products but is it a all world we made easy? Maybe now rubber war be ok and tantalum, bitch?

  39. But isn't that our occidental central banks have been doing since the last crisis? Imposing low-interest rates to flood the economy with money? When the economy will explode China won't be the only one in trouble.

  40. USA about 400 million people can get out with huge debt, CHINA with over billion cant really? who watch this crap….

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