One final issue is the corruption and inefficiency of some Chinese officials, which is arguably among the worst in the world. Even Chinese President Hu Jintao (胡錦濤) admitted in public that it was a matter of life or death for the CCP.
The Chinese Academy of Social Sciences also revealed in a report that if a financial crisis or political unrest occurs, financial institutions will be able to handle between 5 percent and 7 percent of their depositors in medium and large cities, leaving between 93 percent and 95 percent of Chinese depositors unable to withdraw their money.
If China wants its economy to continue to develop, it must first resolve these difficulties. This will be a great test of the new leaders’ wisdom and resolution.
Lee Wo-chiang is a professor in Tamkang University’s Department of Banking and Finance.
Translated by Eddy Chang