[Commentary]Loan Balances Keep Climbing, Green Development Is Not Effective

Author: MOS Finance Team – Hetangyuese

On May 3, Huanqiu.com cited an article from the People’s Daily News, reporting that as of the end of the first quarter of 2021, domestic and foreign green loans reached 13.03 trillion yuan, an increase of 24.6%.

Quoting the data from the People’s Bank of China, at the end of the first quarter of 2020, the balance of green loans in domestic and foreign currencies was 10.46 trillion yuan, with an annual growth rate of 19.1%. Among the loans, balances for infrastructure upgrade and clean energy industry are 5.04 trillion and 2.9 trillion yuan respectively.

Comparing with the data of the year 2021, the amounts of the two loan above have increased to 6.29 trillion and 3.4 trillion respectively. Electricity, heat, gas and water production and supply industries also rose to 3.73 trillion (a year-over-year increase of 19.7%).

Loan balance refers to loans that have not been repaid at the end of the accounting period, that is, the total amount of loans after deducting the repaid portion. It is not difficult to see from this fact that the increase in loan balances can only reflect the increase in domestic loans. The government is sweeping away taxpayers’ money from banks in an even more enormous scale, and it does not reflect the use of funds and the effect of green improvement at all.

In recent years, the amount of green loans from banks has continued to increase. Environmental governance, smog improvement, the upgrading of heavy-polluting enterprises, sewage and waste reduction, etc.They have all been reported by the media, but in fact there have been no improvements.

In 2017, the CCP spent a lot of money on countrywide coal-to-gas conversion, the large-scale shutdown of the heavy-polluting chemical industry on the grounds of removing haze, and the recent popularization of clean energy such as electric vehicles and electric vehicles. It may seem that the CCP has made a full effort in terms of policy and the establishment of overall social atmosphere, but the results show that it is not true.

The CCP virus was raging in 2020, but even during the nationwide lockdown period, the hazy weather did not decrease, and air pollution remained severe. Although there are human factors such as the burning of corpses, large-scale shutdowns and production shutdowns should have reduced energy consumption. The unseen reduction of pollution is sufficient to reflect the fact that the CCP’s “green development” in recent years has amounted to nothing.

As the COVID 19 virus has spread around the world, the global economy has stalled, and the Chinese domestic economy has languished due to its heavy dependence on foreign investment. In the second half of 2020, a large number of private small and medium enterprises went bankrupt. Although revenues for state-owned and central government-owned enterprises, and others with government backing have not shrunk, the increase in their loans shows that behind their current financial turnover is state financial support, rather than revenue from daily operations.

In recent years, the sixty billion chip project, which is subsidized by the government, has remained unfinished. Using this as a reference, the recent introduction of new energy vehicle projects in various parts of the country can hardly escape the suspicion of fraud.

The above-mentioned uses of green loans are very suspicious and have little effect. The sand control project in Inner Mongolia, called the “face project”, which is talked about every year, was also a slap in the face of the CCP, after Beijing encountered the biggest sandstorm in ten years in March this year. The improvement of haze is all talk but no actionn.

The subtext of the CCP’s so-called green loan balance growth is that the amount of loans from banks to enterprises and governments, etc. has increased, and the amount of the unpaid loans has risen. Whether it’s major infrastructure construction, facility upgrades, clean energy development and emission reduction work, all are fraudulent supplements and financial fraud. Among them, it is inevitable that there is corruption and private pockets are being lined.

In just 70 years, the Chinese Communist Party has not only ruined great rivers and mountains, but also enslaved the general public, paying for the CCP’s dictatorship all their lives. The CCP tramples on natural human rights at will, and it cannot be trusted to preserve the mountains and protect the water and green development.

Editor Xiaojiucai | Proofreader: Xiaoxin

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