Chinese Economy Facing Collapse: New Report Indicates up to One-Half GDP Growth Rooted in Theft and Fraud

Research by INVNT/IP Consortium Shows Instability Is Natural Result of PRC National Business Model


A study just completed by the INVNT/IP Global Consortium suggests that China is experiencing a serious episode of domestic economic collapse, with up to 50% of GDP growth rates reported over the last three decades derived directly from the theft of intellectual property and fraudulent practices around its re-branding, amplification, and subsidized sale in global markets.

The economic instability caused by a reliance on this model has left China and its Standing Committee in a position of extremely high risk, according to the study, which is scheduled for full release later this year.

INVNT/IP CEO Mark Anderson explained: “We have just completed the best description of the Chinese national business model available today, and up to one-half of China’s growth is based on fraud and theft. The implications of this research are a cause for deep concern among China’s global partners and investors. We are now convinced that almost all aspects of the modern segments of the Chinese economy are both illegal and unstable, from the IP theft that drives it to fraudulent banks, structural trade barriers, continual currency manipulation, and WTO-prohibited subsidies.

“The result is the short-term appearance of being rich, but the longer-term risk of instability and collapse, which it is facing now.”

According to Robert Atkinson, founder and president of the Information Technology and Innovation Foundation (ITIF), “China has long relied on currency manipulation to support its mercantilist, export-driven model, and its recent decision to devalue the RMB is no different. Notwithstanding apologetic responses from organizations like the International Monetary Fund (IMF) and the US Treasury, this most recent decision continues China’s negative-sum policies of helping its own economy at the expense of the global economy.”

To see the INVNT/IP database of IP thefts and related information, go to