Barry Shaw: The Hidden Story Behind China’s Failing Economy
Miles Kwok may or may not be a dishonest man. Even his name is a pseudonym. His real name is Gui Wengui. He is a Chinese billionaire on the run from the long arm of the goons of the Communist Party of China. His assets in China have been frozen and he is seeking political asylum in America. His problem is not only his money. His problem is he knows the nasty secrets of the men at the top of the People’s Republic of China. That makes him a man marked for death.
He lives under tight security in an exclusive address in New York when he is not flitting between Canada, the United Arab Emirates, and elsewhere. He is today a man on a mission. To expose the corrupt leaders of China and bring about their fall from power. He has on his side details of their grand theft and nepotism as they suppress their people and protect their own wealth. It is difficult to believe some of the jaw-dropping stories he tells about the men at the very top of the Chinese elite. His stories stand in stark contrast to the image of a harsh leadership tied to the intolerant ideology of an authoritarian Communism.
For example, Miles Kwok tells us that Chinese Vice President, Wang Qishan, the man who dictates to his people what they may or may not do, even to the point of ordering them how many children they may have, is a philanderer who has had many wives, many illegitimate children, and even more mistresses, including a beautiful singer and actress who also acts as his money-launderer making a 20% commission on every trade she does on behalf of the powerful.
Kwok quotes one such deal as being a dizzying $12 Billion deposit. Given the size of the Chinese population that was a theft that equates to stealing almost $10 from every man, woman, and child in China in the year 2016 when it happened. Miles Kwok is a man on a mission. For him, it’s either him or them. One of them has to fall first, and he needs for the Chinese elite to be brought down before they get to him.
It begins and ends by understanding the unique structure of the Chinese economy. As Miles Kwok explains, it will collapse of its own volition after the leaders have destroyed the props that keep their shaky paradise in place. Then, Guo Wengui hopes, the people will rise up in their masses against the corruption. The basic elements for a massive fall are already in place and observers see how the regime is scrambling to stop the cracks in the dam that will inevitably destroy them.
One needs to understand the Chinese economy according to Gui Wengui who has intimate knowledge of the system, having made his fortune from it. China has two economies. An internal economy based on the renminbi (RNB, commonly known as the yuan, the official Chinese currency.) The RNB is also one of the world’s major reserve currencies. It also has another economy based on the US dollar. This is for all business and financial transactions conducted outside of mainland China.
China went from being an 11 Billion RMB economy to a $30 Trillion foreign currency economy based on a local economy of only 12 Trillion RNB. How does a country grow from eleven billion to twelve trillion in local currency? They did it by printing money to keep their people happy. China printed more money internally than any other country in the history of the world as a percentage of GDP.
It is not possible to sustain such a false economy without sucking in foreign currency on a massive scale but the Chinese elite cannot do that. It is in their private accounts outside of China, leaving the Chinese banking system at currently 400% of GDP. According to Miles Kwok, fully 45% of all loans in China may be bad. That is the basis of an unsound economy. In any economy, if 45% of your loans are bad, and your banks are four times your GDP, you are insolvent. It is a recipe for disaster.
Kwok claims the major Chinese banks at risk of failure are the Bank of China, followed by the Minsheng Bank, and then the China Development Bank which, according to Kwok, is the main foreign currency money-laundering bank for the Chinese rich and powerful. As Gui Wengui says, these banks work with the Chinese leadership who have been enriching themselves in billions on the backs of the Chinese people.
Since the Chinese Communist Party elite run the banks, they can do whatever they want. They will keep their ties to the outside world open for business. They need the foreign currency. But, inevitably, they are forced to grab assets of successful Chinese entrepreneurs, and eventually must suppress the economic future of their people. As Miles Kwok told Kyle Bass on a Real Vision Finance interview in late 2018, the Chinese leadership stay extraordinarily wealthy by massive money-laundering of foreign currency as they try to find new ways to keep the economic wheel turning.
Miles Kwok asks why is China’s little Hong Kong colony pegged to the US dollar if China’s economy is so great? It’s because, he says, The Bank of China HK handles it. It launders money for the leadership in Beijing, who keep this money away from their population. Why does BGHK have two thousand workers, he asks. China has to assert its control over Hong Kong to control the dollar trade that the leadership desperately needs.
When the lovely Fan Bingbing protested in the Chinese media about the Gui Wengui’s accusation about her affairs with the elderly Vice President and her role as a money proxy, she was promptly arrested by her powerful patron, only to emerge as a chastened and silent co-conspirator. Others have been less fortunate, says Wengui.
Meng Hongwei was an influential politician who got too greedy. He also became head of Interpol from 2016-2018. This position didn’t stop him from going missing when he and his wife fled to France. He was accused of owing the authorities over two million dollars in bribe money. Rumor has it that he volunteered to return to China where he went missing. Miles Kwok said he was killed in the south of France by Qishan’s men. Hongwei’s wife, Grace, said she does not believe the accusations against her husband, but that his disappearance was a political hit job.
“Everybody in China is at risk,” she said. “Everyone should be concerned that something like this could happen to them. The term anti-corruption in China has become a synonym for crimes that are unjustifiable.” Grace Meng refuses to meet unaccompanied with Chinese officials. She says that she finds them impossible to trust, calling them “cruel.” She and her children are living under police protection in the French town of Lyon.
Miles Kwok rightly asks, how could the head of Interpol suddenly go missing in France? How did this man get transported from France and flown to China without the knowledge of the French police and authorities? What happened to his car? All unanswered questions. Kwok believes he was killed by Chinese assassins sent by the Chinese Vice President. The question remains, how is it possible that a corrupt member of the Chinese Politburo can reach the rank of head of Interpol, the international criminal police organization?
Another rich Chinese citizen was killed in France. He died after falling off a wall on June 6, 2018. Wang Jian was a billionaire. He was the chairman of the HNA Group. According to a report he fell off a high wall in Bonnieux in the Provence region. The French newspaper, Liberation, claimed he committed suicide because of business worries.
The story of HNA is instructive. The Group, according to Miles Kwok, was one of the companies of the Chinese top level elite. They bought and borrowed their way into becoming one of China’s most prominent conglomerates. They bought blue-chip Manhattan real estate, a computer distributor, and a hedge fund. It amassed about $86 Billion by the end of 2016.
Jian’s company had over $230 Billion in assets. The disappearance and deaths of high-profile Chinese investors and businessmen with large foreign currency deposits are becoming common Chinese practice. Steve Bannon said in a South China Post article, “The situation with what I would call the best and the brightest of China, they are either missing, suicide, dead, in prison or their assets stripped.”
The paper claimed that following the death of Jian, and the accusations of Bannon and Miles Kwok, the HNA Group attempted to sue Guo in a New York court for $300 million in damages for accusing the company of engaging in corrupt activities, and having secret ties to the family of a high-ranking Communist Party official. In November 2019, Miles Kwok revealed a USB bank statement stating that the sum of $1.5 Billion was transferred into the personal account of Sun Yao. Sun Yao happens to be the daughter of China’s Vice President, Wang Qishan.
Kwok explains that transfers such as these don’t stay in the account for long. They disappear into private accounts in one of China’s foreign account banks. And why did Jack Ma, the charismatic owner of Alibaba, suddenly resign from his own company at the early age of 55, and why is that company now being run by the Communist Party of China? Jack Ma not only owned Alibaba. He has a private company called Finance Group, a company that challenges the official CCP banks with trillions of dollars. When asked what is likely to happen to Jack Ma, Miles Kwok made a prediction. “Chinese billionaires only have two futures. Jail or die.”
China has a major currency deficit. They only have one option to keep their people calm at home. Print more money. But eventually, their economy will collapse, the people will be sent back to poverty, and they will rise up in their millions against their leaders. Guo Wengui, nee Mile Kwok, is on a crusade to overturn the ruling elite in China. The question remains, who falls first.
The writer would like to offer the theory of another potential pandemic crime that has been troubling him for some time. Why would overseas Chinese real estate companies, such as The Greenland Group, Risland Australia, and others, search the globe buying national reserves of medical equipment suited for a pandemic, including protective masks, gloves and clothing, ventilators and respirators and virus testing kits, only for the Chinese Government to sell them on to countries in desperate need for profit?
The bulk purchases were done between the end of December and the beginning of January when the Chinese said they had a localized problem with no human-to-human transmission. The supplies were warehoused by the government only to be resold in what looks like a bait and switch operation for massive foreign currency profit a month or so later. This neatly fits into the theme of this article that the driving principle of the regime leaders is the ongoing search for foreign currency.
How did they go from mass purchases by private companies into government to government resale by the regime? Was this planned in advance with knowledge of the nature of the virus and its effect on the world if their population was allowed to travel abroad?
It is unlikely that Western governments such as Australia, Canada, the United States, and in Europe will tell us how they got suckered into emptying their national and state reserves. Certainly China will not cooperate. But this should be the job of professional journalists and investigative reporters.
There is after all the makings of a global scam here.