Xi Jinping’s communist regime will “fail” as China’s economic woes go underestimated, a foreign policy expert has warned.
Gordon Chang, a senior fellow at the Gatestone Institute, claimed Beijing was facing a number of crises and could turn to conflict to alleviate the pressures.
He told GB News: “I think that the problems that we see in China are worse than people perceive. I don't think Xi Jinping has solutions to them or I should say more precisely, his solutions are making problems worse. So I do see a failure of the communist regime.”
Chang highlighted how company debt defaults, accelerating capital flight, a falling currency, plunging property prices, stagnating economy, food shortages, deteriorating environment and demographic decline was putting unprecedented peacetime pressure on the Chinese economy.
WATCH NOW: Gordon Chang discusses China's impending economic chaos
Chang addressed his previous prediction which argued the communist regime would collapse in 2011.
He explained: “I said in the book that the Chinese regime would fail by 2011, so I'm wrong about that.
“What I didn't foresee was the 2008 downturn, which gave China's regime a lot more life.
“But China right now is having its 2008 downturn, and in the problems now, which have been deferred by massive spending, I don't think they have any out of it other than perhaps triggering a war, and barring triggering a war or almost the fallout of that as well.”
However, the situation is considered somewhat different from the 2008 financial crash.
The worldwide economic crisis started in the United States after reckless lending led to an unprecedented number of loans being defaulted.
The consequence of the crash was felt across the West, with the United Kingdom’s unemployment rate hitting its highest figure since 1995 and real earnings taking a long-term blow.
In contrast, Chang suggested countries across the West could look to fill the economic vacuum left by China.
“I think people underestimate the problems in China,” he said.
“They're going to be taken by surprise. So there's going to be panic in global markets.
Xi Jinping is facing many economic challenges
“But ultimately a failure of the Chinese economy would be good for other countries. And the reason is, you know, everyone says China is the engine of global growth.
“Well, yes, China has had a lot of growth but they weren't an engine because to be an engine of global growth, you got to buy the goods and services of other countries.
“And China, through predatory and criminal trade practices was actually taking growth from other countries.
“So if China were to just disappear without that panic, other countries would be doing better.
“This is not going to be the disaster that everybody thinks it will, especially if we understand and prepare for a failure of the Chinese regime.”
Chang added: “A global panic will hit the pockets of virtually everybody on the planet because China is so big and it's problems are so large and they are so unexpected, which is the reason why I think we need to start assessing China if with a colder eye to see what's really going on inside.”