On July 5, the Sri Lankan Prime Minister told parliament that the country was bankrupt. Sri Lanka has been facing an unprecedented national crisis, and the president announced his resignation on July 14. However, some analysts believe China’s situation is far worse than that of the debt-trapped island nation.
Ski Lanka suffers soaring prices, food shortages, and a fuel crisis. As a result, many desperate residents are forced to leave their homes or, indeed, the nation.
According to Xie Tian, chair professor at the Aiken School of Business at South Carolina University, the island nation’s overall debt reaches $51 billion. With a population of 22 million, this indicates that top-to-bottom corruption is severe. In addition, China’s “One Belt, One Road” project has intensified the crisis in Sri Lanka, hastening bankruptcy.
Nevertheless, what is happening in Sri Lanka is not as critical as that in China. Xie Tian believes that the suffering of Chinese people far exceeds that of the Sri Lankans.
Chinese state-owned banks are facing a real estate and repayment crisis. As a result, rotten-tail buildings have become omnipresent, causing homebuyers to default in desperation.
Henan Bank fraud has adversely affected more than 400,000 depositors with a total capital of nearly $6 billion. However, the government is too slow with a solution, highlighting the suspicion among the public about China’s financial and banking system.
China not only collects money but also commits perverse acts and brutal murders. Moreover, some problems, such as bureaucratic corruption, political degeneration, and deprivation of people’s rights, show that the situation in China is much more complicated than that in Sri Lanka.
Ma Yongtao, a director of China Human Rights Watch currently in exile in the Netherlands, says that the credibility of the state banks under the Chinese Communist Party is bankrupt in many people’s minds. Under the government’s Zero-covid measures, the proportion of Chinese residents migrating overseas has increased significantly. Many people have chosen to flee China because they have lost confidence in the Communist Party.
Xie Tian states that official corruption and abuse of power in the party are widespread. Officials in local banks usually conspire to get away with the money. They are probably no longer in China, leaving a vast black hole.
Recently, many protests from people have broken out. For example, successive protests of depositors occurred in front of Henan rural banks, demanding their right to withdraw their money. Also, large-scale demonstrations by homebuyers of unfinished buildings in Xi’an aimed to ask banks to be investigated for illegal lending to builders. The latest is the mortgage boycotts spreading over 235 banks across 50 cities.
In some protests, demonstrators have shouted, “China’s Communist Party is a mafia and bandits.” Only those who lost their belief in the party and fall into dire straits dare to stand up, protecting their rights like that.