With home prices in China declining for the fourth straight month, it seems a good idea to post this seven minute interview with China expert Gordon Chang about the Middle Kingdom’s pending economic woes.
In the above interview conducted last month, Chang said that despite IMF estimates, China’s economy is not as big as America’s and that it’s about to be hit by a huge debt crisis something akin to the one that ripped apart Japan in the late 1980s.
The extent of the problems in the Chinese economy, Chang says, are so large that they can’t be fixed and that there’s no way out of it.
While this is sobering Chang is also asked by interviewer Steve Malzberg about China’s new nuclear weapons delivery vehicle development. He said this was concerning because China military is increasing in capabilities while the U.S. military is downsizing.
When asked if he could give some insights into how Chinese leaders think, Chang gave the example that he thinks Beijing actually contemplates the use of nuclear weapons.
“We saw this last October when state media in all its main platforms ran identical stories about how Chinese submarines could launch ballistic missiles with nuclear weapons and incinerate Americans in 13 cities that it designated and also kill millions in Chicago by radiation, so clearly the Chinese leaders talk about this,” Chang said.
“They have a very different doctrine when it comes to these weapons than we do; we have to be very concerned with that.”
I think they may believe that they might be able to get away with it.
Chang is the author of The Coming Collapse of China, and he is a regular contributor for Forbes.com and LIGNET.