Holli Star, Material
Oct 16th, 2020
A report has appeared in a business and finance column of Chinese state sponsored media outlet Sina that 28 trillion Yuan has been invested into a group 72 companies in the second quarter of 2020. This heavy surge of investment seems strange given the host of negative circumstances present during this time, including the fact that the majority of the first half of this year was spent with major Chinese industries in lockdown, that many of the companies involved had been in operation for no longer than half a year and finally that every one of these companies was in the semiconductor industry, hard hit by the global recession.
While this may seem like nothing more than a puffery headline we’ve come to expect from the propagandistic party-mouthpiece, more sinister implications arise when these investments are investigated. Indeed, evidence of similar dealings in semiconductor companies can be traced back to a certain Endeaver Micro-Electronic Technologies.
Founded in 2011, Endeaver received a mammoth 1 trillion Yuan investment in 2016 to set up its plant and commence production of its intended products. However, despite this huge amount of money being poured into the company, it filed for bankruptcy just 2 years later. The majority of its assets were traced to large land purchases in various surrounding provinces and areas. Indeed, much of its investors’ money had gone to attempts to game the hyper-inflation of land prices engendered by CCP’s planned economics instead of legitimate business interests. Of course, this twisted vision of business is before we even consider the millions of poor people in rural areas displaced and chronically under-compensated by the CCP’s land appropriations strategy, which seeks to benefit wealthy and influential developers, the poker-buddies of the Party’s officials.