Wall Street takes control of the Chinese economy
By Daniel Campos 15/9/22
On August 26, 2022, the Public Enterprise Accounting Oversight Board (PCAOB), a corporation controlled by the United States Congress, signed a Protocol with the China Securities Regulatory Commission (CSRC), and the Ministry of Finance of the People's Republic of China. The Protocol allows access for the PCAOB to inspect, and fully investigate under US law, the top 250 Chinese companies, and their accounting firms based in mainland China, and Hong Kong.
The signing of this Protocol by the Chinese government liquidates the last elements of "independence" of China and its government. The Protocol between the PCAOB and the CSRC means a complete takeover of world imperialism, the government agencies of the United States, and Wall Street, who from now on will control and audit all the companies that dominate the capitalist economy of China. "We have this unprecedented agreement signed this morning, but we still have to see in the next few months whether there will be compliance" said Securities and Exchange Commission (SEC) Chairman Gary Gensler, in an interview on "Surveillance" on Bloomberg Television. The news was also confirmed by the China Securities Regulatory Commission, who wrote an official statement on its website.
The Communist Party of China (CCP) Kneels Before Wall Street and Imperialism
Chinese President Xi Jinping, and Communist Party of China (CPC) officials by signing this Protocol completely kneel before Wall Street and imperialism. As of the signing of the PCAOB-CSRC Protocol, the American officials and accountants of the PCAOB will begin to audit, supervise, control the accounting books of all the main Chinese capitalist companies, under the laws of the US imperialist state. In mid-September 2022, PCAOB officials will begin landing in China to begin taking control of its economy, per Wall Street dictates.
The PCAOB-CSRC Protocol includes 3 clauses of subordination of the Chinese state to the officials of the United States, which are of a colonial nature, and absolutely humiliating. They are the following:
- "The PCAOB has the sole discretion to select the firms, audit engagements, and potential violations it inspects and investigates, without consulting or inputting from Chinese authorities" This clause means that United States officials can meddle in the Chinese economy by inspecting, investigating, and controlling the numbers of Chinese companies without any obligation to inform or consult the government of the Communist Party of China, nor its president Xi Jinping, nor any institution, nor official of China.
- "Procedures are in place for PCAOB inspectors and investigators to view completed audit work papers with all information included and for the PCAOB to retain information as needed." This clause means that US officials have access to all information on Chinese companies, and can retain all information whenever they want, and however they want, at their own discretion.
- "The PCAOB has direct access to interview and take testimony from all personnel associated with audits that the PCAOB inspects or investigates .This clause means that United States officials have full access to Chinese company managers, Chinese accounting firm officials, and Chinese government officials, and all other Chinese corporate personnel, to obtain from them the information they need, carry out its investigations, control, and inspection, everything that according to US laws it deems necessary
China Global Television Network video announces signing of protocol between PCAOB, and CSRC
An agreement imposed by imperialism and Wall Street
The PCAOB-CSRC Protocol signed by Washington and Beijing is presented by the Chinese and imperialist media as a "cooperation agreement" based on "principles of reciprocity", as if it were an association of "equals" who agree to the agreement " of common will" · Nothing can be more false . The Protocol signed by Washington and Beijing is a brutal imposition of US imperialism and Wall Street that tramples the sovereignty of China and its people. Xi Jinping's government had to sign the agreement with a gun to the head put by Wall Street: If China did not sign the Protocol, its 250 companies listed on Wall Street would be left off the stock market, which would have been a brutal collapse of all the major companies in China, and a nosedive of the entire capitalist economy of China.
In 2020, the United States Congress approved the Foreign Corporations Liability Act (HFCAA), according to which it gives all companies in the world that are listed on the Wall Street Stock Exchange 3 years to become controlled. by the PCAOB. By December 2022, the 3 years were up, and if China did not sign the agreements, its companies were excluded from Wall Street according to the HFCAA Law. The capitalist companies in China need to be listed on the Wall Street stock market to provide themselves with capital and function through the sale of shares, that is, the Chinese economy needs imperialist capital in order to function, and is totally dependent on these capital investments.
Like all capitalist companies in the world, now China's top 5 companies SINOPEC (China Petroleum & Chemical Corporation), State Grid Corporation of China (SGCC), China National Petroleum Corporation (CNPC), China Mobile Communications Corporations (CMCC) , and Industrial and Commercial Bank of China (ICBC) , as well as other major companies such as Alibaba Group Holding Ltd, Pinduoduo Inc., etc. will all be audited by the PCAOB from now on. In other words, there is no "reciprocity" in the Washington-Beijing agreement, it is an imposition of imperialism and Wall Street, which imposes that Chinese companies be controlled under the laws of the United States.
The HFCAA Act consolidates the hegemony of US imperialism
After the signing of the Protocol signed by Washington and Beijing, the shares of Chinese companies jumped, Alibaba Group Holding Ltd. rose up to 5%, while JD.com Inc. rose 4.6%, Pinduoduo Inc. jumped more From 6%, the Nasdaq Golden Dragon China index rose 0.4%, showing the approval of investors and imperialist corporations for the signing of the Washington-Peking agreement. The HFCAA Law implies the takeover of Wall Street, and the imperialism of the United States of all the most important companies of all the countries of the world, of the main 50 world capitalist economies, and now after the signing of the PCAOB-CSRC Protocol, they also include China.
Left Image: Yuan Talks tweets the PCAOB-CSRC Protocol agreement Center: PCAOB reports the PCAOB-CSRC Protocol Right Image: Chinese companies rise on Wall Street after the signing of the Protocol. Source Bloomberg
SEC Chairman Gary Gensler said in a statement, "This settlement marks the first time we have received such detailed and specific commitments from China that would allow PCAOB inspections and investigations to meet U.S. standards". In turn , Erica Williams the president of the PCAOB clarified that the audit watchdog agency made no commitment to China in its negotiations "There are no special arrangements with China. We're not providing anything to them that we're not providing to other countries around the world" she said during an interview on Bloomberg Television's "Balance of Power."
What Erica Williams makes clear in her capacity as president of the PCAOB, is that there is no "preferential treatment" with China, but that it receives the same colonial treatment that all countries under PCAOB supervision receive. The sanction of the HFCAA Law is a product of the fact that being listed on the Wall Street stock market is considered by the United States as a "privilege", and in turn it is the reaction of imperialism to the serious crisis opened in the global capitalist economy when in September of 2019 broke out the New York bank repossession market, known as "Repo Crisis". This led to imperialism, and the Central Banks to initiate the bailout and financial aid operation that we call QE4, consisting of the injection of around 30 billion dollars that triggered world inflation.
World inflation skyrocketed from the brutal injection of gigantic masses of fictitious capital into the global economy. Those masses of capital were directed in a small fraction to combat the COVID-19 pandemic, and in their overwhelming majority to develop a "speculative party" from which all the capitalist companies that operate in the main stock markets of the world benefited, especially on Wall Street. But US imperialism with the sanction of the HFCAA placed a toll booth at the entrance to Wall Street: If you want to participate in the "Party", from now on your company accounts will be under our supervision through the PCAOB.
That is to say, what US imperialism is saying to the entire world with the sanction of the HCFAA is: "Ok, we invite you to our "party" , you can come to Wall Street to enjoy the masses of free capital that we are giving away to all the corporations and the rich on the planet. But if you enter the "party" from now on, we are the owners of your accounting" . In this way, as explained by Karl Marx, the episode of serious crisis called "Repo Crisis" is "solved" in the same way that all capitalist crises have historically been "solved" : With a brutal centralization, and concentration of capital.
Left Image: The spectacular jump in the "Repo" rate on September 17, 2019. Center Image: Erica Williams President of the PCAOB. Right Image: Gary Gensler Chairman of the SEC which regulates the Wall Street stock exchange
After the "Repo Crisis" of 2019, and the HFCAA Act of 2020, the hegemony and dominance of US imperialism over the world capitalist economy is consolidated. The brutal imposition of colonial status implied by the signing of the Washington-Pekin agreement is only the result of the action of the deepest laws of capitalist development. China will be under the orbit of the PCAOB, a corporation that was born through the Sarbanes-Oxley Act in 2001 as a response to the serious crisis that caused the bursting of the sub-prime bubble, and the Enron Corporation crisis, which opened the current world crisis of capitalism that we are currently experiencing.
Another nail in the coffin of the "Decoupling Theory"
In reality, the round of bailouts and financial relief that QE4 implies was in no way the solution to the world crisis that capitalism is experiencing. On the contrary, QE4 took capitalism out of the Repo crisis, but it got it into a global inflationary crisis, because capitalism is not strong, nor solid, on the contrary, it is collapsing. For 14 years, capitalism has existed thanks to an artificial respirator that is the Salvage, which allows it to survive while going through a stage of complete decline and decomposition. In fact, the serious social, economic, environmental, political crisis, and the current global pandemic of the Coronavirus, are the expression of the current collapse that capitalism is experiencing.
All the new facts have thrown the " Decoupling Theory" into a coffin, where it lies dead. The PCAOB-CSRC Protocol signed by Washington and Beijing has placed a new nail in the coffin of the "Decoupling Theory", which already lacks any support in reality. The "Decoupling Theory" is the one that posits that China is a new "imperialism" that disputes world hegemony with the United States. It states that what is happening in the world is the end of US hegemony, and that old imperialisms such as the European Union (EU), or new imperialisms that are emerging such as China, India, Russia, or Brazil (BRIC'S) are "decouple"of US imperialist domination, and dispute that hegemony. The "Decoupling Theory" provides us with a perspective of where the world is going: Towards World War III, product of the dispute "between imperialisms".
It is an essentially American theory promoted from academic publications on Wall Street and has been defended by bankers and Wall Street officials who, when the sharp peak of the years 2007-2008 broke out, believed that Wall Street would collapse, leaving the BRICs in their place. They would take control of the world economy. This theory became the "Fashion Theory" in academic, university, and intellectual circles of all stripes, and was adopted by 99% of the world left.
The Progressive International (PI), the magazine Jacobim, and all the left groups in the world, social democrats ex-Trotskyists, ex-Stalinists, ex-guerrillas, adopted the "Decoupling Theory" and desperately embraced it, bringing new elements of their own creation to theory. In this way, without studying much, without any serious element of reality to support their claims, and without any element of Marxism to justify their assertions, the leaders of the world left found in this theory their perfect theoretical basis to deepen their reformist course. .
The "Decoupling Theory" gives the perfect excuse to the leaders of the 99% of the world left to become officials of the capitalist regime. To reach deputies, legislators, councilors, or mayors making all kinds of agreements with the "progressive bourgeoisie" or calling to support the Bernie Sanders, Melenchon, Boric, Lula, Petro to stop the "unstoppable advance of the reaction" that irreversibly It leads us to World War III. The Left parties that adhere to the "Decoupling Theory" can perfectly fulfill their role as officials of the "progressive" governments without guilt, what's more we must thank them,"democracy", and we put a stop to "reaction and fascism". The leaders of the parties of the world left become officials for more than humanistic reasons.
For the "Decoupling Theory" there is no revolutionary process in the world, the general strikes that shake Europe do not exist, the new delegates that arise in the unions of the United States do not exist, the Partisans of Ukraine do not exist, and the mobilizations of masses that shake Indonesia, Sri Lanka, Ecuador, Panama, Chile, Iraq, etc. do not exist. The only thing that exists is the irreversibly course toward World War III. Leaders like Bernie Sanders, Yanis Varoufakis, Noam Chomsky threw all kinds of forecasts: "China, Russia, Brazil, India and South Africa are going to take over the world economy."
Bolsonaro's victory meant "the arrival of fascism in Brazil." When the peoples rose up with Maduro in Venezuela, or Evo Morales in Bolivia, they did not hesitate to classify these movements as "coups" or "CIA interventions." They said that "fascism was looming over Europe", Putin's invasion of Europe was "the beginning of World War III". But the facts of reality beat up, and gave a slap in the face to all these talk, lies, chatter, cantinfleas, and lies of these quacks paid by the State Department.
The countries that were "going to take over the world economy" India, Brazil, and South Africa sink into recession with a sea of starving millions. The war criminal, murderer of the Chechens Vladimir Putin is taking a historic beating from the Ukrainian people. Fascism never reached Brazil. And something else that everyone is silent about: The supposed "imperialism" led by Xi Jinping and the Communist Party of China is in a very serious crisis with no way out: In the midst of a real estate bubble about to burst, a depression in the economy, and the Spontaneous outbreak of the pandemic with new strains, China not only accepts that the US imperialism takes control of its economy, but urgently needs it.
The serious crisis without exit of China
Many of these quacks for hire have written torrents of ink to explain that Chinese companies would take over the world. They are "Multinationals" affirm our charlatans. And it is true. What our professional cantinfleros do not know, or hide from the people, is that already any country in the world has Multinationals, even poor countries like Mexico, Argentina, or Colombia have Multinationals. The companies that dominate the world are no longer Multinationals, but Global Corporations such as JP Morgan Chase, Goldman Sachs, Bank of America, Barclays, Deutsche Bank, BNP Paribas, Credit Suisse, Wells Fargo, etc.
China does not have Global Corporations. Global Corporations are companies that control the processes of mergers and acquisitions, and the flow of capital on a global scale. The decisions of the Global Corporations are made in Davos between the officials of the select group of the 7 imperialist countries and Wall Street. But our paid charlatans paid by Morgan or Rockefeller Banking, while they accommodate themselves in their seats of legislators willing to vote "progressive laws", raise the specter of the "Chinese" or "Indian" advent, while the global Corporations that pay them by deceiving the unwary, they seize and concentrate the world's wealth operating from Wall Street.
This bunch of charlatans never tires of talking about the "wonder" of the "Chinese dragon". They say that China has lifted millions out of misery, created wealth, its Multinationals expand throughout the world, that it promotes the "New Silk Road" to take over the world. But all the quackery of illiterate chatterers for hire collides with the reality of China that nobody talks about: China is a time "bomb" about to explode to the extent that China's real estate "bubble" has already reached more of 30 billion dollars, and threatens the bankruptcy of all its banks expressed in the crisis of the Chinese real estate giant Evergrande.
China is a "bomb" of hunger, poverty and misery, with billions without food or a place to live. China is a "bomb" of super-exploitation, attacks on the working class, and alarming suicide rates in factories, China is a "bomb" of attacks on human rights with slavery and oppression of indigenous peoples, and of concentration of millions of people from the Iugur minority, in which United States textile companies invest. China is a pandemic "bomb" that cannot control COVID-19, while new strains emerge, and new closures and quarantines in its cities. China is a "bomb"environment, you cannot breathe in Shanghai, one of the most polluted countries in the world from the sky to the sea, with thousands of square kilometers of coastline, estuaries, bays, swamps, reefs and seagrass beds destroyed by dam construction and attempts for reclaiming land from the sea, the use of oil, pesticides, and lead levels 50% higher than normal.
But don't be fooled. The appalling process of destruction of productive forces that Chinese capitalism has provoked is not only the responsibility of the oligarchy of the Communist Party of China (CPC). When Nancy Pelosi, Speaker of the US House of Representatives, visited Taiwan in August 2022, while all the imperialist media, and the world's hordes of charlatans were stirring up the "imminent World War III", the news of the scandal that broke out when it became known that Nancy Pelosi's son, Paul Pelosi, who is one of the owners of China Mobile, one of the 5 largest companies in China, was part of the official delegation.
1st Image: Unbreathable Shanghai with high levels of pollution. 2nd Image: Nancy Pelosi and her son Paul in Taiwan. 3rd Image Jiang Zemin President of China who signed the entry to the WTO with the Queen of England 4th Image: Donald Trump with Jack Ma owner of Albaba one of the great Chinese Multinationals
With Paul Pelosi, the economic relations of the United States with China are publicly expressed: All the big "Chinese" companies are actually owned by imperialist capital. A month after Pelosi's visit, the Chinese government signed the Washington-Beijing agreement, by which the PCAOB comes to control the Chinese economy. Bearing in mind that the PCAOB is an organization controlled by the United States Congress, whose House of Representatives is controlled by Nancy Pelosi, we will see the situation in which the Pelosi family, like that of so many US oligarchs, is on both sides of the counter, such as Chinese business owners, and "auditors" of China, in order to be able to defraud the Chinese people without inconvenience.
When China entered the WTO (World Trade Organization) in 2001, it did so under the condition that it complete the process of privatizing its economy, which it completely handed over to imperialist capital. Another condition is that China must use part of the fiscal surplus it obtains from exporting the goods it exports to the entire world to buy US Treasury bonds, with which China became the main financier of world imperialism, and Wall Street. Imperialism needed the oligarchies of India, South Africa, Russia, or China to privatize huge sectors of the global economy, which gave rise to sub-metropolises, countries that concentrate gigantic masses of capital, and in turn oppress larger economies. smaller.
And now, after the signing of the PCAOB-CSRC Protocol signed by Washington and Beijing, Fang Xinghai, vice president of the China Securities Market Regulatory Commission (CSRC) , declared that China will take more measures to open its markets, and will submit the prices of Chinese companies abroad to a "homogeneous" regulatory framework. In other words, according to Fang, Chinese companies will trade at the price, and will have the value that Wall Street decides. "Next, we will launch stronger and deeper opening measures, " Fang said. In other words, the Chinese oligarchy needs the United States to intervene directly to control the chaos and disaster to which its economy is heading, as a result of not having control of the capital that acts in it.
The signing of the PCAOB-CSRC Protocol signed by Washington and Beijing will not be in any publication of any leftist group in the world. It will not be a resounding headline in any imperialist media newspaper. The news will hardly go unnoticed among specialists and Wall Street speculators. But for Marxists the news does not go unnoticed. It is, with all the details and elements that compose it, an exact painting of where things are going. While the charlatans, singers, talkers, and chatterboxes wave the scarecrow of the "Chinese advent" we speak clearly to the peoples of the world: The problem of the world is not the "Chinese advent", but the cabal of professional fraudsters and criminals who bring the entire world down by operating out of Wall Street.
The aristocracy of the 1% of Wall Street, richer every day, does not hesitate to plunge billions into abysses of poverty, pandemics, and destruction of nature, to defend their luxurious life of private islands, yachts, luxury cars, and mansions. The Chinese, Russian, Brazilian, Indian, and South African associates of this cabal of professional white-collar fraudsters are in the crosshairs of millions rising up around the world and pointing their index fingers at them. The starving millions on the move in Indonesia, in Sri Lanka, in the Middle East, in Latin America, the armed women and families in the Ukraine are targeting these oligarchs.
They have little left. Labor and popular activists in the United States and Europe are also targeting them. A global civil war looms over them, who terrified, lock themselves in their private neighborhoods, and condominiums surrounded by small private armies. We Marxists must bury the "Decoupling Theories", "Great Reset Theories", and to all the paid charlatans who seek to divert us from our objectives. To then bury this small global oligarchy of 1% by imposing Global Socialism. We must nationalize the Global Corporations, and invest those immense masses of capital in work, health, education, and the environment. It is a matter of time before the revolutionaries of the world regroup, and organize to achieve and impose it, relying on the millions who demand our presence at the historic event. We'll be there.
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