China ‘Faked, Forged’ Documents For Exports And Imports: At Least $10 Billion In Fake Trade Exposed

China “Faked, Forged” Documents For Exports And Imports: At Least $10 Billion In Fake Trade Exposed (ZeroHedge, Sep 25, 2014):

As we have reported since May 2013, when we explained the role of Commodity Funding Deals in Chinese “trade” and especially in the laundering of hot money flows, and most recently when we followed up on the first revelations that unknown amounts of physical commodities had been corizined in China’s port of Qingdao, one of the key uses of monetary commodities in China is for purposes of “trade” in the form of FX loans, and especially to artificially boost exports by way of fake trade invoicing. Well, like a recovering junkie addicted to fabricated data, China finally admitted it has a problem when overnight it “uncovered almost $10 billion in fraudulent trade nationwide as part of an investigation begun in April last year, including many irregularities in the port of Qingdao, the country’s currency regulator said today.”  “Some companies used the trade channel to bring in hot money,” said Zhou Hao, a Shanghai-based economist at Australia & New Zealand Banking Group Ltd. SAFE’s investigation “will likely further cool down hot money inflows and commodity imports could slow as banks will likely conduct more careful checks on documentation.

1 thought on “China ‘Faked, Forged’ Documents For Exports And Imports: At Least $10 Billion In Fake Trade Exposed”

  1. They do this all the time. There is nothing new here. The Chinese have a true debt to GDP exceeding its worth by 5-12X, depending on the economist you ask.
    Every year, the numbers always come out wrong, and the other nations have the paper trail to prove it.
    Will they stop the lies? No. They are in serious financial shape. Letting the greedy corporations in was good in one way…….the price for slave labor for a quarter of a century was the technology secrets of all nations who put up factories there. They have the blue prints for everything from power plants (thanks, GE) to vehicles, computers, cell phones, knock up clothing lines…….they have everything we use in the west.
    China also has the rare earth minerals they no longer sell to the west.
    BUT, the corporations were allowed to destroy the countryside for this free labor, and now the air is so bad, nobody will go there. They have days much like London in the 1850s, when it was so dark with polluted air one could not tell what time of day it was…….it could be night or day, the dust in the air was too thick to see.
    Corporations are leaving in droves. Employees won’t go there, and they have found cheaper labor in Vietnam and other starving countries……so they have left a filthy mess behind.
    With BRICS refusing to buy products from the west, slapping sanction for sanction on them, China has the abilities to build anything the association needs. Unemployment is still very high, so they can get any job done, including weapons and fighter jets……(thanks, Boeing and other greedy crooks) . It will take time, but China will clean up the mess, and see daylight again.
    This is why I don’t think people should take China lightly.
    They can and will work out of this mess.
    But, they need to stop the lies. In the meantime, believe none of what you hear, half of what you see.
    As for numbers, there are lies, damn lies and statistics.


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