Comments by "☨St Louis IX opposed paganism, hæresy \x26 debauchery" (@stlouisix3) on "China Observer"
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Apple and Foxconn's Rapid Departure from China Sparks Massive Layoffs, iPhone 15 to Rely on Only 2% Chinese Parts
📉 The relocation of Foxconn could lead to a substantial rise in unemployment and further decline in the economy.
00:32
Foxconn is Apple's preferred contractor manufacturing a range of products including iPhones, computers, and iPads.
00:32
Foxconn has been setting up plants abroad to reduce dependency on China.
00:40
There have been continuous reports of a rapid decrease in the workforce in Foxconn's manufacturing bases, leading to a downturn in surrounding commercial areas.
00:55
Components supplied from China for the iPhone 15 Pro Max constitute only 2%.
01:17
Components from the US, South Korea, and Japan account for over 70% of the flagship iPhone 15 Pro Max.
01:31
Chinese component supply for iPhones has shrunk to just 2%.
02:05
Component cost for the iPhone 15 Pro Max has risen by 12% to $558.
02:30
📱 Apple is diversifying its supply chain away from China and increasing production in India.
05:41
Apple aims to reduce costs by diversifying its supplier base.
05:41
Taiwanese companies still hold a competitive advantage in key components.
06:18
Apple's assembly proportion in China is declining.
06:32
India's assembly proportion of iPhones is increasing.
06:49
Apple plans to shift 25% of its production to India by 2025.
07:09
Chinese enterprises that were once Apple suppliers are being phased out.
07:40
Boa Technology Group, a former Apple supplier, was reportedly ousted due to product quality issues.
08:04
💼 Apple's decision to remove OFilm from its supply chain led to factory closures and financial losses, while Winaitechnology reported increased revenues and profits as it took over OFilm's production line.
09:39
OFilm's revenue plummeted by 52.8% and suffered a loss of 2.6 billion unen after Apple removed them from its supply chain.
09:39
Winaitechnology reported revenues of 52.7 billion and profits of 2.6 billion unen as it took over OFilm's Apple production line.
09:48
Foxconn, Apple's largest assembly contractor, has heavily contributed to China's economic development and employment.
09:59
Foxconn's subsidiaries in China were subjected to sudden tax and plan audits, potentially influenced by Foxconn's founder Terry Gou's candidacy for Taiwan's presidential election.
10:56
The Chinese Communist Party's actions may also be driven by a financial strain and a desire to maintain control over China's economic destiny.
12:11
Foxconn's plan to shift production and supply chain to India and Southeast Asia could be seen as a warning to other domestic and foreign firms.
12:25
Chinese President Xi Jinping has emphasized an internal circulation strategy, indicating a preference for reducing economic ties with foreign companies.
12:34
📉 China aims to reduce economic dependence on the US and counter the influence of overseas powers, potentially leading to Foxconn's departure from China.
13:11
China wants to replace Foxconn dominance with Mainland Chinese enterprises, giving them more control over Apple's manufacturing contracts.
13:11
Chinese companies like Luxshare and BYD are poised to offer more competitive pricing than Taiwanese counterparts and are interested in taking over Apple's manufacturing contracts.
13:46
Beijing's actions targeting Foxconn may accelerate their departure from China, potentially warning other foreign enterprises, especially Taiwanese businesses.
14:02
China's economic policies reveal contradictions, inviting foreign investments while introducing counterespionage laws and tax investigations.
14:45
Taiwanese manufacturers including Foxconn, Quanta, Compal, Pegatron, and Invent have been retreating from China due to client demands and US brands urging for supply chain diversification.
15:21
US brands are urging Taiwanese manufacturers to shift production out of China and diversify to Southeast Asia, which would have a profound impact on the Chinese economy.
16:01
Beijing faces a challenge as it emphasizes economic security while dealing with the potential departure of Foxconn and the shift of production out of China.
16:53
📦 The investigation into Foxconn has raised concerns about the unemployment of over 1 million Chinese workers.
17:08
The investigation into Foxconn has sparked anxiety among its employees.
17:08
There are currently 1.2 to 2 million Foxconn employees in China, along with associated businesses.
17:33
Major tech firms, including Apple, have been gradually shifting their supply chain out of China.
18:03
The tensions between the US and China have led to efforts to mitigate risks and diversify supply chains.
18:41
Decoupling from China's supply chain is an ongoing process, but the proportion of facilities in China is decreasing.
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🌍 The global supply chain is undergoing a transformation, with China's role diminishing and potential decoupling from the supply chain.
00:08
China's share of global imports has decreased from 21.4% in 2017 to 13.3% in mid-year 2021.
Mexico has emerged as a strong alternative to China for manufacturing, with significant exports to the US.
Mexico's rise can be attributed to strategic advantages such as tax incentives and zero tariffs.
🌍 The US is cautious of Chinese investments in Mexico due to national interests and security concerns, while foreign investments in Mexico are increasing.
04:23
The US is concerned about Chinese investments in Mexico and may implement strategies to prevent potential vulnerabilities.
Foreign investments in Mexico have increased by 48% in the first quarter of this year.
Vietnam is emerging as a dominant investor in manufacturing, challenging China's position.
💪 India's economy is projected to become the world's third largest by 2050, driven by manufacturing and a growing workforce.
08:50
India aims to reduce manufacturing's GDP contribution from 50 to 25 percent by 2025.
India's population is expected to reach 1.4 billion by 2022, with a large working-age demographic.
India offers competitive labor costs, a domestic market, and expertise in electronics, IT, and pharmaceutical sectors.
📈 India's advanced manufacturing sectors are being transformed by the dominance of companies like Apple, Tesla, and Micron, while China's market dominance is showing signs of strain.
12:45
India is cautious about expanding its trade with China under the Modi Administration, with increased scrutiny and targeted trade protection measures.
Chinese tech companies like Xiaomi and Oppo have faced controversies and allegations of illegal activities in India, leading to asset seizures and frozen bank accounts.
Powerhouses like the US, Europe, Japan, South Korea, and India dominate India's burgeoning middle class, fueling a consumer boom, while Chinese consumer spending on luxury items like smartphones contrasts with this trend.
🌍 China is decoupling from the global economic fabric at an unprecedented rate, with foreign investments receding and capital controls intensifying.
16:52
China's foreign capital has dramatically decreased, with U.S. investments dropping from $228 billion to just 1.4% of China's total FDI by 2021.
China implemented capital controls, reducing foreign entities' repatriation capabilities by 90%.
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💰 Tesla plans to implement a new pricing strategy in China, including possible price cuts, to boost sales and reduce inventory.
00:00
Tesla halts Phase I battery production line at the Shanghai Gigafactory, reducing workforce by half.
00:00
Tesla's Phase II battery factory production is sufficient to meet vehicle battery needs.
00:17
Tesla's strong second-quarter performance resulted in high inventory and sales pressure for the latter half of the year.
00:52
CEO Elon Musk hinted at initiating a price war in the second half of the year to make Tesla cars more affordable.
01:30
Tesla might drastically reduce prices, with the new Model 3 potentially priced under 180,000 yuan.
02:03
🚗 The Chinese automotive industry is facing a crisis due to price wars and Tesla's impact.
02:43
Automakers in China, including BMW and Audi, have significantly reduced prices, leading to a 'slash-price' trend.
02:43
FAW Toyota is giving away a car worth 100,000 yuan with the purchase of their new energy vehicle BZ4x.
03:38
Massive price reductions by Tesla and other foreign brands have caused a substantial decline in sales for domestic car companies.
04:19
None of the 20 car companies in China have achieved a completion rate of 50% towards their annual sales goals.
04:37
The Chinese automobile manufacturers have pushed pricing to the limit, leaving no room for further reductions, while emerging players like NIO and Xpeng are losing money on each vehicle sold.
05:03
🚗 Chinese automakers faced public backlash and retracted their commitment to maintain fair competition and not cut prices, violating the Anti-Monopoly Law.
05:55
16 mainstream automakers in China signed a commitment to maintain a fair market order in the automotive industry.
05:55
The commitment to not disrupt fair competition with abnormal prices was withdrawn just two days later.
06:11
Public suspicion and doubt arose, accusing the car companies of violating the Anti-Monopoly Law and threatening consumer rights.
06:28
Under public criticism, the car companies retracted their commitment and admitted misunderstanding on pricing and violation of the law.
07:00
Consumers felt exploited and disappointed as car prices continued to rise, questioning the ties between capital and government.
07:36
🚗 Chinese car companies are deterring people from purchasing domestically-produced vehicles, causing a loss of trust and mocking Tesla's pricing strategy.
08:43
Chinese car companies have discarded their moral compass and are driving their compatriots into a corner.
08:43
Tesla was the first to offer discounts to Chinese consumers, but now 16 companies are pressuring Tesla not to cut prices.
09:51
The China Association of Automobile Manufacturers and the 16 car companies signed a commitment that violated the Anti-Monopoly Law.
10:22
The leaders of these car companies signed the commitment without hesitation, raising concerns about their ability to lead the industry towards healthy development.
10:57
Netizens sarcastically remark that it's fortunate the China Association of Automobile Manufacturers is held accountable, as the car companies might have colluded to manipulate prices.
11:16
🚗 Tesla maintains a 30% profit margin in China while Chinese automakers suffer losses, raising questions about the discrepancy.
11:52
Tesla has localized 95% of their material and component procurement in China.
11:52
BYD's Dolphin, priced at 200,000, generates a profit of only 10,000 despite luxury amenities.
12:10
Imminent price wars in the latter half of this year could last up to 20 months.
12:45
Top ten automakers in China may account for 90% of the market share, leading to the potential extinction of marginal automakers.
13:05
Comprehensive preparations and strategic adjustments are necessary for all automakers to face the challenges ahead.
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📉 Rental prices for office buildings in Beijing's CBD have declined by around 20%, reflecting a downturn in China's commercial real estate market.
00:18
Office vacancy rates in Beijing and Shenzhen have reached all-time highs.
00:18
Friends who own office properties are unable to sell or rent them out.
00:35
China's economy is facing five major dilemmas and hasn't rebounded as expected.
00:52
Vacancy rates of Grade A office buildings in Shenzhen, Shanghai, and Beijing are rapidly rising.
01:34
Companies downsizing and uncertain macro environment are reasons for the decrease in demand for office buildings.
02:27
Commercial Real Estate Crisis: Office Vacancies and Rental Prices Plunge Over 20% in Shenzhen, Shanghai, and Beijing as China's Economy Struggles
🏠 The Chinese property market is experiencing a decline, with second-hand homes and new residential housing prices decreasing.
03:22
The number of second-hand homes listed in Beijing has reached 190,000, indicating a downturn in the Beijing property market.
03:22
Buyers have become choosier and agents are negotiating price reductions to attract customers.
03:35
The construction industry business activity index fell to a six-month low in June.
04:10
The average price of new residential housing in 100 Chinese cities decreased in June, and the second-hand housing market experienced a more significant cooling down of prices.
04:33
Analysts predict that property prices in all Chinese cities, including first-tier cities, will inevitably decline, especially in the second-hand residential market.
05:33
📉 China's economy is struggling with falling house prices, weak consumer spending, and deflation.
06:43
House prices in Hangzhou are falling rapidly, making it a buyer's market.
06:43
Borrowing for mortgages has declined, indicating a decrease in new mortgage applications.
07:15
Consumer spending is weak, leading to concerns about employment and income.
07:31
China's CPI fell by 0.2% in June, indicating slowing consumer price growth.
08:19
China's PPI dropped significantly by 5.4% year-on-year, signaling deflation and decreased demand.
08:56
😔 The Chinese economy is facing challenges with low inflation, disappointing consumer spending, sluggish exports, struggling small businesses, and high unemployment rates.
09:48
Low inflation or deflation can hinder economic growth.
09:48
Consumer-oriented companies like Estée Lauder are experiencing slow recovery.
10:21
China's exports have been in contraction, with a higher rate than expected.
10:37
Small and medium-sized enterprises are facing difficulties and laying off workers.
11:12
High unemployment rates are impacting low to middle-income families.
12:01
😔 The zero-covid approach in China has caused a rise in unemployment, particularly among young college graduates, leading to an increase in homelessness and financial difficulties for both individuals and local governments.
12:51
The zero-covid approach in China has heavily impacted the economy, causing numerous businesses to go under and leading to a significant increase in unemployment.
12:51
Many new college graduates are struggling to find jobs, even part-time ones, due to the tough job market this year.
13:26
Unemployment rate among 16 to 24-year-olds has reached a new high at 20.8%.
14:14
Job prospects for university graduates are grim, leading many to take up blue-collar jobs to make ends meet.
15:07
Local governments in China are also facing financial constraints due to the real estate crisis affecting land sales.
15:23
📉 The decline in land sales and the zero-covid policy have led to a significant increase in local government debt in China, posing a major risk for the economy.
15:57
The total local government debt in China is estimated to be $23 trillion, equivalent to 126% of its GDP.
15:57
Local governments have been borrowing through LGFVs to cover project costs, resulting in hidden debts.
16:15
Xi Jinping administration has no good options for addressing the economic issues.
16:34
Stimulating demand through massive initiatives has led to oversupply and increased local government debt.
16:48
US cutting off the supply of advanced chips and technologies to China has further worsened the situation.
17:05
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🌊 Tensions rise in the South China Sea as the US and its allies increase surveillance of Chinese military activities.
00:07
The US Navy's Hopper class destroyer sailed near the Paracel Islands, prompting warnings and expulsion from China.
Australia and the Philippines conduct joint sea and air patrols, signaling a clear message to China.
The US military is prepared for a potential confrontation in the South China Sea.
🌍 The video highlights the escalating tensions between the US and China in the Philippines and the region.
03:04
The US military presence in the Philippines was highlighted by the arrival of the USS Carl Vincent aircraft carrier in Japan.
Japan and the Philippines signed a reciprocal access agreement allowing Japan to deploy troops in the Philippines.
The United States, Philippines, Japan, and South Korea conducted joint military exercises in the Philippines, simulating a potential war with China.
🌊 The situation in the South China Sea and the Korean Peninsula is becoming increasingly tense, with China and the US vying for influence.
05:58
China's victory in the South China Sea would threaten the resources and economic trade routes of Taiwan, Japan, and South Korea.
A US victory in the South China Sea would weaken China's influence in the region and provide a strategic advantage in addressing the Korean Peninsula issue.
Despite international opposition, North Korea violated UN resolutions and a military agreement by launching a military satellite and not fulfilling its commitment to denuclearization.
🔍 The position of defense minister in China remains vacant due to internal struggles and uncertainty about potential successors.
09:00
The lack of modern warfare experience and understanding of military equipment among PLA officers is a challenge in appointing a new defense minister.
Xi Jinping's purges within the military have led to a loss of trust and loyalty among some officers, making it difficult to find new appointees.
Currently, only Huong and Jong xao Jun are trusted figures in the military commission, with Jong xao Jun being favored by Xi Jinping.
💡 The Chinese government is facing challenges in finding a suitable candidate for the position of defense minister, which may impact Xi Jinping's image and force the CCP to expedite the appointment.
12:08
Xi Jinping is struggling to find a candidate comparable to Lee Shang Fu with deep military equipment knowledge and loyalty.
Speculation suggests that Xi Jinping may have fallen into a political trap set by CCP Elders, resulting in a lack of competent aides around him.
Former Ambassador for China to the US, Cui Tiankai, fell out of favor in political struggles in the economic sector.
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🏢 Evergrande has numerous halted construction projects, leaving unfinished properties resembling ghost towns.
00:21
Evergrande Kunming Lake project in Anning Taiping New City is essentially completed but lacks necessary infrastructure.
00:21
Evergrande Expatriates City Yangzonghai and Evergrande International Health City are not ready for occupancy with no signs of resumption.
00:43
Evergrande Cultural Tourism City has been halted for two years and is not ready for occupancy.
01:22
Evergrande Sunshine Peninsula, Evergrande City Project, and Lotus football stadium in Guangzhou are also unfinished.
01:42
Evergrande has claimed to have 706 halted projects, affecting homeowners who bought these properties.
02:56
💔 Evergrande's financial crisis has led to the halting of several projects, including the Guangzhou Evergrande Football Stadium and the Evergrande Royal Lake World project.
03:59
The rights to the parcel of land for Guangzhou Evergrande Football Stadium have been returned, resulting in a loss of approximately 1.26 billion yuan.
03:59
The Evergrande Royal Lake World project in Xinxiang City, Henan Province has been abandoned, leaving only the grand entrance standing amidst overgrown weeds.
04:18
The Hefei Evergrande Center project and three other projects in Hefei have also been left unfinished.
04:57
The Evergrande Jinan International Finance Center, with an investment of up to 25 billion yuan, is another unfinished project.
05:35
Other well-known unfinished projects include the Evergrande Super Headquarters Project and Evergrande Ningbo City of Light.
05:53
😱 Evergrande Group, a major Chinese real estate company, is facing a debt crisis and owes a significant amount to suppliers, creditors, and investors.
07:17
Evergrande owes a total of 1.97 trillion RMB (over 300 billion US Dollar), roughly accounting for 2% of China's GDP in 2020.
07:17
The crisis has led to project delays and affected other real estate companies like Kaisa, Sunac, and R&F.
08:04
Kaisa Group, a real estate company in Shenzhen, is sinking into a desperate situation with major financial difficulties and potential bankruptcy.
08:42
Homeowners of Kaisa properties are at risk of losing their properties and down payments if the developer goes bankrupt.
09:21
Many homeowners have made full payments or paid deposits for properties at Kaisa City Plaza, leaving them feeling helpless without access to real-time information.
09:39
🏢 Kaisa Group, a Chinese developer, is facing financial difficulties and unable to repay debts, leading to protests and violent suppression by the police.
10:19
Efforts of three families and two generations to have a home of their own are now lost due to heavy bank debts.
10:19
Without intervention from the boss, the employees of Kaisa Group are unsure of what to do.
10:37
Homeowners of Kaisa City Plaza protest against the developer's failure to deliver properties on time and the stripping of finished apartments.
11:15
Protesters are forcefully removed and detained by the police, resulting in violence and arrests.
11:33
Affected homeowners are subjected to interrogations, blood tests, and further detentions.
12:50
🏢 Homeowners in Qingyuan City, China are frustrated with the delayed delivery of finished units by real estate companies Kaisa and Evergrande, and are seeking immediate completion, compensation, and government intervention.
13:23
Homeowners are being forcibly removed by police as some properties have not been released.
13:23
The delivery date promised in official negotiations was not met, and the Qingyuan Housing and Urban-Rural Development Bureau did not penalize Kaisa for undisclosed usage of trust account funds.
13:42
Delivery of buildings 4, 5, 6, 8, and 9 by Kaisa has been continuously delayed, with the developer refusing to deliver finished units.
14:39
Homeowners demand immediate completion of inspections, delivery of finished units, and compensation for breach of contract, but government officials have been unhelpful.
15:53
The unfinished projects by real estate companies undermine trust in developers' ability to resolve the issue and affect banks' confidence.
16:12
🏢 China is facing a crisis of unfinished buildings due to land speculation and the influence of powerful individuals.
16:49
Henan province has the lowest delivery rate at 11%.
16:49
Delivery progress in South and North China is relatively good, while Southwest and Central China have low delivery rates.
16:49
Land development often brings huge profits, leading to investment by powerful individuals.
17:10
China's 'guaranteed delivery' policy aims to provide relief to developers with strong economic capabilities.
17:47
Relief funds for property delivery are insufficient, with many developers waiting for delivery.
19:26
🏢 The 400 billion yuan relief funds is insufficient to solve China's problem of unfinished buildings, which could have negative consequences on government finances and urban development.
19:48
The 400 billion yuan relief funds is like a drop in the ocean in solving China's problem of unfinished buildings.
19:48
Special loans and supporting financing for unfinished buildings are labor-intensive and high-risk projects for banks.
20:07
Real estate is a significant part of local governments' economies in China.
20:46
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Recent Typhoons, Floods, and Droughts Devastate China's Crops, Posing a Severe Threat to Food Security as 20% of the Nation's Harvest Faces Total Loss
🌊 Recent typhoons in China have caused extensive damage to crops and raised concerns about food shortages.
00:13
Typhoons Saola and Haikui have caused heavy rains and flooding in China's Southeastern Coast.
00:13
The destruction of crops in the northeastern provinces has increased the risk of food shortage for the Chinese population.
01:05
Corruption and poor decision-making within the CCP have been revealed during the grain shortage crisis.
01:23
The anticipated harvest season in China may witness a larger reduction in yield or even no yield due to the typhoons.
04:13
International grain prices have soared due to climate fluctuations and export restrictions imposed by countries like India.
04:35
China's President Xi Jinping has proposed strengthening the food supply chain to reduce reliance on imported food.
06:11
This move is speculated to be a strategy to prevent potential food sanctions in response to China's alleged plans to attack Taiwan.
06:38
🍚 China's challenge to achieve complete independence from the global food market seems virtually impossible given its reliance on food imports and limited self-sufficiency.
07:15
China consistently ranks first or second globally in international food imports, with a peak in grain imports in 2021.
07:15
China heavily relies on soybean imports, which constitute 95% of total consumption.
07:45
China's heavy reliance on oil and soybean meals for feed highlights the gravity of the situation.
08:07
Approximately 21% of the population depends on imported food, and any reduction could lead to hunger for about 20% of the population.
08:44
Severe climate disasters, such as typhoons and floods, have impacted domestic food security.
08:58
China's limited self-sufficiency and inadequate arable land pose challenges to food security.
10:01
China's food self-sufficiency rate has decreased from 94% in 2000 to 66% in 2020, with imported grains comprising one-fourth of total grain production.
10:32
🌾 Farming in China is not lucrative, leading to a decline in young farmers and concerns over food security.
11:14
Farming in China is not profitable, with small farming households struggling to make a living.
11:14
The net profit from farming corn is low, resulting in an annual income below the minimum wage standard.
11:44
The youth in China are reluctant to take up farming due to its lack of profitability.
11:54
Cultivating grains on limited arable land yields low income and operational costs are high.
12:14
The Chinese government is trying to expand arable land to secure the nation's food supply.
13:02
The reverting forests to farmland initiative has faced criticism for infringing farmers' rights.
13:44
Chinese agriculture is struggling to transition to large-scale land management, resulting in stagnant output and high operating costs.
15:19
🌾 The Chinese government's inefficient policies to expand arable land and boost agriculture yield are undermining efforts to reduce dependence on imports and causing a growing food crisis.
16:02
The administrative approach to increase arable land fails to improve China's economic environment and food supply.
16:02
The urgency of the food crisis in China is evident in the Chinese Communist Central Committee's focus on food security.
16:37
Fabrication and misinterpretation of data concerning China's grain reserves pose a real threat to food security.
16:57
Reports indicate significant issues in China's grain reserves, including storing spoiled grains and corruption in grain storage management.
17:11
The true state of China's grain reserves and the discrepancy between official figures and actual stockpiles are deeply concerning.
18:39
Chinese Communist Party officials involved in grain purchase and sales have engaged in corruption and embezzlement, severely affecting national grain security.
19:00
Corruption methods include circle grain, where officials acquire undue benefits through their positions.
19:30
😔 The video discusses fraudulent activities in the grain industry and their impact on national food security.
19:36
Collusion between grain managers and merchants to sell and repurchase grain for profit.
19:36
Fabrication of grain purchase and sale transactions to embezzle grain funds.
20:02
Concealment and unauthorized sale of excess grain for personal gain.
20:09
Cheating farmers during grain purchases through dishonest tactics.
20:37
Exploitation of price differences by settling with farmers for lower grade grain and selling it as higher grade.
20:56
Fabrication of grain losses and illegal reselling for personal profit.
21:20
Numerous officials express remorse for neglecting national food security and engaging in fraudulent activities.
21:27
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😡 Account holders in Chinese banks, including large state-owned banks, are facing issues of frozen bank cards, withdrawal restrictions, and unexplained transfers of funds into financial products or real estate bonds.
00:00
A distressed woman was unable to withdraw her life savings of 660,000 yuan from an Agricultural Bank as it had been converted into a financial product.
00:00
Similar incidents have occurred in Henan and Anhui rural banks, with victims still trying to reclaim their deposits.
00:35
A woman at China Construction Bank found her fixed term deposit had been transferred out of her account and used to purchase real estate bonds upon maturity.
00:49
Account holders faced difficulties in obtaining proof of their transactions as the individual who previously helped them was not an employee of the bank.
01:51
Multiple banks, including China Merchants Bank, ICBC, Agricultural Bank, and Ping An Bank, have been reported to freeze accounts unreasonably, leading to withdrawal restrictions and obstacles.
02:56
📉 Goldman Sachs downgrades several Chinese banks due to concerns over local government debt.
04:11
Goldman Sachs issued a ratings adjustment report on the Chinese banking industry, downgrading 12 state-owned banks and some joint-stock banks.
04:11
Bank of China and China Merchants Bank were given a 'Neutral' rating.
04:30
The downgraded banks include Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of Communications, Industrial Bank, and Huaxia Bank.
04:30
The decline in the Hong Kong bank index on July 5th suggests investors are selling off Chinese bank stocks.
04:47
The report highlights the high level of local government debt carried by the banks, which could lead to asset devaluation and decreased profits.
05:43
🏦 Local government debt in China poses a significant risk to the financial system and stability of the Chinese Communist Party.
07:21
Local governments in China are on the verge of collapse due to the burden of debt and inability to declare bankruptcy.
07:21
Wage arrears for civil servants and teachers do not greatly impact social stability, but unpaid wages for city management and public security could shake the power stability of the Chinese Communist Party.
07:59
Local governments are not afraid to borrow money as the central government ultimately takes responsibility, but substantial defaults on local debt would destabilize the financial system.
08:16
The finance department of the central government does not want to directly rescue bankrupt local governments, shifting the risk onto banks.
08:54
There may be a change of personnel at the People's Bank of China to address the burden of local debt, as finance professionals understand the potential problems it poses for banks and the Chinese economy.
09:49
💰 The financial power in China is shifting away from the People's Bank of China (PBC) leaders to Xi Jinping's confidant, He Lifeng, who controls the Central Financial Committee.
10:47
Current PBC leaders Yi Gang and Pan Gongsheng do not have much decision-making power on important matters.
10:47
He Lifeng, a protégé of Xi Jinping, understands his thoughts better than anyone else.
11:27
He Lifeng is responsible for the establishment of the Central Financial Committee.
11:46
All banks in China are policy banks and must operate according to the needs of the CCP.
12:20
Forcing banks to lend to local governments could have deadly consequences for the banks and the macro economy.
13:17
💰 Using bank loans to repay local government debt in China could lead to significant monetary tightening and a potential downgrade of China's banks' credit rating.
13:36
The entire profit of the Chinese banking industry in 2022 was approximately 2.1 trillion yuan.
13:36
Long-term lending to local governments could reach up to 60 trillion yuan, causing significant interest loss for banks.
13:57
Lending 20 trillion yuan to local governments would tighten monetary policy and hinder lending to enterprises.
14:36
If China's banks face major issues, US capital may react by reducing holdings or making other adjustments.
14:54
Low profit margins and inability to cope with large-scale interest subsidies to local governments could lead to banks' inability to survive.
16:27
💰 The burden of China's local government debt crisis will fall on the ordinary people, as banks may recall loans from them to cover losses.
16:45
If local government debt exceeds 500 billion yuan, banks may suffer massive losses and have to recall loans.
16:45
Chinese commentator suggests locking savings accounts for 20 years to make them practically void.
17:52
The burden of the local debt crisis will ultimately fall on the Chinese people.
18:10
Chaotic phenomena like frozen savings accounts and withdrawal restrictions will become more frequent in major banks.
18:27
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