There’s nothing new about official Chinese lies. China made commitments to be admitted to the World Trade Organization in 2001 and then proceeded to break every one with illegal subsidies, disregard of WTO rulings and theft of intellectual property.
China’s GDP is routinely overstated by about 25% because they included wasted “investment” in ghost cities and other dead-on-arrival projects. Some analysts conclude that China’s GDP is even more deceptive and is perhaps only at 3% instead of the over 6% they report.
None of this comes as any surprise because China is led by an atheistic Communist Party with an “ends justify the means” mentality. In a culture of that type, it’s no surprise that lying and cheating filter down to civil society and professional organizations.
The latest example is shown in this article. One of the largest auditors in China has been accused of faking client data. The implications of this go beyond the auditor itself and extend to their many clients who have been issuing fake financial statements.
This scandal has also led to a halt on client IPOs that were using the fake financials to issue stock to unwitting investors. There will be more revelations like this. The entire Chinese financial system is filled with unpayable loans, Ponzi finance and insolvent banks.
There are plenty of investment opportunities in the world. China should not be on anyone’s list.
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