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CONTENTS

For America to be displaced by an Asian people long despised and dismissed with contempt as decadent, feeble, corrupt and inept, is emotionally very difficult to accept. The sense of cultural supremacy of the Americans will make this adjustment most difficult.  Lee Kwan Yew 

Economy

Huawei hopes to sell 20 million Mate 60 phones this year. Apple sold 46 million iPhones in China in 2022. The average price of iPhones is the same as the Mate 60: $1,000.00 Read article →

Huawei splits $10 Bn with 131,000 staff, average folk got $73K. Folks who joined close to two decades ago are seeing payouts north of a quarter mil. Pretty good for an embattled co. Read article →

Week-on-week drop of legacy auto sales in China:
Nissan 33%
Honda 32%
Toyota 39%
Chevrolet 39%
Buick 53%
Hyundai 58%
Cadillac 61% Read article →

GDP growth, 2000 - 2020:
🇨🇳 China: 1266%
🇷🇺 Russia: 466%
🇮🇳 India: 440%
🇧🇷 Brazil: 316%
🇸🇦 Saudi: 300%
🇦🇺 Australia: 250%
🇹🇷 Turkey: 250%
🇰🇷 South Korea: 220%
🇿🇦 South Africa: 200%
🇮🇩 Indonesia: 175%
🇨🇦 Canada: 166%
🇺🇸 USA: 108%
🇬🇧 UK: 85%
🇩🇪 Germany: 77%
🇫🇷 France: 68% [The Spectator Index] Read article → 

Trade

The New York Times' Paul Krugman: "China is in big trouble”. We’re not talking about some minor setback along the way, but something more fundamental. The country’s whole way of doing business, the economic system that has driven three decades of incredible growth, has reached its limits. You could say that the Chinese model is about to hit its Great Wall, and the only question now is just how bad the crash will beWages are rising; finally, ordinary Chinese are starting to share in the fruits of growth. But it also means that the Chinese economy is suddenly faced with the need for drastic “rebalancing” — the jargon phrase of the moment. Investment is now running into sharply diminishing returns and is going to drop drastically no matter what the government does; consumer spending must rise dramatically to take its place. The question is whether this can happen fast enough to avoid a nasty slump.

Larry Johnson, retired CIA analyst: That was written in 2013 when China's GDP at purchase power parity reached $16.3 trillion. The number has since more than doubled to a projected $33 trillion in 2023. (In the same time span U.S. GDP(ppp) grew from $17 to $26 trillion.) But that hasn't influenced Krugman's conclusions. Two week ago he wrote another column that paints the same gloomy picture and prescribes the same false medicine:

At a fundamental level, China is suffering from the paradox of thrift, which says that an economy can suffer if consumers try to save too much. If businesses aren’t willing to borrow and then invest all the money consumers are trying to save, the result is an economic downturn. Such a downturn may well reduce the amount businesses are willing to invest, so an attempt to save more can actually reduce investment. 
...
The obvious answer is to boost consumer spending. Get state-owned enterprises to share more of their profits with workers. Strengthen the safety net. And in the short run, the government could just give people money — sending out checks, the way America has done.


How is giving checks (btw: no Chinese or European citizen uses those antique instruments) to people who are saving instead of consuming supposed to increase their consumption? I would presume that it would rather increase their savings. Giving more income to people who like to save to increase consumption is like pushing on a string.

David Fishman, an economist who lives in China and speaks Mandarin, had an interesting chat with a taxi driver (below). He concludes:

  1. Even after buying a property, long-term considerations still drive Yang to save money, most prominently his daughter and parents.
  2. Yang and his wife give up consumption in pursuit of their long-term goals, even working an extra job, to put away extra cash for those goals.
  3. He associates loose/free consumption habits with youth and a lack of responsibility. His consumption today is strategic and intentional.
  4. He is unperturbed by the prospect of real estate losing value, since he bought his house to live in, and doesn't intend to resell it.

Now, macro econ punditry is *not* my lane but, if I hear a pundit talking about Chinese consumers, and how they will/won't behave in response to some government policy, I will always wonder what their mental model of this generic Chinese consumer's behavior looks like.

To be credible, that consumer behavior model should probably look like Yang, willing to work an extra job & skip consumption, not out of today's financial necessity, but in preparation of being a good filial son, and so his 3-year old daughter can take dance lessons someday.

And that is Krugman's problem with diagnosing China's economy. People work hard in China. And they like to save instead of consuming all their income. They retire pretty early but live long (though that retirement age is likely to rise). So having a bit of money on the side will make for a nicer living in later years:

The official retirement age for men is 60. Women in managerial positions have a retirement age of 55, while blue-collar female workers can retire at 50.
Chinese people are simply not Americans. But Krugman's economic models presume that they are and he isn't willing or capable of looking beyond those.

Still he was onto something when he opened his column with this:

The narrative about China has changed with stunning speed, from unstoppable juggernaut to pitiful, helpless giant.
It is indeed a fact that the narrative about China's economy has changed way more than China's economic numbers. But Krugman fails to ask why.

Some argue that this narrative change serves investment interests:

First, the most salient preoccupations of Western commentators reflect the skewed distribution of foreign-owned capital within the Chinese economy. 
...
The second feature relates to the financial industry’s reliance on the art of political-economic storytelling to sell investment options.
But it is probably more a political instrument to support the general U.S. war against China.

Newsweek recently published a rather laughable story which asked if Shanghai (25 million permanent inhabitants) had turned into a 'ghost town'.

The Global Times editors see political motives behind such 'bad China' narratives:

If only Newsweek is doing this, then it is an isolated case, indicating the media outlet's problematic professional ethics and the negative impact it caused is not significant. However, starting from March or April this year, not only Newsweek but also other US and Western media outlets have been selectively using some specific data from a certain point or in a certain field to generalize, and even fabricate information to undermine, the Chinese economy. This is a coordinated and large-scale campaign, with consistent steps, intense actions, and extensive content, which is rare in recent years. Can we say that this is a coincidence?
The 'bad China' narrative is an economic phenomenon but is used for political reasons:

In the field of economics, there is a term called narrative economics, which uses storytelling to influence judgments, even at the cost of creating false information, to undermine the morale and confidence of the target and attempt to deter foreign investment, thereby having a substantial impact on the economy. The US has openly regarded China as its biggest competitor and even treats China as an imaginary enemy in many practical aspects. We cannot expect it to engage in fair competition with China. In order to win this "competition" initiated by itself, the US often resorts to any possible means. This perspective can explain the phenomenon in which the US is badmouthing the Chinese economy in a collective manner and can also roughly predict the US' future actions toward China, indicating that it aligns with the basic facts.
The problem the Gloom and Doom in Chinanarratives have is that they are propaganda. Propaganda does not change reality. It falls apart when confronted with facts.

War propaganda falls apart when a war is lost. Economic propaganda falls apart when the new numbers come in. Krugman's doom and gloom propaganda from 2013 was defeated by China's growth. His 2023 propaganda is likely to meet the same fate. Read article →   

Technology

The most powerful astronomical tool in the northern hemisphere, 4,200 metres (13,800 feet) above sea level on the remote Tibetan Plateau, is operational. The Mozi Survey Telescope, on Saishiteng Mountain, has a main mirror 2.5 metres (eight feet) in diameter, the 230 million yuan (US$31 million) optical telescope will scan the dynamic night sky and track how objects change over time. Read article →

US guru says China has most exascale computers, power may exceed all countries, but flies under the radar because of sanctions. Professor Jack Dongarra, Turing laureate and co-founder of TOP 500 supercomputer list, says China still produces the most ultra-fast computers, but 'having the world’s No.1 computer may cause the US to take actions against China that would further restrict technologies from flowing into China’. Dongarra said Chinese scientists seemed to be “quite proud of the three machines they have”, even though those machines have never appeared on the TOP500 list – the most influential ranking of the 500 fastest supercomputer systems in the world. Read article →

Chips made in TSMC's new Phoenix fab must be shipped to Taiwan for completion, in a highly technical process known as packaging, according to TSMC engineers and former Apple employees. Read article →

Peter Wennik, Chairman/CEO of ASML, the Dutch lithography machine maker, on China’s developing its own lithography machines:
2019, 'Even if we gave China all the blueprints, China still can't produce a lithography machine.'
2021, 'The laws of physics are the same worldwide, and restrictions will only accelerate China's independent research and development.'
2022, 'China is an important participant in the semiconductor industry, and selling lithography machines to China aligns with our interests.'
Q1 2023, 'Establishing a self-sufficient chip industry as a single country is extremely difficult; success requires long-term cooperation with global suppliers.'
Q2 2023, 'China's independent development of lithography machines is disrupting the global supply chain’.
Q3 2023, 'China has 1.4 billion people, and many of them are intelligent. They can come up with solutions we haven't thought of, and export controls will only push them to enhance their innovation capabilities. They work harder, more diligently, and faster, while we are too self-conceited.'' Read article →

Expats

It's around 4pm and I'm heading to the airport. I call a Didi car and get a guy almost instantly, just 20 meters away. He looks about my age, maybe a bit younger. "Hey man, you took my order so fast...do you just sit in the hotel parking lot waiting for an airport run?" "No, I just dropped someone here. The system gives us orders. Hey, bro, are you Chinese?"

"Do I look Chinese?"

"Hah, no...I guess you don't. But you sound Chinese, like you're from the north."

"Yeah, I learned Chinese up north. But you...you sound like you're from Guangxi."

"Yes, you have a good ear. I'm from Nanning. Actually, originally I'm from Chongzuo. I guess you don't know Chongzuo...it's a small place."

"Actually I do know Chongzuo, but I don't know anything about it. It's a city southwest of here, on the Vietnam border, right?" (崇左市)

"Yes. Wow, you even know Chongzuo. Lots of Chinese people don't know Chongzuo."

"I like geography, and I like to travel, so sometimes I will study the map to plan where I might travel someday. I know lots of city names and locations like this. Hey, do you like driving for Didi?"

"It's okay. Actually I have two jobs - in the morning I work for a company, helping to ship orders."

"Like a logistics job?"

"Yeah, I guess it's a logistics job. In the late afternoon and evening, I drive a car for Didi."

"Why do you work two jobs? Are you saving for a house?"

"No, I already bought a house in Nanning. I work two jobs because it makes me feel more relaxed, to have the extra income."

"Why do you need the extra income? Are you paying your home loan faster?"

"Mmm...with extra income I pay my loan faster, but also can save some money."

"Save? For what? Do you plan to buy a car, go traveling, buy some stuff? Since you have a house already, what are you saving for? What's the dream thing you want to buy?"

"Dream? No...haha. I don't have a thing I want to buy. But I need to save for my daughter's education".

"Oh, you mean like tuition, training classes?"

"Not just that. Other things. Maybe someday she will be interested in dance or music. These hobbies cost money. It's different now than when we were young. Kids need other activities. So I need to save for that. Also my parents..."

"Right, saving for kids and and parents in the future. I see. You know, some economic experts say is that Chinese people are always saving for future purchases, so they don't buy goods now like cars or cell phones, a consumption problem. Do you think that's true?"

Later, I checked hiring salary statistics for Nanning in Q2 2023 and found they matched well to his anecdotal descriptions, with the average monthly salary across the city at 8850 CNY and the median at 6985 CNY, ranking 28/38 of the largest Chinese cities. 

"Okay" I continue. "Then what about real estate? Is it affordable in Nanning? I saw some signs advertising for 6000 to 8000/sqm for an apartment". Is that normal?"

"Yeah, Nanning is a typical 'wages low, house prices high' city. 7000/sqm is an average price".

(While Yang considers these prices high, a 1:1 ratio of the average monthly wage vs 1 sqm of housing is really not bad vs. say, Nanjing or Wuhan, where that ratio is 1:5 or more, never mind Beijing or Shanghai, where that ratio is 1:10 or even 1:20 in downtown areas).

"What's the most expensive real estate in Nanning? Someone told me it's those four big towers next to the Yong River? I guess it's famous?"

"Oh, haha yeah. It's called uhh...凯旋1号? It's very expensive. But that's not a nice place to live. The neighborhood isn't good."

"Yes, I saw those buildings at night across the river. I guess it's too expensive - someone told me it's 30000/sqm. Almost no lights. It seems it's still mostly empty, no neighbors. And when people do move in, there will be so much noise from renovations..."

"Maybe not. I heard those luxury apartments come fully furnished".

"Yes, but don't Chinese people always renovate the apartment when they move in?"

He pauses for a second, thinking, then laughs into the rearview mirror at me. "That's right...we do like to do that. Hahaha."

We're pulling up to the airport. But I still have one more question about real estate.

"Do you think the value of houses will go down because of the economy? Are you worried?"

"I heard that. I guess so. But I don't worry about it. I bought my house already. I won't sell it."

So...conclusions. ofc, Yang is just one guy, but his life seems pretty typical of a middle-income family in a large-but-not-huge Chinese city. I'm not a macroecon guy, and definitely not a real estate guy, but here's what I got from this chat, in a social anthropology sense:

1. Even after buying a property, long-term considerations still drive Yang to save money, most prominently his daughter and parents.

2. Yang and his wife give up consumption in pursuit of their long-term goals, even working an extra job, to put away extra cash for those goals.

3. He associates loose/free consumption habits with youth and a lack of responsibility. His consumption today is strategic and intentional. 

4. He is unperturbed by the prospect of real estate losing value, since he bought his house to live in, and doesn't intend to resell it.

These facts form the reality of how he consumes - sociocultural habits that make him distinct from a Shanghai consumer, an American consumer, or a generic consumer in an econ textbook. If you want Yang to behave differently, your proposed policy solution must be fit for purpose. If I hear a pundit talking about Chinese consumers, and how they will/won't behave in response to some government policy, I will always wonder what their mental model of this generic Chinese consumer's behavior looks like.

To be credible, that consumer behavior model should probably look like Yang, willing to work an extra job & skip consumption, not out of today's financial necessity, but in preparation of being a good filial son, and so his 3-year old daughter can take dance lessons someday. David Fishman

Environment

China's PV capacity hit 500 GW, will double to 1 TW by 2026. Investment in solar PV construction hit ~$15.8 billion in the first half of 2023, outpacing other power generation sources. Despite land constraints in coastal regions, provinces like Henan and Shandong lead in distributed solar PV installations, with the nation halfway through its five-year solar installation target. Read article →

Stats

Governance

China identified US NSA operatives while investigating a recent cyberattack on Northwestern Polytechnical University, as its top spying and anti-espionage agency vowed on Thursday to root out all “digital spies”.The revelation came just three days after Beijing revealed more details about John Shing-wan Leung, above, a Hong Kong permanent resident and US citizen the Chinese Ministry of State Security said posed as a philanthropist while snooping for information. He was jailed for life for espionage in May, two years after his arrest in China. The National Computer Virus Emergency Response Centre, discovered the identity of the NSA operative or operatives. The report said technical analysis showed that Second Date was a cyberespionage weapon developed by the NSA to sniff out and hijack network traffic and insert malicious codes that enabled attackers to take control of target network devices and the data traffic flowing through them, and use them as a “forward base” for the next stage of attacks. It could run on various operating systems and was compatible with multiple architectures. The report said that after global tracing, the Chinese team found “thousands of network devices” across the country were still infected by the spyware and its derivatives. It said they also found springboard servers remotely controlled by the NSA in Germany, Japan, South Korea, India and Taiwan. Read article → 

Propaganda

History

World's earliest paper map in Gansu: The remains of the precious map, sized 5.6cm long, 2.6cm wide, were unearthed in Gansu in 1986. Archeologists found the material dates back from 179 BC to 143 BC in West Han Dynasty, reportedly the world's earliest paper. Read more →

One of the first tasks of the Communist Party in 1949 was stopping Opium trafficking.
  • 369.000 suspected traffickers were identified
  • 82.000 were detained
  • 35.000 were convicted 
  • 880 were publicly executed.
The next phase was to mobilize the masses and create mandatory rehabilitation for all addicts. China went from a country where, in 1906, 27% of all adult men smoked opium, to one practically free of opium smoking by the end of the 1950s. The land reforms transformed extensive fields of opium poppy towards the production of food. The main exception was British-held Hong Kong.  With an estimated 100.000 addicts out of a population of 4 million in 1970, Hong Kong was the place with the highest percentage of drug users in the entire world, most of them poor laborers, representing 85% of all prisoners in the British colony. Read more →

History

On 11/3/1885, in Tacoma, Washington witnesses saw the forced expulsion of its Chinese residents by a mob of hundreds of men, propelled by economic tensions and racial bias. This expulsion was systematically orchestrated. Led by Mayor Jacob Weisbach, city leaders, labor activists, and residents joined forces, intimidating and threatening Chinese immigrants before enacting a mass eviction. The process was methodical. Anti-Chinese leagues were organized to apply pressure. A departure deadline was set, in this case, November 1, 1885. When the deadline arrived, a self-appointed group, often called a "Committee of Fifteen," forcibly evicted Chinese residents from their homes, transporting them out of the city. Read more →

Diplomacy

Beijing's "Proposal of the People's Republic of China on the Reform and Development of Global Governance," outlined what Xi Jinping’s global governance looks like in practice. These first three sections expound on his Global Security, Development, and Civilization Initiatives, by:

  1. Articulating China’s position on specific security issues, from the war in Ukraine to the Israeli-Palestinian conflict, to nuclear security and counterterrorism
  2. Calling for synergy between Chinese, foreign, and UN-led development initiatives, more balance and equity in global development, support for globalization, and efforts to fight climate change and food insecurity
  3. Rejecting so-called "universal values" and a one-size-fits-all definition of human rights in favor of respect for sovereignty and national circumstances

The document also looks forward, calling for multilateral management of emerging technologies. It pushes cooperation in cyberspace, rejects a politicized “small yard, high fence” approach to tech, and calls to harness AI for common development. Finally, it proposes reforms to global governance, including:

  • Better prioritizing developing world interests
  • Reforming the UN Security Council
  • Improving macroeconomic coordination

That will increasingly put China at odds with the Western countries that built (and benefit from) from the current world order. Read more →

Geopolitics

High-speed rail to Taipei is now feasible. Senior official from state planner says people on both sides of the Taiwan strait of long ‘dreamed’ of a high-speed rail link. Read more →

BRICS 11 now controls the Arctic Sea Route, the International North South Transportation Corridor (INSTC), BRI’s East West Corridors, the Persian Gulf, the Red Sea and the Suez Canal. That blends overland corridors with nodes on the Maritime Silk Roads, integrating the Heartland and the Rimland with a single strategic move in the geopolitical chessboard. Read more →

Defense

New radar reaches Australia: the PLAN's new radar system can detect a ballistic missiles in northern Australia, 4,500km (2,800 miles) away and track multiple targets within 3,500km, or to Guam. The radar is suitable for installation on newer Chinese warships, with the first system already in construction. While the line of sight can be affected by the Earth's curve, the unprecedented boost in search and tracking capabilities could give the PLA Navy a major advantage, the researchers said.

Radars in most military vessels have a working range of a few hundred kilometres, limited by the immense power required to extend their capability. The researchers said they overcame the problem, making the system suitable for newer ships with electric propulsion systems.

According to the paper, the new-generation active phased array radar is made up of "tens of thousands" of transceivers, an order of magnitude far greater than featured in more usual devices, the researchers said.

Each transceiving array unit can send and receive signals as an independent radar. When working together, these units can generate pulse electromagnetic signals as powerful as 30 megawatts - enough to wreck the electrics of any warship in existence.

A Beijing-based radar scientist who was not involved in the project said that until recently the idea of putting a 30 megawatt radar on a battleship was "more or less science fiction".

But China is under enormous pressure to develop better radars for its warships because of the increasing US military activities in Asia, said the scientist, who asked not to be named due to the issue's sensitivity.

"The more powerful our naval radar becomes, the more likely it is that we can suppress the US in the South China Sea."

Size can be a problem when developing long-range radar systems. For instance, Florida's 32-megawatt AN/FPS-85 radar - the world's most powerful, according to its owner the US Space Force - takes up more than 23,000 square metres (250,000 sq ft) of floor space, or three soccer fields.

Technological advances have significantly reduced the size of high-power radars, with some critical components available in larger quantities and at lower prices than ever before, thanks to the mass application of 5G technology.

But the power supply for their groundbreaking radar remained a challenge for Sun and his colleagues, who had to overcome the radar's tendency to produce extremely strong electric shocks when generating its powerful signals in rapid pulses.

To prevent damage to the other electronic devices within the confined space of a vessel, Sun's team had to separate the radar from the ship's power network. This would require some large, high-performance capacitors to act as a buffer, they said.

The researchers turned to high-speed train manufacturer China Railway Rolling Stock Corporation (CRRC), the world's largest maker of bullet trains that built the world's first mass production line for super capacitors in 2013.

High-speed trains in China are driven by high-voltage current to reach an operational speed of up to 350km/h (217mph), with powerful and reliable capacitors ensuring a smooth and stable energy supply over long distances.

Sun's team said test results suggested that customised capacitors made by CRRC for the radar could almost eliminate the power shocks it generates. And at slightly over 1 tonne, the entire power supply system with capacitors and other components is small enough to fit in a ship, they said. It is also surprisingly efficient, according to the researchers. Even at full capacity, the radar would only impose a constant load of 235 kilowatts on the ship's power supply network, which could be handled by the generators on mainstream warships, they said. Read more →

World’s most powerful radar chip. A research team has built a finger-sized chip that can generate radar signals with 2.4 kW peak power, one or two orders of magnitude above power-amplifying chips in most radars.The new chips operate in the X band – a high-frequency microwaves used by the military to identify threats and guide missiles – and can be mass-produced at relatively low cost. Read more →

LONG READS:
Bad Debt?
The Mother of all Debt Traps  

Patrick Chi-Ping Ho, Gal Luft


Ever since the launching of the Belt and Road Initiative (BRI) in 2013, the west has been mud-slinging this Initiative as Chinese “debt trap” for the recipient countries along the Belt and Road region. However, China has another perspective on the meaning of “debt trap.” For Beijing, the mother of all debt traps is the United States of America.

For years, much of China’s enormous trade surpluses with the United States— the very same ones the Trump administration wants to eliminate—were ploughed back into the U.S. economy though the acquisition of U.S. Treasuries. In 2008, as part of its response to the financial crisis, China surpassed Japan as America’s number one debt owner. In 2019, the People’s Bank of China owned roughly $1.1 trillion in U.S. Treasuries and another $300 to $400 billion in debt of government sponsored enterprises like Fannie Mae and Freddie Mac. Add to this, U.S. debt held by China via subsidiaries in places like Hong Kong and Belgium and the total amount was well over $1.5 trillion—roughly one quarter of total U.S. foreign debt. Roughly half of China’s $3 trillion foreign exchange reserves were invested in U.S. Treasuries. But while Washington has identified Beijing as public enemy number one, as U.S. debt grows, Washington is also so confident in China’s insatiable appetite for its debt that it expected China to buy more and more of it.

In recent years, China has been undergoing an intense internal debate about what to do with America’s debt. Beijing is not likely to dump its Treasuries as Russia has recently done. This would be self-defeating. After all, its economy is still closely intertwined with America’s, and with roughly over $700 billion a year of bilateral trade on the line. And even if it were in China’s interest to do so, it would not be possible for Beijing to find a buyer for such a huge amount of U.S. Treasuries unless it offered them at a heavy discount. But the debate is not about dumping the treasuries China already owns. It is about the wisdom of rolling over those that mature. Contrary to what Yellen has hoped and wished, currently China has not a scintilla of appetite for increasing its current holdings to the levels needed to meet the steadily growing U.S. fiscal needs. In fact, since the beginning of the trade war in 2018, its holding of U.S. bonds has been steadily declining to a mere 835 billion today.

To understand China’s dilemma there is no escape from delving into some numbers. U.S. federal debt currently amounts to over $32 trillion. Under the baseline scenario of the Congressional Budget Office (CBO), the U.S. federal deficit is projected to grow between 2018 and 2028 at an average rate of $1.2 trillion a year, adding a total of $12 trillion to the national debt, not to mention the additional easing in 2020 in response to the epidemic. This means the total debt held by the public in 2028 will be projected to reach way over $37 trillion! Over the past 50 years, the annual deficit has averaged 2.9 percent of GDP, but going forward, from 2023 through 2028, it is projected to fluctuate between 4.6 percent and 5.2 percent. It is thus very clear that soon the United States will no longer be able to borrow so easily the amount of money it needs to finance its budgetary obligations. The interest payments would simply become prohibitive. The cost of servicing over $32 trillion of debt would necessarily chip away at education, research, environment protection, infrastructure building, and domestic investments. At the current growth rate of debt, the federal government will have to borrow on average $1.2-1.4 trillion if not more each year.  And the U.S. expects China to increase its holding of U.S. Treasuries by an additional $70 billion every year.

How long does anyone think China will agree to fund the very same U.S. military that is preparing to fight China, the education system that is striving to outsmart it and that is closing its gates to Chinese students, the research and development infrastructure that aims to undercut China’s technology development programs, and the U.S. Department of Justice lawyers who are prosecuting Chinese companies and nationals? To paraphrase Lenin, China is no longer willing to pay the capitalists for the rope on which they plan to hang it. Even if the relations were great, China would still be hard-pressed to finance America’s spending feast. In what the Wall Street Journal called a “tectonic shift” in China’s economy, China’s trade surplus with the rest of the world is readjusting. This implies that what once was a nation of savers, with the highest saving ratio in the world, is turning slowly into a nation of consumers. While still an export powerhouse, China is generating more and more of its growth from domestic spending. In other words, China is turning to be somewhat like America, adopting its playbook. For the United States, the implication of China becoming a consumption and demand-driven economy is that it would have less of a dollar surplus with which to buy U.S. Treasuries.

Naturally, if China decelerates its debt buying, the U.S. will be forced to seek alternative buyers. The problem is that with the erosion in trust in the U.S. and its currency on the one hand, and the slowing down in global growth on the other, there may not be many takers. Japan’s slow growth and aging population means that it too may not be able to keep up with the growing budgetary needs of the U.S. government. The third largest foreign holder of U.S. debt, with more than 10 percent of the total, roughly $700 billion, is not a country but “FAANG”, which stands for Facebook, Apple, Amazon, Netflix and Google—five top American corporations that keep their profits abroad in low tax havens like Ireland, Luxembourg and the Cayman Islands. These billions are being gradually repatriated to the United States, perhaps under coercion and threats, taking advantage of Trump’s 2017 Tax Cuts and Jobs Act, which lowered their corporate tax burden. Since FAANG’s money is heading home, willingly or unwillingly, a hefty portion is being funneled into purchases of more U.S. Treasuries. The rest of America’s foreign debt is lodged in the UK, Brazil, Singapore, Saudi Arabia, South Korea, Switzerland, India, Canada, France and elsewhere, but most of them are either reducing their Treasury holdings or have no capacity to increase them by much. For the ordinary observers in the East, the gap between America’s fiscal needs and the willingness and the ability of the rest of the world to meet them is glaring. What is baffling to them is the American media and politicians’ indifference to the coming train wreck.

Somebody's missing something!

Like it or not, China is the only country that has the capacity to finance America’s spending, a fact that most policymakers choose to ignore. And the concern is not only China declines to buy more of them, but China begins slowly and insidiously dumping its existing U.S. Treasuries. Without China’s willingness to gobble more debt all that is left is the lender of last resort—the Fed and the U.S. government itself— and that too would have serious and long-reaching consequences. If China decides not to underwrite more U.S. debt, the U.S. will be forced to raise the yields on its bonds, but this means higher cost of debt servicing as interests soar, and which means less money for defense, education, health, etc. Niall Ferguson’s theory that empires fracture and fall when the interest on debt surpasses the defense budget still rings true, and we shall soon be witnessing another example of this supposition.

From China’s standpoint, pouring more money into the American debt hole makes no sense. It prefers to redirect more and more of its money to other foreign investments, while diversifying away from dollar reserves into other assets like gold. Indeed, it has just been reported that China has dumped 481 billion of US Treasuries, and bought 6927 tons of gold from overseas. The Belt and Road Initiative is therefore China’s mechanism for reallocating its large foreign exchange assets away from what it views as the American debt trap into more rewarding and growth yielding infrastructures and technology investments. China has already made its decision loud and clear: its money is going to build China and its Asian neighbors—not finance reckless spending in America, the mother of all debt traps! More..
Free Taiwan?
Integrating Fujian Province Development Across the Taiwan Strait  

CPC Central Committee & State Council

Resolving the Taiwan question and realizing China’s complete reunification is, for the Party, a historic mission and an unshakable commitment. It is also a shared aspiration of all the sons and daughters of the Chinese nation and a natural requirement for realizing the rejuvenation of the Chinese nation. [GRR's note: The narrative in this part remains exactly the same as mentioned in the report of the 19th Central Committee of the CPC which was adopted at the recently concluded 20th CPC National Congress delivered by Xi Jinping in October 2022. GRR has a page covering the congress.] Fujian has a unique position and role in the overall work on Taiwan. In order to advance the integrated development in various fields across the Strait [GRR's note: "advance the integrated development in various fields across the Strait" was mentioned before in the report to the 20th CPC National Congress] and promote the process of peaceful national reunification, we hereby propose the following requirements and measures on supporting Fujian Province in exploring a new path for the integrated development across the Taiwan Strait [GRR's note: a new path was also mentioned before] and making a demonstration zone for the integrated development across the Taiwan Strait.

Ⅰ. General requirements

Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, we must thoroughly implement the spirit of the report to the 20th CPC National Congress, implement our Party’s overall policy for resolving the Taiwan question in the new era, practice the conviction that we are all of the same family [GRR's note: This conviction was mentioned before in the Resolution of the Communist Party of China (CPC) Central Committee on the Major Achievements and Historical Experience of the Party over the Past Century] prioritize advancing integration through better connectivity and more preferential policies, and based on mutual trust and understanding, and strives to build making a demonstration zone for the integrated development across the Taiwan Strait in the whole Fujian Province.

We must fully leverage Fujian's distinctive advantages and its pioneering role, and harness a variety of resources to further enhance integrated cross-Strait development. We must always show respect and care for and benefit our Taiwan compatriots, and optimize policies and systems to promote the well-being of Taiwan compatriots and ensure they enjoy equal treatment with their mainland counterparts. We will employ a problem-oriented approach, focus on piloting and testing new initiatives, expand authorization and empowerment, and continue to promote policy and institutional innovation. We will continue to advance the easy things first before the difficult ones, take steady and incremental steps with perseverance to sustain progress, take appropriate measures in light of the time and local conditions, support regions with good conditions and outstanding advantages to take the lead in pilot projects, and guide other regions to identify their positions and work together to achieve synergies.

The objectives: Ensure that the construction of a demonstration zone for the integrated development across the Taiwan Strait will be basically completed, and the effect of Fujian as the first-choice destination for Taiwan compatriots and enterprises to pursue development on the mainland is fully evident. The policies and systems for integrated development will be improved, and the social atmosphere of "the two sides of the Taiwan Strait are one family, and Fujian and Taiwan are closer together" will become stronger. Personnel exchanges between Fujian and Taiwan will become more convenient, trade and investment will become smoother, and cross-Strait exchanges and cooperation will expand to more fields and in greater depth when the demonstration zone is built. The pair cities of Xiamen and Kinmen, Fuzhou and Matsu will play an even more prominent exemplary role in promoting the cross-Strait integrated development, and the Pingtan Comprehensive Experimental Zone will play a full role in the integration development across the Taiwan Strait.

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Ⅱ. Make Fujian the first-choice destination for Taiwan residents and enterprises on the Chinese mainland

1. Facilitate access for Taiwan compatriots. We will build infrastructure of transportation and logistics ahead of demand and increase the guarantee of funds and other factors. We should promote infrastructure connectivity wherever necessary and establish multidimensional and comprehensive transport corridors and hubs linking Fujian with Taiwan, connecting them with other mainland regions. We will strengthen construction of major logistics infrastructure such as logistics hubs and improve regional logistics distribution systems. Moreover, we will further optimize and increase both passenger and freight routes between Fujian coastal areas and Taiwan, Kinmen, and Matsu. We will create a more relaxed policy environment for people from both sides to travel across the Strait, and for Taiwan compatriots to stay or reside in Fujian. By doing so, more Taiwan compatriots who have never been to the mainland are welcomed to visit Fujian.

2. Encourage Taiwanese students to study in Fujian. We follow the policy of "warm welcome, equal treatment, and nearby enrollment" for Taiwanese children who are enrolled in primary and secondary schools or public kindergartens in Fujian. We will support local universities and research institutes in expanding their enrollment of Taiwanese students through various means. We will encourage universities of both sides to carry out high-level cooperation and diversified cooperation in Fujian, and allow advanced characteristic Taiwan enterprises to participate by various means in the running of Fujian vocational schools following joint-stock or mixed system. Furthermore, a number of cross-Strait youth research bases will be established.

3. Encourage Taiwan compatriots to work in Fujian. We will support all types of enterprises in Fujian, especially Taiwanese enterprises, in hiring more Taiwan employees. Particularly, more efforts will be made to hire Taiwanese teachers in Fujian vocational schools. We will expand the scope of direct recognition of Taiwan vocational qualifications. Taiwan-based physicians can run their work in Fujian as regulations require. In addition, we will gradually loose the restrictions for Taiwan residents who have obtained national legal professional qualifications to become lawyers in Fujian. We will improve diversified human resources service institutions including Taiwan-funded ones.

4. Increase the social participation of Taiwan compatriots. They are encouraged to take part in various social undertakings in Fujian such as ecological and environmental protection, rural revitalization, and social responsibilities. They can also play their role in practices such as local community building and community-level governance. Taiwan compatriots are expected to join industrial, academic and professional social organizations. We will run pilot projects for them to serve as heads or legal representatives of non-religious social organizations in Fujian. They can win honors and awards at all levels in accordance with relevant state regulations. We also encourage Taiwan compatriots to take up the posts such as arbitrators, mediators, people's assessors, people's supervisors, procuratorial liaison officers, and judicial auxiliary personnel and participate in the construction of rule of law in Fujian.

5. facilitate Taiwan compatriots' living in Fujian. We will cancel the temporary residence registration of Taiwan compatriots in Fujian. They are encouraged to apply for residence permit for Taiwan residents. They can settle down in Fujian as they will. Besides, we will expand the applied range for verification of their residence permits, striving to make the permits as conveniently applicable as mainland residents' identity cards. Taiwan compatriots will be encouraged to buy homes in Fujian. We will also strengthen institutional support for their employment, health services, housing, elderly care services, and social assistance in Fujian. Taiwan compatriots will be embraced into the mainland's social security system in accordance with laws and regulations.

6. Improve Taiwan-related judicial services. We will build an open resource-sharing platform that integrates Taiwan-related legal research and consultation and legal investigation in Taiwan. We will strengthen exchanges and cooperation between arbitration institutions across the Strait. Taiwan civil and commercial arbitration institutions are allowed to set up agencies in Xiamen and conduct arbitration business related to Hong Kong, Macao, Taiwan or foreign affairs. We will create a favorable destination for Taiwan-related judicial services on the mainland, providing legal guarantee for Taiwan compatriots and enterprises to participate in the integrated development of both sides. Moreover, we will continue to improve law enforcement, examination, trial, execution and supervision mechanisms in order to reinforce Taiwan-related legal services.

III. Deepen economic and trade integration between Fujian and Taiwan

7. Improve the Taiwan-related business environment. We will support Fujian Province in building a world-class business environment, and guide Taiwan compatriots and businesses to jointly build a convenient business environment that is market-oriented and law-based. We will formulate opinions on special measures to relax market access to deepen the integration of Fujian and Taiwan, and encourage the Fujian Pilot Free Trade Zones, as testing grounds, to expand its projects for Taiwan. We will support innovative development of small-scale trade with Taiwan. We will build a cross-Strait common standard service platform, encourage cross-Strait industries, universities, research institutes, and enterprises to jointly develop common industry standards, and explore a qualification evaluation and certification system for Taiwan enterprises. We will improve the mechanism for protecting and coordinating the rights and interests of Taiwan compatriots and enterprises, establish sound channels for communication between the government and enterprises, and increase the quality and quantity of Taiwan businesses and enterprises in Fujian.

8. Deepen industrial cooperation. We will support localities with requisite conditions to build demonstration centers for new industrialized industries, strengthen industrial cooperation between Fujian and Taiwan, and improve the resilience and security of the industrial chain and supply chain across the Taiwan Strait. We will ensure the provision of factor of production, support the construction of industrial bases like the Gulei Petrochemical Industrial Base and Ningde Power Battery Cluster, etc., to gather cross-Strait production factors and build globally competitive industrial bases and advanced manufacturing clusters. We will support the joint establishment of enterprise cooperation alliances between Fujian enterprises and Taiwanese enterprises in Fujian. We will support the construction of cross-Strait financial markets at multiple levels, innovate ways of cooperation between cross-Strait social capital, promote the establishment of a cross-Strait industry integration development fund, support the innovative upgrade of the "Taiwan capital board" at the cross-Strait Equity Exchange Center, strengthen cooperation with the New Third Board (National Equities Exchange and Quotations), push for more qualified high-quality Taiwan enterprises in Fujian to be listed in the mainland, and encourage more Taiwan enterprises to participate in the development of the mainland's financial market. We will support cross-Strait cooperation in the fashion and creative industries, and jointly cultivate brands with national features.

9. Promote the development of Taiwan's agriculture, fisheries, and small and medium enterprises (SMEs) in Fujian. We will encourage Taiwan farmers and fishermen to participate in the integrated development of the primary, secondary, and tertiary industries in Fujian's rural areas, and to take part in rural revitalization. We will continue to benefit Taiwan farmers and fishermen by providing more conveniences in areas like land use, financing, and opening up domestic markets. We will deepen the cooperation in developing tourism resources between Fujian and Taiwan, and support Taiwanese industry players in participating in the quality enhancement and upgrade of Fujian's rural tourism. We will increase support for the construction of entrepreneurial parks for Taiwan farmers and engage in exchanges and cooperation in fields such as the marine economy. We will support areas where Taiwan enterprises and farmers gather in establishing National Rural Revitalization Demonstration Counties and construct cross-Strait rural revitalization cooperation bases and national platforms for modern, high-quality agriculture and fisheries. We will attract Taiwan industry participants to Fujian to engage in e-commerce, health and wellness, logistics, catering, and other service industries, and support qualified Taiwan enterprises in mainland in applying for China Time-Honored Brands. We will encourage Taiwan small and medium enterprises to develop in Fujian and support the creation of a cross-Strait SME cooperation zone in Fujian. We will promote cross-Strait cooperation in the development of future industries and explore new forms of business in cross-Strait service trade cooperation.

10. Strengthen cooperation in technological innovation. We will encourage enterprises and scientific research institutions from both Fujian and Taiwan to jointly establish platforms for the research and development of common technologies, and promote the digitalization and application of smart technologies for Taiwan enterprises in Fujian. We will support Fuzhou and Xiamen in building distinctive, complementary, and synergistic talent aggregation platforms for both Fujian and Taiwan. We will create a platform for the transformation of ecological and environmental technological achievements across the Taiwan Strait, and support Taiwan compatriots and enterprises in participating in green economic development.

Ⅳ. Promote integration of the whole Fujian Province (with Taiwan)

11. Support the integrated development between Xiamen and Kinmen. We will support Xiamen in carrying out comprehensive pilot reforms, and grant Xiamen greater autonomy in key areas and key links in the form of list-based batch authorization. We will ensure that Kinmen residents living in Xiamen can enjoy the same treatment as local residents, take the lead in providing equal, universal, and accessible basic public services to build a "urban living circle" shared between Xiamen and Kinmen. We will deepen exchanges and cooperation between universities in Xiamen and Kinmen. We will explore a model for Xiamen-Kinmen joint infrastructure development, facilitating the supplies of electricity and gas and the construction of bridges from Xiamen to Kinmen, and supporting Kinmen in using Xiamen's new airport.

12. Support Fuzhou and Matsu to deepen integrated development. We will create an "urban life circle" shared between Fuzhou and Matsu, and support Matsu residents to enjoy the same treatment as local residents in Fuzhou. We will set up Fuzhou-Matsu industrial cooperation park to promote innovative integration between the two cities in culture and tourism, marine fisheries and other fields, and attract Taiwan compatriots and enterprises to participate in the development of Fuzhou's digital economy. We will advance efforts to promote the supplies of water, electricity and gas and the construction of bridges from Fuzhou to Matsu. We will support Fuzhou New District and Pingtan Comprehensive Experimental Zone in establishing a cross-strait integration and collaboration mechanism to achieve integrated and high-quality development.

13. Accelerate the opening up and development of Pingtan Comprehensive Experimental Zone. We will support Pingtan Comprehensive Experimental Zone in expediting the progress to develop an all-round opening framework to Taiwan. We will gradually build a policy system for liberalization and facilitation of investment and trade with Taiwan, expand the opening up of cross-border trade in services with Taiwan, and explore the establishment of a cross-Strait common market pilot zone. We will support Pingtan Comprehensive Experimental Zone to build a more convenient cross-Strait traffic channel. We will study the possibility to open up access to Taiwan's information services and other industries, and explore measures to accelerate the opening up of education.

14. Promote integration practices in other regions of Fujian. We will leverage advantages of Quanzhou and Zhangzhou, which are Minnan-dialect-speaking regions, as the main ancestral homes of Taiwan compatriots, to build a global center for Minnan culture, and carry out the integrated development practices with Penghu. We will support Longyan and Sanming to give full play to their advantages as Hakka ancestral land, and innovate the exchanges of Hakka culture across the Strait. We will support Sanming in building a pilot zone for integrated rural development across the Taiwan Strait. We will support Putian in deepening exchanges and cooperation with Taiwan through the hometown of Mazu and cross-Strait biotechnology and medical and health industry cooperation zones. We will support Nanping in furthering cooperation with Taiwan in ecological, cultural and tourism industries. We will encourage Ningde to expand cooperation with Taiwan in new energy and Marine aquaculture industries.

Ⅴ. Deepen social and people-to-people exchanges between Fujian and Taiwan

15. Expand social and people-to-people exchanges and cooperation. We will support regular exchanges between various types of non-governmental organizations in Fujian and Taiwan, and encourage eligible Taiwan non-governmental organizations to set up offices in Fujian. We will support Xiamen University and other universities in building Taiwan-related research institutions and conducting exchanges and cooperation with Taiwan think tanks. We will make every effort to ensure the success of major cross-Strait exchange events such as the Straits Forum. We will implement the Fujian-Taiwan historical display and tracing project, and carry out activities such as matching the genealogy of people in Fujian and Taiwan and finding out the roots of their ancestors. We will leverage the regions' bond of the belief in the Chinese sea goddess Mazu and other folk beliefs to facilitate diverse forms of folk belief and customs exchange activities. We will encourage religious circles and other individuals from Taiwan to come to Fujian for short-term study. We will support exchanges and cooperation in Buddhism and Taoism between Fujian and Taiwan. We will establish a sound incentive mechanism within platform enterprises to promote people-to-people exchanges between Fujian and Taiwan.

16. Encourage communication and exchanges between young generations. We will support the establishment of regular exchange channels between Fujian and Taiwan youth groups in various fields and industries. We will strengthen the development of platforms for young people in employment and starting bussiness on both sides of the Taiwan Strait, and help young people from Taiwan pursue and fulfill their dreams on the mainland. We will support inter-school exchanges between primary and secondary schools in Fujian and Taiwan, and collaborate on youth-oriented sports projects such as baseball and softball. We will utilize new media, pop culture, and the internet to conduct immersive and interactive experiential exchange activities, continually expanding the shared "friend circle" and "career circle" for youth in Fujian and Taiwan.

17. Promote integrated development in the cultural field. We will encourage compatriots on both sides of the Strait to jointly promote Chinese culture and the protection, inheritance and innovative development of China's fine traditional culture. We will build more platforms for cooperation in the cultural industry and encourage Taiwan cultural businesses to invest and establish themselves in Fujian. We will support the exhibition of cooperation projects between Fujian and Taiwan through overseas Chinese cultural centers. The pilot program allows Taiwan companies to invest and set up radio and television program production and management companies in Fujian [GRR's note: It is unclear how this will be specifically implemented, but some China observers believe that this does not rule out the possibility of some opening up in the ideological field], to guide the Fujian and Taiwan industries to cooperate in producing high-quality film and television shows. We will bring together cultural and entertainment resources from both sides of the Strait to create cross-Strait popular cultural centers. We will continue to carry out Taiwan-related cultural heritage protection projects. We encourage Taiwan compatriots to apply for the title - representative inheritors of intangible cultural heritage at the provincial level of Fujian. We will support Mazu temples on both sides of the Strait in jointly carrying out the protection project of "Mazu belief and customs", which is on the representative list of intangible cultural heritage, and share the protection results. We will promote the application for World Cultural Heritage status for red-brick buildings and Mazu cultural relics in southern Fujian. We will start conducting the "Austronesian Language Family Origin and Diffusion Research" project. We will support Taiwanese companies in applying for qualifications for cultural heritage protection projects, and support professional institutions and personnel from Taiwan to participate in archaeological projects within Fujian province.

VI. Strengthen organizational guarantees

18. Uphold and strengthen the Party's overall leadership. We will adhere to the centralized, unified leadership of the Party Central Committee in Fujian's exploring of a new path for the integrated development across the Taiwan Strait and building a demonstration zone for the integrated development across the Strait. Party's leadership will be implemented in all aspects and stages of work.

19. Improve the implementation mechanism for work. The Taiwan Work Office of the CPC Central Committee and the National Development and Reform Commission should take the lead in coordination, carry out overall planning, establish a dynamic, optimized improvement mechanism, and conduct work such as policy implementation, evaluation, adjustment, and summarization and dissemination. The central government and relevant departments of the state organs should propose innovative measures, strengthen policy support, and fully support Fujian in exploring new mechanisms, new paths, and new models for deepening cross-Strait integration and development. Fujian Province should strengthen its principal responsibilities, establish a collaborative implementation mechanism, leverage the roles of all parties, innovate work methods, and ensure the effectiveness of various measures. We will establish an Expert Committee for Fujian's Exploration of New Paths for Cross-Strait Integration and Development, and conduct policy research on deepening the integration and development of Fujian and Taiwan.

20. Strengthen the foundation of the rule of law. We will make efforts to ensure the rule of law for the construction of demonstration zones for cross-Strait integrated development. For all the policy measures proposed in this Circular, if they involve adjustments to the current laws or administrative regulations, they will be implemented after authorization by the National People's Congress Standing Committee or the State Council according to the legal procedures.

21. Provide financial support. The central government, through existing funding channels, supports Fujian in carrying out economic cooperation and cultural exchanges with Taiwan. Investment from the central government budget should support Fujian's exploration of major projects in the new path of cross-Strait integrated development. Support Ginger River Review.

REVIEWS

Audible China!

 
The 2023 edition is out and, with it, the new Audible version. Listen and wonder!

It's the only book that explains all three elements of China's success:
 
  1. Talent at the Top: Only the brightest, most idealistic people are are admitted to politics–a policy unchanged in 2200 years.
  2. Data in the Middle: policies are implemented, tracked, and optimized based on terabytes of data. The PRC is the world's largest consumer of public surveys.
  3. Democracy at the Bottom: ordinary people, all unpaid amateurs, assemble twice a year to check the stats and sign off on new legislation. Policies need a minimum of 66% support to become law. That's why 95% of Chinese say the country is on the right track.
The proof? There are more hungry children, more poor, homeless, drug addicted, and imprisoned people in America than in China.  

Why China Leads the World
investigates why the epidemic accelerated the change of global leadership from America to China and examines China’s bigger, steadier economy, its science leadership, stronger military, more powerful allies, and wider international support.

Crammed with charts, footnotes, and lengthy quotes, Why China Leads the World is a profoundly disturbing book that helps readers understand the tectonic shift and adapt to this new era–and even thrive in it.
***
The size of China's displacement of the world balance is such that the world must find a new balance. It is not possible to pretend that this is just another big player. This is the biggest player in the history of the world. Lee Kuan Yew: The Future of US-China Relations. The Atlantic.  
***
The Coronavirus accelerated the pace of change of global leadership from America to China. There are now more hungry children, more poor, homeless, drug addicted, and imprisoned people in America than in China. 

Suddenly, China's larger, steadier economy, its leadership in science, its stronger military, more powerful allies, and wider international support have handed it a lead that widens every day.  Crammed with direct quotes from its movers and shakers, charts, and footnotes, Why China Leads the World tells a remarkable tale, explains a tectonic shift, and helps you adapt to this new era, and even thrive in it. 
 ***
If we could just be China for one day we could actually authorize the right decisions. Thomas L. Friedman. The New York Times  

300 pages, 27 charts and graphs. $9.99 on Amazon and in bookstores worldwide.

Atrocities?

 

For decades, Western media have been narrating the same story about China being this brutal “dictatorship” whose people are killed at the hands of the criminal communist regime, giving the Tiananmen Square massacre as a prime example of the brutality of the Chinese government, wherein supposedly scores of students were killed at the hands of the People’s Liberation Army. However, a new book emerged proving that these claims are false and have no foundation to them except for Washington’s aspirations to tarnish the image of the Chinese Communist Party.

Atrocity Fabrication and Its Consequences: How Fake News Shapes World Order, a new book by A. B. Abrams, highlights that there never were any killings in the infamous Tiananmen Square back in 1989 as had been spread by Western propaganda for decades, and it was revealed that the entire affair was but a mere attempt at showing China as the villain in the geopolitical arena. The book underlines that no killings, let alone a massacre as is proclaimed, took place in Tiananmen Square.

How did the U.S. succeed in manipulating the mainstream narrative and have millions upon millions of people believe that China initiated a mass murder of its own people—young college students—crushing them with tanks and shooting them down with machine guns? The answer is simple: the manipulation of public perception through the press. This could be done using media out of context and providing an incomplete version of the truth.

For example, the most infamous piece of media “documenting” the crime to ever exist is a video showing a tank marching onto a person alleged to have been a student, and right as the tank gets close enough to the young man and stops, the video is cut, with there being some text accompanying the video hinting or proclaiming that the tank went on to run over the protester. However, that could not be further from the truth. In reality, other protesters rushed to the scene and accompanied him from there as the tank was standing in place waiting for him to comply and get out of its way.

The book argues that all the acts committed by the United States were in a bid to “justify wars of conquest and exploitation” and generate multi-billion-dollar profits for the notorious military-industrial complex, as reported by CovertAction Magazine.

Abrams highlighted that the Tiananmen Square protests initially took place not as a push for Westernization or the downfall of the Chinese government. Instead, their primary focus was on reinforcing the principles of China’s 1949 Communist Revolution and addressing the issue of corrupt officials who had deviated from Maoist principles.

This movement encompassed not only students but also a significant number of workers, who exhibited a stronger anti-CCP stance. Their collective objective aimed at the establishment of a socialist democracy within the framework of the movement.

The book cited a cable from the U.S. Embassy in Beijing that WikiLeaks published in 2016. The leak included reports on the eyewitness account of a Chilean diplomat and his wife who were present when the PLA made it to Tiananmen Square to disperse the protesters. The pair made it in and out of the square numerous times without any harassment and observed no mass firing of weapons into the crowds. They never saw any use of lethal force, to begin with.

Moreover, the book cited former Washington Post Beijing Bureau chief Jay Mathews who, in 1998, admitted that “all verified eyewitness accounts say that the students who remained in the square when troops arrived were allowed to leave peacefully.”

It also cited Reuters  correspondent Graham Earnshaw, who spent the night of June 3-4 at the center of Tiananmen Square and reported that most of the students left the square peacefully with the remainder of them being persuaded to do the same.

As is customary, the main source the Western media used to claim that a massacre took place was an anonymous student from Qinghua University making claims to the Hong Kong press, who then made it to the British media.

Still, BBC‘s Beijing correspondent James Miles said there was no massacre.

Western reporting had conveyed the wrong impression and protesters who were still in the square when the army reached it were allowed to leave after negotiations.

The narrative was also completely spun out of proportion, with the perpetrators being painted as the victims of a crime that was never committed in the first place. The book underlined that those who did die in Beijing during the events lost their lives in street battles between the PLA and insurgents far from the square. Reports from the U.S. Department of State underlined that the unarmed PLA officers were attacked with petrol bombs, burning many alive.

Uyghurs, another ‘crime’ China committed

The hoax built around Tiananmen Square was a blueprint for U.S. media campaigns aimed at showing the Chinese government in a bad light, as Washington went on to accuse Beijing of perpetrating a genocide against the Uyghur people in Xinjiang province.

The book stressed that the claims about the so-called Uyghur genocide relied on nothing but hardline extremist U.S.-funded anti-China groups. Namely, they were funded by the CIA-affiliated National Endowment for Democracy, which was tasked with carrying out what the notorious spy agency had done alone under the covers for decades.

Amid the claims of Beijing genociding the Uyghurs, the Uyghur population in Xinjiang saw an increase of 25% between 2010 and 2018 instead of the population experiencing a contraction. Even facilities the West claimed to have been “concentration camps” in which Uyghurs were killed en masse and “brainwashed” or “indoctrinated” appeared to have been a logistics park, a regular detention center, and elementary and middle schools.

Xinjiang looks good, safe, and secure, and all the people I spoke with seemed happy about it, former London Metropolitan Police Officer Jerry Grey, who spent a lot of time traveling in Xinjiang, said.

“Uyghurs in China have been growing faster than the majority Han Chinese in part because they weren’t subject to the one-child policy, they have 20,000 mosques built […] Uyghur children can get into top universities easier than Han Chinese, and have halal foods prepared for them in canteens and they have a prayer area on campus,” Daniel Dumbrill, a Canadian businessman and Chinese political analyst said.

“Portraying an adversary as committing particularly egregious crimes, especially when one intends to initiate military action or other hostile measures against the adversary, has consistently provided an effective means of moving public and international opinion and justifying [US imperial] actions,” Abrams said in his book.

Yugoslavia

The book also shed light on the U.S. propaganda focused in the 1990s on Serb leader Slobodan Milosevic, a socialist who sought to keep Yugoslavia together, accusing him of genocide in Kosovo and elsewhere.

Milosevic, a socialist, aimed to maintain the unity of Yugoslavia and prevent its fragmentation. This effort was driven by his desire to counteract Western nations’ potential expansion of influence and the establishment of U.S. military bases in a strategically vital area.

Interestingly, the most severe instances of ethnic cleansing during the war were actually executed by the Croats through Operation Storm, a plan devised by the CIA.

The Clinton administration additionally provided support to the Kosovo Liberation Army (KLA), which sought to establish an ethnically homogeneous Albanian state. This endeavor involved targeting Serbs and other minority groups.

Financing from the drug trade played a significant role in sustaining the KLA, leading the State Department to label it a “terrorist organization”. The NATO North Atlantic Council identified the KLA as the primary instigator of violence in Kosovo.

The narrative of genocide and the Serbs running concentration camps once again heavily relied on the testimony of an individual who openly admitted to not witnessing any killings—propagandist reporter Roy Gutman. This account was eventually discredited when a British journalist visited an alleged death camp, discovering that the inmates had voluntarily sought refuge from the nearby conflict in surrounding villages.

Yugoslavia was a highly successful state that united numerous contemporary Baltic nations under the banner of communism, and it met its demise when the United States and NATO waged a war against it, killing hundreds of civilians in the notorious bombing campaign it launched on the country in order to “sow democracy” there.

Syria

The same man who was one of the main reasons behind the collapse of Yugoslavia was almost able to do the same with Syria. Gutman played a major role in another similar war launched over a decade later against Syrian President Bashar Al-Assad.

The propaganda effort pushed by Gutman was similar to the one he peddled earlier, with it including the mass murder of people at the hands of the government without any evidence backing up these claims.

Western media and regimes falsely accused Al-Assad of carrying out attacks with chemical weapons against his own people while the attacks were likely carried out by U.S.-backed terrorists.

Back in November, the Grayzone website published a series of leaks that expose how senior officials of the OPCW censored this explosive finding in the Syrian city of Douma.

In its investigation, the website stated that “in the early days of the OPCW’s investigation of an alleged chemical attack in Douma, Syria, expert toxicologists ruled out chlorine gas as the cause of death for more than 40 civilians reported at the scene.”

The Korean War: Another ‘atrocity’

The Korean War, a war peddled by the United States that wound up splitting one people into two, was presented to the public as a “humanitarian intervention” aimed at rescuing the local population from communist forces. To establish this narrative, the Pentagon sponsored a propaganda film, titled The Crime of Korea narrated by Humphrey Bogart. This film falsely attributed atrocities committed by the South Korean government, with U.S. support, to the Democratic People’s Republic of Korea.

This narrative gained traction within the U.S. media and significantly bolstered the perception of the war as “morally justified”. An influential Timemagazine column titled “Barbarity” furthered this perspective by describing a communist massacre in Taejon, which subsequent investigations revealed was actually perpetrated by South Korean troops allied with the U.S.

Charles E. Potter, Chairman of the Senate Subcommittee on Korean Atrocities and appointed by Senator Joseph McCarthy, notorious for McCarthyism, which was responsible for the persecution of anyone even thought to be affiliated with any leftist organization or held any left-wing beliefs, emphasized the inhumane acts committed by U.S. adversaries. He recounted gruesome incidents, such as a “Red Chinese” nurse using garden shears to sever a GI’s toes without anesthesia and American POWs being subjected to torture with bamboo spears and confinement in small iron cages until death, with maggots infesting their eye sockets.

However, the accounts presented by Potter contradicted the testimonies of American and British POWs, who indicated that their treatment by captors was generally decent, although they had to attend lectures on communism.

Meanwhile, U.S.-run POW camps subjected DPRK and Chinese prisoners to severe brutality. These inmates were massacred for singing revolutionary songs and subjected to violent coercion to renounce repatriation to their homelands. This strategy aimed to score Cold War propaganda points by portraying defection to the West as a desire born out of the perceived superiority of its political-economic system.

The campaign of propaganda against the DPRK extended well into the 21st century, with increasingly extravagant made-up tales to portray the country in a negative light. Many of these stories were propagated by DPRK defectors, some of whom were influenced or incentivized by South Korea and possibly the CIA.

Shin Dong-hyuk, a defector, collaborated with Washington Postcorrespondent Blaine Harden to write a highly successful book Escape From Camp 14: One Man’s Remarkable Odyssey from North Korea to Freedom in the West. However, this account was later revealed to be a fabrication.

Yeonmi Park, another defector, who charges a speaking fee of $12,500 on Western media outlets, even made the ludicrous claim that her friend’s mother was executed for watching a Hollywood movie.

Lee Soon-ok, yet another defector, testified before a House committee in 2004 that she had witnessed Christians being tortured and burned to death in DPRK political prisons. However, the head of the North Korean Defectors’ Association, Chang In-suk, contradicted this, asserting that Lee was never a political prisoner.

Abrams noted that fabricated reports about DPRK state executions of prominent figures often coincided with the surprising reappearance of these supposedly deceased individuals on camera.

In a CNN report from May 2015, it was alleged that DPRK leader Kim Jong Un had ordered the poisoning and killing of his aunt, Kim Kyong Hui. However, Mrs. Kim appeared in public in January 2020, highlighting the inaccuracy of the claim.

Abrams suggested that these false defector testimonies and biased media coverage were embraced in the West due to the “self-gratification” they provided, seemingly affirming the notion of Western superiority over the least Westernized state. Additionally, they often served as justifications for hostile policies, including economic sanctions, against the DPRK.

The book talks about the demonization of the Russian and Vietnamese governments, as well as that of Libya and Iraq in a bid to validate the Gulf War, while also revisiting numerous cases of U.S. propaganda aimed at subverting its foes while giving impetus to itself and its beliefs in a bid to uphold the unipolar system that it has been trying so hard to keep propped up—to no avail. The recounting of the countless crimes committed by the United States comes as no surprise to many as the latter has done so for decades, and continues to do so, exploiting its hold on the media to give itself the moral high ground over its geopolitical enemies. Monthly ReviewAmazon.

For years, China’s transformation from one of the world’s poorest nations was lauded as a triumph that lifted hundreds of millions of people out of poverty. There were always questions about data reliability and growth sustainability, but the general views on China have recently taken a decidedly sour turn. Concerns abound about state interference in the economy, an ageing population, and high debt level. Making Sense of China's Economy untangles China’s complex economic structure, evolving issues and curious contradictions, and explains some key features of this most puzzling of global economic powerhouses.

This book reveals how factors such as demographics, the initial stage of development in 1978, the transition away from full state ownership and central planning, the dual urban-rural society, and a decentralised governance structure have combined to shape the economy, its development and its reforms. It shows how the pragmatic and adaptive nature of China’s policymaking upends familiar perspectives and hinders simple cross-country comparisons. The book also explores crucial topics including the property market, debt accumulation and environmental challenges.

In this book, Tao Wang innovatively weaves the multiple strands of China’s economy into a holistic and organic tapestry that gives us unique insights from both a Chinese and an international perspective.

This book is critical reading for business leaders, investors, policymakers, students, and anyone else hoping to understand China’s economy and its future evolution and impact, written by a specialist who has studied the country from both inside and out. Amazon.
Is the West prepared for a world where power is shared with China? A world in which China asserts the same level of global leadership that the USA currently assumes? And can we learn to embrace Chinese political culture, as China learned to embrace ours?

Here, one of the world's leading voices on China, Kerry Brown, takes us past the tired cliches and inside the Chinese leadership - as they lay out a roadmap for working in a world in which China shares dominance with the West.

From how, and why, China as a dominant superpower has been inevitable for many years, to how the attempts to fight the old battles are over, Brown digs deeper into the problematic nature of China's current situation - its treatment of dissent, of Xinjiang, Hong Kong, and the severe limitations on its management of relations with other cultures and values. These issues impact the way the West sees China, China sees the West, and how both see themselves.

There are obstacles to the West accepting a more prominent place for China in the world – but just because this will be a difficult process does not mean that it should not happen. As Kerry Brown writes: history is indeed ending, but not how the West thought it would. Amazon

The ISC Report

The ISC (Needham) Report


The Report of the International Scientific Commission for the Investigation of Facts Concerning Bacteriological Warfare in Korea and China (the ISC report), published at the height of the Korean War, validated claims by North Korea and China that the US had launched bacteriological warfare (biological warfare, BW) attacks against both troops and civilian targets in those two countries over a period of several months in 1952.
   

The most vilified document of the 20th Century.

The report’s release in September, 1952, brought a withering international attack. It was roundly denounced by American and British politicians of the highest rank, ridiculed by four star generals, accused of fraud by celebrated pundits, misquoted by notable scientists, and scorned by a compliant Western press. Charges were made against the quality and truthfulness of its science. Its “unstated” political agenda was denounced. The ethics of interviewing captured US pilots was excoriated and its authors were publicly flayed as communist dupes. The report was red baited in the US halls of Congress and deemed unpatriotic to read, and therefore went unread and deliberately forgotten over the years, which has been the fate of Korean War history in general. In subsequent decades, volumes placed in American university library collections were quietly and permanently removed from circulation.
   
When the rare copy came up for auction, it was discretely purchased and disappeared from public view. This critical 67 year old truth commission document from the Korean War was slipping towards oblivion. For these very reasons, historians and truth seekers should exalt the wondrous rebirth of the ISC Report from near extinction with the publication of this new electronic edition. We welcome the sunshine that re-publication brings to a shadowy and suppressed chapter of American Cold War history. (from the introduction by Thomas Powell) 800 pages.  $9.99.

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