This stat has been bandied about in the absence of any believable figures from the government for some time…
Since China’s property bubble went pear-shaped and threatened to pop, figures having been fighting a turning tide of debt fueled domestic demand, and generally flat export and rising wages.
June’s black-Monday on the Shanghai stock exchange have only highlighted what many China insiders have been speculating for a long time.
The whole thing’s a house of cards and it’s not a case of ‘if’, but ‘when’.
The authorities are holding out – perhaps in the hope they can dump the blame elsewhere when things eventually do go tits up. The current South China Sea situation plays into this whole scenario…
Many reckon that rather than risk political and economic destruction, it would be simpler for the government go to war and call for national cohesion in the face of the ‘foreign devils’ who threaten the heavenly kingdom’s 5,000 year old culture and envy at it’s regime.
Here’s the video.