Understanding China, One Blog at a Time

An American in China

Comment on China’s Economy and Ruling Elite

Posted by w_thames_the_d on February 21, 2012

Great Comment from Brewskie here
“Bumped into lad who goes by PKM: he’s a wise man who said a very wise thing today; really got me thinking. Here’s his input in its entirety:

“Between 2003 and 2007 and currently, Guangdong contributed the most to the GDP of China.
Look at Chart 2: Provincial Share of the Change in the Current Account, 2003-2007.

Notice the contribution to China GDP from places like Beijing and Shanghai were negative.
BJ and SH consider themselves as the ruling classes and do not need to contribute to GDP and yet they criticize other parts of China where people trying hard to make a living.

Remember the Great wall of China was built centuries ago to keep these people from entering China.
The modern day Mongols of China includes the North-East and Shanghai.
By being the ruling class, it is easier to steal than to earn their own GDP.

Some of them try to pretend they do not realize that a weak China was the very reason why HK was controlled by foreigners.
I think they forget Beijing lost to the Japanese and was controlled and run by Japan for some time.
They also forget there is a finite probability that some of the ruling classes have ancestry that worked as sex slaves during Japanese occupation.

Within the Mongol empire, there are so many economic non-producers that even back in 2008, the empire lost the dialog with the local officials.
Out of desperation and out of the need to obscure realities, they instructed them to build ghost cities so that some cities can claim their 10% growth per year.
But of course they cannot keep building ghost cities year after year.
It is getting harder and harder for them to coerce local officials in Guangdong to come up with 10% growth per year when the other provinces do not contribute.

For a long time I wonder why so many countries that used to be part of China are happy to be their own separate countries.
After what happened at Wukan, I guess every body know why.
They already retaliated HK for their role in Wukan.
Expect HK to have funny elections and even less real freedom.

Before 2005, HK did not require any approvals from Beijing when they make a movie.
After 2006, the movie scripts in HK have to be approved from Beijing before they go into production.

I wonder how long coastal provinces like Guangdong can keep quiet.”

(the photo is Ms. Obama’s prom pic)

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