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Javier E

China's Xi faces crisis of confidence as threat mount - The Washington Post - 0 views

  • Chinese scholars and Communist Party cadres have a succinct way of describing the tectonic shifts taking place here: Deng Xiaoping made us rich, now Xi Jinping is making us strong.
  • Xi has devoted his seven years in power to strengthening the ruling Communist Party, and by extension the country. He has relentlessly quashed dissent, sidelined rivals and demanded absolute loyalty.After pledging to make the party “north, south, east and west,” he has ensured that it is paramount not just in policymaking but in the military, business, education and the law. 
  • Now, Xi is facing challenges on multiple fronts, and the Communist Party, riven with paranoia at the best of times, is seeing threats at every turn.ADHe has to contend not just with a slowing economy but also a protracted trade war with the United States that has entered a new confrontational phase with President Trump’s decision to impose more tariffs next month.
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  • He is facing escalating Western criticism of Chinese policies toward ethnic Uighurs in Xin­jiang, where as many as 3 million people have been put into reeducation camps. He is dealing with an increasingly assertive Taiwan at the same time a pro-democracy movement swells in Hong Kong.
  • Xi is trying to harden the party’s internal resolve to fend off these threats — most acutely, a United States that many observers say seems intent on containing China.“Xi has a legion of internal critics, including over his handling of relations with Washington,” McGregor said. “One way to bring them to heel is by demanding fealty and loyalty to the party, and by extension, to himself.”
  • Since taking power, Xi has rewritten the party’s rules — including ending term limits, setting himself up to be leader indefinitely — and launched huge study campaigns to instill his personal ideology across society, starting with toddlers, through schools and universities and through the Central Committee Party School in Beijing. The party has developed an app through which Chinese can study “Xi Jinping Thought.”
  • China’s leaders have intensively studied the collapse of the Soviet Union — Xi even had top officials watch a four-part documentary about it soon after he came into office — and concluded that Mikhail Gorbachev made a strategic error by opting to liberalize rather than tighten political controls.
  • Meanwhile, the party’s increasingly repressive actions inside China, such as the crackdown in the Xinjiang region and the growing use of surveillance technology, “reflect heightened fear and insecurity, not a self-confident China aspiring to enhanced leadership in global and regional affairs,”
  • Because of this sense of insecurity, party leaders view the Trump administration’s declaration of a trade war not as a purely economic matter but as a broader, strategic effort to contain China
  • This theory got a boost from none other than John Bolton, Trump’s national security adviser, late last year. “This is not just an economic issue,” he told Fox Business. “This is not just talking about tariffs and the terms of trade. This is a question of power.”
  • As the trade negotiations rumble on, more people in China are subscribing to the view that the dispute is about geopolitics rather than economics, scholars say. That it’s all about keeping China down.
  • The perception gap between China and the United States is huge, the academic said, searching around for the appropriate English analogy before arriving at “women are from Venus, men are from Mars.” 
  • This is because the United States looks at the development and wealth in Chinese cities like Beijing, Shanghai and Shenzhen, and at Chinese technology companies like Alibaba and Huawei, and sees an increasingly powerful economic player.
  • But Beijing doesn’t look at the situation only through the lens of the past few decades, the academic said. It looks at it from the perspective of the past few centuries. 
  • China can’t back down anymore. If you read the editorials, you see that China is determined,
  • “I think some would even compare it with the unequal treaties of 100 years ago,” he continued, harking back to the British victory in the Opium Wars of the 19th century and the occupations of the early 20th century.
  • With these old humiliations still raw, party leaders are trying to fuel an inner resolve
Javier E

The end of the system of the world - by Noah Smith - 0 views

  • After the end of the Cold War, the United States forged a new world. The driving, animating idea behind this new world was the belief that global trade integration would restrain international conflict.
  • We didn’t just pay lip service to this theory; we bet the entire world on it. The U.S. and Europe championed the admission of China into the World Trade Organization, and deliberately looked the other way on a number of things that might have given us reason to restrict trade with China (currency manipulation in the 00s, various mercantilist policies, poor labor and environmental standards). As a result, the global economy underwent a titanic shift. Whereas global manufacturing, trading networks, and supply chains had once been dominated by the U.S., Japan, and Germany, China now came to occupy the central place in all of these:
  • As of 2021, China’s manufacturing output was equal to that of the U.S. and all of Europe combined.
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  • Some called the world system of the 2000s and early 2010s “Chimerica”. During these years, the hope that global trade would lead to a cessation of great-power conflict, even without ideological alignment, seemed justified. And although China’s politics didn’t liberalize, under Jiang and Hu the country became more open to foreign travelers, foreign workers, and foreign ideas. This might not have been the End of History, but it was a compromise most people could live with for a while.
  • In the mid-2010s, this compromise began to break down. On the U.S. side, there was increasing anger over the long-term decline of good manufacturing jobs, and an increasing feeling of the U.S. in second place. China, and the Chimerica system, became the target of some of this anger — not without good reason
  • Xi Jinping, China’s leader, apparently felt that these events validated his pre-existing plan for “great changes unseen in a century” — i.e. China’s displacement of the U.S. as the global hegemon. Though this was Xi’s ambition from the start, it was the Chimerica system that had made his dream feasible, by making China the biggest manufacturing and trading nation on Earth.
  • Now, Xi seemed to feel that China had extracted all it could from the Chimerica system, and that the benefits no longer outweighed the costs. His industrial crackdowns in 2021 included measures to limit Western, Japanese, and South Korean cultural influences. Under his Zero Covid system, China became much more closed to the world, with inflows of people from abroad basically halted.
  • But these were only the first of a number of ways in which Xi, who just cemented his absolute power over his country at the 20th Party Congress, has made it clear that China’s era of “reform and opening up” is over
  • Markets, for their part, seem to realize that this time is different. China’s stocks cratered after the party congress — so much so that they’re now trading below the value of their assets on paper.
  • The key thing to understand about this decoupling, I think, and the reason it’s for real, is that this is something the leaders of both the U.S. and China want.
  • The U.S. is acting not out of concern for its industries — indeed, its chip industry will take a huge hit from export controls — but because of how it perceives its own national security. And China’s leaders want to shift to indigenous industry, regulated industry, and even nationalized industry, even if that shift makes China grow more slowly.
  • The decoupling between China and the developed democracies, so long a topic of conversation and speculation, now appears to be a reality. A critical point has been reached. The old world-economic system of Chimerica is being swept away, and something new will take its place.
  • It will take a while for the new world-economic system to be born (and as Gramsci says, this will be a “time of monsters”)
  • A lot will be contingent on events, such as whether there is another world war.
  • already I think we can make some educated guesses and ask some key questions.
  • I expect the Biden administration and/or its successor to get tripped up for a while by the mirage of a self-sufficient U.S., and to implement “Buy American” policies that hurt our allies and trading partners and slow the formation of a bloc that can match China. But if Americans can finally pull their heads out of their rear ends and recognize that their country doesn’t dominate the world the way it used to, there’s a chance to create a non-China economic bloc that preserves lots of the efficiencies of the old Chimerica system while also serving U.S. national security needs.
  • In fact, whether the non-China blog coordinates on policy is really the big question regarding the new world-economic order. Together, the U.S., Europe, and the rich democracies of East Asia comprise a manufacturing bloc that can match China’s output and a technological bloc that can exceed China’s capabilities. With the vast populations of India and other friendly developing countries on their side, they can create a trading and production bloc that will be almost as efficient as the old Chimerica system. But this will take coordination and trust on economic policy that has been notably absent so far. The U.S. will have to put aside its worries about competition with Japan, Korea, Germany or Taiwan — and vice versa.
  • this vision — a largely but not completely bifurcated global system of production and trade, with two technologically advanced high-output blocs competing head to head — seems like the most likely replacement for the Chimerica system that dominated the global economy over the past two decades
  • But it’s only a loose guess. What’s not really in doubt here is that we’ve reached a watershed moment in the history of the global economy; the system we came to know and rely on over the past two decades is crumbling, and our leaders and thinkers need to be scrambling to plan what comes next.
grayton downing

Detecting Shift, U.S. Makes Case to China on North Korea - NYTimes.com - 0 views

  • shift in decades of Chinese support for North Korea, is pressuring China’s new president, Xi Jinping, to crack down on the regime in Pyongyang
  • China, the North’s only strong ally, has long feared the United States would capitalize on the fall of the North Korean leadership by expanding American military influence on the Korean Peninsula.
  • Even if China does cooperate, it is unclear how far North Korea might bend; North Korea ignored China’s entreaties not to conduct the nuclear test in February
julia rhodes

China Looms Over Response to Blast Test by North Korea - NYTimes.com - 0 views

  • At the United Nations, the desire to impose ever harsher sanctions on North Korea to try to curb its development of nuclear arms and ballistic missiles has long stalled in the face of Chinese opposition
  • They include banning specific, high-tech items used in the nuclear program, like epoxy paste for centrifuges; limiting or outlawing some banking transactions; and a far more stringent inspection of ships bound to and from North Korea.
  • “If we had the kind of product listing and focus on financial flows and interdiction on North Korea that we placed on Iran, we would not be in this spot,”
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  • But the sanctions in place are almost exclusively focused on nuclear and ballistic missile activity.
  • One nuclear test will not make China’s new administration decide to ‘abandon North Korea,’ but it will definitely worsen China-North Korea relations
  • there is little chance that the new Chinese leader, Xi Jinping, will move quickly to change the nation’s long-held policy of propping up the walled-off government that has long served as a buffer against closer intrusion by the United States on the Korean Peninsula.
  • Chinese military strategists adhere to the doctrine that they cannot afford to abandon their ally, no matter how bad its behavior, analysts here say.
  • Indeed, relations between the two countries are conducted largely between the two parties rather than between the two foreign ministries, the more normal diplomatic channel.
  • China will almost certainly join the United States in supporting tougher sanctions over Tuesday’s test, accompanied by sterner reprimands from Beijing against its recalcitrant ally in Pyongyang, which ignored Chinese entreaties not to take provocative actions.
  • With Hu out of the picture, the administration is intent on determining whether Xi Jinping will prove more attentive to U.S. security concerns
  • China’s calculations will be crucial to what happens at the Security Council, where the policy has always been to pursue unanimity over toughness; it is considered far better to get all members on board to send a message to North Korea rather than have China abstain or worse, veto.
  • “Threatening a missile-capable warhead with a successful third nuclear test gives the United States, South Korea and Japan good reason to step up their regional ballistic missile defense capabilities,” said Siegfried S. Hecker,
  • Some experts say it needs to keep up the tough talk, even if it understands that its efforts at the Security Council may not do much to limit the North’s capabilities.
  • Now experts say the North may be simply trying to wait the United States out, hoping it will eventually recognize its program as it did Pakistan’s.
  • As the world’s powers struggle to refine their policies, North Korea continues to make technological advances. A long-range rocket test in December has been judged by outside experts to have been a success after many failures.
  • “It moves the question of North Korea as a nuclear contender from ‘if’ to ‘when,’ ” said one senior Obama administration official. “The ‘when’ may still be years away, but at least now it is in sight.”
izzerios

Trump Tells Xi Jinping U.S. Will Honor 'One China' Policy - The New York Times - 0 views

  • “stressed that he fully understood the great importance for the U.S. government to respect the One China policy,”
  • “necessity and urgency of strengthening cooperation between China and the United States”
  • Beijing wants to work with Washington on a range of issues,
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  • Mr. Trump is about to welcome Japan’s prime minister, Shinzo Abe, for an extravagant three-day visit
  • visit that will be closely monitored in China.
  • president’s commitment to a mutual defense treaty with Japan, which surfaced during the campaign
  • Mr. Trump said he was prepared to pull back from the pact unless Tokyo did more to reimburse the United States for defending Japanese territory.
  • Mr. Tillerson specifically rejected the idea, advanced by Mr. Trump, that Taiwan be used as a bargaining chip in a broader negotiation with China on trade, security and other issues.
  • Relations between Washington and Beijing had been frozen since December, when Mr. Trump took a congratulatory phone call from Taiwan’s president, Tsai Ing-wen
  • has not had diplomatic relations with Taiwan since 1979
  • He also said he “looks forward to working with President Xi to develop a constructive relationship that benefits both the United States and China.”
  • “This letter means they’re looking for creative ways to stabilize this relationship when Trump and Xi can’t talk due to differences over Taiwan policy,”
  • Mr. Tillerson, officials said, suggested that Mr. Trump publicly reaffirm his commitment to the One China policy as a way of breaking the deadlock and getting the two presidents back on the phone.
  • conversation last week with Prime Minister Malcolm Turnbull of Australia turned contentious when Mr. Turnbull urged Mr. Trump to honor an agreement made under Mr. Obama to accept 1,250 refugees from an offshore detention center.
  • the fact that Mr. Trump and Mr. Xi had not talked since Mr. Trump took office in January has drawn increasing scrutiny.
  • During the campaign, Mr. Trump advocated a 45 percent tariff on Chinese exports to the United States, complaining that China manipulated the value of its currency.
  • Jared Kushner, who is a senior adviser to Mr. Trump, met with Mr. Cui before the embassy event, part of a blossoming dialogue between the two men.
  • relationships between some of Mr. Trump’s advisers and leading Chinese companies with close links to the Communist Party may also be strengthening ties.
ecfruchtman

Donald Trump Affirms Commitment to 'One China' Policy in Call With Xi Jinping - 0 views

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    News Corp is a network of leading companies in the worlds of diversified media, news, education, and information services.
drewmangan1

Beijing's Patience Pays Off With Trump's Reaffirmation of 'One-China' Policy - WSJ - 0 views

  • After weeks of several phone run-ins with world leaders, Mr. Trump committed to a longstanding agreement that the U.S. won’t recognize Taiwan diplomatically in a phone call with President Xi Jinping late Thursday.
  • Mr. Trump’s blunt style has posed a challenge for protocol-conscious Chinese officials wary of unpredictable turns in the conversation. In previous calls with leaders, Mr. Trump chided Mexican President Enrique Peña Nieto over the country’s drug cartels and Australian Prime Minister Malcolm Turnbull over a refugee-resettlement agreement Australia reached with the Obama administration.
  • Chinese analysts said Mr. Trump’s change in rhetoric was inevitable. “Some things you don’t need to be anxious to respond with tits-and-tats for,“ said Zhang Ruizhuang, professor of international relations at Nankai University in Tianjin. ”Instead, give him some time, and let him slowly realize things on his own.”
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  • In written answers provided to the Senate, Mr. Tillerson also indicated he intended to adhere to the “One China” policy, saying Taiwan “should not be treated as a bargaining chip.”
Javier E

US-China war would be a disaster for the world, says Communist party | World news | The... - 0 views

  • “Were the United States and China to wage war on one another, the whole world would divide itself,” the People’s Daily newspaper argued in a commentary, paraphrasing Henry Kissinger
  • Fears of a potentially calamitous trade war, or even a military clash between the two nuclear powers, have been building since Trump’s shock election win last November.
  • Steve Bannon, Trump’s influential chief strategist, was last week reported to have warned last year that war between the US and China in the resource-rich waterway was inevitable.
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  • Meanwhile, in a likely indication of the frictions between Washington and Beijing, Trump has yet to speak to his Chinese counterpart, Xi Jinping, despite having held conversations with at least 18 world leaders since his inauguration.
  • Last month, the China’s foreign ministry urged the US president’s team to “speak and act cautiously” after the White House press secretary, Sean Spicer, vowed the US would foil Chinese efforts to “take over” the South China Sea.
  • In a diplomatically worded editorial published on page three of the People’s Daily domestic edition on Monday, the voice of the Communist party said both countries should strive to avoid confrontation, conflict, misunderstandings and miscalculations.
  • Differences of opinion were inevitable due to the historical, cultural, economic and social differences between the US and China, the article said, “but wise men should seek common ground”. The article was printed under the byline “Zhong Sheng”, a homonym for “Voice of China”.
  • “The Chinese have not let themselves be bated … They understand that they are dealing with a different American leader who operates in different ways. They want to manage it carefully so it doesn’t needlessly escalate,” said Medeiros, who is now the managing director for Asia at the political risk consultancy Eurasia Group.
  • However, attitudes had shifted from nervousness about the US president’s erratic tweeting to resignation that the two countries were entering a “difficult period”. “The possibilities for an escalation of tensions are growing because distrust is high,” the article said.
  • Susan Shirk, the head of the 21st Century China Centre at the University of California, San Diego, said China specialists were “flummoxed” at Trump’s apparent determination to take on Beijing and said such moves came at an unfortunate time.
  • “As a person who sees a very strong connection between Chinese domestic politics and its foreign policy, I see the Trump statements as resonating through Chinese foreign policy in a way that could really be dangerous,” said Shirk, the author of China: Fragile Superpower
julia rhodes

Japan to Form Own National Security Council - WSJ.com - 0 views

  • A bill to create a Japanese National Security Council is set to pass in the nation's parliament, as China's rising maritime assertiveness and North Korea's nuclear ambitions give Prime Minister Shinzo Abe greater leeway to tighten his grip on foreign and defense policies.
  • Seen as an important step in Mr. Abe's push for Tokyo to expand its role in regional security, the new council is also viewed as a backdoor for the premier to ramp up Japan's military, which is strictly bound under the nation's postwar constitution to a self-defense role.
  • The idea of creating a U.S.-style NSC has gained traction in recent years as Japan experienced a string of national-security related incidents that prompted it to boost its defense spending and capabilities. These policies have been viewed with caution by Beijing and Seoul amid tensions over historical and territorial issues.
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  • confrontation with Beijing over disputed islands in the East China Sea have created a series of testy situations that has underscored the importance of sound decision-making at the top of the government.
  • Pyongyang's pursuance of its nuclear and ballistic missile programs has also forced Tokyo to confront more urgent weapons threats, adding fuel to Mr. Abe's push to reinterpret the nation's pacifist constitution and lift the self-imposed ban on exercising the right to "collective self defense," or the right to aid allies being attacked.
  • By integrating the flow of information and providing speedy analysis, the NSC hopes to accelerate the prime minister's decision-making process on various issues involving national defense, including foreign military attacks and other serious emergencies.
  • Mr. Abe's plan has faced a fair amount of criticism. A state-secrecy bill that goes hand-in-hand with the draft legislation to enact the NSC has generated widespread concern by those who fear it could infringe on journalistic freedom and the public's right to information.
  • The bill, currently under discussion in parliament, toughens penalties against those who leak sensitive information related to defense, foreign policy, terrorism and other harmful activities, and has grabbed attention in the wake of Edward Snowden's leaking of classified U.S. intelligence information.
  • NSC will function properly and achieve its aims, or lose substance and become another ineffective bureaucratic institution.
  • The creation of the council also coincides with Beijing's plans to establish a similar state security committee that could boost President Xi Jinping's grasp over the military, domestic security and foreign policy as China flexes its military and diplomatic muscle in the region.
  • The NSC will be the control tower for Japan's diplomacy and defense," Mr. Yachi said during a speech he gave in Tokyo earlier this month, explaining that staff will be recruited from the foreign ministry, the police agency and the private sector.
Javier E

Cultural Revolution Shaped Xi Jinping, From Schoolboy to Survivor - The New York Times - 0 views

  • The purges, zealotry and mass strife that Mao unleashed during the Cultural Revolution left a lasting mark on every Chinese leader who has succeeded him. But Mr. Xi stands out because he is the first party chief from the generation of the Red Guards — the youth who served as Mao’s shock troops — and because he fell so far before beginning his trek to power, from a family in the party elite to an unmoored life as a teenage political pariah.
  • “Xi got to see both sides of that time, which is one reason I think he’s such an interesting character,” she said, “but that’s also why he’s so difficult to read.”Unlike some youths from elite backgrounds, Mr. Xi did not turn against the party or Mao, but learned to revere strict order and abhor challenges to hierarchy, said Yongyi Song, a historian and librarian in Los Angeles who has long studied the Cultural Revolution.“He suffered much under Mao,” Mr. Song said, “but I think that actually increased his belief that those who are ‘born red,’ those children of the party elite, earned the right to inherit Mao’s place at the center.”
Hannah Caspar-Johnson

Xi's Selective Punishment - NYTimes.com - 0 views

  • A Chinese government official I know was put under
  • shuanggui, the secretive system of internal Communist Party investigation in which victims are detained, questioned without counsel and sometimes tortured
  • the most probable reason for his travails with the authorities was that his political patron also got in trouble.
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  • A huge number of top officials have been either arrested or placed under investigation.
  • Whenever a top official falls, people aren’t concerned about what he has done, but with those he might bring down with him.
  • In the past two years, President Xi Jinping’s anticorruption drive has burnished his reputation with the Chinese media
  • the anticorruption push is more of a Stalinist purge than a genuine attempt to clean up the government
  • Most telling of all, the purge has mainly targeted specific party factions, while those groups that support and pledge loyalty to Mr. Xi appear untouched.
  • Mr. Xi’s most important supporters are the so-called second generation reds — descendants of senior Communist Party founders. (Mr. Xi himself is one of them.)
  • This privileged tribe enjoys almost unimaginable power
  • High officials in China exercise unchecked power (until they don’t)
  • Recently the question was raised in a post on the Internet: Why have no “big tigers” been found in Fujian and Zhejiang? The message was almost immediately deleted.
  • This professor seemed to think that Mr. Xi might use his authority to guide China toward democracy. But this notion is wishful thinking. For a dictator, power is not a means to an end, power is the end.
  • Besides, anticorruption campaigns don’t guarantee real justice.
  • When the government media runs reports about cases that are still under investigation and gloats about how severely corrupt officials are being punished, it seems improbable that the accused will get a proper defense
  • He is just another dictator
  • They may well have committed crimes, but they have rights too, even if they have denied them to others.
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    An opinion article that equates Chinese President Xi's recent attack on corruption in the government (directly almost completely towards politicians not from his party) to a dictatorial action such as that of Stalin.  
jlessner

A Response to President Xi Jinping - NYTimes.com - 0 views

  • Yet when Mr. Xi was asked at a news conference if he would do the same for foreign journalists, who have had a hard time obtaining permission to work in China, he displayed little patience with such concerns.
redavistinnell

South China Sea: Beijing 'not frightened to fight a war' after US move | World news | T... - 0 views

  • South China Sea: Beijing 'not frightened to fight a war' after US move
  • “The United States has been very irresponsible,” defense ministry spokesperson Yang Yujun said, according to Xinhua, China’s official news agency.
  • The People’s Liberation Army Daily, China’s leading military newspaper, used a front-page editorial to accuse the US of sowing chaos in countries such as Afghanistan and Iraq.
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  • Tuesday’s manoeuvre, which saw the guided-missile destroyer USS Lassen sail close to artificial Chinese islands, came after Barack Obama and Chinese president Xi Jinping failed to find common ground over the issue during recent talks at the White House.
  • Twenty-four hours after Washington challenged Beijing’s territorial claims in the region by deploying a warship to waters around the disputed Spratly archipelago, the notoriously nationalistic Global Times accused the Pentagon of provoking China.
  • Lu Kang, a foreign ministry spokesperson, said China would “resolutely respond” to any deliberate provocations but declined to be drawn on any potential military response.
  • China’s military buildup in the South China Sea – including the construction of a 3km runway capable of supporting fighter jets and transport planes – has become a major source of tension between Beijing and Washi
  • Washington hoped Tuesday’s mission would encourage Beijing to step back from its controversial island building campaign, which China claims is for civilian purposes but critics believe is an attempt to use military power to cement its grip over the region.
  • Townshend said the US mission may have temporarily strengthened Washington’s hand. “[But] there’s an element of you win the battle but you lose the war if actually these freedom of navigation missions make China more determined to militarise these islands,” he added. “These islands are not going away – unless global warming takes them out.”
maddieireland334

In New Economic Plan, China Bets That Hard Choices Can Be Avoided - The New York Times - 0 views

  • As economic growth has fallen while debts and excess industrial output have risen, Chinese leaders have faced growing questions about whether they will carry out the painful policy surgery many experts say is needed to cut away the financial dead weight on the economy.
  • hinese leaders’ usual two-sided rhetoric about their options — peril is close at hand, but so is a sure cure — was especially striking in Mr. Li’s latest annual report to the legislature, the National People’s Congress.
  • Mr. Li suggested, would help dull the pain from cuts to wheezing state-supported industries that must shed millions of workers, as part of a program that China’s powerful president, Xi Jinping, has promoted as “supply-side structural reform.”
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  • He did not specify how many workers could lose their jobs as part of the government’s plan to close, merge or restructure mines and factories weighed down by excess capacity.
  • A growth rate of 6.5 percent a year is the minimum needed to achieve President Xi’s often-declared goal of doubling the size of the Chinese economy by 2020, relative to its size in 2010.
  • But such financial easing implies more debt, at a time when many Western economists and policy makers are already worried that total leverage in the Chinese economy has far outstripped economic output.
  • he increased debt may help the government achieve its target of 6.5 percent to 7 percent economic growth this year, but at the price of burdening banks with even more loans to struggling businesses, or even effectively insolvent ones. That policy may also water down leaders’ promises to shut companies that are producing unwanted industrial goods.
  • Mr. Li said the government’s policies could help create more than 10 million jobs in towns and cities this year, and more than 50 million by the end of 2020.
  • The government will set aside $15.3 billion to support laid-off workers and hard-hit areas, he said.
  • To a surprising extent, the economic vision unveiled by Mr. Li echoed policies in the United States, the European Union and Japan, all of which have depended heavily on their central banks to expand money supply and keep growth aloft. The International Monetary Fund and many independent economists have strongly called for the world to shift from this reliance on monetary policy.
  • The government’s plan said the target for this year’s fiscal deficit at the national level would rise to 3 percent, from a target of 2.3 percent last year. But by most estimates, the actual deficit last year was already over 3 percent.
  • China’s central government has a fairly low debt by international standards; what are deeply indebted are the country’s corporate sector and local governments. But the Ministry of Finance has nonetheless been reluctant to allow a large, persistent deficit to form, particularly as China may yet face very heavy costs to help banks with the costs of large loans to nearly insolvent state-owned enterprises.
  • One of the most surprising was a proposal to expand China’s value-added tax to financial services. Banks would face a 6 percent tax on the interest that they collect on loans.
  • Since the global financial crisis, there have been many calls in the West for broadening value-added taxes to encompass financial services,
krystalxu

Chess in a black box: China's five most powerful people - CNN - 0 views

  • The country is ruled by the Chinese Communist Party, in a one-party system, making whoever occupies the highest positions in the party among the most powerful.
  • Power isn't just held by the politicians either -- influential businessmen and entrepreneurs, the pioneers of China's economic rise, are also fighting for a seat at the table.
  • the 19th National Congress of the Communist Party on October 18,
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  • Tencent's app, WeChat, is currently the largest and most commonly used messaging system in the world, with almost 1 billion users.
  • "He's regarded as being a sort of low-profile, not particularly interlinked or interconnected premier. He's got probably the worst job in China.
  • it's not a sort of political power. It's administrative power," he said.
  • "Power is about initiating, setting frameworks, setting the agenda. Well you can see people doing that, but Li Keqiang is more of an administrator."
  • The company's founder, Ma Huateng, is China's third richest man, according to Forbes, just behind Jack Ma and Dalian Wanda founder Wang Jianlin.
  • Ma, who is also known by his nickname "Pony," founded Tencent, the company which owns WeChat, in 1998 with his university classmates.
  • , Premier Li is number two in China's power structure, but his influence is far from assured.
  • It is those restrictions which make working in the world of China's internet so complex and potentially dangerous.
  • China's Great Firewall is rising higher than ever
  • "One challenge for tech titans like Ma in the coming years is whether they can keep on the good side of the authorities
  • Since then, Wang has grown to be a powerful, feared figure among Chinese officials.
  • Jack Ma is without a doubt one of China's most powerful people and possibly the country's most public face internationally next to President Xi.
  • As a result of Xi and Wang's crackdown, conspicuous spending and flaunting of wealth by officials has shrunk dramatically and as a result, Wang's political capital has continued to rise.
  • Wang's rise could be complicated by his age. He'll be 69 at the upcoming 19th Party Congress, meaning by custom he should retire.
  • he's the flamboyant and personable former English teacher who likes to dance to Michael Jackson tunes.
  • "He's been an essential lieutenant for Xi ... the president would be a weakened force without him at the top table," he said, placing Wang second
  • Ma, whose Chinese name is Ma Yun, is the executive chairman and founder of Alibaba,
  • Ma's peer on the China rich list, has had to abandon a series of major international deals after coming under scrutiny from Beijing.
  • Most people can't see the day after tomorrow."
  • China's president and, more importantly, the general secretary of the Chinese Communist Party, analysts say Xi is already the country's most powerful leader since Paramount Leader Deng Xiaoping
  • Xi's power is only set to grow.
  • far more than his predecessors,
  • most recently Chen Min'er who was promoted as party secretary of Chongqing.
  • Guo Wengui, the US-based businessman and perennial thorn in the side of the Chinese Communist Party.
  • and the chess game itself goes on inside a highly impenetrable black box," he said.
malonema1

China's 'two sessions': Economics, environment and Xi's power - BBC News - 0 views

  • China's "two sessions" - the annual meetings of the national legislature and the top political advisory body - are opening in Beijing. The meetings are significant markers on the country's carefully choreographed political stage.
  • The National People's Congress (NPC). That's the legislature or parliament. Think the House of Commons in the UK, or the US House of Representatives. According to the constitution, the NPC is the most powerful state organ - but it's often labelled a "rubber-stamp" body by international observers, meaning it will always approve what it's told to approve.
  • The current CPPCC has 2,158 members, including people from entertainment, sports, science, business and non-Communist parties.
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  • The NPC is expected to: ratify the inclusion of the president's political philosophy - "Xi Jinping Thought" - in the constitution. confirm China's new government line-up for the next five years, kicking off Xi Jinping's second term as president. approve the removal of the two-term limit on the presidency, meaning Xi Jinping can stay in office beyond 2023. ratify a law to set up a new powerful anti-corruption agency.
  • Beijing-based website China Finance Online lists sustainable industrial growth, building on benefits from the Belt and Road initiative and poverty alleviation as the key themes for the meetings.
Javier E

We got China wrong. Now what? - The Washington Post - 0 views

  • For years, both Republican and Democratic administrations argued that the gravitational pull of U.S.-dominated international institutions, trade flows, even pop culture, would gradually reshape the People’s Republic, resulting in a moderate new China with which the United States and its Asian allies could comfortably coexist.
  • Chinese President Xi Jinping has just engineered his potential elevation to president for life. This is the latest proof — along with China’s rampant theft of U.S. intellectual property, its military buildup in the South China Sea and Xi’s touting of Chinese-style illiberal state capitalism as “a new option for other countries” — that the powers-that-be in Beijing have their own agenda, impervious to U.S. influence.
  • If there had been more such candor earlier, we might not have President Trump, whose rise owes much to a public backlash against the perceived costs — especially in jobs lost to Chinese imports — of the erstwhile bipartisan China policy consensus.
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  • Trump’s approach to China, a weird mix of open pleading for help with North Korea, fawning praise for Xi and threatened punitive tariffs on Chinese goods, hardly seems calculated to lay the basis for a more sustainable policy.
  • friendlier ties with Beijing seemed like a good idea, even a brilliant one, when then-likely presidential candidate Richard M. Nixon first proposed it during the Cold War
  • the Cold War’s dramatic end spawned a new and loftier rationale for the policy, which had acquired a life of its own. Americans believed that history might be flowing inevitably in favor of free markets and free elections. All we had to do was stay patient, maintain our influence and let China evolve. There would be no long-term conflict between U.S. self-interest and U.S. values.
  • As for geopolitics, the old Nixon-Kissinger gambit is played out, and increasingly Moscow and Beijing cooperate to counter the United States, whether in the Middle East or the Korean Peninsula.
Javier E

This is how a superpower commits suicide - The Washington Post - 0 views

  • As an official from one of America’s key partners in the region put it to me earlier this year: “Is this how superpowers commit suicide?” It appears the answer is yes.
  • While America continues to maintain a significant military edge over its closest rivals, it’s gradually losing the main battle that is defining this century: trade and investment.
  • Among America’s Asian allies, such as South Korea and Japan, confidence in the American president’s ability to make the right judgment has dropped by as much as 71 percent and 54 percent, respectively
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  • Since Trump’s ascent to power, America’s standing in the world has experienced a virtual collapse. According to the Pew Research Center, international confidence in American leadership has declined significantly in the past year. This has been most acutely felt in the Asia-Pacific region, the new center of gravity in global geopolitics.
  • Meanwhile, China is busy shaping the world in its own image with verve and vigor. In a surreal twist of events, a communist regime has now emerged as the unlikely guardian of globalization and multilateral diplomacy.
  • In Indonesia, the world’s largest Muslim nation, it dropped by 41 percent. This is nothing short of a disaster for American soft power.
  • In contrast, Chinese President Xi Jinping, speaking at APEC, described globalization as an “irreversible historical trend.” He promoted a “multilateral trading regime and practice” to allow “developing members to benefit more from international trade and investment.” The statements echoed Xi’s high-profile speech at the World Economic Forum in Davos earlier this year, where he effectively presented China as the vanguard of the global economic order.
  • Those were not just empty words. China has forged ahead, winning over the region and the world with an all-consuming sense of purpose. Xi has helped established the Beijing-based Asian Infrastructure Investment Bank and the Shanghai-based New Development Bank as alternatives to the U.S.-dominated World Bank and International Monetary Fund, as well as the Japan-dominated Asian Development Bank.  
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