The Chinese Communist government’s finances are rapidly deteriorating, leading to several provinces and cities setting up “smash pots and sell iron” task forces. Online users discovered that the directive to use this term originated from Zhongnanhai. Some mainland media articles with a mocking tone have been deleted. The reappearance of the Mao era practice of “smash pots and sell iron” is seen by outsiders as a sign of economic exhaustion, indicating that the Chinese Communist Party is reaching its final moments.
On August 28th, a notice titled “Notice of the establishment of the ‘Smash Pots and Sell Iron’ task force in Bishan District Government Office, Chongqing City” sparked discussions. The Hunan Daily confirmed that the “Smash Pots and Sell Iron” task force has already started operations.
Several mainland media reports mentioned the issuance of the “Key Provinces Strengthen Government Investment Project Management Measures (Trial)” by the State Council Office in December 2023, also known as the widely discussed “Document 47”. “Document 47” identified 12 key provinces, including Tianjin, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Guangxi, Chongqing, Guizhou, Yunnan, Gansu, Qinghai, and Ningxia, requiring these regions to “smash pots and sell iron” to fully resolve local debt risks while strictly controlling new government investment projects.
Since 2023, many local governments have mentioned the term “smash pots and sell iron” in meetings and official documents.
For example, the official website of Tongzhou District, Nantong City, Jiangsu Province, indicated that during the 42nd Executive Meeting of the District Government presided over by Wang Shaoyong, Deputy Secretary of the District Committee and District Mayor of Tongzhou, Nantong, on May 17, 2024, it was mentioned that “tightening belts should be a long-term principle to free up more funds for debt restructuring, ensuring the completion of the annual debt restructuring task. It is necessary to effectively implement the central government’s requirements for ‘smashing pots and selling iron,’ accelerate the inventory of various asset resources, increase the operation of idle assets, enhance the efficiency of revitalizing state-owned assets, and provide effective support for debt resolution across the district.”
The screenshot of this text from the Nantong Tongzhou government website has been widely circulated overseas.
Independent scholar Gao Falin forwarded the screenshot with the comment: “In recent days, local governments in China have adopted a new slogan ‘smash pots and sell iron,’ issuing documents, giving instructions, creating momentum, conducting inspections… Some speculate that local Chinese officials lack the courage to utter such words, making it likely to come from Zhongnanhai. Today, in the text of a local government, it is finally confirmed—”
Chinese-American scholar Hu Ping stated that in present-day China, colloquial expressions frequently appear in the official language of the government-controlled media, often originating from top Chinese Communist Party leaders.
Epoch Times reporters found that multiple articles in mainland media reporting on the establishment of “Smash Pots and Sell Iron task forces” have been deleted, and from the remaining text, a mocking tone is evident.
For instance, the deleted article titled “Is a New Wave of State-owned Asset Loss Coming? Many Places Call for ‘Smash Pots and Sell Iron’! Netizens: Digging from One’s Own Pocket” mentioned, “Some criticized the ‘government documents, so messy, …'”
Another deleted article titled “When a City Decides to ‘Smash Pots and Sell Iron’| Bad Assets” mentioned, “Clearly, a complete pot is worth more than a pile of scrap iron. Why do people in distress not sell pots but smash pots to sell iron?”
In addition, deleted article titles such as “Are Local Governments Going as Far as Smashing Pots and Selling Iron?” and “Is it too Exaggerated for a Local Government to Claim ‘Smash Pots and Sell Iron’?” were mentioned.
An article by Ifeng on August 29th that remained undeleted, titled “Pros and Cons of ‘Smash Pots and Sell Iron,'” stated, “Smash Pots and Sell Iron” will create highly uncertain expectations. Although many documents frame the target of “smash pots and sell iron” within the scope of resolving local debt, the public and businesses cannot help but wonder – if it has come to smashing pots, how many pots are left to smash?
“In the end, regarding debt restructuring issues, it is appropriate for local governments to say ‘break the boat to pieces’ but it is not appropriate to say ‘smash pots and sell iron.’ By easily resorting to ‘smash pots and sell iron,’ are the pots at fault? Could it be that after eating their fill, pots are now on the chopping block? Speak sensibly, don’t create an atmosphere of horror.”
On an overseas platform, this topic continues to generate discussions:
Netizen “CasualMeow”: “‘Smash Pots and Sell Iron’ is such a term that goes against economic laws, but it can appear in government work reports, showing the real lackluster governing level.”
Gancheng Wang: “‘Smash Pots and Sell Iron,’ a sign of the collapse of the party. After Xi mentioned ‘Smash Pots and Sell Iron,’ offices dedicated to ‘Smash Pots and Sell Iron’ emerged everywhere. It seems that this party is about to collapse, otherwise, such an inauspicious colloquial term would not be circulating.”
Kunlun: “Checking Weibo, it is confirmed that this time, the leaders’ ‘smash pots and sell iron to get through tough times’ special action has been completely messed up by those spendthrift officials. How do you smash pots and then sell iron? It turns out they are selling off state-owned assets. In comparison, Zhu Rongji was more astute. Back then, his catchphrase was disposing of non-performing state-owned assets, sounding high-class right away. This ‘smash pots and sell iron’ sounds impoverished and desperate, with a crude and aggressive final act, portraying a stark contrast…”
Former CCP official Du Wen stated, “The term ‘smash pots and sell iron,’ in an ordinary household, means when life becomes unbearable and people have to resort to selling valuable items at home to cope with immediate financial difficulties, this desperate last-resort measure. This literal selling even includes smashing pots, selling off essential cooking utensils as scrap iron without regard for what to eat next. This kind of frantic situation is often depicted in Chinese history and literature to describe the desperate acts of ruinous individuals, where one’s household is running out of resources, yet they still want to maintain appearances, show off, and engage in ostentatious wastefulness, ultimately leading to family ruin, separation, and tragedy.”
Du Wen believes that when the term “smash pots and sell iron” is applied to the government, it usually signifies facing enormous economic and financial pressures. “In the Chinese context, this practice carries a strong sense of crisis, indicating that the government seems to have reached the end of its resources, being forced to take drastic measures to sustain economic operations. China’s economy and the CCP’s politics have evidently reached a critical juncture.”
Dissident Wang Aizhong remarked, “In the current situation where the wealthy are hastily fleeing or opting for ‘lying flat,’ it is estimated that no one would be willing to take over the concept of smashing pots and selling iron. After forty years of high-speed growth, why have we suddenly reached the point of having to smash pots and sell iron? The fundamental issue lies in the lack of complete property rights protection, stemming from the reckless abuse of power. Today, when your assets are acquired and then swiftly taken away under the guise of legitimacy, who wouldn’t be afraid.”
Commentator Huang Yu wrote on Voice of America, stating that post the Beidaihe meeting, China’s “Big Retreat” has begun.
The article mentioned that from August 17th to 30th, 1958, during the expanded meeting of the Political Bureau held by the top echelons of the CCP in Beidaihe, the resolution on “Establishing People’s Communes” was passed, with Mao Zedong further advocating for the goal of producing 10.7 million tons of steel annually by calling for “Great Leap in Steel.” This led the entire nation into the frenzy of “smash pots and sell iron” and “Backyard Furnace Steelmaking.” Shortly after, regional famines began to spread nationwide. However, in 2024, China has not learned from the lessons of the “Three-Year COVID” period that ended just two years ago. Instead, with the momentum of “smash pots and sell iron,” a new Great Leap Forward movement has been initiated by bureaucratic groups.
The article listed recent initiatives undertaken by the CCP, such as the issuance of internet ID policies, housing and retirement pension systems, and the establishment of so-called “smash pots and sell iron” task forces across different regions as reminiscent of the “People’s Communes,” signifying that the “Big Retreat” has arrived.