The Hidden Story Behind China’s Failing Economy.

By Barry Shaw, Israel Institute for Strategic Studies.

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, 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 during 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 them, calling them “cruel.”

She and her children are living under police protection in the French town of Lyon.

Miles Kwok rightly ask 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 Chinaman was killed in France. He died after falling of 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 of 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, 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 businessman 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, in 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.


Barry Shaw is the Senior Associate for Public Diplomacy at the Israel Institute for Strategic Studies. He is also the author of ‘Fighting Hamas, BDS and Anti-Semitism,’ ‘1917. From Palestine to the Land of Israel, ‘BDS for IDIOTS,’ and his latest work ‘A Tale of Love and Destiny,’ the dramatic life of a Jewish heroine.<

April 22, 2020 | 22 Comments » | 673 views

Subscribe to Israpundit Daily Digest

22 Comments / 22 Comments

  1. “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 answer seems to be, “China’s corrupt Vice President and his CCP circle of villains”

    I think we’re getting close to pay dirt here.

  2. Please note my previous post. Communist Chinese companies, set up to launder foreign currency to the corrupt elite officials who surround Xi Jinping, obviously knew the potential of the Wuhan coronavirus to cause a world-wide pandemic, and saw it as an opportunity to make a “killing” (pun is no accident). That supplies the missing rationale for the CCP’s activities at that time.

  3. @ Michael S:
    Michael, this Gui Wengui is a really shady character.
    He appears to be on the run from the law and he claims that the Chinese government unfairly accused him of multiple crimes. He actually paid big money to have documents forged:
    “Guo had incited and instigated twin brothers Chen Zhiyu and Chen Zhiheng to forge over 30 national-level official documents as the main content of his so-called “revelation” online, which were documents faked to be issued by the CPC Central Committee, the State Council, and its relevant ministries and commissions.”, etc, etc.
    I am far from idealizing the CCP or China but I find it hard to believe this person.
    I think we should take this stuff with a grain of salt.

  4. @ Reader: Reader, police and prosecutors use shady characters as informants and have them testify against their former partners in crime all the time. Nearly always, they need the testimony of these crooks to get convictions of their former partners in crime. Guy Wengui’s shady past doesn’t necessarily mean that his accusations are false. He could not easily have acquired his vast wealth without some sort of relationship with China’s ruling elite. Like Joe Valacchi, another ultrashady informant, he may know where the bodies are buried.

  5. @ Shmuel Mohalever:
    But he also needs to ingratiate himself with the American authorities to get a political asylum.
    So it’s at least 50/50 either way.
    Bad communists/good capitalists – it’s just too simplistic.

  6. @ Reader: The allegation that Guo Weng-gui forged the documents he showed to the state department originated with the Chongqing Municipal Commission, a Chines government organization. It has no more credibility than anything else the Chinese government says.

    The article in Wikipedia is obviously extremely hostile to and biased against Guo. It uses loaded terms like “political agenda” to describe him. Most articles in Wikipedia are reasonably accurate and well-researched. But some of them are outrageously biased and inaccurate–including some that defame Israel.

  7. @ Shmuel Mohalever:
    How reliable is the testimony of crooks?
    What if they lie about their former partners so that the partners get life sentences and they themselves get off easy?

  8. Actually, Wikipedia was good many years ago and now it is nearly worthless because a few years ago its founders were scared by someone into neutrality and political correctness.
    Therefore, this article must be fairly truthful because it could not have been published otherwise or it would be edited to be suitably politically correct.
    Every government is a tool of oppression but it is either direct or indirect.
    For example, in the US “The Small Arms Survey stated that U.S. civilians alone account for 393 million (about 46 percent) of the worldwide total of civilian held firearms. This amounts to “120.5 firearms for every 100 residents.””
    What kind of force would the US government use against its civilian population?
    Take a good guess.
    Again, modern China is the product of the West. Now the West decided to show China its place in the corner.
    I am not joining the howling mob in the witch hunt, I don’t care who is the designated witch.

  9. @ Reader:
    Reader, if the Wikipedia has been pressured into being “politically correct,” then the accuracy of its recently written articles on sensitive political issues is suspect. There are many influential interests in the U.S., such as pharamaceutical companies, numerous manufacturers of nearly everything we use, etc. that obtain or produce their products in China. Chinese businessmen not only sell a great many products in the United States, but they actually own some U.S. companies. That means there are a lot of people who belong to America’s ruling class (for lack of a better term) who oppose anyone who badmouths the Chinese government or advocates economic sanctions against China. Any number of such individuals could have written this article attacking Gao. It is even possible that pro-Chinese editors have “infiltrated” the Wikileaks management.

    I don’t think that the Chinese government is th only “player” that has exaggerated the deadliness of the novel coronavirus. THe bill and Melinda Gates Foundation, Bill Gates himself, and Warren Buffet have probably been the ones directing the panic campaign, for reasons of their own. But there is some evidence that the head of the Chinese government’s infectious disease control bureau is one of the individuals involved in the Gates foundation conspiracy. The conspiracy, I believe was hatched at the “Event 201” conference held on the john Hopkins University campus in October 2019. The fifteen “players” at the conference openly declared aimed at protecting the world for a a coronavirus pandemic. This was a conspiracy hiding in plain sight.

    Th only Chinese present at the conference was the aforementioned gentleman, whose name I forget. All the other players were white men from the u.S., Europe, and Australia. But he was there, and it was he who took charge of the coronavirus outbreak in Wuhan only two months later.

  10. Ted, I am really sorry to have to ask you to fish my latest post here from trash. In it I explained why I think I think the Wikipedia article mentioned by Reader could have a pro-Chinese government bias. I also explained that I was not trying to scapegoat the Chinese. Rather I believed that many influential, politically connected individuals from many countries, including a number from both the United States and China, were promoting a coronavirus pandemic.

  11. Reader, the jist of what I wrote in my perhaps overly long reply to your “scapegoat” post was that most of those involved in planning the coronavirus pandemic, and the propaganda campaign to exploit it to create a worldwide pandemic, were white men from the United States, Canada, Western Europe, and Australia. I never meant to single out the Chinese people as the ones responsible for this conspiracy. But I do think that some individuals in the Chinese government and business community have joined the conspiracy. That is because of the intimate ties between Western and Chinese businesses and businessmen that have developed as a result of “globalism.”

  12. Coronavirus Cases:2,677,527

    Deaths Until now: 187,537

    This makes for great inspiration for those who at every turn love to come up with conspiracy theories. It is the material fiction writers love to find as they find creative ways to fancy up new drama’s. If you like fiction there is lots being written and I am very safe to say it will not stop, as the conspiracy theorists are not able to stop themselves.

  13. @ Shmuel Mohalever:
    My reply – Part 1:
    The man whose name you forgot was the man who is in charge of the Chinese CDC-type organization. That’s why he was in charge when the outbreak happened in China.
    The Chinese were particularly interested in viruses because of the SARS epidemic they had in 2003 and they were anxious not to repeat it.
    See my comment about who funded Wuhan research at:
    as far as your theory – plausible does not mean possible, and possible does not mean probable.
    We can speculate endlessly about who was in on it and who wasn’t. In my opinion, you have to find out who benefits the most from the debacle, and to figure this out you have to do a lot of research instead of relying on your best guesses.

  14. @ Bear Klein: I hav pointed out many times that these figures are suspect, and have explained in detail why many times. The WHO, which generates thee statistics, has been very selective in what statistics they release, and has used questionable means of compiling them.

    Not all conspiracy theories are false. Most are, probably, but not all. The word ‘conspiracy” occurs hundreds of times in the U.S. criminal code. Prosecutors charge defendants with participation in conspiracies frequently. When they do, the judge requires them to present a “theory of the case–that is, a conspiracy theory–to the jury.

    Is it rational to think that only prosectors can find evidence of a conspiracy? I believe that even ordinary citizens can also find evidence of at least a possible conspiracy, although we don’t have the search warrants, subpoenas, powers of arrest and interrogation, etc. that are needed to prove a conspiracy. However, some conspiracies are “hiding in plain sight,” and evidence of them can turn up in internet searches.

  15. @ Shmuel Mohalever:
    My reply – Part 2:
    Yes, Wikipedia accuracy IS suspect, however, my point was that if EVEN Wikipedia didn’t edit this article to present Gui Wengui as a poor, virtuous victim of the Chinese communist “regime”, it was because it simply COULDN’T since the facts stared everyone in the face.
    Maybe it will shortly, who knows.
    Last but not least, I like people to be consistent.
    You think China is criminal – throw out everything you have that’s Made in China and replace it with Made in the US or do without, do not go to Chinese restaurants, and treat other “criminal undemocratic regimes” (like, say, Saudi Arabia who pokes people’s eyes out and chops off their hands for minor crimes, and assassinates a dissident in its embassy and dismembers him, etc.) the same as China instead of letting them off the hook because they are “our sons of bitches”.
    And I don’t go for that “good people/bad government, let’s have a revolution there to establish real democracy” Roman “just war” trick.
    And remember – today it is “the Chinese virus”, tomorrow it might be “the Jewish virus”.

  16. @ Shmuel Mohalever:
    My Reply – Part 1 went into moderation AFTER it was displayed for a while.
    This is not the first or the only time it happened, I think it’s because of the link.
    I don’t know if you’d managed to read it.
    I hope it will be released soon so my complete reply to you will make sense.

  17. Fools and Conspiracy theorists abound all over the world even under fictional names at Israpundit. Sometimes they change their fictional names. One thing that is constant is that they try and create drama no matter the subject.

  18. Some vicious anti-Semites are also using conspiracy theories about the Corona-Virus. Other conspiracy theorists sometimes are just harmless fools trying to impress or create drama on the web to bolster themselves to others or perhaps themselves.

    How COVID-19 has sparked anti-Semitic conspiracy theories

    It’s easy to see how the coronavirus pandemic has sparked anti-Semitic conspiracy theories. They are a part of the classical paradigm; the Jews have again become what the Italian writer Alessandro Manzoni called “the plague spreaders of 1630.” This has happened every time there has been a plague, for example the Black Death, which swept through the Middle East and Europe in the years 1346-1353.

    The Jews were blamed then as they are today for COVID-19, but it could have been syphilis, tuberculosis or parasites. The bibliography is vast. The late scholar of anti-Semitism Robert S. Wistrich outlined conspiracy theories in the Arab world blaming Jews for theft, rape, the slaughter of gentiles and an alleged secret coalition of Jews and Freemasons seeking world domination.

  19. @ Bear Klein:
    Hi, Bear. You said,

    “This makes for great inspiration for those who at every turn love to come up with conspiracy theories.”

    Bear, when I see the words “conspiracy theories” in a argument, such as yours, it immediately goes into my mental trash bin. Adam/ Shmuel has done some impressive research here — more, even, than Reader, who has himself done a commendable amount of investigation. I applaud them both in this matter.

    Adam and Reader, you are arguing about the veracity of the messenger — something which, when dealing with the Chinese Communists, seems to have little relevance.

    My comments concerned the message itself — that people connected with the CCP massively stockpiled protective equipment in late December (when only “Deep Party” CCP members had the full story on the novel coronavirus), sugar-talked the West into allowing flights in and out of Wuhan into the heart of our modern civilization, then sold them for a pretty sum of foreigh-exchange currency. This scenario jibes with everything I have learned about China for the past 20 years.

    Bear, my disagreements with Reader and Shmuel have been over what seemed to be a dismissal of the medical severity of this pandemic — a severity which you regularly emphasize by quoting the death figures. In these things, I agree with you; but I don’t think it would be proper to dismiss the things that Shmuel, in particular, has been saying here.

  20. @ Michael S:
    I do not read most of what Adam writes because I found in my view that he is not a credible person because virtually no matter the subject he ends up with a huge drama or some cases the equivalent of the sky is falling.

    So, as in all things use your own judgement come to your own conclusions. I found I have no interest in his views for the most part. It is a waste of time to read them.

    Many anti-semites as usual are using the real pandemic to try and hurt Israel and Jews in their conspiracy theories. There is an excellent article on this I referenced about and will also post it now

  21. @ Michael S:
    Michael, I do not read most of the commentary any more relating to the Corona-Virus on this site, twitter or facebook. I found it mostly a waste of time.

    I read lots of articles and from medical journals relating to Covid-19. I read the Worldometer stats as they are considered the best compiled stats available by the medical people. They are not based on WHO as a commentator here has alluded to. This is mostly the source of the numbers I post periodically. I am not a medical person so I defer to medical and scientific people for those type of issues.

    Worldometer is run by an international team of developers, researchers, and volunteers with the goal of making world statistics available in a thought-provoking and time relevant format to a wide audience around the world. It is published by a small and independent digital media company based in the United States. We have no political, governmental, or corporate affiliation.

    For the COVID-19 data, we collect data from official reports, directly from Government’s communication channels or indirectly, through local media sources when deemed reliable.

    More info about them is available at

Leave a Reply

Your email address will not be published.