How CPC succeeded in transforming China into a global power

How CPC succeeded in transforming China into a global power

July 15, 2021

By Zamir Awan for the Saker Blog

With the beginning of the 20th century, geopolitics was changing rapidly. The centries old, empires, Kingdoms, Dynasties were facing severe challenges, and many revolutions were witnessed. The biggest change was the Russian revolution in 1917, as the Marxist first country in the world. People fed up with imperialism, feudalism, capitalism, and Western Style liberalism, democracy, and colonialism were looking at the Russian revolution as a ray of hope and solutions to all problems.

Since the beginning, anti-Marxism forces, led by America, provided a platform to all Western Style democracies to prove the Russian revolution a failure. However, the world has witnessed a Marxist revolution in many countries around the globe, Eastern Europe, was prominent. In many Arab countries also, a so-called socialist revolution took place like Egypt, Syria, Libya, Iraq, etc. In few African and Asian countries also similar revolutions happened. But most prominent was in China.

The Communist Party of China (CPC) was founded on 01 July 1921 in shanghai. After 28 years of intense struggle, succeeded in establishing the People’s Republic of China as a socialist state in 1949, under the great leadership of Chairman Mao.

The US launched a cold war against Marxism and socialism and formed NATO and non-NATO alliances against the communism threat. The US and its allies did everything possible to harm all Marxist states and used all possible tools against them, like media as narrative building, sanctions, covered operations, coercion, military and non-military operations, espionage, conspiracies, etc.

The former USSR was disintegrated in 1991 and followed series of many Marxist states to collapse, especially, in Eastern Europe. Only a few countries claiming Marxism, are still existing, among them is China, the most prominent.

Why Marxism is still alive and successful in China whereas failed in many other countries? What are the secrets behind the CPC for its success? Before getting any conclusion, we need to understand the structure, and nature of Chinese characteristics of Socialism, which is based on Marxism, with Chairman Mao’s thoughts, Deng Xiao Ping’s theory of opening up and economic reforms, and President Xi’s vision. We must explore the reasons for the success of CPC in China and learn a lesson if suits.

Fortunately, China was blessed with visionary, sincere, and competent leadership uninterruptedly. The Chinese leadership kept on transforming CPC from time to time to meet the emerging situations. Like, pre-1949, Chairman Mao led CPC for guerrilla war to outs the corrupt, incompetent, and disloyal to the nation, the Guo-Ming Dang (Nationalist Party, ruling China at that era. But after 1949, Chairman Mao transformed the CPC to rule the country and develop a governance system, to unite the nations, political reforms, agriculture developments, industrialization, etc. In 1978, Deng Xiao Ping, introduced his theory of opening up and economic reforms, the CPC was reformed to implement his thoughts and transformed China from a poor and backward country into the Second largest Economy in the world, and the property was visible in China everywhere. President Xi’s vision was to globalize China, he transformed CPC to suits his vision. Today China has emerged as a strong, modern, prosperous global power. All these successes were achieved because of the hard work of the people of China and the visionary leadership of China. The introduction of the right policies at the right time was key to all these achievements. The CPC deserves credit os all achievements.

The Induction of new members is based on strict merit, and regular training of party members is also contributing toward the Chinese achievements. The regular strict monitoring of officials and accountability also plays its role to keep the transparency, merit, and corruption-free systems. CPC is well disciplined, well organized, competent, and sincerely working for the total welfare of people.

On the occasion of the 100th anniversary of the Communist Party of China (CPC), President Xi Jinping delivered an outstanding historic speech before a jubilant and roaring crowd of more than 70,000 people at the famous Tiananmen Square in Beijing. President Xi who is also the general secretary of the CPC Central Committee and chairman of the Central Military Commission declared that the nation is advancing with unstoppable momentum and rejuvenation.

Then-President Xi’s speech provided a much larger impetus to the momentum for the already strong and confident nation where he made a promise to continue this glorious journey for the next 100 years.

This rejuvenated nation eradicated absolute poverty, fought a heroic battle against the once-in-a-century pathogen, created a thriving economy, made immense agriculture advancement and technological progress, including successful space expeditions, and above all brought happiness to its people, all of which are significant highlights of a prosperous and peaceful China.

President Xi declared that China has finally achieved the goal of building a moderately prosperous society in all respects. He was drawing attention to recent triumphs that China has accomplished: poverty alleviation and economic stability. A sense of confidence and pride with humility is reflected from the speech when President Xi said that China is marching towards becoming a great modern socialist country in all respects.

It is important that President Xi also highlighted in his speech how the CPC has achieved great success in making people united, worked through the revolution, famines, and wars, and later kicked off reforms, opening up and marched forward in the new era. When the CPC was established in 1921, there were only a few members but today, it has grown into a family of 95 million people in a country of 1.4 billion people. The CPC is one of the largest parties in the world and has remarkable global influence especially because of its visionary leadership.

The language of the speech reflects the poise that the CPC leadership has after working tirelessly day and night to transform China from rags to riches, to a modern socialist country with Chinese characteristics. An interesting aspect is that in this entire change period, the CPC led Chinese people in developing their model of governance and their indigenous way to reform their society for all-around prosperity.

For the past 100 years, Chinese people have not launched any foreign war, but rather they fought for their destiny and left a glorious legacy for the peaceful rise. As a result of the CPC leadership, nearly 800 million people are now out of poverty and China amounts to one of the largest consumer markets with thriving foreign direct investment wherein its GDP exceeds 100-trillion yuan.

As the CPC enters the next phase of 100 years, the leadership is firm and ready to uphold the foundation and lifeblood of the party and the country. President Xi encouraged the party members to unite and lead the nation to work tirelessly for a better life.

Any attempt to divide the CPC leadership or members will bound to fail as the 1.4 billion Chinese people will never let this happen. There is also a vow to continue developing socialism with Chinese characteristics as China has built its indigenous new model for human civilization. This model is based on peaceful coexistence. President Xi however warned anyone who would attempt to bully Chinese people will find themselves forged against a great wall of steel of 1.4 billion Chinese people.

CPC has a history full of achievements and demonstrated success on many fronts. On the occasion of the 100th Anniversary, global leaders have congratulated the CPC and acknowledged the performance of CPC. Let’s congratulate the CPC and learn the secrets of their success which suits our nations.

Author: Prof. Engr. Zamir Ahmed Awan, Sinologist (ex-Diplomat), Editor, Analyst, Non-Resident Fellow of CCG (Center for China and Globalization), National University of Sciences and Technology (NUST), Islamabad, Pakistan. (E-mail: awanzamir@yahoo.com).

China’s Communist Party – A 100-Year Legacy of Success and a Forward Vision

June 30, 2021

China’s Communist Party – A 100-Year Legacy of Success and a Forward Vision

By Peter Koenig with permission and written for China’s Chongyang Institute of the Renmin University in Beijing – for the 100 Anniversary – 1 July 2021 – of China’s Communist Party.

The legendary Chinese success story goes hand-in-hand with the evolution of the Communist Party of China (CPC) and China’s Communist Revolution that began in 1945. The foundation of the CPC on 1 July 1921 signaled the end of some 200 years of China’s oppression by foreign powers, to western invasions and exploitation, grabbing China’s territories and especially her rich natural resources – and to gain trading advantages, including from the riches of China’s resources and crafts.

Background and History
About two centuries ago, foreign interferences were dominated by illegal Opium Trade that eventually culminated in two Opium WarsIn the 18th and 19th centuries Western countries, mostly Great Britain, exported opium grown in India to China. In turn, the Brits used the profits from opium sales largely to buy Chinese luxury goods, like porcelain, silk, and tea. These goods were in high demand in the west.

Much of this opium export was illegitimate and created widespread addiction throughout China, causing serious social and economic calamities. The wars were triggered by China’s attempting to suppress the trade, that grew tremendously from about 1820 onwards. In early 1839 the Chinese government confiscated and destroyed more than 20,000 chests of opium (chest = about 63.5 kg) — some 1,400 tons of the drug—that were warehoused at Canton, Guangzhou Province by British merchants. By 1838 imports had grown to some 40,000 chests annually.

In July 1839, British sailors killed a Chinese villager. The British government refused to turn the accused over to be judged in Chinese courts. The Brits did not wish its subjects to be tried in the Chinese legal system, and refused to turn the accused men over to the Chinese courts.

This conflict prompted the first Opium War (1839 – 1842), fought between the UK and the Qing dynasty (1644 to 1912), with the British objective to legalize the opium trade. This did not happen, which led to the Second Opium war (1856 – 1860), also called the Anglo-French war. But China did not win the wars and the nefarious addiction-causing trade continued for several more decades.

China’s British-forced war-concession to the winner, was to hand over the island of Hong Kong to British administration. In addition, China had to legalize the opium trade and concede a number of trading ports to the Brits, as well as opening travel for foreigners into China and granting residencies for Wester envoys to China. And an important concession for a predominantly Buddhist country was that China had to grant freedom of movement to Christian missionaries throughout China.

The wars and the resulting multiple concession of China, prompted an era of unequal treaties between China and foreign imperialist powers, aka, the UK, France, Germany, the United States, Russia and Japan. China was forced to concede many of her territorial and sovereignty rights. These encroachments on Chinese sovereignty weakened and eventually brought down the Qing dynasty, leading to a revolution on October 10, 1911, bringing the Kuomintang (KMT) to power. They are also referred to as the Chinese National Party and founded the Republic of China on 1 January 1912. 

The founder of the KMT and initial ruler of China after the 1911 revolution, Sun Yat-sen attempted to modernize China along western lines and values – which was not accepted by the Chinese people. The next couple of decades of KMT rule were rather chaotic times, during which Sun Tat-sen was unable to control China which fractured into many regions controlled by warlords. To strengthen its position and to gain back control of the country, the KMT was seeking alliance with the new fledgling Communist Party, forging the first United Front, but was still unable to control all of China. After Sun Yat-sen died in 1925, Chiang Kai-shek (1887–1975) took over and became the KMT strong man.

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The creation of the Communist Party of China on 1 July 1921, was deeply marked by the preceding history. One of the CPC’s key objective was that China would never again be dominated by wester colonial powers. The CPC became a force to be reckoned with, as it grew stronger by increased solidarity forged throughout communities and regions of China which all pursued the same goal – independence from foreign colonization and exploitation and the creation of a sovereign communist China, with a sovereign socialist economy.

With the support of the west, notably the UK and the United States, the KMT-led government of the Republic of China (ROC) entered in 1927 into a civil war with the forces of the CPC. The war was intermittent, but basically played out in two major phases, until 1949. The first phase can be described as a war of attrition. It lasted until 1937, when due to the Japanese invasion of China, KMT-CPC hostilities were put on hold. Instead, a KMT-CPC alliance fought and defeated the Japanese. This was also called the War of Resistance against Japanese Aggression(1937–1945).

The KMT – CPC civil war resumed with the victory over the Japanese forces, and entered its second, but most violent and decisive final phase from 1945 to 1949. This phase is also called the beginning of the Chinese Communist Revolution, during which the CPC gained the upper hand and finally defeated the Kuomintang on the Chinese mainland.

The leader of KMT (1928 – 1975), Chiang Kai-shek, fled the mainland and established himself and the KMT in what was originally called by her Portuguese discoverers in 1542, Ilha Formosa (“beautiful island”), located north of the Philippines and the South China Sea, some 180 km off the Southeastern coast of China.

In 1895 Formosa became “Taiwan” meaning “foreigners” referring to the early Chinese settlers on the island. Today Taiwan is again integral part of China, since the Treaty of San Francisco (WWII Allied Forces Peace Agreement with Japan, signed on 8 September 1951), when Japan ceased its occupation of Taiwan, returning the island back to China.

Though an integral part of China, Taiwan is still occupied by the KMT Regime, calling it the Republic of China or ROC, the name taken over from KMT’s reign over mainland China until their defeat by the CPC in 1949, which also marked the beginning of the new communist People’s Republic of China (PRC).

This internationally illegal control of Taiwan by the KMT has been going on since 1949, but especially for the last 50 years, when on 25 October 1971, the United Nations General Assembly recognized the PRC, led by the CPC, as “the only legitimate representative of China to the United Nations” and removed the representatives of the Chiang Kai-shek ROC regime of Taiwan from the United Nations. Nevertheless, today still 15 nations, including the Vatican, of the 193 UN member nations recognize Taiwan as the official China. Many of them would like to switch to the officially recognized CPC-led mainland China, but are coerced, predominantly by the US and the UK, not to do so.

Over the past several decades, the United States, the UK and other western allies have continually sought to destabilize China by interfering in Taiwan, meaning in China’s internal affairs. The latest such events include the US weapons sale for US$ 5 billion to Taiwan in December 2020, and earlier this year, the U.S. Ambassador to the Pacific Island of Palau (Palau being one of the states recognizing Taiwan), became the first US envoy to travel to Taiwan in an official capacity, since Washington cut formal ties with Taipei in favor of Beijing in 1979.

In addition, the US is promoting closer relations with Taiwan through the so-called Taipei Act, signed in April 2020, calling for strengthening trade relations and diplomatic ties between the US and Taiwan to bring Taiwan closer into “international space”, meaning politically distancing the island territory from the mainland.

This and other interferences of the US in China’s internal affairs, are attempts at disrupting peaceful co-existence with China. They include the US-provoked trade war with Beijing, during the last almost 4 years; the stationing of about 60% of the American Navy in the South China Sea; the Washington orchestrated interference in Honk Kong, seeking independence from Beijing; and wildly falsified accusation of Human Rights abuses of the Uyghurs in the officially known as the Xinjiang Uyghur Autonomous Region, in Northwestern China; as well as similar claims in Tibet. 

Thanks to the steadfast leadership of President Xi Jinping of the People’s Republic of China and of the Communist Party of China, these interferences are being dealt with carefully by Beijing, always trying to find diplomatic and non-belligerent solutions. China is a master in following the paths of non-aggression, while constantly creating and moving peacefully forward – always with the goal of achieving a multipolar world, where people of different nations, regions, races, roots, cultures and believes can prosper peacefully together.
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Present – and Vision for the Future
Since the foundation of the Communist Party on 1 July 1921, China strove for total independence, and never surrendered to foreign invasions or attempts to influence China’s internal, as well as foreign relations policies. What the CPC has attained over the past 100 years is truly remarkable. It comprises not only maintaining internal solidarity, but also and foremost, people’s trust in the government, moving peacefully forward, becoming food, health and education-wise autonomous and self-sufficient and, not least, lifting 800 million people out of poverty. No other nation in the world has achieved such extraordinary objectives for their people’s well-being.

The CPC has today 91 million members. It is by far the largest single party in the world. In addition, thanks to her leadership, starting with Mao Tse Tung in 1949 and today by President Xi Jinping, China, with a population of 1.4 billion people, has become the second largest economy in the world in absolute terms, and since 2017 already the largest, assessed by the only real measure – the Purchasing Power Parity (PPP). This is an indicator of how much people can buy for their money. Within a few years, China is expected to surpass the currently largest economy, the United States, also in absolute terms.

This is, of course, representing a threat for the country that has declared itself as THE Empire of the world, controlling all vital essentials, like energy, food supply and the international monetary system – though faltering, but still dominated by the US-dollar. The self-styled empire is already crumbling. And Washington knows it. Its strongest asset, the US-dollar, is gradually being dismantled. The US-currency has been widely used throughout the world, almost exclusively, to buy vital goods and services, like energy, food and communication services, as well as for other international trade, but it is losing its weight in the international arena.

The reasons for this are both political and economic. On the economic front, the US have created by their 1913 Federal Reserve Act, a fiat currency without any backing, a currency of which the flow and money mass can be expanded at will. This allowed and still allows Washington to “print” money as per necessities, i.e. to finance extensive wars and conflicts around the globe and to accumulate debts that the US Treasury and Federal Reserve (the totally privately owned US Central Bank), will never be able to pay back.

The US-dollar has absolutely no backing whatsoever. When Washington abandoned in 1971 their self-designed so-called gold-standard (Bretton Woods Conference, 1944), the US-dollar became de facto the “new gold standard”, since the gold standard was based on the value of the US-dollar (US$35 / troy ounce, about 31 grams), instead of on a basket of currencies. Since everybody needed US dollars for their reserves, this gave the US Treasury free range to increase its money supply almost infinitely.

When the US, also at the beginning of the 1970s, negotiated with Saudi Arabia, head of OPEC (Organization of Petroleum Exporting Countries), that all hydrocarbons, petrol gas and coal, should be traded in US-dollars, it gave the US another dollar boost – printing freely dollars in abundance, because the entire world needed US-dollars to buy hydrocarbon energy. Even today about 84% of all energy consumed worldwide consists of hydrocarbons (2019 Forbes).

As a counter-measure, the US promised the House of Saud to always protect Saudi Arabia, and proceeded almost immediately building numerous military bases in Saudi Arabia, from which they are now waging different wars in the Middle East.

Due to this phenomenon of freely generating new US-dollars, creating new debt, the US is by far the most indebted country in the world, with currently US$ 49.8 trillion debt, compared with a 2020 GDP of about US$ 21 trillion (Debt – GDP ratio 2.3 = 237% debt over GDP).

There is another important component of US debt, called by the General Accounting Office (GAO), “Unfunded Liabilities”, US$ 213 trillion (all figures 16 April 2021: US Debt Clock – https://www.usdebtclock.org/current-rates.html). These exceptionally high ratios have undoubtedly also to do with incurred covid-debt.

Unfunded liabilities are debt obligations that do not have sufficient funds or assets set aside to pay them. These liabilities generally refer to the U.S. government’s debt-service (unpaid interest on debt), or pension plans and their impact on savings and investment securities, as well as  health-insurance and social support coverage for soldiers returning from wars.

These astronomical debt figures and an unbacked fiat currency are even further reducing worldwide confidence in the US-dollar. It is clear, the US debt will never be paid-off. The Federal Reserve Chair, Allan Greenspan (1987 – 2006), once answered to a journalist’s question, when will the US pay back her debt: Never. We just print new money. So, spoken, so it was and so it is.
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Today and for the last about 10 years the US-dollar has no longer a hydrocarbon trade monopoly, nor are other international contracts primarily established in US-dollars as used to be the case a couple of decades ago. China, Russia, Iran, Venezuela and others have stopped using the US-dollar and are trading in local currencies and increasingly in Chinese yuan.

Why? – Countries’ treasurers around the world started realizing that the dollar is a highly volatile fiat currency, based on nothing, as shown by the above figures. Equally important for the loss of trust in the US-currency is that dollar-denominated international assets and the US banking system are frequently used by Washington to impose draconian, illegal economic sanction on countries that do not follow Washington’s dictate, including blocking countries’ foreign placed reserve assets. These economic and political realities are signaling the end of the US-dollar hegemony.

The trend of diminishing trust in the US-dollar may increase when China rolls out her digital Renminbi (RMB = people’s money) or international Yuan (the terms RMB and Yuan are used interchangeably) which may be used for international trade without touching the international US-dominated SWIFT transfer and US banking system. The Chinese currency being backed by a strong and solid Chinese economy, confidence in the Chinese currency is growing rapidly. Already today, the Chinese currency’s use as an international reserve asset is increasing quickly.

While the US Federal Reserve (FED) is also contemplating a new digital currency, it is not clear to what extent it can be detached from the current dollar and its debt burden. In any case, with US international trade waning, and Chinese trade rapidly increasing, it will be very difficult, if not impossible, for a declining empire to catch up with China.

For example, in the first quarter of 2021, Chinas foreign trade (exports and imports) soared by 29.2%, with Exports jumping 38.7% from the year before, while imports climbed 19.3 percent in yuan terms, according to the General Administration of Customs (GAC).

If anything, these developments – plus the fact that China has been highly successful in overcoming the covid-crisis – within less than 6 months – and putting her industrial apparatus back on line, are testimony for a solid CPC leadership, a sound Chinese economy and fiscal policy. China is the world’s only major economy reporting economic growth in 2020, amounting to 2.3% according to the Wall Street Journal. It is what China calls “Socialism with Chinese Characteristics” – a feature demonstrating a spirit of constant creation and evolution of the CPC.
These facts will further enhance international trust in the Chinese economy, as well as in the Chinese way of seeking a more equal, more egalitarian and more just multipolar world, where nations may keep their national sovereignty over their internal and external political inclinations, their culture, national resources, monetary policies and foreign relations – and live peacefully together.
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CPC and the Chinese Vision

The New Silk Road, or Belt and Road Initiative (BRI), is President Xi Jinping’s brilliant brainchild. It’s based on the same ancient principles as was the original Silk Road, adjusted to the 21st Century, building bridges between peoples, exchanging goods and services, research, education, knowledge, cultural wisdom, peacefully, harmoniously and ‘win-win’ style. On 7 September 2013, President Xi presented BRI at Kazakhstan’s Nazarbayev University. He spoke about “People-to-People Friendship and Creating a better Future”. He referred to the Ancient Silk Road of more than 2,100 years ago, that flourished during China’s Western Han Dynasty (206 BC to 24 AD).

Referring to this epoch of more than two millenniums back, President Xi pointed to the history of exchanges under the Ancient Silk Road, saying, “they had proven that countries with differences in race, belief and cultural background can absolutely share peace and development as long as they persist in unity and mutual trust, equality and mutual benefit, mutual tolerance and learning from each other, as well as cooperation and win-win outcomes.”

President Xi’s vision may be shaping the world of the 21st Century. The Belt and Road Initiative is designed and modeled loosely according to the Ancient Silk Road. President Xi launched this ground-breaking project soon after assuming the Presidency in 2013. The endeavor’s idea is to connect the world with transport routes, infrastructure, industrial joint ventures, teaching and research institutions, cultural exchange and much more. Since 2017, enshrined in China’s Constitution, BRI has become the flagship for China’s foreign policy.

BRI is literally building bridges and connecting people of different continents and nations. The purpose of the New Silk Road is “to construct a unified large market and make full use of both international and domestic markets, through cultural exchange and integration, to enhance mutual understanding and trust of member nations, ending up in an innovative pattern with capital inflows, talent pool, and technology database”.

BRI is a global development strategy adopted by the Chinese Government. Already today BRI has investments involving more than 150 countries and international organizations – and growing – in Asia, Africa, Europe, the Middle East and the Americas. Since the onset of BRI in 2013, BRI investments have exceeded US$ 5 trillion equivalent.

BRI is a long-term multi-trillion investment scheme for transport routes on land and sea, as well as construction of industrial and energy infrastructure and energy exploration – as well as trade among connected countries. Unlike WTO (World Trade Organization), BRI is encouraging nations to benefit from their comparative advantages, creating win-win situations. In essence, BRI is to develop mutual understanding and trust among member nations, allowing for free capital flows, a pool of experts and access to a BRI-based technology data base.  At present, BRI’s closing date is foreseen for 2049 which coincides with the People’s Republic of China’s 100th Anniversary. The size and likely success of the program indicates, however, already today that it will most probably be extended way beyond that date. It is worth noting, though, that only in 2019, six years after its inception, BRI has become a news item in the West. Remarkably, for six years, the west was in denial of BRI, in the hope it may go away. But away it didn’t go. To the contrary, many European Union members have already subscribed to BRI, including Greece, Italy, France, Portugal – and more will follow, as the temptation to participate in this projected socioeconomic boom is overwhelming.

The BRI, also called Belt and Road, or One Belt One Road, is not the only initiative that will enhance China’s economy and standing in the world.

After decades of western aggressions, denigrations and belligerence towards China, in a precautionary detachment from western dependence, China is focusing trade development and cooperation on her ASEAN partners. In November 2020, after 8 years of negotiations, China signed a free trade agreement with the ten ASEAN nations, plus Japan, South Korea, Australia and New Zealand, altogether 15 countries, including China.

The so-called Regional Comprehensive Economic Partnership, or RCEP, covers some 2.2 billion people, commanding some 30% of the world’s GDP. This is a never before reached agreement in size, value and tenor.

The RCEP’s trade deals will be carried out in local currencies and in yuan – no US dollars. The RCEP is, therefore, also an instrument for dedollarizing, primarily in the Asia-Pacific Region, and gradually moving across the globe. Moving away from the dollar-based economies may be an effective way to stem against the western “sanctions culture”. China is soon rolling-out her new digital Renminbi (RMB) or yuan, internationally, as legal tender for inter-country payments and transfers. The digital RMB is primed to become also an international reserve currency, thereby further reducing demand for the US-dollar.

Orientation towards China’s internal economic development – so-called horizontal instead of vertical growth – is a strategy to develop local Chinese internal production and infrastructure to build up and enhance Chinese internal capacities and markets and bringing about wellbeing and a better equilibrium between China’s vast hinterland and China’s prosperous eastern coastal areas.

The future belongs to China
After two thousand years of western “white supremacy”, relentless exploitation, colonization, discrimination and outright enslavement of other colored people, other cultures, throughout the world, the time has come to turn the wheel – and to veer the future of mankind into a more peaceful, more just and more egalitarian world.

During the next hundred years and under the leadership of the Chinese Communist Party – China will guide the East into the era of the Rising Sun – prosperity and good health for all.

This new epoch will strive for a multi-polar world, with win-win trade relations, and bringing about new environmental, social and technological challenges, but also a new awakening for a social consciousness and solidarity. A key instrument for achieving major goals for human wellbeing is the Belt and Road Initiative, providing a steady flow of new ideas, creations, cultural exchange and mutual learning. The future focus may be on:

  • Renewable sources of energy, based mainly on hydro- and solar power, developed with cutting edge technologies, i.e. capturing solar power with a process of photosynthesis, producing high efficiency energy yields;
  • Increasing green areas in urban centers to bring about a balance of natural CO2 absorption and Oxygen production, aiming at zero pollution;
  • Protecting the world’s rain forests and water resources;
  • Keeping natural resources and public services – health, education, food supply, water and sanitation services, electricity, and public transport – in the public domain;
  • Promoting biological and multi-crop agriculture;
  • Developing Artificial Intelligence (AI) to help increase production and transport efficiency and to serve humanity; and
  • Adopting public banking as the primary means of socioeconomic development funding, Leading humanity to building a community with a shared future for mankind.

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Peter Koenig is a geopolitical analyst and a former Senior Economist at the World Bank and the World Health Organization (WHO), where he has worked for over 30 years on water and environment around the world. He lectures at universities in the US, Europe and South America. He writes regularly for online journals. He is also the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed; and  co-author of Cynthia McKinney’s book “When China Sneezes: From the Coronavirus Lockdown to the Global Politico-Economic Crisis” (Clarity Press – November 1, 2020).

Peter Koenig is a Research Associate of the Centre for Research on Globalization and a Non-resident senior fellow of Chongyang Institute for Financial Studies at Renmin University of China

皮特·凯尼格(Peter Koenig),世界银行前高级经济学家、中国人民大学重阳金融研究院外籍高级研究员(瑞士)

The long and winding multipolar road

July 01, 2021

The West’s ‘rules-based order’ invokes rulers’ authority; Russia-China say it’s time to return to law-based order

The long and winding multipolar road

By Pepe Escobar with permission and first posted at Asia Times

We do live in extraordinary times.

On the day of the 100th anniversary of the Chinese Communist Party (CCP), President Xi Jinping, in Tiananmen square, amid all the pomp and circumstance, delivered a stark geopolitical message:

The Chinese people will never allow foreign forces to intimidate, oppress or subjugate them. Anyone who tries to do this will find themselves on a collision course with a large steel wall forged by more than 1.4 billion Chinese.

I have offered a concise version of the modern Chinese miracle – which has nothing to do with divine intervention, but “searching truth from facts” (copyright Deng Xiaoping), inspired by a solid cultural and historical tradition.

The “large steel wall” evoked by Xi now permeates a dynamic “moderately prosperous society” – a goal achieved by the CCP on the eve of the centennial. Lifting over 800 million people out of poverty is a historical first – in every aspect.

As in all things China, the past informs the future. This is all about xiaokang – which may be loosely translated as “moderately prosperous society”.

The concept first appeared no less than 2,500 years ago, in the classic Shijing (“The Book of Poetry”). The Little Helmsman Deng, with his historical eagle eye, revived it in 1979, right at the start of the “opening up” economic reforms.

Now compare the breakthrough celebrated in Tiananmen – which will be interpreted all across the Global South as evidence of the success of a Chinese model for economic development – with footage being circulated of the Taliban riding captured T-55 tanks across impoverished villages in northern Afghanistan.

History Repeating: this is something I saw with my own eyes over twenty years ago.

The Taliban now control nearly the same amount of Afghan territory they did immediately before 9/11. They control the border with Tajikistan and are closing in on the border with Uzbekistan.

Exactly twenty years ago I was deep into yet another epic journey across Karachi, Peshawar, the Pakistan tribal areas, Tajikistan and finally the Panjshir valley, where I interviewed Commander Masoud – who told me the Taliban at the time were controlling 85% of Afghanistan.

Three weeks later Masoud was assassinated by an al-Qaeda-linked commando disguised as “journalists” – two days before 9/11. The empire – at the height of the unipolar moment – went into Forever Wars on overdrive, while China – and Russia – went deep into consolidating their emergence, geopolitically and geoeconomically.

We are now living the consequences of these opposed strategies.

That strategic partnership

President Putin has just spent three hours and fifty minutes answering non-pre-screened questions, live, from Russian citizens during his annual ‘Direct Line’ session. The notion that Western “leaders” of the Biden, BoJo, Merkel and Macron kind would be able to handle something even remotely similar, non-scripted, is laughable.

The key takeaway: Putin stressed US elites understand that the world is changing but still want to preserve their dominant position. He illustrated it with the recent British caper in Crimea straight out of a Monty Python fail, a “complex provocation” that was in fact Anglo-American: a NATO aircraft had previously conducted a reconnaissance flight. Putin: “It was obvious that the destroyer entered [Crimean waters] pursuing military goals.”

Earlier this week Putin and Xi held a videoconference. One of the key items was quite significant: the extension of the China-Russia Treaty of Good Neighborliness and Friendly Cooperation, originally signed 20 years ago.

A key provision: “When a situation arises in which one of the contracting parties deems that…it is confronted with the threat of aggression, the contracting parties shall immediately hold contacts and consultations in order to eliminate such threats.”

This treaty is at the heart of what is now officially described – by Moscow and Beijing – as a “comprehensive strategic partnership of coordination for a new era”. Such a broad definition is warranted because this is a complex multi-level partnership, not an “alliance”, designed as a counterbalance and viable alternative to hegemony and unilateralism.

A graphic example is provided by the progressive interpolation of two trade/development strategies, the Belt and Road Initiative (BRI) and the Eurasia Economic Union (EAEU), which Putin and Xi again discussed, in connection with the Shanghai Cooperation Organization (SCO), which was founded only three months before 9/11.

It’s no wonder that one of the highlights in Beijing this week were trade talks between the Chinese and four Central Asia “stans” – all of them SCO members.

“Law” and “rule”

The defining multipolarity road map has been sketched in an essay by Foreign Minister Sergey Lavrov that deserves careful examination.

Lavrov surveys the results of the recent G7, NATO and US-EU summits prior to Putin-Biden in Geneva:

These meetings were carefully prepared in a way that leaves no doubt that the West wanted to send a clear message: it stands united like never before and will do what it believes to be right in international affairs, while forcing others, primarily Russia and China, to follow its lead. The documents adopted at the Cornwall and Brussels summits cemented the rules-based world order concept as a counterweight to the universal principles of international law with the UN Charter as its primary source. In doing so, the West deliberately shies away from spelling out the rules it purports to follow, just as it refrains from explaining why they are needed.

As he dismisses how Russia and China have been labeled as “authoritarian powers” (or “illiberal”, according to the favorite New York-Paris-London mantra), Lavrov smashes Western hypocrisy:

While proclaiming the ‘right’ to interfere in the domestic affairs of other countries for the sake of promoting democracy as it understands it, the West instantly loses all interest when we raise the prospect of making international relations more democratic, including renouncing arrogant behavior and committing to abide by the universally recognized tenets of international law instead of ‘rules’.

That provides Lavrov with an opening for a linguistic analysis of “law” and “rule”:

In Russian, the words “law” and “rule” share a single root. To us, a rule that is genuine and just is inseparable from the law. This is not the case for Western languages. For instance, in English, the words “law” and “rule” do not share any resemblance. See the difference? “Rule” is not so much about the law, in the sense of generally accepted laws, as it is about the decisions taken by the one who rules or governs. It is also worth noting that “rule” shares a single root with “ruler,” with the latter’s meanings including the commonplace device for measuring and drawing straight lines. It can be inferred that through its concept of “rules” the West seeks to align everyone around its vision or apply the same yardstick to everybody, so that everyone falls into a single file.

In a nutshell: the road to multipolarity will not follow “ultimatums”. The G20, where the BRICS are represented, is a “natural platform” for “mutually accepted agreements”. Russia for its part is driving a Greater Eurasia Partnership. And a “polycentric world order” implies the necessary reform of the UN Security Council, “strengthening it with Asian, African and Latin American countries”.

Will the Unilateral Masters ply this road? Over their dead bodies: after all, Russia and China are “existential threats”. Hence our collective angst, spectators under the volcano.

CPC Centenary – China on the Cusp of a Socialist Society

June 25, 2021

CPC Centenary – China on the Cusp of a Socialist Society

by Straight-Bat for the Saker Blog

1. Prelude

The other day, I was trying to visualize the conversation that would take place on a rainy humid day in July 2021, in a cafeteria in the Eurasian region of heaven where Karl Marx, Robert Owen, Comrade Lenin, Chairman Mao, and Generalissimo Chiang would meet. Purpose – to exchange critical views around the Communist Party of China (CPC) centenary and China.

Generalissimo Chiang would start the conversation, “Mr. Mao, congratulations on the hundredth anniversary. Tell me what did you really achieve by pushing me and Kuomintang out of mainland China?”

Chairman Mao would reply, “It was obvious! We wanted to build a socialist China based on Marxist-Leninist principles, for which you were the biggest opposing force. The CPC was always looking out for enlarging the anti-imperialist democratic front – even a section of Kuomintang joined us! But you steadfastly denied, on the contrary you acted viciously to wipe out the proletarian struggle in China.”

Chiang chuckled, “Well, that happened in past. Now, mainland China progressed a lot to become the largest economic power ahead of my friend (USA) and second largest military power next to your friend (Soviet Union or Russia), but it still has too much of inequality among three types of citizens – filthy rich businessmen and capitalists, struggling workers in farms and factories, and self-employed city dwellers burning midnight oil in their small ventures. If only economic growth and military power were the objectives, even Kuomintang (after emancipation from the cliques with vested interests) would have achieved similar targets!”

At this point, Comrade Lenin, the eternal revolutionary, came to the rescue of his cherished student Mao, even though they never met. Lenin replied, “Mr. Chiang, it’s a long haul, it would be a very complicated journey. My follower relentlessly struggled to establish the CPC as the vanguard of socialist revolution. His team had to develop the productive forces, build the initial social capital for further economic development – that called for a capitalist economy. Unfortunately, the European geopolitics didn’t allow my New Economic Policy to succeed in developing the productive forces in Soviet Union”.

The old ‘patriarch’ Karl Marx couldn’t remain silent anymore. He appeared to be in a reflective mood and shied, “I was sure about the appraisal of ‘capital’, but wasn’t sure how to turn the ‘surplus value’ into irrelevance after gaining the political power. Also, neither I nor Engels got came out with a definite blue-print on how ‘state’ would wither away! As long as a few fellows could own land, and resources as their property, get hold of technology, and could exert influence on the state apparatus, neither ‘capital’ nor extreme inequality would go away. Mao’s team still has a long way to go. However, this is a great occasion to cheer up the Communist Party that was founded in China hundred years back.” Marx would turn to Lenin with silent reprimand, as if Lenin stood guilty of his team’s failure to reach a century even after scoring a swashbuckling half-century under the leadership of Stalin against the Zionist-capitalist clique who staged two world wars by then for wanton destruction of Eurasian heartland!

Marx would continue, “so many groups of revolutionaries in dozens of European and non-European countries came forward since 1848 to build a socialist society through a socialist revolution, but most of them messed up their movements mid-way. The CPC withstood the test of time, which is now leading the most populous country (with 18% of the total global population) and churning out approximately 19% of the total global GDP on purchasing power parity basis. Even if the CPC hasn’t yet closed the first step of a socialist society, this is an occasion to celebrate their incredible perseverance!”

Chiang obviously didn’t want to join issues, for he never had time for such ideological discussions; Mr. Chiang’s faction only understood power and wealth based on rudimentary nationalism.

The discussion so far was not to the liking of Mr. Owen. He deemed it fit to jump in, with apparently robust argument, “Mr. Marx, aren’t you ashamed of so much of bloodshed by your followers, the so-called revolutionaries, and yet not even the first step of Marxist Socialism is complete in case of China?”

The quintessential activist in Marx flared up suddenly, “Mr. Owen, enough of such allegations! Let me ask you two simple questions – firstly, even if other groups of socialists also fought against injustice and inequality globally, why there was not a single case where they could come to political power?” Owen was speechless, Marx continued, “Let me respond! Whether in the past or in present, no socialist group other than the Marxists will be able to come to power AND build truly socialist society, because their ideology was based on only compassion and courage, it lacked the foundation of scientific analysis.”

Marx leaned towards Owen, and murmured in a soft tone, “Did you notice the difference of the present status of the standard of life between China and India, both of which started their journey as a modern independent country with humongous load of population as the decade of 1940s was drawing to a close? The proletariat and petit bourgeoisie in China are leading a quality life which is way ahead of what their brethren enjoy in India – on all parameters like education, health, employment, income, household expenditure, leisure, life expectancy etc.! There were dangerous obstacles in the struggle of the poor Chinese for emancipation and dignity under the banner of communist party, hence there was bloodshed. If such impediments do not arise, then a socialist revolution would become peaceful without bloodshed! Now the Chinese people are leading a life which is worth living! Compared to that, what did the social democrat faction (of the most prominent political party) achieve in India, even if they ruled India for more than four decades immediately after independence? Now, after three decades of exploitation under neoliberal capitalism, on one side, two-thirds of population, the plebs, earn on average even less than a dollar per person per day, and on the other side, the Indian bourgeoisie continue accumulating more wealth than others in Asia!”

The moment was ripe for Lenin to take a centre-stage. He became brutally frank while addressing Owen, “Mr. Owen, the Utopian socialists, the Anarcho-socialists, and the social democrats are blinded by jealousy of our limited success – otherwise how could they blame the Marxist socialists for every problem that overwhelm the humanity! Isn’t that utterly funny? Not only us, but all other socialist groups were equally sickened with the exploitation and injustice meted out by the capitalist bourgeoisie! The capitalists have not changed, so is it that the Utopian socialists, Anarcho-socialists, and social democrats changed their track to become lackeys of the capitalists?”

Lenin continued, “if they have truly anti-capitalist anti-imperialist anti-Zionist ideology then, there is every possibility that the Utopian socialists, the Anarcho-socialists, and the social democrats would become successful in the long run – maintain your separate identity as a party, if you wish so, but adopt our goal which wisely mix empathy with wisdom, which identify actions along with the dream. Join our front in every nook and corner of the globe!”

And, that ended my day-dream. Is the dream, a blasphemy in the ‘post-modern’ era when half of the 1% Zionist-capitalist oligarchy fund a section of academia and media to beat the hollow drum of democratic nationalism, while the other half of the same 1% oligarchy fund another section of academia and media to sound the trumpet of capitalist globalism, thereby creating a false dichotomy that would perpetually keep 90% of the population of the globe engaged in stupid arguments over the future of humankind? Is the dream, a wickedness in the current ‘post-modern’ era when the 1% Zionist-capitalist oligarchy successfully obscured the real issue of accumulation of wealth and power by them, and obfuscated the very definition of ‘democracy’, ‘autocracy’, ‘capitalism’, ‘socialism’, and ‘communism’ to turn their meaning upside down? Be that as it may, now, as the CPC celebrates a splendid 100 years journey, I would like to look into the details of how socialism, the only antidote to Zionist-capitalism, has been welcomed in China!

2. Socialist Revolution & China

In the medieval world the traders and businessmen were inseparable from their wealth/money/capital. The evolution of ‘capital’ as a separate entity from the businessmen, traders and entrepreneurs took quite a long time. During 15th, 16th, and 17th century when aristocrats and financers of west European kingdoms and empires were fully absorbed into ‘mercantile capitalism’ and ‘agrarian capitalism’, the underlying dynamics were fully related to ‘primitive accumulation’ (even though no body spelt it out that way). The primitive accumulation of wealth (as capital) taking place within the entrepreneurs- traders-bankers of different countries of west Europe through their far-flung imperial ‘colonies’ in the continents of North America, South America, and Africa soon became the harbinger of ‘industrial capitalism’ at the dawn of 18th century west Europe. Even before that, the capitalist system of finance matured in the beginning of 17th century Netherlands – world’s first stock exchange as well as world’s first bank using the fractional reserve system were established in Amsterdam. Capital became a global force to reckon with, by the end of 19th century, when the entire world came under the sway of west European Zionist-capitalist oligarchy whose primary objective was to relentlessly pursue accumulation of capital – essentially, the journey of ‘capital’ to reproduce itself infinitely, passed through extermination of hundreds of communities across the globe and ceaseless exploitation of natural resources of mother earth. Karl Marx bared it all in the ‘Capital: A Critique of Political Economy, Volume I’ as “The discovery of gold and silver in America, the extirpation, enslavement and entombment in mines of the aboriginal population, the beginning of the conquest and looting of the East Indies, the turning of Africa into a warren for the commercial hunting of black-skins, signalized the rosy dawn of the era of capitalist production. These idyllic proceedings are the chief momenta of primitive accumulation ……The different momenta of primitive accumulation distribute themselves now, more or less in chronological order, particularly over Spain, Portugal, Holland, France, and England. In England at the end of the 17th century, they arrive at a systematical combination, embracing the colonies, the national debt, the modern mode of taxation, and the protectionist system. These methods depend in part on brute force, e.g., the colonial system. But, they all employ the power of the State, the concentrated and organized force of society.”

Between 18th to 20th century in Europe, many intellectuals, economists, politicians, philosophers, and social activists raised their voice against the Zionist-capitalist savagery in which their state became willing accomplice. They did extensive analysis of how the different stages of capitalism exploited the society and transformed majority of the people into poor plebs ruled by a group of wealthy aristocrats who would bend any established rule to ensure accumulation of profit and wealth from any kind of business – from slave trade to opium trade. Different European thinkers (in Britain, Germany, France, Sweden, Russia) became political activists trying to organize (a) political party that would fight for rights of the working class, (b) awareness among public about inhuman treatment meted out to the people in the colony owned by the state. Different political groups were formed by the advent of industrial capitalism during this period, each of which professed to a particular ‘ideology’ of political economy built over time by few intellectual-cum-activists – prominent among them were Utopian socialists, Anarcho-socialists, social democrats, and Marxist socialists. All of these ‘socialist thoughts’ had one common theme – working class people are exploited by the business owning class, and the workers must get their due share of revenue from industrial operation.

Throughout the second half of 19th century, Karl Marx and Fredrick Engels enriched the philosophical basis of socialist thoughts and carried out extensive economic analysis of mode of exploitation – thus ‘Marxist socialism’ evolved, and the political activists who would follow the socialist thoughts of Marx and Engels came to be known as Marxists or Marxist socialists or Communists. Till date, hundreds of intellectuals, politicians, economists, activists, and philosophers across the globe contributed to the development of Marxist socialism, and enriched the Marxist literatures. Most prominent among them was Vladimir Ilyich Ulyanov, the Russian revolutionary better known as ‘Lenin’, who during his short lifespan of 53+ years (a) formulated the procedures of practical implementation of Marxist socialism in a country, (b) analyzed the economic relation between imperialism and capitalism, (c) coordinated the Russian Revolution that formed the first socialist government in Russia, (d) guided the newly created Russian government towards economic and geopolitical. Since mid-20th century, most of the political parties across the globe who followed Marxism, identified themselves as ‘Marxist-Leninist’ – that made perfect sense, for it was Comrade Lenin who first brought the theory down to practice.

2.1 Basics of Socialist Dream

Any country and its people can be depicted as interplay among five socio-political entities, where community as the central entity deals with four other entities which are modern historical constructs (with roots in ancient and medieval history). Four relationships between community (identified as ‘1’) at one side and state apparatus (identified as ‘2’), political party (identified as ‘4’), ally states (identified as ‘3’), adversary states (identified as ‘5’) on the other side are crucial for a community to survive and flourish. This has been the case ever since human civilization started experimentations with political entity. In reality, the state and the party both are extended part of a community itself (hence, intraneous entity), while outside states can be termed as extraneous entity. The following block diagram figure 2.1 depicts it:

Every society/community is the expression of a continuous interaction between the ecosystem and a group of people. A community lives and thrives within the boundaries of the ecosystem – if the ecosystem is frayed, the community can’t thrive. The main socio-economic actors in the modern history, after industrial capitalism transformed the lifestyle of human beings, are portrayed in the schematic diagram figure 2.2 given below.

Significant observations that can be noted from a glance at the above diagram are:

1. There is a clear pattern emerging out of the interaction between ecosystem and community – the economic activities of the community draws EVERY MATERIAL (except finance, technical, managerial knowledge, and labour efforts) from the ecosystem that is processed into goods and services. The 1% people (termed as bourgeois capitalist) who have inclination towards wealth accumulation, contributed towards the creation of the social superstructure containing state apparatus, law, monetary and banking system etc. in such a way that, the output of economic base would continue to enrich them generation after generation through a benefit accrual cycle:

Ecosystem → Economic Base → Capitalists → Ecosystem

2. Since the economic base is using every material input from the ecosystem (other than labour and other efforts of the society) for production and distribution of goods and services, and NO INPUT CAN BE FUNDAMENTALLY CREATED BY THE BOURGEOIS OR ANYBODY ELSE, how could a class of people (termed as proletariat) of the community be deprived of the fruits of the economic activities? Every person has a ‘natural right’ to the benefits as per the concept of ‘natural justice’. Laws are made by humankind, but NATURAL JUSTICE AND NATURAL RIGHTS ARE IMMUTABLE CONCEPTS of the creation that can’t be challenged by humankind. Hence Marx-Engels-Lenin-Mao (the doyens of Marxist socialist theory) unambiguously wanted to create a benefit accrual cycle that would scotch the earlier fallacy and create an appropriate cycle:

Ecosystem→ Economic Base→ Community→ Ecosystem

2.1.1 The Essence of Marxism

A socialist society would convert all classes of people into stakeholders of economic performance of the country instead of leaving it on to invisible ‘market forces’ (which is a façade under which the Zionist-capitalist operated economy accumulates wealth and power on behalf of the 1% oligarchy). The objective of socialism is to bring widest possible freedom and maximum possible development for every citizen in a classless stateless society. Every human being (irrespective of background identity like age, sex, ethnicity, language, religion, and region) should become free from hunger-disease-insecurity-injustice, each citizen should spend time in socially useful productive work, people can carry out research in academic areas, they can seek entertainment-pleasure at leisure time, without any of these being morally or physically harmful to any other people or section of the society.

As per Marx, the history of humankind is a struggle between antagonist ‘classes’ over the fruits of economic activities. Whether the slave mode of production in ancient era, or feudal mode of production in medieval era, or capitalist mode of production in modern era, the working class was always exploited by the dominant class of the era who constructed the system of state, law, bureaucracy etc. as institutions to perpetuate their rule – hence, the majority plebs remained paupers throughout the history while the aristocrats remained wealthy.

In the capitalist mode of production, some of the elements of ‘factors of production’ (viz. the ‘means of production’, and financial capital) are treated as ‘capital’ and two other elements of factors of production (viz. labor, and entrepreneurship) utilize the capital to produce goods and services. The produced goods (and services) have different ‘use-value’, and in a barter society real and specific useful labor that went into making of the goods would be considered as ‘exchange-value’ which is tied closely to the ‘use-value’. In modern capitalist society, that real labor is removed from the goods, and abstract value of labor is attached to the produced goods which results in the labor efforts getting objectified. Similarly value of the produced goods get transformed from use-value – in the capitalist market, artificially calculated exchange-value dominates. In order to generate surplus (monetary capital as profit), price of the produced goods in money-form becomes cost of input materials plus labor plus ‘surplus/‘profit’ (ignoring things like interest and depreciation). Thus, the capitalist who owns the finance capital and means of production, earns profit (in monetary form), accumulates profit endlessly, while the laborer don’t get the price of labor.

Every means of production whether the ‘subjects of labor’ (raw materials, natural resources including source land, energy, water) or the ‘instruments of labor’ (tools, machinery, factory including land, other infrastructure) which go into production of any material (from a grain of wheat to a car) and service (from electricity supply to 5G communication) is drawn from natural resources, while the processing is done by a team of people (Labour) supervised by technical specialists. Hence, any entity like a family, or a business that use such ‘produced goods and services’ only utilize natural resources and human labour. Thus the capitalists’ accumulation of profit is more immoral because he/she is not the creator of natural resources.

As per the Marxist theory, there should be two-stage transformation in a socialist society which looks like:

The stage 1 transformation >> Capitalist society (bourgeoisie democracy) to

Socialist society (dictatorship of proletariat)

The stage 2 transformation >> Socialist society (dictatorship of proletariat) to

Classless socialist society (also termed as Communist society)

The most significant modification of Marxism happened with Lenin’s theory that proposed: a Marxist political party would act as a vanguard party of the proletariat which would seize the state power, and steer the economy and society until the political environment across the world is conducive for classless stateless society (where party would lose its significance).

If Marx was 100% right, ‘capitalism’ as an economic system has to go. David Harvey (2015) criticizes capitalism as ‘a system which lives beyond its means through a banking and finance system that takes on too much debt’, ‘a system which pays its workers too little to consume all of the goods it produces’, ‘one which is ruining the environment’. There is little doubt that Zionist-capitalist oligarchy created a globalized society of monumental inequality – Oxfam said in January’2020 that, 2,153 dollar billionaires across the world have more wealth than the 4.6 billion people (i.e. 60% of the planet’s population), and top 162 billionaires have the same wealth as the poorest 50% of global population (link: https://www.huffingtonpost.in/entry/billionaires-inequality-oxfam-report-davos_n_5e20db1bc5b674e44b94eca5?ri18n=true). There can be even less doubt that, nature abhors the state of disequilibrium.

2.2 Socialist Dream – China, the Last Man Standing

As on date, there are 155 countries in the world with population more than 1 million. At least two-thirds of the countries have one or two political outfits which identify Marxist socialism as their guiding principle – these parties/outfits have been around for a long time, may be on average 75 years. However, the current environment is a downward slide after the world-wide socialist movement witnessed phenomenal success in three regions apart from east and south-east Asia:

1. East Europe – Soviet Union helped many communist parties of east European countries to come to state power after WW II. Later on these countries formed ‘Warsaw pact’ that included Soviet Union, Poland, Czechoslovakia, Hungary, Romania, Bulgaria, and East Germany. Not only Soviet Union led the economic rejuvenation of the Warsaw pact countries after complete devastation of WW II, Soviet Union contributed immensely towards national liberation of African countries.

2. Africa – many countries that fought liberation war against the west European colonial masters saw the triumphant parties professed Marxist socialism as their guiding principle. Countries like Algeria, Ethiopia, Tanzania, Mozambique, Namibia, Angola, and Zimbabwe had governments and ruling party leadership who wanted to progress the newly independent countries through the past of socialism.

3. Latin America – in most of the countries in South American continent and Central American region, Marxist parties were organized against the well-entrenched lobby of local oligarchy and American oligarchy who would invariably manipulate every government towards oligarch-friendly policies that would exploit the natural resource and 90% plebs. In countries like Chile, Peru, Argentina, Bolivia, Ecuador, Venezuela, Colombia, Nicaragua, Honduras, El Salvador Marxist parties struggled, but success eluded most of them.

Apart from the above mentioned countries where Marxist socialist political parties and discourse were popular in the past (and in some countries, still popular), there were many more South American, North American, African, and Asian countries where multiple groups of revolutionaries stood against exploitation and dehumanization by the local and comprador oligarchy, and struggled to seize political power through a socialist revolution. But, most of them messed up their movements mid-way – some of them couldn’t withstand the onslaughts by Zionist-capitalist oligarchs masquerading as democratic populist party leaders, some other simply betrayed the ideal in order to stash illegitimate wealth offered by the Zionist-capitalist clique, and finally there were a few leaders who were wrong from the very beginning about what is socialism! There was another unfortunate factor which played to the detriment of the worldwide socialist movements – unity among various ideological factions within a Marxist party was mostly absent, hence the policy and planning for struggle towards achieving political power differed. In many countries, the struggle within various factions of a Marxist party resulted in multiple splits and continuous depletion of resources, time and efforts of leadership of all factions.

With the implosion of the Soviet Union as a state and CPSU as a party between 1989 CE and 1991 CE, Marxist socialist political parties around the world lost much of the moral and material support to continue their journey towards socialism, and as matter of fact, most of those political parties changed their ideology to identify democratic capitalism as their goal. Only 5 countries viz. China, Vietnam, Laos, North Korea, and Cuba still got a Marxist socialist party controlling the state power. The socio-economic realities in all countries, however, point out towards high degree of exploitation, dispossession, lack of income, and overall poverty among the plebs, 90% of the population – the significance of Marxist socialism refuses to go away!

The CPC has always been one of the most vibrant communist parties in the world, which witnessed many violent field battles against adversaries as well as ideological battles between various factions within the party built around policy and implementation programmes since its birth in July’1921. Between July’1921 and October’1949 the CPC built the mass base in rural and urban regions as well as created an army (Peoples Liberation Army) that fought against the Kuomintang after it became clear that Chiang Kaishek faction of Kuomintang party would not share power at the central government with the CPC. In October’1949 People’s Republic of China (PRC) was proclaimed by Mao as the PLA won the war against the Kuomintang army – the leadership of Kuomintang settled in Taiwan group of islands declaring Republic of China (ROC) as an independent country. Technically PRC and ROC both claim to be the legal representative of China.

While none of the CPC leaders seriously debated about what would be the final shape of China after achievement of 2nd and final stage of socialism (class-less state-less communist society was never really a subject of detail discussion among Marxist socialists because Marx was vehemently opposed to any such blue-print of a distant future), senior leaders like Mao, Zhou, Liu, Deng, and their factions debated exhaustively on what would the 1st stage of socialism look like and how to achieve that. Marx-Engels-Lenin mostly engaged in deliberating the advent of capitalism in European society, hence theoretical discussions and writings on socialism in ‘Asiatic’ society remained a far cry from what was expected by the 20th century socialist revolutionaries in China, India, and Indonesia. Rightly judging that, the social capital and productive forces built in China between 1950 CE and 1980 CE as grossly inadequate for a stage 1 socialist society for sustaining in the highly competitive global economy and complex geopolitical reality (ideological divide between the CPC and Communist Party of Soviet Union in mid-1950s turned into unfortunate hostility by end of 1960s), Deng and his successors went on to develop theoretical framework of ‘Socialism with Chinese Characteristics’. When judged unbiased, ‘socialism with Chinese characteristics’ appears to be built on three pillars – (a) Leninist principle of communist party acting as the ‘vanguard of socialist revolution’ was followed with complete dedication and the CPC remained all-powerful authority, (b) the terminology of ‘market socialism’ propounded by Oskar Lange was borrowed and used with ingenuity by the CPC, but the concept of Lange was never really implemented anywhere in Europe or in China, (c) the productive forces including the ‘animal spirit’ of capitalists were unleashed under strict control of the Chinese state.

During the next 40-year period from 1980 CE to 2020 CE, the CPC spearheaded the rejuvenation of the Chinese society and state through astounding growth of China’s economy, complete eradication of absolute poverty, and imbibing all sorts of technology. The drive towards industrial capitalism in China using the global finance owned by the Zionist-Capitalist bankers and industrialists (initiated by Deng) was followed up by the succeeding CPC leadership in such sincerity that, the Zionist-capitalist Deep State representatives like Kissinger concluded that transformation of the Chinese society and economy into a Zionist-capitalist system was forthcoming. With China’s entry into the world order triad (USA-West Europe-Japan), the new configuration would have become USA-West Europe-East Asia. Meanwhile, Soviet Union and Warsaw pact got dissolved. Zionist-capitalist clique was sure about China ditching Marxist socialism to join USA camp by the turn of the past century. Chinese government went all-out to create free trade zones for global Zionist-Capitalist interests which wanted more and more profits towards endless accumulation of capital, and hence were busy shifting their manufacturing base to China to harness low-cost labour and slack regulations. By 2008, China became the third largest economy in terms of GDP nominal (as per IMF estimates USD 4604 billion) and largest export base in the world (In 2007-2008, its Export-to-GDP ratio reached 32%, and its Exim-to-GDP ratio was 59%). But during this process, China also became a society where inequality was one of the highest in the world – Gini coefficient increased from around 0.3 in early 1980s to 0.49 in 2008. The media, and academia funded by the Deep State went all-out to woo the CPC leadership towards ushering a new era of ‘political reforms’ after such a brilliant success of ‘economic reforms’ – by ‘political reforms’ they meant introduction of democratic election based multi-party system with liberal capitalism. However, after 2 decades of continuous and intensive persuasion, by 2008 CE, the Zionist-capitalist Deep State cabal concluded that, the CPC would never change their ideological color – the CPC leadership just utilized the capitalist system, capital, and technology from USA, Japan and west Europe to perform a ‘great leap’ forward towards the industrialisation of China! Since then, the world order controlled by the Zionist-capitalist Deep State has been putting up innumerable obstacles on the path for further economic and social transformation of China.

As it stands today, only a few Marxist communist/socialist/ workers parties, who continue to be led by bold, capable, and visionary leaders through generations, are able to sustain their journey. Among the 5 countries which still got a Marxist socialist party running their government, China has the largest Marxist socialist party. If China shied away from the ideology of Marxist socialism, the philosophy of socialism will get a quiet burial across the globe. Remaining 4 countries (Vietnam, Laos, North Korea, and Cuba) possess too insignificant landmass and population to gather sufficient moral and material strength to continue their journey on the road to socialism against the brutal economic sanctions by Zionist-capitalist world order. China led by the CPC, is the proverbial ‘last man standing’!

3. Socialist Revolution – All’s Well That Ends Well

3.1 Stage 1 Socialist Dream in China

While every socialist-minded people all over the world applaud the stupendous achievements of mainland China led by the CPC, as it celebrates the centenary, they also point out that, there is still a long way to go before the CPC can claim a successful socialist society in China.

A news article with a headline “600 million with $140 monthly income worries top” appeared on the Global Times website on 29th May 2020 (refer link: https://www.globaltimes.cn/content/1189968.shtml) and another with a headline “China’s 400 Richest 2020: Total Wealth Surges Amid Pandemic” appeared on the Forbes website on 4th Nov 2020 (refer link: https://www.forbes.com/sites/russellflannery/2020/11/04/chinas-400-richest-2020–total-wealth-surges-amid-pandemic/?sh=5b1c42d13d7a). In a Marxist socialist country, such income inequality is a natural outcome of the phenomenon, what I paraphrase as: the significant aspects of stage 1 socialism are yet to be achieved in China. Chinese government took remedial action as noted in the article “China to issue 20 billion yuan in subsidies to farmers” (refer link: https://www.globaltimes.cn/page/202106/1226522.shtml) that appeared on the Global Times website recently. However, such corrective action is not really a substitute for permanent resolution – remedial measures need to be taken up at the level of policy formulation and implementation.

During past 4 decades, China implemented a mix mode of economy, which was essentially a combination of ‘state capitalism’ and ‘private capitalism’ supported by the Zionist-capitalist global oligarchy with finance and technology until about 2008 CE. The Zionist-capitalist motive force generated very high degree of momentum within the Chinese mainland unmatched in any of its past ‘enterprises’ whenever the force went to ‘invade’ new territory around the globe. The main challenge for the present Chinese leadership is to dissipate the energy of that storm so that, the energy can be harnessed for social benefits as much as possible, while damage from the storm is kept at a minimum as the society turns deep into socialism. With Zionist-capitalism so well-entrenched within the bourgeois class and the economy, the CPC wouldn’t be able to a take an ingenious decision of a single-stage transformation to a classless and stateless society. On the eve of centenary celebrations, the CPC should finalize on a prudent realistic approach of two-stage transformation. The following tasks should be taken up to implement the final aspects of the stage 1 socialism in China:

(a) Action point 1 – Implementing the concept of ‘restricted-profit enterprise’ to bring all economic activities (as mentioned in the sub-section 3.1.1) under its sway EXCEPT a few vital sectors, and simultaneously making all classes of society stakeholders for enterprise performance (as owners of the enterprises), instead of only the capitalist class and the state owning industrial enterprises;

(b) Action point 2 – Implementing a robust banking and monetary policy by following a judicious mix of the ‘fractional reserve theory of banking’ (broad banking for creating credit money) through 50% of the banking/financial institutions and ‘financial intermediation theory of banking’ (narrow banking that is transactional in nature) through remaining half of the institutions, instead of individual bank/ financial institution practicing the ‘credit creation theory of banking’ to create debt money out of thin air in connivance with the ever-greedy capitalist class;

(c) Action point 3 – Restructuring the agriculture and related sectors towards liberating tens of millions of surplus workforce (currently underemployed and unemployed), and simultaneously making new initiatives for agro-based industry in rural regions, instead of the rural economy remaining burdened with an overcrowded agriculture sector;

(d) Action point 4 – Planning and control of national economy with an eye to increasing the spending capacity of all sections of the society, so that the household consumption expenditure becomes the mainstay of the economic growth by contributing at least 50% of the GDP, instead of investment and export playing the lead role to support economic growth;

While action point 1 and 2 are truly (socialist) revolutionary concepts directly favouring the proletariat (and the petit bourgeois) against the bourgeois capitalists, action point 3 and 4 are concepts related to sound economics that fight against inefficiency and unsustainability. Four action points collectively target to erase exploitation and inequality which are still part of the quasi-capitalist economy of China and to implement robust monetary and economic measures that will be instrumental in achieving the stage 1 socialism.

At least the following subjective impact analysis should be done meticulously during detail planning:

1. Impact on GDP and GNI

2. Impact on prices and inflation

3. Impact on employment and income

4. Impact on consumer households (i.e. people from different classes of the Chinese society who consume goods and services)

5. Impact on producers (i.e. different enterprises, and individuals of the Chinese society who manufactures/produces goods and services)

6. Impact on Chinese importers (the enterprises in China who import goods and services from foreign countries)

7. Impact on Chinese exporters (the enterprises in China who export goods and services to foreign countries)

8. Impact on MNC with business operation in China (imports and sells in China, manufactures and sells in China)

9. Impact on MNC with business operation in China (manufactures and exports to foreign countries)

10. Impact on local governments

11. Impact on central governments

12. Impact on Peoples Bank of China (PBoC)

13. Impact on global banks with business operation in China

14. Impact on foreign governments

15. Impact on Multilateral trade organizations

16. Impact on projects funded by Chinese government

17. Impact on projects funded by foreign governments

Socio-economic scenario simulation should also be done during detail planning:

1. Computerized simulation of pessimistic scenario that assumes actual duration of implementation to be double than planned duration calling for almost double resource and efforts

2. Computerized simulation of optimistic scenario that assumes actual duration of implementation to be 80% of the planned duration thereby saving resource and efforts

3. Computerized simulation of probable scenario that assumes actual duration of implementation to be 20% more than the planned duration thereby causing little additional resource and efforts

Both the individual impact analysis and socio-economic scenario simulation need to take into account the past 3 decades of socio-economic landscape of China and make projections for 2 decades into the future. We need to remember, if central planning system of Soviet Union failed to take into account the population, geography, and goods/services requirements satisfactorily, lack of enough computational power and adequate information were to be blamed – the theory and proposition was not responsible for its debacle. The following subjects should be considered as part of the socio-economic landscape:

i. Parameters on national GDP accounting

ii. Parameters on production

iii. Parameters on sales

iv. Parameters on prices and inflation

v. Parameters on labour force

vi. Parameters on international finance and trade

vii. Parameters on balance of payments

viii. Parameters on income and expenditure

ix. Parameters on Human Development Index (HDI)

x. Parameters on environmental sustainability

3.1.1 Action Point 1:

Ever since the intellectuals and economists in early modern Europe raised their voice against the exploitation by the privately owned industries, the question of ‘ownership of means of production’ took central position (along with the question of ‘money as finance capital’) in every debate concerning struggle against capitalist mode of economy. Mainly three different ideas got substantial support among different shades of socialists – (a) ownership by public/community, (b) ownership by ‘State’, and (c) ownership by ‘workers’ cooperative’. Mode (b) had been the most preferred option for the socialist parties that came to power in Soviet Union, East European countries, China, Vietnam, and Cuba, because it was assumed that a ‘state’ represented a ‘community’. However, in my opinion, mode (a) is the most genuine because only that can deliver all the benefits of ownership to the individual level of the community – not only the appearance of ‘state’ as expropriator gets averted, but people’s self-esteem and involvement with the economy increases. Let’s revisit what happened in Soviet Union and East European countries in the beginning of 1990s – when the Zionist-capitalists were dissolving the socialist state, constitution and system, they picked up all productive assets – factories, mines, facilities – at almost no cost by manipulating the then state administration of Soviet Union. The ‘state’ was the owner of all productive assets, hence the people were just bystanders, they didn’t resist since they didn’t own. In future, if and when the Zionist-capitalists in China organize themselves to stake its claim on state power, community ownership of means of production and other productive forces will be the ONLY repelling force that would save the day for the CPC.

The action point 1 should be implemented at every sector/sub-sector of the Chinese economy (that are concerned with natural resources and economic base of the society as shown in figure 2.2) and its interaction with every class in the society in such a way that address specific issues and concerns of the society as well as the economy. Because of the unparalleled significance of ‘Manufacturing (defense & space)’, ‘Banking, Finance, Insurance’, ‘Education’, and ‘Healthcare’ sectors, ownership of those four sectors should be only vested in the state, to begin with. The ownership of remaining all categories of means of production needs to be legally transferred to the community (and the state) in an orderly manner – EVERY CITIZEN AS HE/SHE TURNS 25 YEARS, SHOULD BECOME ELIGIBLE FOR ALLOTMENT OF EQUITY OF ENTERPRISE(S) TO BECOME AN ‘OWNER’ under this scheme, what easily can become the largest transfer of wealth in the history of humankind. The ownership would remain non-transferrable which means that the share is not trade-able at the share market, and at death the ownership gets terminated. An indicative scheme of ownership for the 12 sectors/sub-sectors is given below in table 3.1.1. It is to be noted that, the percentage of ownership indicated in the table is for EVERY ENTERPRISE/FACILITY and NOT for a sectors/sub-sectors in totality – e.g. in the ‘Real Estate & Construction’ sector, equity of each of the organizations/facilities should be distributed among citizens belonging to 5 classes/sub-classes of the community as noted in the same table so that, each class gets 20% equity, it does NOT mean that 20% of the enterprises/facilities in the ‘Real Estate & Construction’ sector should be owned by each of the 5 classes. Approximately 73% of the population of China would be beneficiary. Since the entire conceptual philosophy behind this proposition is to put an end to basic causes of exploitation and inequality among various sections of society, the implementation of this vast programme has to be done in such a way that at least 1 member of every family residing in 22 provinces, 5 autonomous regions, and 4 municipalities of PRC becomes beneficiary of this scheme.

The table 3.1.1 given below has been constructed with a certain degree of thought process that took into consideration things like (a) criticality of a sector to the sustenance of the state and the party (a ‘vital’ sector shouldn’t be opened for community ownership at this point of time), (b) future urban-rural population (urban population would become two-thirds of the total population, hence more sectors should be serving that compared to rural people), (c) the state (and the party) should play a role as ‘stabilizer’ among different classes of owners in every enterprise, hence a token presence is required on the ownership table. However, before implementation, the concerned team of CPC should suitably modify to reflect the ground realities more appropriately (except increasing the share for bourgeois).

Table 3.1.1

Economy sectors & sub-sectorsCommunityState
Proletariat –Rural labourer, unemployedProletariat –Urban labourer, employed, unemployedPetit bourgeois – Rural peasant, craftsmenPetit bourgeois – Urban technologist, manager,self-employedBourgeois – owning or controlling capital
i) Agriculture & related areas20% Ownership70% Ownership10% Ownership
ii) Mining & related areas20% Ownership70% Ownership10% Ownership
iii) Utility40% Ownership40% Ownership10% Ownership10% Ownership
iv) Manufacturing(traditional)40% Ownership40% Ownership10% Ownership10% Ownership
v) Manufacturing(hi-tech)40% Ownership40% Ownership10% Ownership10% Ownership
vi) Manufacturing(defence & space)100% Ownership
vii) Banking, Finance, Insurance100% Ownership
viii) Real estate & construction15% Ownership20% Ownership15% Ownership20% Ownership20% Ownership10% Ownership
ix) Technology-based services15% Ownership20% Ownership15% Ownership20% Ownership20% Ownership10% Ownership
x) Education100% Ownership
xi) Healthcare100% Ownership
xii) Other Services20% Ownership20% Ownership20% Ownership20% Ownership10% Ownership10% Ownership

There would be a couple of significant counter-arguments to suggest the proposed implementation of action point 1 as an ‘impossible task’ or a ‘utopia’:

1. Primarily there are four types of domestic enterprises operating in China mostly in industry and services – state-owned big/medium sized corporates, private-owned big/medium sized corporates, state and private joint ownership companies, small companies owned by individual professionals. How could the ownership pattern be changed without disturbing the management as well as without impacting the performance of the enterprise? Answer to that can follow similar logic of how a company maintains its structure and functioning after it is taken over by another corporate entity through acquisition of majority equity share with an understanding that existing setup won’t be disturbed by the new owner;

2. Assuming on average 4-member family, there would be about 350 million families in China spread over about 9.6 million sq.km. How could even 1 member from each family get ownership share in even 1 enterprise that brings material benefit to him/her? There is no standard answer. There has to be rigorous analysis covering all types of enterprises (According to a report by China’s Administration for Industry and Commerce released on 14 January 2016, more than 77 million companies were active in mainland China) in all sectors/sub-sectors to explore physical and financial capital base built over past 7 decades, and thereafter optimum restructuring of equity capital has to be done for each of those enterprises in all sectors/sub-sectors (except 2). Then only a clear picture would evolve about how so vast number of citizens can be accommodated;

3. Another significant question is whether the existing private owners would at all accept proposed dilution of their equity stake, and if they agree then what would be the terms-conditions, and if everything is settled, then whether they would continue to manage the enterprise as they did in past. This is the most significant question from legal perspective. The bourgeois class executives would not mind diluting their equity stake in existing enterprises because (a) China’s private entrepreneurs are politically co-opted by the CPC, (b) by working through the party-state networks all over the country, private businessmen understand that they are a very important part of the current national economy, (c) bourgeois class is a numerically very small part, may be 1% of the Chinese community, still sizeable equity stake for them has been proposed in 6 sector/sub-sectors (as given in table 3.1.1) which is disproportionately high when compared to numerically much larger part of the society;

4. Last but not least is the question – how could a business enterprise function under ‘restricted-profit’ environment. Generally, an enterprise functions with ‘profit’ (e.g. business operation) or ‘non-profit’ (e.g. social work) orientation. But, as per the guiding principles of socialism, endless accumulation of profit can’t be an objective for a socialist society. Hence, during implementation of action point 1, procedures for enterprise functioning with restricted profit has to be laid out that neither violates the socialist principles nor kills the spirit of business operation. Steps may be – (a) exhaustive analysis of all factors of production that go into production and distribution process for all types of business operation under each of the listed 12 sectors/sub-sectors (e.g. ‘Manufacturing – traditional’ has, say, 15 sub-sectors like food & beverages, textile & garments, metal processing, light engineering goods, consumer durables, heavy machineries, automobiles, chemicals & fertilizers, hydrocarbon processing, pharmaceuticals, rolling stock, shipbuilding etc.); (b) setting up of optimum range of operational expenditures – input material cost, input labour hour, input energy cost, factory and machinery depreciation, cost of financial capital, cost of technology, cost of managerial coordination etc. – across the entire value chain of each of the sub-sectors (e.g. 15 sub-sectors of ‘Manufacturing – traditional’); (c) setting up of optimum range with upper and lower limit of operating margin, product/service price, profit, share of profit to be reserved and share of profit to be distributed among shareholders. We, the protagonists, need to always remember ‘when there is a will, there is a way’

3.1.2 Action Point 2:

In commodity exchange, one exchanges a commodity for money, and that money is exchanged again for some other commodity. One sells in order to buy something else for consumption – Marx identified this cycle as Commodity-Money-Commodity (C-M-C). In modern economy, with ‘money’ as the exchange medium as well as store of value, one can buy in order to sell at a higher price – Marx defined this as Money-Commodity-Money (M-C-M), the formula for capital. Free from the use-value of an item, this ‘money’ can move on continuously as profit-making finance capital. For the business of usury, the cycle becomes even sharper – Money-Money (M-M). Till 1970 CE, the traditional capitalist concept of accumulation of monetary capital as ‘profit from business operation’ continued as usual. Money supply through banking system (exogenous money created either by manufacturing paper/metal currency or by fractional reserve system, also called money multiplier model) of a country not only positively impact the business cycle, but it has an impact on inflation, and the price level also. Empirical evidence suggests a direct relation between growth in the money supply and long-term price inflation. In the post-Keynesian Europe and America, Zionist-capitalist oligarchy found that, in order to tackle inflation and price more effectively, the central banking institutions of countries across the globe (including the countries in European and American continents) were restricting the money supply for their economy (by NOT creating new money), which in turn restricted the flow of credit money to grow businesses owned by the capitalists. On the other hand, in the 1970s and 1980s most of the businesses were operating in severe competitive environment across the globe, input costs were not favourable always, fuel costs were up, product prices were too competitive with Japanese companies becoming more cost-effective – all these factors impacted the traditional process of seeking exorbitant profit from businesses in the era of ‘industrial capitalism’. Thus, as a result of two simultaneous pressures, the endless accumulation of (money) capital became much more difficult than the Zionist-capitalist oligarchy expected.

Hence, the academia and media funded by the Zionist-capitalist oligarchy dusted off an old theory of endogenous money and gave it a new life – credit creation theory of banking. This concept of credit money heralded a new era of Zionist-capitalist exploitation of the earth and humanity through ‘financial capitalism’. Starting in 1980s beginning, financial capitalism saw its ‘golden era’ during the 1990s and 2000s until the financial crisis overwhelmed American and European economy in 2007. But soon after the financial shock, financial capitalism found its way in the same fashion like before. Central banks in advanced countries maintain their official stand as exogenous money creation through fractional reserve system, but in practice, many banks in developed countries create endogenous credit money while paying lip service to principles of prudence and conservatism (refer “Post Keynesian Endogeneity of Money Supply: Panel Evidence” from https://www.researchgate.net/publication/257594497_Post_Keynesian_Endogeneity_of_Money_Supply_Panel_Evidence). Under the endogenous money theory (and, practice), ‘the supply of money is a function of profit expectation’. As per the Jewish tradition of banking and usury, the central theme of this theory is endless accumulation of money. The bourgeois capitalist businessmen would start calculation from ‘profit expectation’ which would derive the ‘income of firm’, this in turn would derive the ‘demand for credit’ as per which the ‘credit money creation’ would become the responsibility of the banker (the leader of the team of capitalists). Hence, the traditional flow of causality through fractional reserve system (Reserve → Deposits→Loan) gets reversed as Loan → Deposits → Reserve under this endogenous credit creation system. For endogenous money, the interest rate is not determined by the market mechanism (like the supply of and the demand for savings, the supply of and the demand for money). Nominal interest rate set by the central bank is applicable.

During past 4 decades of the era of financial capitalism, as and when the Zionist-capitalist oligarchy in a country decide to accumulate more money without going into the ‘painful’ mode of industrial capitalism, they create a flow of credit money through connivance with the management of commercial banks (staff at the higher positions in industry and banking are ALWAYS selectively appointed by the oligarchy) each of which has country-wide network of regional offices and branch offices, ostensibly for growing business operations. Question can be raised, “so what, the credit money drives creation of new business that helps growth of the overall economy”. The answer is, “no, it is not so”. Apart from a glitzy ‘project report’, none of the business objectives are ever honestly mentioned. Industrial and Service sectors are the prime target areas where hundreds of millions of investments are demanded as ‘project loan’ from commercial banks, and after receiving the amount, half of the amount gets transferred the foreign/domestic accounts of the ‘businessman’ and their accomplices, remaining half may be actually invested in the project. In many cases, after couple of years the businessman declares the project as dead and business operation as bankrupt. In many other cases, where the targeted project came to fruition, it can be easily proved through post-completion report that, the loan taken from bank was about 150 – 200% more than the actual project expenditure. This is how, in all countries throughout the world the wealthy oligarchs have been accumulating money, only a small part of which comes through profit from business operation. And, this ‘mechanism’ of ‘getting rich fast’ has been popular among senior-level technocrats of state-owned enterprises in all developing countries (including China) – Zionist-capitalist oligarchy happily accommodates such turncoats as part of the oligarchy. On the other hand, this swindle of a very large section of Zionist-capitalist business-owners results in bad debt problems for the country.

Government of China has to grapple with the bad debt problem continuously for past two decades (refer link:

 https://www.business-standard.com/article/international/china-s-bad-loan-season-descends-again-and-this-time-it-may-be-really-bad-121021700184_1.html). Writing off trillions of bad debt as non-performing asset from the books year-after-year is not really a solution. Unless and until the procedures and systems of banking-financing and money circulation are made full-proof along with complete prohibition of the endogenous credit money, PBoC won’t be able to see a clean slate ever in the banking sector.

As proposed in action point 2, the worst performers among banks and financial institutions should be converted into ‘narrow banks’ where deposits would be used to buy government bonds, but no investments in shares. Lending would be done using the deposits only (following ‘financial intermediation theory of banking’). Narrow banks are safe banks; there would be very limited credit risk. The danger of non-performing loans and subsequent injections of capital (using taxpayers’ money) would be grossly mitigated through narrow banks. Remaining banking institutions should religiously follow ONLY the money multiplier model of the fractional reserve system for creating credit money required for economic growth. PBoC should keep reserve requirement ratio at 25 – 30% which may be considered as a prudent base for credit money creation through fractional reserve system. Thus supply of money would be maintained, but unscrupulous capitalists won’t find a route to carry out bank robbery any time they wish.

3.1.3 Action Point 3:

Agriculture and related sectors in China has innate unbalances – the country has only 9 – 10% of the total arable land in the world, and 7 – 8% of its fresh water, but the sector’s output has to feed about 18 – 20% of the world’s population. Agriculture in China had been the core economic activity since ancient era. In the post-WW II when PLA won the civil war against Kuomintang, rural peasants were the most significant base of the communist party. The people’s commune system was established in Mao era, which was changed into the household responsibility system in Deng era. With progress of time, the improvement in productivity and income per capita as a result of such structural changes always taper down. Agricultural output has increased leaps and bounds over past 7 decades (with temporary dips). However, current problems of the agriculture and related sectors can’t be wished away:

(a) Diminishing plot size of the arable land (average size – less than 1 hectare) due to division among family members with each generation,

(b) Availability of water for irrigation remains a challenge especially in the northern half of the country

(c) Income of farmers lag behind the urban population by a very large gap

(d) Increasing demands for agricultural and dairy products, meat, and fish due to two simultaneous factors – population growth as well as change in dietary patterns especially in the urban regions

(e) Environmental degradation due to the ever increasing use of chemical fertilizers and pesticides

(f) Decreasing area under cultivation due to rapid township development projects

There are unresolved dichotomies in the agriculture sector in China:

1. If farmers’ income rise becomes more important, then high-value crops need to be cultivated; but that would require releasing arable land currently under food-grain cultivation, which in turn would affect the goal of self-sufficiency in growing food-grain

2. If afforestation is increased as a measure to address environmental pollution, semi-arable land should be released for that purpose; however, that would result in further reduction in the agricultural land, which in turn would impact production of both food-grains and high value crops

Under the restructuring of agriculture and related sectors action point, government should consider a mid-way between village-level people’s commune and household responsibility – contiguous plot-owners should form cooperative enterprises so that plot size remain above 10 hectares. Such plot sizes would enable the cooperative to deploy most modern farm equipment. Government should ensure that farmers’ produces are picked up at farm-gate at a price that covers the cost of inputs, labour, and a net income that is significantly higher than current income per capita in rural regions – essentially it would require subsidy payments in a systematic way. Finally, such cooperatives would indirectly result in release of the surplus labour into industrial and service sectors – migration to urban areas is highly probable, unless government launch new initiatives for agro-based industry and electricity generation system through renewable sources like solar and wind energy.

3.1.4 Action Point 4:

In a brief, accurate write-up, The Guardian website provided the economic data related to Chinese economy from 1980 to 2016 (Link: https://www.theguardian.com/news/datablog/2012/mar/23/china-gdp-since-1980). The export-oriented economy that Deng set in motion (following other East Asian success stories in 1970s and 1980s) during 1980s has been performing with extreme efficiency and effectiveness till now. The statistical indicators point out to that fact. However, household consumption expenditures remaining slightly below 40% of the GDP still remains a matter of concern for the policy making body of the CPC (GDP of China in 2019 CE was Yuan 99492.74 billion by expenditure approach, out of which Household Consumption Expenditure was Yuan 38589.56 billion i.e. 38.78% of GDP). There are two sides of the issue – (a) household consumption expenditure has been increasing steadily for past few decades, but the growth in GDP due to exports (and investments in infrastructure asset creation) readily outsmarted the household consumption growth, and (b) the potential for household consumption contributing a minimum of 50% of the GDP has not been unleashed yet.

In my opinion, both the perspectives of household consumption ‘dilemma’ need to be seriously addressed. After 2008 CE, the steadily growing trade and commerce between China and USA as well as China and West Europe has been a boon for the Chinese economy and bane for the Zionist-capitalist oligarchy. On top of it, the BRI programme, that aims to revolutionize the infrastructure and trade in Asia, Africa and South America, has sounded the alarm for the existing Zionist-capitalist world order. The existing world order would explore all type of ‘programme’ that attempts to hinder the existing trade and commerce between China and USA-West Europe-Japan triad (link: https://asiatimes.com/2021/06/american-decoupling-from-china-deconstructed/ ) as well as implementation of BRI programme. The CPC leadership should take note of it, and make preparations for absorbing a possible dent in exports (and imports). And, the question of substantial increase in household consumption appears on the horizon right away.

Under the scheme for boosting household consumption, the purchasing power of the rural population needs to be enhanced substantially. For the urban citizens of China, consumption is a way of life – generally, they enjoy life with increased income. However, for the entire country, apart from enacting laws that would ensure increase in salaries-wages-bonus in every types of enterprises, the government has to explore a creative way that would indirectly increase the propensity for consumption expenditure. Chinese government should seriously consider making education and healthcare a subject of governance. Thus, all arrangements, from creation of infrastructure to providing services, related to education and healthcare should be made by the government for every citizen of China. Citizens, as per their income category, would make payments for such services – this would require subsidies, since the poor section of the society won’t be in a position to cover the expenditures fully. However, once the population is free from the biggest concerns of daily life, the consumption expenditure would increase in true sense. (It won’t be inappropriate to mention here that, in the USA, education and healthcare services form a substantial part of the consumer expenditures, because the general population is turned into debt-serfs through credit money created out of thin air by the Zionist-capitalist banking cabal – but following USA as the role model for society and economy is hardly an intelligent decision for a Marxist socialist government).

3.2 Debate on Four Action points

There would be couple of valid questions from China watchers:

1) Question from intellectuals who identify themselves as ‘ideologically pure Marxist socialist/ Communist’ would be invariably on whether the continued presence of ‘market’ and ‘money’ in China (as I envisage in this article) would allow transformation of the society into a stage 1 socialist society. True, most of the early socialists detested market and money by assuming these as the root cause of all evils, and there were serious research in inter-war Europe and Soviet Union to propose how socialist society can function without market and money. The famous socialist calculation debate during the inter-war period between Austrian School (Ludwig von Mises and Friedrich Hayek) and neo-classical and Marxists (Oskar Lange, Abba Lerner, Fred Taylor, Maurice Dobb, and others) was a discourse on the subject of how a socialist economy would perform economic calculation in the absence of the price, money, capital market, and private ownership of the means of production. Without getting into the logic and analysis of such research provided by either side, I would like to maintain that socialism as an economic system is far more efficient than capitalism from social and environmental perspective, and that socialism is highly feasible. In my opinion, Socialism won’t be mortally wounded, if centralized economic planning work as complementary to market mechanism, enterprise functions with restricted profit accumulation, and money is used as a medium of exchange and an unit of calculation (instead of labour-time or physical unit of measure). In defense of my stand, I would quote David McMullen from his working paper titled “Re-Opening the Debates on Economic Calculation and Motivation under Socialism”, “there is nothing preventing an economy where the means of production are socially owned from having an effective price system as long as it can replace the profit motive with a desire by people to undertake work for its own sake and to serve the common good.”;

2) The intellectuals who wouldn’t give a damn to ideology, would like to ask, now that China has almost become a superpower in the realms of industry, technology, defense and space, why to bother about little ideological things like ‘yes to community ownership’ and ‘no to endogenous credit money’, that would be akin to rocking the boat. My response would be, without appropriate ideology, CPC members would become a class unto itself and would not be able to keep its mass base intact over the next 50 years. As a result, corruption, manipulation, nepotism and irresponsible behaviour would increase dramatically leading to loss of public support. Thereafter, it would be just a matter of time that, CPC would be challenged by a political entity (created-aided-abated by the Zionist-capitalist world order). Whether China sets up a base in Mars, in my opinion, is less important than whether China implement the crucial aspects of the stage 1 socialism.

3) Inquisitive readers may come forward with a very practical question – what would happen to people and society in Hong Kong, Macau, and Taiwan. Well, I would like to keep them separate as part of the “one country two systems” policy. It would be better for everybody if the regions of Hong Kong, Macau, and Taiwan are kept outside of this proposed program of final aspects of the stage 1 socialism in China. Let free entrepreneurship operate in these places, including operation of a business enterprise with even 100% private ownership (if the existing laws of those quasi-states permit). After all, those regions didn’t go through the transformation brought out by the Chinese Revolution.

4) Yet another group of informed readers might like to ask if the CPC has the organizational strength, leadership with ideological bent of mind, and all sorts of resources required to implement such an ambitious program. The question of whether the CPC can lead, whether the CPC can prepare a blueprint, and whether the CPC leadership can mobilize resources required for such a mammoth transformation is, actually, the most important issue for eventual success or failure. If a serious reader scans through the 100-year history of the CPC, he/she can come to a conclusion that the party was not built in a day – over the 100 year period, the Chinese leaders kept no stone unturned to keep the socialist dream alive. Extreme hard work by the leaders and members of all factions strengthened the CPC. Hence, in my opinion, the CPC would be able to register a complete success.

There are couple of key suggestions for strengthening the organization to prepare itself better for any eventuality, like: (a) expand membership strength to 140 million (equivalent to 10% of population), new recruits should cover all regions and at least 80% should come from proletariat and petit bourgeois family background; (b) vigorous training sessions for all party members through class-room and practical training, training should be imparted at least once in every 5 years; (c) while 80 years age should be maximum allowable age for a member in the party, average age should be lowered, so that members are physically fit to perform in difficult circumstances.

4. Conclusion

Coming back to the elders’ discussion in Heaven. China has achieved wonderful all-round progress towards building of social capital in the country. Now, to complete the first stage of socialism, China needs to shift the gear to adopt the cycle: Ecosystem → Economic Base → Community → Ecosystem.

It is time for the CPC to undertake the next journey on the socialist road with careful planning and implementation of the milestones. Couple of afterthoughts:

1. Two most crucial objectives for the CPC – socialist transformation and Taiwan reunification – should be undertaken simultaneously, for any attempt to plan those two objectives at staggered timeline may result in disappointment and stagnation. China (and Taiwan) can continue their journey towards more economic prosperity (with considerable inequality) even without achieving socialist transformation objectives, but the main issue refuses to go away – what happens when the Zionist-capitalists in China organize themselves to seize the political power (as they did in Soviet Union)? So, it is not a question of making a decision so that the elders like Marx, Engels, Lenin, and Mao would be delighted in heaven, it’s a question of life and death for socialism, which the CPC would have to confront, most probably before the centenary of PRC appears on the horizon.

2. The CPC Politbureau should own the entire initiative and meticulously prepare two options (plan A and plan B) on detail roadmap containing high-level tasks, sub-tasks, task-owners, task-locations, resource requirement, and timelines to achieve the objectives between 2026 CE and 2030 CE. It is imperative that pre-requisites for and implications of each task pertaining to each of the two plans are deliberated upon in detail before a plan is approved for implementation. Politbureau may involve all members of the Central Committee in thorough discussions on the final aspects of the stage 1 socialism in China and 2 optional plans, and if required, modify the plans with inputs from these two very important groups.

3. For a trouble-free implementation, the CPC should maintain the same senior level team, hence the CPC and the National People’s Congress should re-elect Xi Jinping as President and Li Keqiang as Premier in March 2023 for next 10 years circumventing the existing party constitution, as a special gesture. President, Premier, and all other Politbureau members should visit the building at Shanghai’s French Concession and Jiaxing site that hosted the party’s founding congress in 1921, and reiterate the commitment to maintain the original aspiration of the founding members and continue the journey towards socialism.

4. In this article, I haven’t touched upon the geopolitical and geo-economic themes that permeate the overall architecture within which the Zionist-capitalist world order has been operating since the dawn of 20th century. Since that invariably includes the Chinese state and its people, the existing fabric of geopolitics and geo-economics would certainly get squeezed to some extent with the proposed implementation of the final aspects of stage 1 socialism in China. The surest way for China to confidently face any unforeseen turmoil outside its border is to maintain an unwavering deep strategic partnership with Russia through thick and thin, as we notice currently.

5. Would an auspicious moment arrive in 2031 when people across the world come to know that the stage 1 socialism fully arrived in China? I am one of them who are convinced that, the CPC has the resources, analytical ability, and organizational wherewithal to do it. If it really happens, there would be a tremendous wave of optimism about the possibility of a society based on truth-justice-equality-morality across the poor sections of the society around the world; the Marxist socialist dream that went sour with the dissolution of the USSR, would get a fresh lease of life!


Short profile:

Straight-Bat is an Engineer by profession, currently pursuing higher study in Economics. A keen observer of global affairs, Straight-Bat enjoys being an analyst of history, politics, economy, and geopolitics.

One of the few decade-old members of The Saker blog-site, Straight-Bat finds this website as a capstone entity that is dedicated to focus on truth and justice in public life across the world.

Sitrep China : Smörgåsbord of notable international data points (and a little opium war)

Source

APRIL 13, 2021

Sitrep China : Smörgåsbord of notable international data points (and a little opium war)

Selections from Godfree Roberts’ extensive weekly newsletter: Here Comes China.   You can get it here: https://www.herecomeschina.com/#subscribe

Further selections and editorial commentary by Amarynth:

  1.  I am looking for a little help for the Saker Blog and this regular sitrep specifically:  an analyst that can analyze or even just educate on the Chinese military weaponry complex.  What do they have, why and what are they working on?  If you have the required background and knowledge, my email is at the bottom of this page and each page of The Saker Blog.

A great and modern China history from the Epic China series by Nathan Rich:  How China Fell into the Opium Wars (1793-1838)

If you want to get the first few of this series, look for the Epic China videos on Nathan’s Youtube channel here:  https://www.youtube.com/c/NathanRichHotpot/videos

Data Points

Ed: China will not have anything resembling a monopoly structure in business and ever-popular Jack Ma is having his knuckles rapped through a series of actions, starting with not allowing Ant Group its biggest IPO in the world ever, in Hong Kong and now Alibaba has been fined:  China’s market regulators imposed an 18.2 billion yuan ($2.8 billion) fine on Alibaba, which amounts to 4% of the company’s revenues in 2019.

  • Regulators lift standards for finance execs to bring once freewheeling fintech giants like Ant Group into line. They require high social credit scores for directors, supervisors, and senior executives who “have a big impact” on the operational management. Read full article →

Ed: Many Saker blog readers know a lot about CHIPS (semi-conductors) and we’ve speculated in the past on what China’s actions are going to be regarding CHIP sanctions.  Now, we’re beginning to see the actions:

  • Chinese semiconductor equipment company AMEC said its etching equipment has been used in a tier-one customer’s 65 nm, 14 nm, 7 nm, and 5 nm lines. Plasma etchers perform microscopic engraving on chips with a precision of tens of thousandths of a hair’s diameter. AMEC’ etching equipment revenue was $197 million in 2020, up 60% YoY. Read full article →
  • Shanghai Tianshu Zhixin launched Big Island, China’s first homegrown 7nm GPGPU (General-Purpose Graphics Processing Unit) chip, which can complete the artificial intelligence processing of hundreds of camera video channels per second. Its performance is twice that of mainstream products in the market. Read full article $→

Ed: Higher Education:  Since Chinese students are generally being made unwelcome to study in the west, China did not miss a beat and most of the IVY’s and notable universities now have campuses in China.  The education to my understanding is more free-wheeling as in a western style, but students still have to take the required courses in Marxism and ideology.  It is mind-blowing how China takes everything thrown and simply turns it around into another opportunity.  “You don’t like us there, well, we’ll just get together over here!”  (No, China did not steal the US jobs – they walked off all by themselves as a result of insane policies and a bloated industrial cost structure – now, US, you’re losing your students and your source of educated workers and no doubt, we will hear the cries:  ‘China stole our students!’.)

  • International schools in China are booming as Covid-19 travel restrictions limit the number of students seeking education overseas. Demand is particularly high in the mainland portion of the Greater Bay Area, which has had fewer international schools than Beijing and Shanghai. Read full article $→

Ed: Money makes the world go round:

  • The World Bank is still the largest creditor in poor countries at $106 billion but China is close at $104 billion. In sub-Saharan Africa, China (US$62 billion) has outspent the World Bank (US$60 billion) as the biggest official lender to Africa’s poor countries.   Read full article $→

Ed: China’s influence mostly in the creation of infrastructure in terms of Belt and Road methodology is becoming very visible and seemingly no area of the world is too far away:

  • Guinea:  With the fourth and final generator successfully connected to the grid at the end of March, Guinea’s Souapiti 450MW hydropower station, above, became fully operational, doubling Guinea’s power generation capacity and turning it from a blackout stricken country into an electricity exporter.  Read full article →
  • Logistics:  China has the world’s largest and fastest-growing logistics market. It grew from $300 billion in 2001 to $2 trillion in 2018. A select few traditional logistics players have begun transforming their businesses to respond to these drastic changes in China’s logistics industry. As they adapt, three trends have developed. Read full article → 
  • Brazil: Petrobras has signed a $10 billion loan from China Development Bank to cover its massive debt burden for 2022, and says the loan comes with supply commitments to Chinese buyers. Read full article →
  • In 2019, the PRC surpassed the US as the leading trade partner with Brazil, Chile, Peru, and Uruguay and is now the region’s second-largest trading partner behind the US. Trade with Latin America soared from $17 billion to $315 billion between 2002 to 2019, with plans to reach $500 billion by 2025,” SOUTHCOM’s Admiral Craig Feller told the Senate Armed Services Committee. Read full article →

Ed: We have gotten accustomed to the superb level of diplomatic skill by Russian diplomats under the leadership of Foreign Minister Lavrov.  Up to now, the generally accepted idea was that China is in a sense leaving the global diplomatic task (as well as the military task) up to Russia in their partnership.  The new news is that China is joining the ranks of the superb diplomats and slowly picking up its own diplomatic function.

  • Russia and China agree to develop infrastructure via the Belt and Road Initiative; promote dialogue among civilizations; a two-state solution for Israel and Palestine; promote policies of non-proliferation of nuclear weapons; and collective security with a focus on new and enhanced Middle East Trust mechanisms. Read full article $→
  • Post-Iran-China, it’s not far-fetched anymore to even consider the possible emergence in a not too distant future of a Himalaya Silk Road uniting BRICS members China and India (think, for instance, of the power of Himalayan ice converging into a shared Hydropower Tunnel).

Ed: Explosive news of the week was the speech by Russia’s Security Council Secretary Nikolai Patrushev.  What is notable here is that he states not only the Russian position but combines it with the Chinese position.  We should understand from that, that both countries are of one mind – the US-controlled Biolabs in far-off places must be investigated.  This is an outflow of the ‘China virus’ accusations from the US.  Watch this space – we will no doubt see more developments here.

  • “Let me draw your attention to the US-controlled, permanent biological laboratories that appear mainly near Russian and Chinese borders, where outbreaks of non-typical diseases were recorded in the areas where those laboratories are located, said Security Council Secretary Nikolai Patrushev. [The US is the only country blocking a verification mechanism under the 1972 Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on Their Destruction]. Read full article →

Ed: And of course, we cannot help but end this data point section on a low note from a losing old SourPuss and its few lame ‘allies and partners.

  • The US considers boycotting 2022 Beijing Olympics, says US State Department: “‘It [a joint boycott] is something that we certainly wish to discuss. A coordinated approach will not only be in our interest but also in the interest of our allies and partners.” Read full article →

Ed: May I then be the first one to declare that it is folly to March on Beijing with a Trade War.  The next longer read will explain.


Longer Read

Martin Jacques: The Communist Party of China (CPC) is like no other party in the world. It requires us to rethink the very idea of what a political party is. It is a phenomenon intrinsic to China. It is ineluctably Chinese. If the imperial dynasties defined Chinese governance for two millennia, the CPC has assumed similar importance since 1949. There has been an overwhelming failure to grasp the nature of the CPC in the West. This ignorance reached new heights after 2016. Read full article $→

Cynthia Chung and Matt Ehret of Rising Tide Foundation discuss with Jeff J. Brown his book, “BIG Red Book on China”: Part 1 of 2. China Rising Radio Sinoland 210408

Cover Image:  China’s share of citable articles in the various technology journals is growing by leaps and bounds.

This is but a fraction of what I gleaned from the Here Comes China newsletter.  If you want to learn about the Chinese world, get Godfree’s newsletter here: https://www.herecomeschina.com/#subscribe

Chinese Foreign Policy Outlook

Chinese Foreign Policy Outlook

March 13, 2021

By Zamir Awan for the Saker Blog

China achieved miraculous progress during the last four decades, which were never seen in humankind’s known history. There must be many reasons for its rapid developments, but its foreign policy was one of the significant reasons. In simple words, China opted for a reconciliation policy and avoided any confrontation with any other nation or country. It helped China to focus only on developments and achieved the desired results.

State Councilor and Foreign Minister Wang Yi expressed outlooks of Chinese foreign policy and answered questions about the country’s foreign policy and external relations at a virtual press conference on Sunday during the fourth session of the 13th National People’s Congress, China’s top legislature. Some of the highlights are given below:-

Pandemic

Through innovative “cloud diplomacy,” President Xi Jinping has championed solidarity in the world’s fight against COVID-19 and pointed the way forward for the international community to jointly fight the virus.

China will continue working with other countries in ongoing efforts to defeat the COVID-19 pandemic ultimately. Since the founding of the People’s Republic of China in 1949, China has carried out its most extensive emergency humanitarian action, contributing to the world’s anti-coronavirus efforts.

On China-Russia relations

In the face of the once-in-a-century pandemic, China and Russia have stood shoulder to shoulder and worked closely to combat “both the coronavirus and the political virus.”

China and Russia should be each other’s strategic support, development opportunity, and global partner. It is both an experience gained from history and an imperative under the current circumstances.

On CPC leadership

Facts have proved that the Communist Party of China’s leadership is the most prominent political advantage of Chinese diplomacy. Leadership will offer fundamental support for China’s diplomatic agenda to secure more victories.

Wang said that China’s diplomacy is people-oriented diplomacy led by the CPC, and the Party set the direction for China’s diplomatic agenda. The original inspiration and mission of the CPC – to seek happiness for the Chinese people and rejuvenation for the Chinese nation — determine China’s diplomacy’s responsibility.

On China-Africa relations

Helping African countries contain the COVID-19 pandemic and bringing their economies back on track is the top priority of the China-Africa cooperation. China will always support developing countries. China has started to provide COVID-19 vaccines to 35 African countries and the African Union Commission already.

On ‘patriots administering Hong Kong’

Hong Kong is a particular administrative region of China. One cannot talk about loving Hong Kong without loving its motherland, adding that love for the country and Hong Kong is entirely consistent. Hong Kong enjoyed no democracy during colonial rule. Since its return to the homeland 24 years ago, no one is more concerned about Hong Kong’s democratic development and wishes Hong Kong to remain prosperous and stable than the central government, he said.

On China-US relations

It is logical for China and the US, two countries with different social systems, to have differences and disagreements. “What matters most is to manage them effectively through candid communication to prevent strategic miscalculation and avoid conflict and confrontation.”

China hopes the US can remove its unreasonable restriction on bilateral cooperation as soon as possible and refrain from artificially creating new ones. China is willing to work with the US and set China-US relations on a new path of healthy and steady development.

On Taiwan question

The two sides of the Taiwan Strait must be and will surely be reunified, which is the trend of history and the entire Chinese nation’s collective will, Wang said, adding the one-China principle is the political foundation of the China-US relationship. It is considered a red line and should not be crossed. There is no room for compromise or concession from the Chinese government on the Taiwan question.

“We would hope to see a clear departure from the previous administration’s (Trump Administration) dangerous practice of ‘pushing the red line’ and ‘playing with fire, and we hope that the Taiwan question will be handled prudently and properly,” Wang said.

China stresses the UN’s core status

The UN is not a club for big or rich countries. All countries enjoy equal sovereignty, and no country is in a position to dictate international affairs, Wang said. He also urged efforts to enhance the representativeness and voice of developing countries in the UN to better reflect the common aspiration of most countries.

China, EU not systemic rivals

The China-Europe relationship is equal and open and not targeting any third party or is controlled by anyone else. China never intends to divide relations between Europe and the United States, Wang said, adding that the country is glad to see the European Union uphold multilateralism and remain devoted to coordination and cooperation among major countries.

China opposes ‘vaccine nationalism.’

China opposes “vaccine nationalism,” rejects any “vaccine divide” or any attempt to politicize vaccine cooperation. More than 60 countries have authorized the use of Chinese vaccines. China has provided COVID-19 vaccine aid free of charge to 69 developing countries urgently need while exporting vaccines to 43 countries.

On China-Arab relations

China will work with Arab states in solidarity, pursue expected progress, and prepare for a China-Arab States Summit.

In the past year, relations between China and the Arab States have continued to progress amid various challenges, Wang said, adding their joint fight against the COVID-19 pandemic has set an excellent example for international cooperation.

On multilateralism

Building small circles in the name of multilateralism is, in fact, “group politics,” multilateralism with one’s own interests taking precedence, is still unilateral thinking, and “selective multilateralism” is not the right choice.

Genuine multilateralism means openness and inclusiveness instead of closeness and exclusion. It means equal-footed consultation instead of supremacy over others.

China’s WTO accession

The past two decades had taught China four crucial lessons: China will stay committed to the fundamental policy of opening-up, remain committed to the principle of win-win cooperation, remain committed to the right direction of economic globalization, and we must stay committed to the central role of the WTO.

“China has injected energy into economic globalization and facilitated the optimization of global industry chains and resources,” he said.

On China-Japan relations

China and Japan should remain focused without being distracted by any single event to make the bilateral relations more mature and stable. China and Japan should support each other in hosting the upcoming Olympic Games this year and next year. China hopes the Japanese society would truly embrace an objective and rational perception of China to solidify public support for long-term progress in China-Japan relations.

‘Xinjiang genocide’ claim a thorough lie

The so-called claim of genocide in Northwest China’s Xinjiang Uygur autonomous region is preposterous, a rumor fabricated with ulterior motives and a complete lie.

Some western politicians chose to believe in the lies cooked up by a few instead of listening to the voice of 25 million Xinjiang residents of various ethnic groups, Wang said, adding that they chose to dance with the clumsy dramas by a few anti-China forces instead of acknowledging the progress in Xinjiang.

On China-ASEAN relations

Wang said that China stands ready to develop an even closer community with a shared future with ASEAN as the two sides celebrate the 30th anniversary of establishing bilateral dialogue relations this year.

China will continue to prioritize efforts to meet vaccine demand from ASEAN and further consolidate beneficial cooperation and see that China’s new development paradigm is better to align with the ASEAN Comprehensive Recovery Framework, he said.

On the Belt and Road Initiative

China’s commitment to supporting the Belt and Road Initiative has not changed, and the country will continue to work with stakeholders to advance high-quality Belt and Road cooperation, Wang Yi said.

COVID-19 may have changed the world, but the need for Belt and Road cooperation has not subsided, he said.

“As we pursue a new development paradigm, we will explore better pathways for Belt and Road cooperation and offer greater opportunities to BRI partners,” he added.

In the new development stage

China will create a better business environment, pursue opening-up at a higher level, and work with various countries to accelerate an open world economy, Wang Yi said.

China is like an express train with the greater driving force and load capacity accelerating towards a new goal in the further development stage, he said.

On China-India relations

China stands in a firm position to solve border disputes through dialogue and consultations and, at the same time, is determined to safeguard its own sovereign interests, Wang Yi said.

Border issues are not the whole of the China-India relationship, Wang said, noting that what happened again proves that initiating confrontation will not solve the problem and that returning to peaceful negation is the right way forward.

On climate change

Even though China and the US, and the European Union are in different development stages and face other challenges, they share the same mission in coping with climate change.

Wang urged enhanced communication and coordination between the three sides. They play a leading role in the international community, adding that China welcomes the US’s return to the Paris Agreement and expects that the US will shoulder its responsibility and make its due contribution.

On Iran nuclear issue

China hopes the United States will show sincerity on the Iran nuclear issue, take actions as quickly as possible, including removing unjustified unilateral sanctions and lifting the “long-arm jurisdiction” on third-party entities and individuals, Wang Yi said.

At the same time, he said, Iran should resume compliance with the Iran nuclear deal and shoulder its responsibility of nuclear non-proliferation, Wang said.

On the South China Sea

The only intention of some Western countries, including the United States, is to stir up troubles in the South China Sea in the name of so-called free navigation and undermine peace in the South China Sea and disturb regional stability, Wang said.

He called on China and ASEAN countries to continue to remove distractions and press ahead with Code of Conduct consultations, and continue with the full and effective implementation of the Declaration on Conduct of Parties in the South China Sea.

On Myanmar tensions

Relevant parties in Myanmar should maintain calm and exercise restraint, address their differences through dialogue and consultation within the constitutional and legal framework, and continue to advance the democratic transition.

“The immediate priority is to prevent further bloodshed and conflict, and ease and cool down the situation as soon as possible,” Wang said.

On China and Latin America

China is providing COVID-19 vaccines to 12 Latin American and Caribbean countries. “China and Latin American and Caribbean countries have stood alongside and supported each other in COVID-19 response and economic recovery,” he said. “Our cooperation best illustrates the saying, that ‘a bosom friend afar brings a distant land near.”

On objective coverage of China

China hopes to see and welcome more journalists in Edgar Snow’s mold in this new era among foreign journalists.

Wang Yi said he hopes that foreign journalists will not apply any filter to their camera, whether beautiful or gloomy, when reporting on China.

“Truthful, objective, and fair stories will always appeal to people and can stand the scrutiny of history,” he said. “However the world changes, the media should stand by their professional ethics.”


Author: Prof. Engr. Zamir Ahmed Awan, Sinologist (ex-Diplomat), Editor, Analyst, Non-Resident Fellow of CCG (Center for China and Globalization), National University of Sciences and Technology (NUST), Islamabad, Pakistan. (E-mail: awanzamir@yahoo.com).

China newsbrief and sitrep

Source

February 09, 2021

By Godfree Roberts – selected from his extensive weekly newsletter : Here Comes China

You can get it here:  https://www.herecomeschina.com/#subscribe


Power of Siberia gas pipeline from Gazprom. com

Russia ramps up natural gas supplies to China via Power of Siberia mega-pipeline

“The export of gas to China through the Power of Siberia gas pipeline continues to grow. Supplies regularly exceed Gazprom’s daily contractual obligations,” the company said in a statement, adding that the volume of gas delivery last month “was 2.9 times higher than in January 2020.”


Next up, What the People say.

Says subscriber Frans Vandenbosch, “If I have to describe China in one word, then I would say ‘intense’. Western companies are sheltered workshops, they do not know what real competition is. They should benchmark China to know what real harsh competition looks like.”  Adds Josh Gardner, “Online retail in China is cut-throat. Comparing Taobao with Amazon is like comparing ballet to rugby.”

——————————-

This blog fairly reflects the stance of Chinese people on the long running trade war.  Although it contains some hubris, there is no question that the person in the street is convinced that China will be victorious.

China is establishing an invincible position in its trade war. It will switch many of its exports from the US to BRI countries and move the industries that produce goods for export to the US to the industrial parks in BRI countries to avoid US tariffs and reduce labor costs.

“In the long run, China’s Belt and Road initiative (BRI) will bring economic growth to developing countries and expand China’s market there. It will enable China to switch lots of its exports from the US to those countries. Moreover, BRI will enable China to move the industries that produce goods for export to the US to the industrial parks built by BRI in those countries to avoid US tariff hikes and reduce labor costs. China will thus establish its invincible position in its trade war with the US.”  Read more about the Plan for Long-term Victory


And where is Jack Ma? 

“Ant Group Co. is planning to turn itself into a financial holding company overseen by China’s central bank, responding to pressure to fall fully in line with financial regulations, according to people familiar with the matter.

Chinese regulators recently told Ant, which is controlled by billionaire Jack Ma, to become a financial holding company in its entirety, subjecting it to more stringent capital requirements, the people said. Ant, in response, has submitted to authorities an outline of a restructuring plan, they said.”

The video is worthwhile watching for background, even though it is from the Wall Street Journal.

Jack Ma made the unforgivable error of criticizing in public.  Rule one in China – don’t make the other guy lose face while there are methods to bring problems to the attention of the authorities.   In reality, he seemed to have been absolutely right, and Ant Group was immediately used as a case in point, where the financial regulators fixed their own errors.  This of course led to Ant Group having to disclose their real business as one of the biggest lenders in China, besides their vast technology footprint.  Given what happened in the US with behemoths such as Google and Twitter and large de-platforming, I do not blame the Chinese authorities one bit for having decided that no-one should have this much power.


Now that we’ve found Jack Ma who was busy restructuring his Ant Group, more on China’s credit market. 

China’s credit market got big fast because credit services fit traditional practices. Despite its reputation as a “nation of savers,” Chinese society has traditionally been heavily reliant on debt, facilitated through a long tradition of private and informal borrowing and lending. In this system, instead of concepts like “credit,” access to loans depended on renqing, “human sentiments.” Read full article $→


So, you want to join the CCP?  It is not that easy.

“Next year the Chinese Communist Party (CCP) turns 100. Since its founding in 1921, the CCP has grown from a small cabal of Marxist intellectuals into the world’s second-largest political party, behind only the Bharatiya Janata Party in India. One of the reasons for the CCP’s success has been its cultivation of human capital—any organization is only as good as its people.

Ahead of the Party’s centenary, understanding its longevity requires an understanding of its members. While the Party is frustratingly opaque about internal operations, its human resources division, known as the Organization Department, does publish annual data on membership. After the 2019 numbers were released in June 2020, MacroPolo scoured open source databases to compile the most complete public dataset on CCP membership.”    Read more …


Belt and Road

The Sinocentric bloc of Turkey, Iran and Pakistan could leave America’s ally India isolated and weak. The only three Muslim states with significant military capacity and economic potential participating in the $2 trillion BRI will promote Chinese influence from the Indian Ocean to the Black Sea.  Read full article $→

$10 billion for MENA (Middle-East & North Africa)’s Five BRI Projects): Egypt–Cairo’s New Administrative Capital & CBD; Turkey–The Hunutlu Thermal Power Plant; Jordan–Attarat Oil Shale Power Plant; UAE–Hassyan Clean Coal Power Plant; Lebanon–National Music Conservatory. MENA has 578 million people and 60% of world’s oil, 45% of its gas.Read full article $→


We end this week with some debunkery:

BUNK: Curbs on Mongolian Language Teaching Prompt Large Protests in China

DEBUNK: As a minority Chinese (Manchurian) with his mother side hailing from Hulun Buir, Inner Mongolia, I can say from my own experience that this is FAKE NEWS at its best. The truth is, in the Mongolian language primary education system, Mandarin has been taught and used since my mother can remember. The only change this time is to replace some locally created Mandarin language textbooks with national, official Mandarin language textbooks.

Yes, both of them are Mandarin textbooks. Yet New York Times and its FAKE journalists can’t wait to cook up new FAKE news completely distorting the truth. Shame on the New York Times and its FAKE news journalists! A bit of background for your information:

In Inner Mongolia, where half of my relatives are from, two primary education systems operate in parallel: one in Mandarin, one in Mongolian. Chinese Mongolians can opt for either one and most Chinese Mongolians so far opted for the one in Mandarin – the Mandarin system is of much better education quality due to better human recourse on teachers, and the kids won’t need another ‘prep-year’ before formal university when they attend a university program being taught in Mandarin. In contract, the ones who chose the Mongolian system, despite continuous government fundings to ensure it’s operational, still have to endure the less quality of education.

And this leads to life-long differences in career development and social mobility between two groups of students. There are law-required quota for these Mongolian-taught students in top Chinese universities, including THU and PKU. However, the truth is that these students often find their university coursework beyond their capability, and the fail rate is much higher than the Mongolian students taught in the Mandarin system.

So should the regulators allow those Mongolian-taught Chinese Mongolian students to rot and remain disadvantaged for life? Or should the regulators find ways to improve the education quality they receive? I know the US of A has chosen the former one for its Black, Latino, and Native American’ citizens’.

But this is the PEOPLE’S Republic of China. We agreed we shall advance together. Let’s never forget: Fabricating fake news to create hatred and conflicts between the native populations has always been a standard colonial conquest tactic and has been practiced by the western imperialists for centuries. Chang Wanyan

BUNK: British broadcasting regulator Ofcom has revoked China Global Television Network’s (CGTN) licence  because it is “controlled by the Chinese Communist Party and therefore disqualified from holding a broadcast licence under UK.” Ofcom criticized CGTN’s coverage of the Hong Kong protests as in “serious breach of fairness and privacy rules”. (Ofcom also banned Iran’s PressTV). Read full article →

All Posts

DEBUNK: CGTN says, “In early 2020, manipulated by extreme right-wing organizations and anti-China forces, Ofcom launched an investigation into CGTN’s broadcasting license in the UK. We provided detailed explanations to Ofcom in a proactive and cooperative manner, proposed transferring CGTN’s broadcasting license and sought a constructive solution. However, Ofcom disregarded CGTN’s reputation as a professional international media organization and its 18-year good record of broadcasting in the UK, and made a final ruling, based on the so-called political nature of CGTN and related Chinese media organizations, to refuse the transfer and to revoke CGTN’s broadcasting license.We believe that the continued broadcasting of CGTN’s television news service to a British audience is in the public interest of the UK. We comply with the laws and regulations of every country and provide news and information to an international audience with diverse and balanced perspectives, and will continue to promote understanding, communication, trust and cooperation”.  Read full article →


This represents but a fraction of what is included in the Here Comes China newsletter. If you want to learn about the Chinese world, get Godfree’s newsletter here: https://www.herecomeschina.com/#subscribe

The triads, the Kuomintang and Hong Kong’s “democracy riots”

February 02, 2021

The triads, the Kuomintang and Hong Kong’s “democracy riots”

By Ji Pei for the Saker Blog

To put the World in order, we must first put the nation in order; to put the nation in order, we must first put the Family in order; to put the Family in order, we must first cultivate our personal lives by setting our hearts right. Confucius

The extent of the criminal and corrupt past of Hong Kong and Taiwan is little known in the West.

People know that Hong Kong has been a British colony and the center of the opium trade with China from the the nineteenth century on, but this often remains an abstract knowledge for most readers, who often ignore to which extent this “trade” was tied to blackmailing, corruption, money laundering, war, colonial exploitation and other criminal activities. Part of the huge growth of British banking and of the financial power of the City of London in the 19th century resulted notably from the profits from the opium sold in China. This trade grew from around 5000 crates of opium sold in 1820, to 96,000 crates sold in 1873. This took place against the fierce resistance of the Chinese imperial government, which for this reason had to suffer the three so called Opium Wars waged by Great Britain against China. Expressed in tons, the British opium exports reached very nearly ten thousand tons during the year 1873. An incredible quantity for a substance sold in grams!

Colonial exploitation and crime expanded to new heights after 1949 in Hong Kong and, for that matter, also in Taiwan. Why?

Western people interested by Chinese history usually know that the Kuomintang (KMT) came to power in China as a result of Chiang Kai-shek’s 1926 “Northern Expedition” against the northern warlords. With 6000 Whampoa cadets and 85,000 troops, Chiang took Wuhan in September, 1926, and Shanghai and Nanking in March 1927. Many also know, if only by having read the famous French Author André Malraux’s moving text on this event, that Chiang Kai-shek organized the liquidation of the communists in Shanghai in April, 1927, and that he used the help of the Shanghai criminal syndicates, the so called triads to this aim. What is much less known is the incredible high level of influence played by the triads and by crime in the history of the Kuomintang government of China until its defeat at the hands of Mao Tse-tung’s and Chu Teh’s communists in 1949. This ignorance is due to the fact that the USA, which supported the Kuomintang-based anti-communist government in China during the war with Japan and later in Taiwan after the liberation of China, did everything to let Chiang and the KMT appear clean and solid. They thus laid a coating of governmental respectability on everything that concerned Chiang Kai-shek and his KMT.

In the twenties of the twentieth century, Shanghai’s underworld was dominated by three triads: Pockmarked Huang’s (Huang Chih-jung’s) Red Gang, which would soon be the most militant anti-communist force in China after Big-eared Tu (Tu Yueh-sheng) took the gang’s operational direction, Tu’s own Green Gang, and the Blue Gang. These three triads associated under Big-eared Tu’s pressure to exercise a monopoly of opium handling in order to raise the price. Tu was soon pulling all strings in Shanghai, not only in the underworld, but also in the city’s administration (the gangsters could even read the mail and gather information on banking operations) and in the police. He also had the best connections to the Kung banking family and to the Soong finance dynasty, thus combining the resources of the Kung banking empire, the leverage of the Soong family and the mammoth clout of the green gang. With Chiang Kai-shek, Tu would soon add political power to this extraordinary pyramid of forceful means.

Chiang Kai-shek, the Kuomintang and the triads

And here comes violent-tempered Chiang Kai-shek, born around one year before Big-eared Tu left his mother’s womb in 1888. In 1906, young Chiang left for Japan to receive a military training. On arriving, he discovered that he did not own the official recommendation necessary for that. Soon, he came in contact with the Chinese expatriate community, many of which were followers of Sun Yat-sen’s republican movement. One of them, Ch’en Ch’i-mei, one of Sun’s most ardent recruiters and member of Pockmarked Huang’s Shanghai Red Gang, befriended him. Back in China where he attended the lessons of a military academy, Chiang finally obtained a permission to follow a three-year course at the famous Shimbu Gakko military academy. There in Japan, Ch’en put Chiang up for membership of Sun’s political movement and he was accepted. During one of his visits to China with Ch’en, Chiang Kai-shek was also enrolled into the Green Gang. Involving himself in the gang’s activities, he took part in extortion, armed robberies and a jail break. “His police record in the British-administered International Settlements grew over the years to include murder, extortion, numerous armed robberies, and assorted other crimes.” (Seagrave, page 156).

In 1911, now graduated from Shimbu Gakko, Chiang joined Ch’en for the revolution in October with a unit of Sun Yat-sen’s Republican army composed entirely of Green Gang personnel. After the success of the revolution, Ch’en was appointed military governor of Shanghai and Chiang was made commander of a regiment. He spent the years of WW I mostly in Shanghai (and in Japan when Yuan Shih-kai’s secret police was after him and after Ch’en), usually active in Green Gang extortions and also assisting Ch’en Ch’i-mei who was now chairman of the Kuomintantg’s Central Committee. After Ch’en’s murder by the secret police in May, 1916, Chiang found himself at the heart of a hefty realignment of power in the Kuomintang. He became senior political assistant to Sun Yat-sen and, in 1917, his military adviser in Guangzhou, at the same time always closely working with Big-eared Tu on insider dealings in Shanghai’s stock market. His Shanghai patrons (Tu, the Soongs and wealthy industrialists, bankers like Kungs and merchants) wanted him to ingratiate himself with Sun to increase their common influence upon the Kuomintang. He fulfilled the task with success and was himself made chairman of the Kuomintang’s military academy in Whampoa and chief of staff of the Kuomintang army. Following Sun Yat-sen’s death (1925), Sun’s favored successor, left of center politician Liao Chung-k’ai, was gunned by five Green Gang killers. The murder was attributed to right wing influence: this eliminated the conservative candidates to Sun’s seat, while other leftist candidates couldn’t secure enough support because the workers’ strikes called by the Communist Party scared too many. Thus in the end, it was the “middle of the road” candidate Chiang Kai-shek, Big-eared Tu’s secret candidate of choice, who was elected president of the Kuomintang, the ‘Nationalist Party’. Chiang organized immediately the election of Curio Chang (Chang Ching-chang, another Green Gang friend of Tu with wide connections) to the chairmanship of the KMT’s Central Committee. “With them in charge, the Kuomintang was finally thoroughly criminalized.” (Booth, page 143). Two years later, Chiang and the Green Gang would carry against the communists the heavy blow mentioned at the beginning of this article (the Shanghai 1927 communists’ massacre), thus opening the long civil war between KMT and CPC that would end 1949 with Chiang Kaishek’s defeat at the hands of Mao Tse-tung and Chou Teh and with the establishing of the People’s Republic of China. Chiang fled to Taiwan with his defeated army.

New Regime on Mainland China: the triads flee to Hong Kong and Taiwan

Whatever position one has on communism, one must admit that Mao’s new regime proscribed the triads with a vigor never seen before. The triads were considered a real threat: the Kuomintang had used them as they had used the Kuomintang, virtually running (and ruining) the country together. So the communists feared and abhorred triad criminality: triads had plundered China for decades and in their eyes, this had to stop. Within three years of the communists’ victory, opium got completely removed from Chinese society, the nation “clean” again after more than one century and the triads bereft of their most lucrative business. Addicts were treated sympathetically, farmers ordered to grow food crops instead of poppies. Opium-den owners were publicly humiliated and sent for political reeducation in labor camps. Dealers and traffickers were shot in public after brief trials. The triads got outlawed all over the country.

It is easy to imagine where the triad bosses and members that did not get caught by the communists would go: to Taiwan and to Hong Kong.

As a colony, Hong Kong had attracted Chinese triads almost from the beginning. The more affluent the colony became, the more worthwhile crime also grew. So by 1848, Hong Kong was already considered the nerve center for triad activity all over South China. Hundred years later, by 1949, it looked as if Hong Kong would become the biggest criminal city on earth: prostitution, protection, gambling rackets, narcotics trade, nothing was missing. It is in this situation that refugee members of the big Chinese triads (especially the Shanghainese ones) arrived to Hong Kong and Taiwan in great numbers. Big-eared Tu and his Green Gang chose Hong Kong, not Taiwan, as their mainstay. A new scourge came with them, Heroin: the first Hong Kong heroin laboratories were financed by Big-eared Tu and went into production in 1950. “With an orchestrated, vicious ruthlessness, they also started their own extortion rackets and staged armed robberies on Chinese jewelers’ and gold shops. Well organized and financed, they were soon challenging the local societies (…), coordinating vice with the efficiency of corporate managers. They opened dance halls full of ‘taxi dancers’ who, charging clients by the dance, in turn paid the Green Gang operators for the right to work in their establishments. They ran brothels and massage-parlors, and administered opium and gambling dens. Not content with this, they bribed immigration officials, then preyed upon wealthy criminal exiles, offering protection to avoid deportation or to avoid being sent back to China. Wealthy non-criminals were forced to invest in Green Gang-controlled legitimate business.” (Booth, page 264). However, not everything developed smoothly in Hong Kong for the Green Gang. They had to ward off the competition of the local triads, and the arrest of a high member of the gang, Li Choi-fat in 1952, was a serious setback.

For Chiang Kai-shek in Taiwan, on the contrary, the refugee triads from the mainland were welcome. Here again one may say: ‘With them in charge, the island’s new government was now fully criminalized’. Chiang’s government itself consisted almost exclusively of triads, which could so continue their life of crime. They associated themselves into a new government sponsored society, the United Bamboo Society, which helped other triads to gain foothold in Hong Kong. They also formed an effective branch of Chiang Kai-shek’s secret service. Chiang had originally even hoped to be able to establish some political power in Hong Kong to run the colony as another KMT center of power against communist China.

After riots in Hong Kong’s refugee settlements in 1956, during which triads had supported the rioters, the British colonial government increased its fight against the secret societies. The triads had to adopt a low profile and to reconsolidate their position. At the same time, they re-oriented their criminal business to take advantage of the worldwide growing level of wellbeing. “Within four years of the riots, they were in a position to internationalize the narcotics trade. A new triad era was dawning.” (Booth, page 275).

The worldwide narcotic trade

Soon, the triads developed their infrastructure, increased their grip on Hong Kong, and organized during the Vietnam War an essentially Asian-wide, and later a worldwide Heroin trafficking. To gather the huge quantities of morphine base they needed, they set up a purchase agreement with Kuomintang general Li Wen-huan who lived in the Thai jungles in the so called ‘Golden Triangle’ ready to strike at communist China, and who paid his troops by selling Heroin. They also had agreements with Burmese insurgents, with General Rattikone, head of the Laotian army, with the Vietnamese heroin ring of air Vice-marshal Ky etc., thus controlling unlimited sources of morphine base. The CIA, Air America, Continental Air Service and Laos Development Air Service flew the narcotics for them to Thailand and to Hong Kong. In this way, the Hong Kong triads could soon control the entire heroin smuggling, processing and trade from the source to distribution. Hong Kong was the place which accommodated the Heroin labs, where the worldwide income was gathered, laundered and invested in casinos, in general and in commodity trading companies, in commercial property, cinemas, restaurants and bars. Triad bosses like the Ma brothers founded the Oriental Press Group, the main publication of which was the Oriental Daily News, one of Hong Kong’s most popular daily papers. They took part in high profile philanthropic activities, were accepted on the select Hong Kong racecourse and even in the exclusive Royal Jockey Club and lived in luxurious mansions.

After the end of the Vietnam war in 1973, the Hong Kong triads organized connections to the American Mafia (some say they even met Mafia boss Meyer Lansky), to the French Corsican crime syndicates, the French Marseilles gangsters and others. Soon, heroin addiction rose sharply in most Western countries and the triads’ income rose correspondingly. Meanwhile, the fight of the British authorities against the Hong Kong triads was most of the time rather a joke. Even the Ma brothers, if arrested, were released on appeal, or went to Taiwan if necessary. Many high level traffickers were acquitted. Why would police officers or judges risk their lives, seeing the attitude of their bosses: according to a Sunday Times report, the triad’s Oriental Press Group had donated considerable sums to the Conservative Party funds. Even Christopher Patten, sung of as the so incredibly democratic minded last governor of Hong Kong, “attended functions at the Oriental Press Group headquarters and gave his blessing to the founding of a new English-language daily newspaper, the Eastern Express. John Major, as party leader as well as prime minister, entertained [triad boss] Ma to tea at Downing Street.” (Booth, page 295). No change from the 19th century: Great Britain’s elites (if not the poor British youth addicted to Heroin!), Hong Kong’s elites ‒ and their banks! ‒ have always thrived on opium. And the USA always followed the example.

Chinese corruption and Chinese Fight against corruption

Everybody knows that in the early eighties, Deng Xiaoping told the Chinese to “Get rich” in order to launch the process of building up efficiently a market economy to strive out of underdevelopment. The Chinese people obeyed and the economy started to thrive and to boast incredible GDP growth rates never seen before. Obviously, in this process, quite a few Chinese would transgress the laws of morals, and corruption grew again in China at a rate never seen since 1949. Hong Kong triads reestablished business with the new Chinese criminal scene. Even the People’s Liberation Army, the communist party and the administration were caught in this corrupting frenzy. But because the Chinese communist party is – with more than eighty million members – the biggest people’s party worldwide, the law abiding majority of this party let their party leaders understand that they had to do something against corruption, or else… Since China had and has energetic leaders like Jiang Zemin, Zhu Rongji or now Xi Jinping, who organized a war against corruption never seen of in our parts of the world, things started to change: in the meantime, even high level officials or ministers found guilty of corruption have been condemned to heavy sentences (even death penalty) in China, whereas similar persons in the West get a few months on probation for the same level of corruption, if at all.

However, the corruption fighting leaders of the Communist Party had a problem: if criminal or corrupt members of the Chinese society and of the party could flee to Hong Kong before being arrested, they couldn’t be brought to trial in their homeland because the ex-colony had no extradition law. That was a real problem for China’s politics and for China’s justice.

In the final months of British rule under Governor Patten, Hong Kong had passed laws barring the extradition to mainland China due to claimed concerns about the quality and objectivity of the mainland’s justice. This in spite of the huge progress made in China in the field of justice, especially since the law of 2004 strongly reinforcing the position of the defending counsels in court, and in spite of the fact that colonial justice itself had always been a caricature of justice, since in Hong Kong Chinese people could never be tried by Chinese judges, but only by British ones.

Beijing formulated very early its wish to see this Patten “non-extradition” bill changed for a law allowing extradition, but displayed much patience in order to avoid doing violence to the autonomy and anti-communist feelings of part of the Hong Kong population. But the constant misuse of Hong Kong’s protection by persons menaced by the Xi Jinping government’s legal, useful and successful fight against corruption and graft led to an increase of Beijing’s pressure for a change in this field. Beijing let it know that more than 300 wanted fugitives were hiding in Hong Kong. Finally, the Hong Kong government decided in February, 2019 to amend the law and to allow for extradition on a case-by-case basis with countries not already covered by mutual agreements—and this would include mainland China and Macao, doing away with the geographical restrictions on the PRC in the existing rules.

Street war against extradition law

Opposition to this change manifested itself very soon. Aside of the old anti-communist prejudice of a part of Hong Kong’s population, this change obviously affected huge interests: the financial interests of the Hong Kong triads which earned millions with the corrupt part of mainland China’s industry, banking and import-export business, the financial interests of the Taiwan triads doing similar businesses, the financial interests of the money laundering and money manipulating British and overseas Chinese banks, the financial interests of Hong Kong’s big import-export houses, the financial and political interests of Taiwan’s Kuomintang party, the huge political and geopolitical interests of the imperialist NATO countries, especially Great Britain and the USA and their secret services and NGOs, which have been practicing the containment of China since 1949 and which dream of a weak China which could be recolonized, and finally the financial and political interests of the infamous One Percent billionaires dreaming of globalization and world power and who saw there an opportunity to sabotage China’s Belt and Road Initiative. With such interests ready to finance and support opposition against the new extradition bill, and within the framework of the anti-China business war waged by the Trump government against the Chinese government, it is clear that huge rioting activities and widespread protests were soon mobilized on a very large scale against China in the streets of Hong Kong and Kowloon during the whole of 2019 and part of 2020.

The incredibly brutal and nasty protests against the extradition law in Hong Kong thus lasted more than one year. The West has probably never before invested so much money and political influencing in a single China containment political struggle, fortunately to no avail: bar associations, chambers of commerce, law societies, so called human rights groups, journalist’s associations, dozens of colonial era officials including of course Chris Patten himself, the whole of the Western mainstream media and dozens of government representatives in the line of Great Britain, the EU, the USA, Canada, etc. have criticized the People’s Republic’s policy. A nastier intervention into the internal affairs of a country is difficult to find. The world can rest thankful to the Peoples Republic of China for having shown much patience: the units of the People’s Liberation Army established in Hong Kong never intervened except to clean up the debris of destroyed shop fronts. Having brought seven hundred million citizens out of poverty within twenty-five years, China is now a strong, proud dragon that obviously no longer needs to brawl with misled students and louts. One only feels sorry for the tens of thousands of these naïve students and other young people who believed the lies of their agitators and thought to fight for liberty and democracy, whereas they were fighting for the financial and political interests of criminals, of money launders, globalists and of corrupt politicians.

In the end, an extradition law had to be. And it is now effective in Hong Kong.


Literature:

One could fill many pages with titles of books on the Chinese triads, on the history of Kuomintang China, on the history of Hong Kong, etc. The two books mentioned in this article bring the most important facts together in attractive, easy readable texts:

SEAGRAVE, Sterling, 1985: The Soong dynasty, Corgi Books, London

BOOTH, Martin,, 1999: The dragon syndicates. Bantam Books, London

See also: https://en.wikipedia.org/wiki/2019_hong_kong_extradition_bill

Dr. Ji Pei was lecturer for Chinese history at a European University.

Trump’s not-so-secret art of containing China

Trump’s not-so-secret art of containing China

January 16, 2021

by Pepe Escobar with permission and first posted at Asia Times.

It was hardly a secret throughout the Trump administration. Now, dying embers within sight, and with minimum fanfare, comes the declassification – virtually the whole document, minus a few redactions – of the US Strategic Framework for the Indo-Pacific.

Why now, no less than 30 years before the usual, standard US declassification/public record protocols apply? Don’t expect an answer from Trump or from his National Security Adviser Robert O’Brien.

O’Brien’s premise, presenting the declassification, is that, “Beijing is increasingly pressuring Indo-Pacific nations to subordinate their freedom and sovereignty to a ‘common destiny’ envisioned by the Chinese Communist Party.”

This is nonsense in multiple levels. The best Mandarin-English translation for China’s overarching strategy is “community with a shared future for humanity” – a Confucius/Marx crossover based on trade/connectivity and sustainable development.

No nation is pressured to surrender their “freedom and sovereignty” to join the Belt and Road Initiative (BRI). It’s a voluntary decision – otherwise over 130 nations would not go for it, including many in Europe. The strategy is not ideological; it’s based on trade. Moreover, China is already the top trade partner for the overwhelming majority of these nations.

Is Beijing trembling?

Since 2018 we were all familiar with the basic contours of the Trump administration’s “overarching strategic guidance” for the Indo-Pacific.

These are the Top 5 items – with no euphemistic softening:

– to maintain that sacrosanct US “primacy”, code for uncontested military power;

– promote the Quad (US, Japan, India, Australia);

– fully support the (failed) Hong Kong color revolution;

– demonize everything connected to BRI;

– and invest in “the rise of India”.

On the military front, things get way trickier: the imperative is to prevent Beijing, by all means necessary, from “dominating the first island chain” – that is, the island ring from the Japanese archipelago to Taiwan all the way to the northern Philippines and Borneo. Moreover, “primacy” should also be maintained in the “area beyond”.

So once again this is all about naval containment.

Chinese strategists obviously studied their Mahan and Spykman thoroughly – and understood that the US Navy would ultimately play their trump card as a naval embargo.

Thus the Chinese Heartland strategy to contain the US’s Rimland strategy: pipelines from Russia and Central Asia (energy supply chain) and BRI (trade). A neat combination of “escape from Malacca” (in terms of oil and gas supplies) and overland connectivity.

A graphic example is the importance of the southern sector of the China-Pakistan Economic Corridor (CPEC). In the long run, that offers Beijing, via Gwadar port, prime access to the Indian Ocean, bypassing Malacca. That can even be enhanced by upcoming Chinese investment in neighboring Chabahar port in Iran, in the Gulf Of Oman.

In contrast, US strategists advising the Trump administration, apart from not improving on Mahan and Spykman, completely ignored China’s economic pull all across Eurasia. They ignored the fact that scores of nations from Central to South and Southeast Asia (the ASEAN 10) would not sacrifice their trade/investment relations to the benefit of a Made in the Beltway “vision”.

The recent signing of the Regional Comprehensive Economic Partnership (RCEP) deal all but buried the Indo-Pacific strategy.

As much as they are not reality-based, the core lineaments of the Indo-Pacific strategy are not bound to change much under Biden-Harris. They will be tweaked – in a “back to the future” manner. The Biden-Harris point man for China is bound to be none other than Kurt Campbell, the man who invented the “pivot to Asia” concept that was then embraced by Hilary Clinton as Secretary of State and Obama as President. Campbell now argues that emphasis on the sacrosanct “primacy” may be somewhat alleviated.

Is Beijing trembling? Hardly.

The 100th anniversary of the Chinese Communist Party falls next July 23. Exactly one day before the declassification of Indo-Pacific, President Xi Jinping outlined his – and the CCP’s – vision for no less than the next three decades, culminating in the 100th anniversary of the People’s Republic of China in 2049.

So here’s Xi Top Three – in a nutshell.

– Keep calm and carry on, despite the ravaging effects of Covid-19, unrelenting Western – especially American – hostility, and the trials and tribulations of the crumbling US Empire.

– Focus on domestic development, in all areas.

– Focus on China’s priorities; then whatever happens the world outside will not be able to interfere. China’s priorities include solidifying its own “primacy” in the South China Sea while diversifying trade/development strategic options all along BRI.

It will certainly help that China’s GDP is bound to grow by almost 8% in 2021 – as estimated by IMF/World Bank. Astonishingly, if that’s the case GDP by the end of this year will reach the same level that pre-Covid Western forecasters were predicting by the end of 2019: 5% growth each year for the next two years. China may have grown roughly 2% in 2020, booming foreign trade included.

Goldman Sachs is branding the current economic environment “the Chinese phenomenon”. China remains the high-speed rail locomotive of global capitalism. It’s easy to notice which way scores of nations see the wind blowing when they compare it with what’s just been declassified.

Can You Smell What the Chinese Are Cooking?

ZENITH NEWS -Can You Smell What the Chinese Are Cooking?

Pepe Escobar

Independent geopolitical analyst, writer and journalist

October 30, 2020©

Less than a week before the game-changing U.S. presidential election, the real heart of the geopolitical and geoeconomic action is virtually invisible to the outside world.

We’re talking about the fifth plenum of the 19th Chinese Communist Party (CPC) Central Committee, which started this past Monday in Beijing.

The plenum congregates the 200 members – and another 100 alternate members – of the civilization-state’s top decision-making body: the equivalent, in Western liberal democracy terms, of the Chinese Congress.

The outline of what will be the 14th Chinese Five-Year-Plan (2021-2025) will be announced with a communiqué at the end of the plenum this Thursday. Policy details will be streaming in the next few weeks. And everything will be formally approved by the National People’s Congress (NPC) in March 2021.

For all practical purposes, this should be regarded as what China’s leadership is really thinking.

Meet “China’s system”

President Xi has been quite busy, delivering an extensive work report; a draft of the five-year plan; and a full outline of China’s top targets all the way to 2035.

Xi has been forcefully stressing a “dual circulation” strategy for China; to increase the focus on the domestic economy while balancing it with foreign trade and investment.

Actually a better definition, translated from Mandarin, is “double development dynamics”. In Xi’s own words, the aim is to “facilitate better connectivity between domestic and foreign markets for more resilient and sustainable growth”.

One spectacular achievement we already know about is that Xi’s goal for China to reach the status of a “moderately prosperous society” has been met in 2020, even under Covid-19. Extreme poverty has been eliminated.

The next step is to deal long-term with the absolutely critical issues of crisis of global trade; less demand for Chinese products; and varying degrees of volatility caused by the unstoppable rise of China.

The key priority for Beijing is the domestic economy – in tandem with reaching key tech targets to enhance China’s high-quality development. That implies building high-end, integrated supply chains. And then there’s the tortuous road of implementing necessary institutional reforms.

Crucially, China’s Ministry of Industry and Information Technology is “guiding” companies to invest in core technology; that means semiconductors, 5G applications, the Internet of Things (IoT), integrated circuits, biomedicine.

So everything is, once again, all about the Chip War – which is at the heart of AI, 5G, supercomputing, quantum computing, material science, biotechnology, new energy vehicles and space science.

China’s leadership is very much aware that the real high stakes revolve around the next generation of chip technology.

Enter the concept of China’s system: or how to fight the “U.S.-initiated cold war in high technology”.

“China’s system” has been developed by IT expert Ni Guangnan. It aims to “replace U.S. technologies in core areas including the key IT infrastructure, in which the U.S.-led IOE system, an acronym for an IT network based on major three supplies – IBM, Intel and Oracle – have the monopoly. With self-developed servers, database and storage, the system could be based on chipsets with lower performance with no need for 14-nanometer (nm) or 7-nanometer chip fabrication – prime targets of the U.S.-led crackdown.”

Various calculations in China roughly agree that by the end of this year the economy is set to be 72% the size of the U.S.’s. The State Council forecasts that the Chinese economy will overtake the EU in 2027 and the U.S. by 2032.

But if measured by PPP (purchasing power parity), as both the IMF and The Economist have already admitted, China is already the world’s largest economy.

The fifth plenum once again reiterates all the goals inbuilt in Made in China 2025. But there’s more: an emphasis on the “2035 vision” – when China should be positioned as a global tech leader.

The “2035 Vision” concerns the halfway point between where we are now and the ultimate target in 2049. By 2035 China should be a fully modernized, socialist nation and a superpower especially in science and technology and Defense.

Xi had already stressed it way back in 2017: China will “basically” realize “socialist modernization” by 2035. To get there, the Politburo is seeking an extremely ambitious synthesis of “scale, speed, quality, efficiency and safety”.

Beyond Westphalia

Considering that the Trump administration has been engaged on a relentless offensive since May 2018, it was only since last July that the CCP leadership has been consistently preparing China for what it considers a lengthy and fierce struggle with the U.S.

That has elicited quite a few comparisons with what the Little Helmsman Deng Xiaoping referred about Mao Zedong in 1938. Mao at the time said that China should “be on the defensive first before gathering enough strength to fight to a strategic stand-off and eventually win the ‘protracted war’” against the Japanese invasion.

Now we have a weiqi strategy all over again. Beijing will only launch what amounts to a concerted counterpunch across the chessboard when it’s able to close the tech gap and establish its own domestic and global supply chains completely independent from the U.S.

Beijing will need a major soft power P.R. operation to show the world how its drive in science and technology is aimed as a global good, with all humanity benefiting, irrespective of nations. The Chinese Covid-19 vaccine should be setting the example.

In a recent podcast discussing one of my latest columns on Lanxin Xiang’s book The Quest for Legitimacy in Chinese Politics,

Brazilian China expert Elias Jabbour came up with a stunning formulation.

Jabbour echoed top Chinese scholars when he stressed China won’t behave as an aggressive Westphalian state: “The subversion of Westphalia by China came from the fact it incorporated the Russian Revolution to 1949. China is laying out for the future an order that may subvert Westphalia.”

So what we have here is that the foremost concept of Xi’s China – whose best English translation reads as “community with a shared future for humanity” – is actually the subversion of Westphalia. A subversion from within.

Jabbour reminds us that when Mao said that only socialism may save China, he meant save it from the treaty of Westphalia, which facilitated the dismemberment of China during the “century of humiliation.”

So in the end a strategic marriage between Marx and Confucius in Xi’s China is more than feasible, transcending geopolitics as we know it, which was born as a national ideology in France, Germany and Britain.

It’s as if Xi was trying, as Jabbour noted, to “go back to original Marxism as a leftist Hegelianism”, geared towards internationalism, and mixing it with the Confucius view of tianxa, “all under heaven”. That’s the master idea behind “community with a shared future for humanity.”

One can always dream that another world is indeed possible: think of a cultural renaissance of the overwhelming majority of the Global South, with a fruitful cross-fertilization of China and Asian economies, the evolving decolonization struggle of Latin America, and the weight of the African diaspora.

But first, the next Chinese five-year plan has got to roll.

Weekly China Newsbrief and Sitrep

Weekly China Newsbrief and Sitrep

September 16, 2020

By Godfree Roberts selected from his extensive weekly newsletter : Here Comes China

This week’s selection includes a separate explanation on just how the Chinese Communist Party and Government operates.  For those that visit these weekly Sitreps to learn, this may put an end to the regular discussion items of just how bad the CCP is.  You did know that China has six political parties, did you?  The people that I’ve consulted say the following:  China’s system works for China.  We do not suggest you adopt our system, so, there is no reason for you to insist we adopt yours.

From a regular Twitter Feed by ShangaiPanda, here is how it actually works, by meritocracy.  What this means is that Xi Jinping for example already had 40 years experience in governing, before he was both selected, and elected to his position.

From Godfree’s newsletter which is just brimming with interesting items this week, we’ve selected items about:

  • space,
  • Islam, communism and the BRI,
  • trade war and trade deficit,
  • and a highly educational piece by ‘Chairman Rabbit’, who analyses America from a Chinese perspective.

On studying China it is good to remember that unlike many other countries, China as a country holds together from two perspectives, a long lasting civilizational unity, as well as a sovereign state.


 Space – high technology that is green technology

China has safely landed a reusable spacecraft which it claims will provide a “convenient and inexpensive” method of getting to and from space. The craft launched on September 4th and landed on September 6th after spending two days in orbit, according to the state-run Xinhua News Agency. Very little is known about the spacecraft, including even its basic design. There are no picture or renders of the craft, but there have been rumors it is a spaceplane similar to the Air Force’s X-37B. A Chinese military source told the South China Morning Post they could not provide details on the mission but that “maybe you can take a look at the US X-37B.”[MORE]

Islam, Communism and the BRI

The significance of having 52 Muslim countries (37.6%) that comprise 87.5 per cent of World Muslims in the BRI alliance, is not lost on the United States and its allies who are not particularly pro-Islam, which may explain their sudden interest to ‘care’ about the plight of Muslims in Xinjiang! Soon after the Bolshevik uprisings, Communism and Islam seemed destined to liberate the Muslim world from European Imperialism, but that was not to be due to their ideological differences. This presented an opportunity to the United States and its allies, where they coopted anti-Communist Jihadism to disrupt Communism.  This had the unintended consequence of being the impetus for China’s Belt and Road Initiative, which presented the U.S. and its allies with new challenges.

Soon after the Bolshevik revolution of 1917, Communism and Islam were the impetus for revolutions against European imperialism in Egypt, Iraq, India, Caucasus and Central Asia, and the Indonesian Archipelago. However, divergent views about Communism proved divisive among Muslims (who are also quite divergent in their theological interpretations of Islam) and this quasi- ideological alliance was all over by the onset of the Cold War.  Those irrevocable divisions may have been due to the essence of Islam’s socio-economic and political system.  It is more consultative (‘Shoura’ or democratic theocracy) and entrepreneurial in nature, which is more compatible with social democracy and capitalism, than with communism’s autocratic state planned economy.

The other reason for such failure is the proactive role of the United States (and some Western Europeans, like Britain and France) in using Christian missionaries and NGOs in intelligence gathering while spreading Christianity in Africa, Asia, the Middle East and South America. In the 1970s, it was revealed that the CIA sponsored missionaries in Kerala and Nagaland to not only block the advance of Communism in India, but also to establish sufficient tensions between India and China and prevent any regional stability that continues to our present day.

In the 1980s, the CIA’s material support to the Afghan Mujahideen (and by default the Afghan Arabs, like Osama Bin Laden and his followers, who were rounded up from the different Arab and Muslim countries by their intelligence services and sent to Afghanistan, via Pakistan for their paramilitary training by the ISI, in the hope that they would never come back) only exacerbated extremist violence ever since. In the 1990s, the predominantly Muslim former Soviet Republics of Central Asia; Kazakhstan, Kyrgyzstan, Tajikistan, and other Islamic countries like Afghanistan and Pakistan opened their doors to Saudi-sponsored Wahhabi Islam (probably with the ‘blessings’ of the CIA).

This resulted in an upsurge of Islamist fundamentalism and separatist movements in central Asia, like al-Qaeda affiliated Turkestan Islamic Party(TIP), Hizb ut-Tahrir (HuT) and Harkat-ul-Jihad-al-Islami (HuJI), which have presented a challenge to China and others in the region. Since the rise of anti-Communist Jihadism in the 1980s and its coopetition by the Anglo-Americans to disrupting Communism ever since may have been the impetus for China’s Belt and Road Initiative (BRI).

The $8 trillion investment by China in its bold, innovative and strategic Belt and Road Initiative (BRI) alliances with 138 countries comprising 51.7% of world GDP offers an infrastructure backbone of maritime, land and digital trade alliances. The BRI alliances represent 4.8 billion people (61.7%) of the world population.  Of which an estimated 1.4 billion (29.2%) identify as Muslim and are part of the 52 member countries of the Organisation of Islamic Countries (OIC), including all 22 Arab countries.

China’s BRI strategic alliances with Arabic and Muslim countries can only help neutralise the existential threat of global Islamist fundamentalism in the long-term by spreading economic prosperity and alleviating poverty. Also, it will not only bring prosperity and stability to China’s underdeveloped north-western part (Xinjiang holds 1.33% of China’s population and contributes 1.35% to China’s GDP), but also to (its ideological partner in the new world order) Russia, and other BRI partners on its western border.

Coupled with technological innovations in global cross-border trade and finance, the BRI projects would no doubt accelerate global economic growth and revive China’s historical legacy in boosting entrepreneurships without compromising necessary protections of the weak. Those infrastructure-driven alliances are building a global community with a shared future for mankind.  This is so important at a time when our world is divided by poverty, crippling national debts and the rise of ultra-nationalism.

The clash of civilizations, anti-(Muslim)-refugees’ sentiment and Islamophobia are just symptoms of the rise in white supremacism and alt-right extremism sweeping the Anglo-American and European nations. Those groups subscribe to a conspiracy theory of cultural and population replacement or nativism, where white European populations are being replaced with non-Europeans (predominantly Muslim Arabs from Syria and elsewhere) due to the complicity of ‘replacist’ elites.

For example, the ‘Génération Identitaire’ (GI) movement in France, which considers itself a ‘defender’ of the European civilization has affiliated youth groups in Austria, Belgium, Czech Republic, Germany, Hungary, Ireland, Italy, Netherlands, Slovenia and the United Kingdom.  This heightened sense of ultra-nationalism is driving Western democratic politics away from economic concerns, in favour of issues related to culture and identity. No doubt, Anglo-American and European anxieties about China’s technological, economic and geopolitical dominance may be rooted in their innate fears about being displaced by an Asian culture and the potential spread of Socialism with Chinese characteristics to the 138 countries that joined the BRI alliances, after having spent a good part of over 70 years fighting Communism.

America’s continued rise as a world power—from the 1890s through the Cold War—and its bid to extend its hegemony deep into the twenty-first century through a fusion of cyberwar, space warfare, trade pacts, and military alliances – is now limited by the reality that it has to dismantle China’s BRI alliances as it did to the USSR. This is why the ‘five eyes’ alliance is going on the offensive with (a) sanctions and visa restrictions for Chinese officials, (b) bans on China’s technological 5G innovations (Huawei, Tik Tok and WeChat under the guise of ‘National Security’ concerns), (c) tariffs trade wars, and (d) a particular focus on ‘human rights’ in Hong Kong and Xinjiang.

The significance of having 52 Muslim countries (37.6%) that comprise 87.5 per cent of World Muslims in the BRI alliance, is not lost on the United States and its allies who are not particularly pro-Islam, which may explain their sudden interest to ‘care’ about the plight of Muslims in Xinjiang! Thus, it is not unreasonable to conclude that the sole purpose of those disruptive policies by the “five-eyes” alliance is to intensify the global anti-China sentiment that is already aggravated due to COVID-19, and to inflame Muslim sentiment in particular, so as to torpedo China’s largest economic and geopolitical Belt and Road alliances.[MORE] [George Mickhail is an LSE trained academic and a geopolitical risk analyst with 30 years’ experience in major global accounting firms and business schools.]

Trade War and Trade Deficit

The US trade deficit with China widened in July – an embarrassing situation for President Trump, who Taiwan’s Liberty Times said had been left  with a ‘green face’ (a crude expression that makes plain this is a bad outcome for him). When the US President campaigned four years ago, he strongly accused China of seizing American wealth in what he hailed as “the biggest theft in history.” After his election, he maintained this position against China. However, the latest data will hardly please him. The United States had a $31.6 billion trade deficit with China in July, which was an 11.5% increase from June. The paper noted that before the outbreak of the coronavirus, the US trade deficit with China was narrowing, but it has gradually expanded since the epidemic spread. Data released by the US Census Bureau on Thursday showed that the trade deficit with China in Q2 increased by 36.8% compared to Q1. The deficit in July was 4.36% larger than that in July 2016.[MORE]

‘Chairman Rabbit’ Analyzes America

Editor’s Note: Tu Zhuxi (Chairman Rabbit) is the nom de plume of Ren Yi, a Harvard-educated Chinese blogger who has amassed more than 1.6 million followers on Weibo who seek out his political commentary, much of which falls under a genre we might facetiously call “America-watching.” 

Today, I scrolled through the interview Professor Ezra Feivel Vogel gave with the Global Times: “90 year-old Professor Vogel: Unfortunately, there is a possibility of armed confrontation between the United States and China.” The veteran professor—who has researched China and East Asia all his life and promoted the development of ties between the United States and China—conveyed intense unease after witnessing two years of sharp downturn in Sino-U.S. relations under the Trump Administration. He could not bear not to air his concerns. 

This interview comes at an opportune time. As you can see, I have excerpted a short comment from the interview. This excerpt perfectly echoes the content I have wanted to expand on these last two days:

Vogel: There is a new article in the Atlantic magazine by James Fallows that gives the most comprehensive explanation of what has happened. And it clearly is the Trump administration.

Before the coronavirus, there had been plans in earlier administrations for dealing with an epidemic. We had a good overall plan. Trump did not use those plans at all. He even acted when he first heard about the coronavirus pandemic as if there was not a big problem. So things were delayed. It clearly is Trump’s responsibility.

At the time of writing, the United States has around 3.8 million confirmed cumulative cases, 140,000 deaths, and a daily increase of about 64 thousand cases. The diagnosis of experts and intellectuals around the United States: this is all due to the Trump Administration.

First of all, the United States’ so-called “good overall plan” for epidemic response was targeted towards a type of infectious disease that resembles the flu in infectiousness, hazard, and lethality. The United States after all has quite a few documentaries and special television programming about pandemics, and every year in every corner of the country drills are held about pandemics, but all of these were with the assumptions of a flu-like disease. COVID-19 was not within the expectations of an American plan for epidemic response, and indeed was beyond the response plan of every country in regard to an infectious disease with respiratory transmission. COVID-19 is an especially potent epidemic, a disease with an extraordinarily high death rate. The epidemic response plan that the United States currently had in place was entirely insufficient for COVID-19. Dr. Anthony Fauci brought up this topic several times in the last few months, especially in the early stages of the epidemic: the American system and design is either insufficient or entirely ineffectual against COVID-19. Dr. Fauci was speaking only from the standpoint of public hygiene and healthcare system and his analysis did not broaden past these considerations.

I have been following the news, media, and commentaries of the U.S. right and left. Criticisms of the epidemic response have generally been from Democratic Party, anti-Trump, and/or liberal-aligned intellectuals. Even after several months, I have rarely encountered essays or discussions that analyze in-depth the full extent of the difficulties facing the U.S. COVID-19 response by synthesizing broader observations on the nation’s political system, society, governance, culture, and economy.

Basically, all the analyses have taken the question and subsumed it under the issue of “political leadership”—usually pointing towards the President, the White House, and state governors. The majority of these analyses lay blame onto the very person of Trump.

Basically, all the analyses have taken the question and subsumed it under the issue of “political leadership”—usually pointing towards the President, the White House, and state governors. The majority of these analyses lay blame onto the very person of Trump.

According to this logic, the reason for the U.S.’s weak response to the epidemic is Trump and Trump alone. If only there was only another person in charge, the U.S. could have defeated COVID-19.

Readers who follow me should know my methods well: I have always begun my analyses from a sociological point of view. How could the U.S. use influenza as the primary lens to understand COVID-19, and how did this understanding influence the U.S.’s subsequent responsive actions? I have since wrote many essays on this topic, for example my April 1st, 2020 essay: “Can the United States Shut Down Entire Cities and Thoroughly Practice Social Distancing Like China? A Discussion of American Exceptionalism” (link in Chinese).

In that piece, I argue that due to the U.S. political and legal system, enacting a comprehensive and stringent social distancing program, including measures such as quarantining cities, is simply not possible.

In the next few months, I will continue my analysis and extend towards the political level. Not too long ago, I collected a few writings into this listicle: “13 Reasons for the Ineffectual Response towards COVID-19 of the United States and ‘Society Construction’ During an Epidemic” (link in Chinese).

I summarized thirteen reasons for the U.S.’s weak response to the epidemic:

  1. Government system: the separation of powers between the federal, state, and local governments
  2. Government system: the separation of powers between the legislative, executive, and judiciary bodies
  3. Wide racial and class disparities
  4. A culture that understands individualism as a cardinal virtue, even to the point of opposing social or collective interests
  5. An overwhelmingly one-sided emphasis on political and civil rights
  6. “Gun culture”: the spirit of Manifest Destiny, rugged individualism, and militarism
  7. “Bible culture” and anti-intellectualism
  8. A pluralistic society without common understanding or consensuses
  9. A government and media that intensifies rather than ameliorates social tensions
  10. A values system that does not respect the elderly and does not assign elders special protections
  11. Family structures which are not suited to fighting against COVID-19
  12. The precarious economic situation of the United States’ middle and lower classes (like walking on a tightrope, i.e. living from paycheck to paycheck or credit problems)
  13. Other cultural factors, such as resistance against wearing masks

There are certainly many more reasons than the ones I have listed. But what I wish to express is that the U.S.’s weak response to the epidemic is the combined result of political, legal, social, cultural, economic, and other factors. The White House, as one of the holders of broad public authority (the executive section of the federal government), has in fact significantly limited power over this broader structural context.

The U.S. cannot manage stringent social distancing, large-scale quarantines of cities, nor restrictions on interstate travel. Health QR codes on mobile devices are entirely impossible with citizens’ insistence on privacy protections. A vast society led primarily by individualism and anti-intellectualism can hardly speak of epidemic management. These factors are not problems that can be resolved with the changing of a president. I believe that even if it were Obama, Hillary, or Biden as president, they would not be able to reverse the tide of the battle against COVID-19, even if they would be slightly more effective—for instance if they had taken the initiative and emphasized the importance of masks. This is because fighting an epidemic does not depend on the lobbying or practices of a president, but rather on the public health and prevention system of an entire country, one which from top to bottom must act in unity and move together. Public authority must comprehensively, effectively, and consistently implement policies (such that each locality will not have its own variant policies), and also cannot allow any level of the judiciary to interfere in the problems of any level of government. On the balance between citizen and society, preparations must absolutely be made to cede rights to the collective. “Political and civil rights” must in these times yield way.

The very design of U.S. political and legal institutions is meant to inhibit collective rights. Balance of powers is at the core of American governance. Political and civil rights are the bedrock of American political values. To deny these values equates to the very denial of the U.S.’s fundamental being.

The very design of U.S. political and legal institutions is meant to inhibit collective rights.

Therefore, to take the U.S.’s weak response to the epidemic and shove it at “political leadership” and at the feet of Trump is not merely skin-deep, but avoids the real problem and focuses on easy answers. It is simply not looking at the substance of the situation.

For several months I have followed U.S. political commentaries on the left and right, and I can confirm I have not seen any analysis of depth. The overwhelming majority of analyses are overly narrow and concrete, pointing at an individual perhaps. Rare is the person who can leap outside the U.S. political structure and carry out a detailed assessment from a third point-of-view. Why? I summarize two reasons:

(1) Americans are sort of like the baffled participant in a game; sometimes the onlookers see more of the game than the players. Americans honestly believe that the American system is exceptional, the best in the world. This is an earnest and steadfast faith, an authentic “self-confidence in path, self-confidence in principles, self-confidence in system, self-confidence in culture” [the “Four Self-Confidences” of Xi Jinping Thought]. They simply cannot bring themselves to doubt or oppose the American system. Since the American system is perfect, once the epidemic creates problems, by the process of elimination, Americans reason that the problem must stem only from electing the right or wrong politician. From this line of thought, pick out the one who has the most power: this is Trump’s fault. After him, perhaps we blame the governor of Florida, DeSantis. This is about as deep as the majority of Americans introspect.

(2) Criticizing the American system is a serious political error. It’s taboo. This is because it is anti-American, “unpatriotic,” “un-American.” It is a stance that doubts the very foundations of the United States. So when there is an elephant in the room in regards to the American system, everybody can see it but dare not speak up. I believe that the majority of people do not even see this elephant in the room because they have been so thoroughly brainwashed by the perfection of the American system. It is only a minority of people who can see this. These people very well could be Democrats or liberal intellectuals. This small number of people aware of reality cannot point out the elephant, however, even if they can see it. This is because pointing it out cannot change the situation on the ground, yet will still result in censure and criticism. One would rather polish a cannonball and lob it at Trump.

In summary, if we compare China with the United States, we would discover an interesting phenomenon.

When Chinese people criticize, they are accustomed to focusing criticisms on the system. “Systemic problem.” “Systemic-ism .” Even though there are indeed problems at the individual level, these problems are thoroughly rooted in the larger system. “Because the system produced this type of person,” “because the system could not restrain or check this particular person.” At any rate, any analysis fundamentally leads back to systemic problems.

When American people criticize, it is focusing the problem onto the physical body of an individual politician. It is not the system at fault, because the system is already perfect or close to perfect, so it can only be a problem birthed from the politician: this pundit’s personality is bad, their abilities did not cut it. All criticisms are of this sort. With that, if an impotent pundit is continuously elected or re-elected—for instance if Trump is re-elected, then this is a problem of the voters. But at this time, the analysis simply cannot proceed further. In the calculus of American political values, the political values of every person are equal: one cannot belittle the voters. In 2016 during the presidential race, Hillary Clinton belittled Trump’s supporters and faced an overwhelmingly negative backlash, costing her the ultimate price (this could perhaps be why she lost the presidential race). What is left then is to criticize the political influence of the media, campaign funding, and interest groups. But even here the analysis must end. Within the proscribed limits of the dialogue, it is easy to enter into another level of analysis—for example, could it be that the U.S. electoral system has fundamental faults? If one gets to this level, it touches upon the very body of U.S. democracy and its electoral system. One would be entering a live mine zone, teetering on the edge of political error.

In this sort of environment, Americans naturally will avoid hard problems and search for easy answers. They will not explore systemic problems, but rather focus their entire attention on electoral solutions.

Under this existing electoral process, one can only, perhaps, push their preferred candidate onto the political stage and wish only for their own candidate to ascend to the office, so that in the next few years that candidate can advance their own political programs and thereby protect the interests of the candidate’s supporters. In this sort of environment, Americans naturally will avoid hard problems and search for easy answers. They will not explore systemic problems, but rather focus their entire attention on electoral solutions.

Therefore, American politics are entirely driven by the short-term. They will look at long-term problems as a certainty before avoiding them, exerting only in order to resolve short-term problems. Even though there are scholars and intellectuals who can produce long-term analyses of wide historical and societal scale, this sort of analysis remains locked in the library and Ivory Towers, away from the stain of political practice.

The American “Revolution”

In the week after the conclusion of the 2016 election in the United States, Democratic primary candidate Bernie Sanders published his book Our Revolution. As everybody knows, 2016 was the contest between Trump and Clinton. Yet Bernie Sanders was the more extreme, more left (called a “socialist”) candidate of the Democratic Party, who was ultimately knocked out by the mainstream Clinton in the primaries. But he retains many fans among the Democratic Party’s “progressive wing”, including many youth. In his book, he introduced his thoughts as well as his explanations and analyses on all sorts of issues of the day, including the wealth gap, race relations, environmental problems, healthcare problems, the problem of media and interest groups binding politics, gender pay disparity, and the problem of Wall Street and big corporations.

Sanders’ diagnosis of American problems intersects with Trump: it is only that while Sander’s target audience was quite broad (for example, minorities, vulnerable groups, and women), Trump’s was much more parochial. On similar problems, Trump would provide right-wing resolutions to his limited audience of voters, but Sanders provided left-wing resolutions to his broad audiences—because of this, he was smeared as a “socialist”. Of course, during Sander’s entire campaign, there remained an unspeakable doubt: that is, can a big-city Jewish American ‘elite’ from Brooklyn, New York actually win the votes to be elected as President of the United States? This same problem may apply to Michael Bloomberg. To date, it seems this question answers in the negative.

But I do not wish to talk about Sanders’ propositions or ethnicity, but rather his slogan: “Our Revolution”.

“Our Revolution” has now become a left-wing action organization with roots in the 2016 Bernie Sanders campaign, and it continues to organize movements within the Democratic Party and in other broader social contexts.

“Our Revolution” has three key actions: “Win on our issues,” “Transform the Democratic Party,” and “Elect progressives up and down the ballot.”

It is of note that Sanders is the most mainstream American politician to date to support the idea of a revolution. However, what I wish to point out to Chinese readers is that this concept of “revolution” is nothing more than propagating his own thoughts and policy proposals to a wider audience, in order to get his own people elected and achieve electoral success himself.

People more familiar with Chinese political discourse should know the difference between “revolution” and “reform.”

Revolution is overturning and starting over again: toppling the old system and the old order, and constructing a new system. Revolution is often violent, of great force, compelled, and refuses to abide by the present system. From the standpoint of Marxism, revolution is class struggle, a fiery worker’s movement. From the standpoint of Leninism, it is a violent movement. From the standpoint of Mao Zedong:

“A revolution is not a dinner party, or writing an essay, or painting a picture, or doing embroidery; it cannot be so refined, so leisurely and gentle, so temperate, kind, courteous, restrained and magnanimous. A revolution is an insurrection, an act of violence by which one class overthrows another.”

In the Chinese context, and indeed in the majority of cultural and social contexts, “revolution” is an intense action: revolution demands the overthrowing of the present system. Abiding by the present system, or moving within the current system and order, can only be reform.

But it is different in the United States. In the United States, challenging and overthrowing the system is taboo. It is simply impossible. This is because the American system is considered sacred, perfect. It is only particular individuals who have problems, only particular problems that cannot be handled well. The system itself has no problems. Therefore, all actions can only be carried out within the purview of what the system allows. The only path is by election—use a successful election to construct the starting point and foundations of societal change.

The American system is considered sacred, perfect. It is only particular individuals who have problems, only particular problems that cannot be handled well. The system itself has no problems.

Because of this, in the political rhetoric of Bernie Sanders, we see not a radical revolution or transformation, but a complete obedience to the American system. Due to the American people’s 100% approval and obedience to the system, any possibilities that people may have substantive critique or doubts vis-à-vis the system are cut off, and no action can be taken. The American system has completely limited their space for movement. Even “radicals” similarly can only raise high the banner of the American system, and can only work and influence society within designated limits: by pushing their own candidates in elections.

A few weeks ago, the police brutality case of George Floyd caused massive numbers of Americans to take to the streets and protest without ceasing.

Yet have we seen any protestor put out protest against the very structure of America’s political system, institutions, and government? Will there be any person who comes and burn the Constitution? Burn the American flag? Will there be any person who will put forth concrete plans of actions towards subversion?

There wasn’t any. The protestors could only protest a few “conditions.” Each path towards resolution is diverted back into elections.

The United States uses the separation of powers mechanism to spread the vast majority of social contradictions among the politicians of the various local jurisdictions. Through the possibility of election, in order to resolve these contradictions, the people complain while pointing at the politicians, not the institutions themselves. In the end, the people believe they hold the power and can influence politics through the vote, carrying on their lives under this sort of hope.

The most awe-inspiring politics indeed is this: one in which people believe they have the power and thus maintain steadfast hope in the future, while at the same time changing nothing about the current situation.

A few weeks ago, when riots erupted all around the United States, Secretary of State Pompeo could still proudly boast and simultaneously demean China: Wehave freedom of assembly, expression, and freedom to protest.

The American system has already developed to this point: simply give the people freedom of expression and freedom to protest so that they can feel themselves righteous and superior, after which they may do as they wish.

I have before written an essay “From ‘Moral Licensing’ and ‘black-clad warriors’ to the ‘Sick People of Hong Kong’” in which I explained the concept of moral licensing:

“People believe that if they had prior done something good, they can then possibly condone themselves (or even indulge themselves) when in the future they do something not as good (even actions that do not conform to one’s own or the public’s moral standards).”

The circumstances surrounding the system of the U.S. are such: if we allow people expression, allow them to freely scold the government, this grants the people “political and civil rights.” This itself grants the American system moral superiority; it is the ends not the means. Afterwards, the government need not do anything further: “half-heartedly listen yet decide to do nothing.” That there have been so many racial conflicts and riots in the past few decades demonstrates that this kind of “expression” does not bring any substantive political transformation. American society has not experienced any fundamental changes. The people who can bear it no more cannot help but take to the streets after many a hard years.

The U.S.’s electoral system is a systemic, national form of “moral licensing”:

First, it grants people the right to vote, grants people a few nominal political and civil rights, allowing the people to feel that they have power and agency and thereby perceive moral self-satisfaction.

Afterwards, the politicians and elites can recount the greatness and glory of the system, right and proper as it is. “We allow African Americans to go out on the streets! So our system is progressive.” “We had Obama as president, how can our society be discriminatory against African Americans?”

The first stage of American politics is taking “the right to express concerns” and equating it with “measures to resolve the problem.” I allowed you to express your opinion, so all is well.

The second stage of American politics is taking “the right to express concerns” and using it as legitimization for “tacit allowance of the bad.” I allowed you to express your opinion, and I even allowed a black president, so what are you babbling about?

As one can see, the separation of powers and electoral system in the United States has created a perfect “cognitive trap” — people believe that this system can endlessly empower individuals and provide limitless potential and possibilities, that it can change anything. This system is in fact like a black hole, taking all the potential and sucking it in and dispelling it — even if it means there will be no changes in reality.

This system is in fact like a black hole, taking all the potential and sucking it in and dispelling it — even if it means there will be no changes in reality.

I believe that there will not be an insurrection in the U.S. because there is no power in the U.S. that can overturn or transform the American system. The American system is too powerful, it can already change the meaning of words: turning “revolution” into reforms hemmed in by the limits of the electoral system. This is indeed an extraordinarily powerful system.

Only an enormous outside pressure can cause the United States to change.

China is just such a pressure currently placed on the United States. In the beginning, the pressure was indistinct, unclear, but now it grows more apparent as China continues its rise.

Why Can’t America Criticize Its Own System?

Apart from “empowering” people, giving them the fantastic illusion of grasping political power and being able to influence it, the American electoral system is also importantly related to the system’s construction of an American person’s identity.

As I have written two days prior in the essay “Why the United States Does Not Understand China — From the Original Intention of the Communist Party of China, to European Civilization, to American Politics”, the United States is an multi-national country, assimilating many people from different ethnicities, nationalities, cultures, and societies. To bind these people together, a country cannot rely on blood ties, shared ethnicity, or shared culture, but instead on shared political values—the approval of the Constitution of the United States, and the approval of the foundational political values of the United States.

Political values and the American system: these two formulate the “national identity” of the United States.

Disavowing the American system is tantamount to disavowing the American national identity, necessarily meaning being anti-American.

Every civilization must construct its own foundations for national identity.

The national identities of European countries lay upon race, blood, and land, and, after, language and culture. Denying one’s race, blood, land, and language is to go against one’s own national character, and is hardly acceptable.

China is also multi-national, its national identity based more on culture and language; one able to integrate into the Chinese nation is one who can be accepted. Land is secondary, and ethnicity and blood ties may also be factors. But in summary, the inclusiveness of the Chinese people is quite potent, with ethnicity, blood ties, and other such factors relatively weak considerations. From the point-of-view of Chinese people, disavowing Chinese culture, history, tradition, or the perception of China’s territory and borders, is what it takes to disavow or be disloyal to China.

From the standpoint of the United States, ethnicity, blood, land, language, culture, and history are not key factors; only political values are. To disavow the American system is to disavow the American “nation.”

From the standpoint of any nationality, for one to deny their own national character is very much unacceptable, no matter if it is Europe, China, or the United States. The distinction from Europe and China is that the American nationality is built on the foundation of a political system and values.

In what circumstances then does a society or a nationality go against and disavow their own nationality?

I am currently of the belief that it is only in a cross-ethnic or transnational international setting where one could find serious frustrations which could produce such a self-disavowal.

Only in facing an enormous failure can there possibly be a self-disavowal, even a “self-hatred”.

China’s concept of nationality is built on culture and civilization. In the past two hundred years or so, China has suffered foreign invasion and bullying, thoroughly fell behind and received thrashings, and as a result came to doubt much of its own system and culture. This type of self-doubt and self-disavowal has persisted onto the present day. Chinese people tend to search for their own “inherent weaknesses” among their traditional culture.

Once the Chinese economy grew, and subsequently once its global standing rose, people began to change, becoming self-confident, and more were able to see the good aspects of Chinese traditional culture and contemporary societal practices.

The U.S. is similar. The American concept of national character is its own system and political value. Nothing short of a severe frustration of the American system, perhaps by China comprehensively catching up to or surpassing the United States, perhaps even failing in a competition or struggle with China, would possibly wake up the Americans to their senses. The basis for the United States’ own “four self-confidences” is its absolute leading role in the world for the past close to a century. The U.S.’s strength made people believe that the American system must be superior, and based on this they came to believe that America’s national character must be superior. The U.S. vigilantly guards against and attacks any other country that could challenge its national might, because any challenge would undermine the supposed superiority of the U.S.’s national character.

The U.S. vigilantly guards against and attacks any other country that could challenge its national might, because any challenge would undermine the supposed superiority of the U.S.’s national character.

If China one day rises and is to enter conflict with the United States and comes to outdo the American system, then for certain it would deal a huge blow to the self-confidence of the American people.

Only in such a time may the American people perhaps engage in deeper introspections on their system and models, and thereby possibly search for and implement necessary reforms.

I believe that American politics and society have extraordinarily powerful inertia and cannot initiate any self-led, self-directed adjustments in the short-term, unless there is outside pressure.

China’s rise is by now inevitable and will come to pressure the U.S. more as time goes on. At a certain point, the U.S. will be forced to confront and rethink their own system, to seek more changes and reforms. This is precisely like the period at the end of the 70s and beginning of the 80s, in which the U.S. confronted the rise of Japan in industrial and commercial matters. Thus, the U.S. increasingly scrutinizing China is only a matter of time.

As China continues to grow stronger, its influence on international affairs will naturally grow larger as well. At the same time, the United States will experience a relative decline, its soft power and political influence around the world will face relative decline as well. China can indeed throw out or act as a challenge, check, or supplement (the terminology is not important) to the American model in the future, and proceed on a path distinct from that of the West.

The path China takes will also influence the course of human development in the future, and indeed may be a course we will get to see in our lifetimes.

Finally, if there is a lesson that China must draw from the U.S. concerning principles of political systems, it must be that we must constantly remember to remain humble. Under no circumstances can we allow ourselves to become complacent and lose our vigilance. We must constantly look at our shortcomings, search for reforms and improvements, and consistently upgrade ourselves. “Four self-confidences” of course is vitally important, but we must at the same time retain our characteristically Chinese low-key, pragmatic, cautious, modest, and moderate dispositions.

We must never emulate the Americans in their blindness, arrogance and self-importance, lack of introspection, or their coarse self-confidence.[MORE]

Translated by Sean Haoqin Kang. The original Wechat blogpost, “American ‘Revolution’: The ‘Systemic Trap’ and the Lessons China Must Draw” can be found here (link in Chinese).


Selections by Amarynth

Shadowplay revisited: how Eurasia is being reshaped

Shadowplay revisited: how Eurasia is being reshaped

AUGUST 27, 2020

by Pepe Escobar with permission by the author and first posted at Asia Times

We have seen how China is meticulously planning all its crucial geopolitical and geoeconomic moves all the way to 2030 and beyond.

What you are about to read next comes from a series of private, multilateral discussions among intel analysts, and may helpfully design the contours of the Big Picture.

In China, it’s clear the path ahead points to boosting internal demand, and shifting monetary policy towards the creation of credit to consolidate the building of world-class domestic industries.

In parallel, there’s a serious debate in Moscow that Russia should proceed along the same path. As an analyst puts it, “Russia should not import anything but technologies it needs until it can create them themselves and export only the oil and gas that is required to pay for imports that should be severely restricted. China still needs natural resources, which makes Russia and China unique allies. A nation should be as self-sufficient as possible.”

That happens to mirror the exact CCP strategy, as delineated by President Xi in his July 31 Central Committee meeting.

And that also goes right against a hefty neoliberal wing in the CCP – collaborationists? – who would dream of a party conversion into Western-style social democracy, on top of it subservient to the interests of Western capital.

Comparing China’s economic velocity now with the US is like comparing a Maserati Gran Turismo Sport (with a V8 Ferrari engine) with a Toyota Camry. China, proportionately, holds a larger reservoir of very well educated young generations; an accelerated rural-urban migration; increased poverty eradication; more savings; a cultural sense of deferred gratification; more – Confucianist – social discipline; and infinitely more respect for the rationally educated mind. The process of China increasingly trading with itself will be more than enough to keep the necessary sustainable development momentum going.

The hypersonic factor

Meanwhile, on the geopolitical front, the consensus in Moscow – from the Kremlin to the Foreign Ministry – is that the Trump administration is not “agreement-capable”, a diplomatic euphemism that refers to a de facto bunch of liars; and it’s also not “legal-capable”, an euphemism applied, for instance, to lobbying for snapback sanctions when Trump has already ditched the JCPOA.

President Putin has already said in the recent past that negotiating with Team Trump is like playing chess with a pigeon: the demented bird walks all over the chessboard, shits indiscriminately, knocks over pieces, declares victory, then runs away.

In contrast, serious lobbying at the highest levels of the Russian government is invested in consolidating the definitive Eurasian alliance, uniting Germany, Russia and China.

But that would only apply to Germany after Merkel. According to a US analyst, “the only thing holding back Germany is that they can expect to lose their car exports to the US and more, but I tell them that can happen right away because of the dollar-euro exchange rate, with the euro becoming more expensive.”

On the nuclear front, and reaching way beyond the current Belarus drama – as in there will be no Maidan in Minsk – Moscow has made it very clear, in no uncertain terms, that any missile attack from NATO will be interpreted as a nuclear attack.

The Russian defensive missile system – including the already tested S-500s, and soon the already designed S-600s – arguably may be 99% effective. That means Russia would still have to absorb some punishment. And this is why Russia has built an extensive network of nuclear bomb shelters in big cities to protect at least 40 million people.

Russian analysts interpret China’s defensive approach along the same lines. Beijing will want to develop – if they have not already done so – a defensive shield, and still retain the ability to strike back against a US attack with nuclear missiles.

The best Russian analysts, such as Andrei Martyanov, know that the three top weapons of a putative next war will be offensive and defensive missiles and submarines combined with cyber warfare capabilities.

The key weapon today – and the Chinese understand it very clearly – is nuclear submarines. Russians are observing how China is building their submarine fleet – carrying hypersonic missiles – faster than the US. Surface fleets are obsolete. A wolf pack of Chinese submarines can easily knock out a carrier task force. Those 11 US carrier task forces are in fact worthless.

So in the – horrifying – event of the seas becoming un-sailable in a war, with the US, Russia and China blocking all commercial traffic, that’s the key strategic reason pushing China to obtain as much of its natural resources overland from Russia.

Even if pipelines are bombed they can be fixed in no time. Thus the supreme importance for China of Power of Siberia – as well as the dizzying array of Gazprom projects.

The Hormuz factor

A closely guarded secret in Moscow is that right after German sanctions imposed in relation to Ukraine, a major global energy operator approached Russia with an offer to divert to China no less than 7 million barrels a day of oil plus natural gas. Whatever happens, the stunning proposal is still sitting on the table of Shmal Gannadiy, a top oil/gas advisor to President Putin.

In the event that would ever happen, it would secure for China all the natural resources they need from Russia. Under this hypothesis, the Russian rationale would be to bypass German sanctions by switching its oil exports to China, which from a Russian point of view is more advanced in consumer technology than Germany.

Of course this all changed with the imminent conclusion of Nord Stream 2 – despite Team Trump taking no prisoners to sanction everyone in sight.

Backdoor intel discussions made it very clear to German industrialists that if Germany would ever lose its Russian source of oil and natural gas, coupled with the Strait of Hormuz shut down by Iran in the event of an American attack, the German economy might simply collapse.

There have been serious cross-country intel discussions about the possibility of a US-sponsored October Surprise involving a false flag to be blamed on Iran. Team Trump’s “maximum pressure” on Iran has absolutely nothing to do with the JCPOA. What matters is that even indirectly, the Russia-China strategic partnership has made it very clear that Tehran will be protected as a strategic asset – and as a key node of Eurasia integration.

Cross-intel considerations center on a scenario assuming a – quite unlikely – collapse of the government in Tehran. The first thing Washington would do in this case is to pull the switch of the SWIFT clearing system. The target would be to crush the Russian economy. That’s why Russia and China are actively increasing the merger of the Russian Mir and the Chinese CHIPS payment systems, as well as bypassing the US dollar in bilateral trade.

It has already been gamed in Beijing that were that scenario ever to take place, China might lose its two key allies in one move, and then have to face Washington alone, still on a stage of not being able to assure for itself all the necessary natural resources. That would be a real existential threat. And that explains the rationale behind the increasing interconnection of the Russia-China strategic partnership plus the $400 billion, 25-year-long China-Iran deal.

Bismarck is back

Another possible secret deal already discussed at the highest intel levels is the possibility of a Bismarckian Reinsurance Treaty to be established between Germany and Russia. The inevitable consequence would be a de facto Berlin-Moscow-Beijing alliance spanning the Belt and Road Initiative (BRI), alongside the creation of a new – digital? – Eurasian currency for the whole Eurasian alliance, including important yet peripheral actors such as France and Italy.

Well, Beijing-Moscow is already on. Berlin-Beijing is a work in progress. The missing link is Berlin-Moscow.

That would represent not only the ultimate nightmare for Mackinder-drenched Anglo-American elites, but in fact the definitive passing of the geopolitical torch from maritime empires back to the Eurasian heartland.

It’s not a fiction anymore. It’s on the table.

Adding to it, let’s do some little time traveling and go back to the year 1348.

The Mongols of the Golden Horde are in Crimea, laying siege to Kaffa – a trading port in the Black Sea controlled by the Genoese.

Suddenly, the Mongol army is consumed by bubonic plague.

They start catapulting contaminated corpses over the walls of the Crimean city.

So imagine what happened when ships started sailing again from Kaffa to Genoa.

They transported the plague to Italy.

By 1360, the Black Death was literally all over the place – from Lisbon to Novgorod, from Sicily to Norway. As much as 60% of Europe’s population may have been killed – over 100 million people.

A case can be made that the Renaissance, because of the plague, was delayed by a whole century.

Covid-19 is of course far from a medieval plague. But it’s fair to ask.

What Renaissance could it be possibly delaying?

Well, it might well be actually advancing the Renaissance of Eurasia. It’s happening just as the Hegemon, the former “end of history”, is internally imploding, “distracted from distraction by distraction”, to quote T.S. Eliot. Behind the fog, in prime shadowplay pastures, the vital moves to reorganize the Eurasian land mass are already on.

China: everything proceeding according to plan

China: everything proceeding according to plan

August 24, 2020

by Pepe Escobar with permission by the author and first posted at Asia Times

Let’s start with the story of an incredibly disappearing summit.

Every August, the leadership of the Chinese Communist Party (CCP) converges to the town of Beidaihe, a seaside resort some two hours away from Beijing, to discuss serious policies that then coalesce into key planning strategies to be approved at the CCP Central Committee plenary session in October.

The Beidaihe ritual was established by none other than Great Helmsman Mao, who loved the town where, not by accident, Emperor Qin, the unifier of China in the 3rd century B.C., kept a palace.

2020 being, so far, a notorious Year of Living Dangerously, it’s no surprise that in the end Beidaihe was nowhere to be seen. Yet Beidaihe’s invisibility does not mean it did not happen.

Exhibit 1 was the fact that Premier Li Keqiang simply disappeared from public view for nearly two weeks – after President Xi chaired a crucial Politburo gathering in late July where what was laid out was no less than China’s whole development strategy for the next 15 years.

Li Keqiang resurfaced by chairing a special session of the all-powerful State Council, just as the CCP’s top ideologue, Wang Huning – who happens to be number 5 in the Politburo – showed up as the special guest at a meeting of the All China Youth Federation.

What’s even more intriguing is that side by side with Wang, one would find Ding Xuexiang, none other than President Xi’s chief of staff, as well as three other Politburo members.

In this “now you see them, now you don’t” variation, the fact that they all showed up in unison after an absence of nearly two weeks led sharp Chinese observers to conclude that Beidaihe in fact had taken place. Even if no visible signs of political action by the seaside had been detected. The semi-official spin is that no get-together happened at Beidaihe because of Covid-19.

Yet it’s Exhibit 2 that may clinch the deal for good. The by now famous end of July Politburo meeting chaired by Xi in fact sealed the Central Committee plenary session in October. Translation: the contours of the strategic road map ahead had already been approved by consensus. There was no need to retreat to Beidaihe for further discussions.

Trial balloons or official policy?

The plot thickens when one takes into consideration a series of trial balloons that started to float a few days ago in select Chinese media. Here are some of the key points.

1. On the trade war front, Beijing won’t shut down US businesses already operating in China. But companies which want to enter the market in finance, information technology, healthcare and education services will not be approved.

2. Beijing won’t dump all its overwhelming mass of US Treasuries in one go, but – as it already happens – divestment will accelerate. Last year, that amounted to $100 billion. Up to the end of 2020, that could reach $300 billion.

3. The internationalization of the yuan, also predictably, will be accelerated. That will include configuring the final parameters for clearing US dollars through the CHIPS Chinese system – foreseeing the incandescent possibility Beijing might be cut off from SWIFT by the Trump administration or whoever will be in power at the White House after January 2021.

4. On what is largely interpreted across China as the “full spectrum war” front, mostly Hybrid War, the PLA has been put into Stage 3 alert – and all leaves are canceled for the rest of 2020. There will be a concerted drive to increase all-round defense spending to 4% of GDP and accelerate the development of nuclear weapons. Details are bound to emerge during the Central Committee meeting in October.

5. The overall emphasis is on a very Chinese spirit of self-reliance, and building what can be defined as a national economic “dual circulation” system: the consolidation of the Eurasian integration project running in parallel to a global yuan settlement mechanism.

Inbuilt in this drive is what has been described as “to firmly abandon all illusions about the United States and conduct war mobilization with our people. We shall vigorously promote the war to resist US aggression (…) We will use a war mindset to steer the national economy (…) Prepare for the complete interruption of relations with the US.”

It’s unclear as it stands if these are only trial balloons disseminated across Chinese public opinion or decisions reached at the “invisible” Beidaihe. So all eyes will be on what kind of language this alarming configuration will be packaged when the Central Committee presents its strategic planning in October. Significantly, that will happen only a few weeks before the US election.

It’s all about continuity

All of the above somewhat mirrors a recent debate in Amsterdam on what constitutes the Chinese “threat” to the West. Here are the key points.

1. China constantly reinforces its hybrid economic model – which is an absolute rarity, globally: neither totally publicly owned nor a market economy.

2. The level of patriotism is staggering: once the Chinese face a foreign enemy, 1.4 billion people act as one.

3. National mechanisms have tremendous force: absolutely nothing blocks the full use of China’s financial, material and manpower resources once a policy is set.

4. China has set up the most comprehensive, back to back industrial system on the planet, without foreign interference if need be (well, there’s always the matter of semiconductors to Huawei to be solved).

China plans not only in years, but in decades. Five year plans are complemented by ten year plans and as the meeting chaired by Xi showed, 15 year plans. The Belt and Road Initiative (BRI) is in fact a nearly 40-year plan, designed in 2013 to be completed in 2049.

And continuity is the name of the game – when one thinks that the Five Principles of Peaceful Coexistence, first developed in 1949 and then expanded by Zhou Enlai at the Bandung conference in 1955 are set in stone as China’s foreign policy guidelines.

The Qiao collective, an independent group that advances the role of qiao (“bridge”) by the strategically important huaqiao (“overseas Chinese”) is on point when they note that Beijing never proclaimed a Chinese model as a solution to global problems. What they extol is Chinese solutions to specific Chinese conditions.

A forceful point is also made that historical materialism is incompatible with capitalist liberal democracy forcing austerity and regime change on national systems, shaping them towards preconceived models.

That always comes back to the core of the CCP foreign policy: each nation must chart a course fit for its national conditions.

And that reveals the full contours of what can be reasonably described as a Centralized Meritocracy with Confucian, Socialist Characteristics: a different civilization paradigm that the “indispensable nation” still refuses to accept, and certainly won’t abolish by practicing Hybrid War.

Diplomacy is reciprocal

July 25, 2020

Diplomacy is reciprocal

Chris Faure for the Saker Blog

The US suddenly ordered China to end operations from its embassy in Houston, Texas (remember when they did the same to Russia). However, diplomacy is reciprocal and the Chinese so far refrained from a further provocative reaction. They are implementing a fair tit for tat measure, closing the US Consulate in Chengdu, keeping options open for further retaliation. They could have fanned the flames and closed the US Consulate in Hong Kong, or even a bigger one in Beijing, but kept to a fair reciprocal closure – so far.

More about the Consulate spat https://www.moonofalabama.org/

China responded to Mr Pompeo’s highly advertised ‘very important’ speech this week in short, not giving Pompeo that attention that he so craves. The Chinese stance is that Mike Pompeo maliciously attacked the Communist Party of China (CPC) and China’s socialist system, and he made remarks that ignored the facts, were full of ideological bias and turned black into white, which showed his Cold War mentality. From the Chinese Foreign Ministry: “Some US politicians have deliberately stirred up ideological disputes, talked about changing China, denied China-US relations, and provoked China’s relationships with other countries. Their purpose is to suppress China’s development and divert the public’s attention from their own country. These tricks cannot fool the Americans and international community.”

The US have stopped all basic diplomatic standards in a grab for their self-delusional rules-based international order. Just recently, Pompeo announced that they will not respect or accept any of the agreements in the South China Sea. He must be thinking that all of the ASEAN countries like him enough to drop their raft of regional negotiated agreements.

Despite Chinese accusations that the US opens their diplomatic pouches, which is in flagrant violation of all Vienna Conventions on Diplomatic and Consular relations, the most important is the following which shows that China is still keeping to fair diplomatic and pragmatic standard:

“It must be emphasized that China has no intentions to change the US in terms of its social system, and the US cannot change China either.”

https://www.fmprc.gov.cn/mfa_eng/xwfw_665399/s2510_665401/2511_665403/t1800221.shtml

Having followed the Russian reactions on these types of actions by the US toward Russia, we have become accustomed to the frustratingly pragmatic and clinically diplomatic methods of dealing with western bullying. The Chinese are different and they enthusiastically take part in the war of words that is reaching cold war status if one adds in the trade war announced by Mr Trump +- two years ago and which he thought would be ‘easy to win’. What we see now as reaction to the US provocation to China in the US social sphere, many ordinary Americans are deeply into the ‘crush China’ rhetoric which attempts to blame China for all of the US ills.

https://sputniknews.com/analysis/202007241079970310-us-heading-towards-quagmire-in-the-south-china-sea-by-inciting-tensions-with-beijing-activist-warns/

While it remains unclear if this can be written off completely to electioneering and election rhetoric, what does clarify is that the harm done is not easily fixed, no matter the reason. It is however quite breathtaking how far Pompeo will push this, hoping for retaliation which he can then use to prove himself and the current US administration right. It is beyond a level of comprehension that Pompeo and Co could really think that they will make war against China.

http://www.chinadaily.com.cn/a/202007/24/WS5f1a5b8da31083481725be24.html

In this time of ‘rhetorical cold war of words’, Godfree Roberts who regularly writes on China for the Unz Review started a new weekly newsletter, Here Comes China, Skulduggery, Good News, Offbeat Opinions, chock-a-block full of what is happening in China.

Godfree has offered the first four newsletters free to Saker readers. From economics, to space, to China-Iran Trade and Military Partnership, to the cleanup and recovering of the Yangtze river, a Hong Kong section, the media war on Xinjiang Uygur Autonomous Region, and an in-depth look at Human rights in China, this newsletter stands unique in its scope and its presentation of Western opinions and Eastern opinions.

Godfree’s new book on China is just about ready for release. The book is called:

Why China leads the world: Democracy at the bottom, Data in the middle, Talent at the top.
A preview: https://www.herecomeschina.com/why-china-leads-the-world-the-book/

I also want to draw the readers’ attention to a two part essay written on Mao, Mao Reconsidered, and published in greanvillepost.com. Part 1Part 2

China Sitrep – 5 selected topics from the Here Comes China newsletter:

Trump Empowers CIA to Launch Cyberattacks

The secret authorization, known as a presidential finding, gives the spy agency more freedom in both the kinds of operations it conducts and who it targets–including Russia, China, Iran and North Korea, which are mentioned directly in the document. The finding allows the CIA to more easily authorize its own covert cyber operations, rather than requiring the agency to get approval from the White House. The “very aggressive” finding “gave the agency very specific authorities to really take the fight offensively to a handful of adversarial countries,” said a former U.S. government official. The Central Intelligence Agency has conducted a series of covert cyber operations against Iran and other targets since winning a secret victory in 2018 when President Trump signed what amounts to a sweeping authorization for such activities. [MORE]

Belt and Road Finds New Life in Pakistan

China and Pakistan have signed deals for two hydro-power generation projects costing $3.9 billion in the disputed Kashmir region, and another to revamp the South Asian nation’s colonial-era railways for $7.2 billion — the most expensive Chinese project yet in Pakistan. The Chinese financing has helped rid Pakistan of an electricity deficit that left exporters unable to meet orders and major cities without electricity for much of the day. [MORE]

T.P. Wilkinson: The Yemen

The West encourages dissolution of state entities that could engage in normal relations with China or any other potential competitors. The Yemen is one of those long-term victims of British imperialism. When Britain nominally withdrew from Egypt, Nasser promoted his new government’s participation in his movement for Arab unity, opposed by British clients in Riyadh (the Saud family’s Wahhabi gangsters). The Saud family would like to have annexed the Yemen but could not without war against Egypt-against which the tiny mob had no chance. So David Stirling led a counter-insurgency funded by the British and Saudis to drive Egypt out of the Yemen and leave the country as a quasi-protectorate of Britain/US. Attempts to change that have been fought for decades but until a decade ago the client regime was well protected. Clearly chaos is profitable for the empire which between Somalia and Yemen prevent any stability in opposition to its interests. Not only do Somalia and Yemen lie close to the Suez route they also form part of the ancient East African trading basin that links Asia with Africa. As part of the overall strategy of Denial, this policy is aided by the designs of the mob in Riyad which lacks the population to occupy territories it would like to annex.

Xinjiang

This section from Here Comes China is an in-depth analysis. I suggest you read it in the newsletter itself. Main points:

Islam is neither the Uyghurs’ native religion nor their only one but, in its Wahhabi form, has caused problems around the world, for which we can thank to two fervent Christians, Jimmy Carter and Zbigniew Brzezinski,[2] who considered a united Eurasia, “The only possible challenge to American hegemony.” In 1979, months before the Soviet entry into Afghanistan, Brzezinski drafted and Carter signed a top-secret Presidential Order authorizing the CIA to train fundamentalist Muslims to wage Jihad against the Soviet Communist infidels and all unbelievers of conservative Sunni Islam and the Mujahideen terror war against Soviet soldiers in Afghanistan became the largest covert action in CIA history.[2] Brzezinski’s ‘Arc of Crisis’ strategy inflamed Muslims in Central Asia to destabilize the USSR during its economic crisis and, when Le Nouvel Observateur later asked if he had any regrets, Brzezinski snapped, “What is most important to the history of the world? Some stirred-up Muslims or the liberation of Central Europe?”

Twenty years later, in 1999, the CIA’s Islam strategist, Graham E. Fuller, announced, “The policy of guiding the evolution of Islam and of helping them against our adversaries worked marvelously well in Afghanistan against the Russians. The same doctrines can still be used to destabilize what remains of Russian power, and especially to counter the Chinese influence in Central Asia.”[3]

Today, NED money supports the World Uyghur Congress (WUC) which calls China’s Xinjiang Province ‘East Turkistan’ and China’s administration of Xinjiang as ‘Chinese occupation of East Turkistan,’ runs articles like, “Op-ed: A Profile of Rebiya Kadeer, Fearless Uyghur Independence Activist,” and admits that Kadeer seeks Uyghur independence from China.

Faced with an armed insurrection, most states impose martial law or a state of emergency, as Britain did in Malaya from 1945 to 1957 and the US did with the Patriot Act, but China decided–despite popular outrage–to write off its losses and play the long game and founded The Shanghai Cooperation Organization (SCO),[1] a political, economic, and security alliance, with Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan, who stopped funneling money and providing corridors for Uyghur terrorists to move into and out of China. The SCO has since expanded to include India and Pakistan and Iran has begun the accession process, making it world’s largest security pact in both area and population and the only one whose membership includes four nuclear powers.

Forming the SCO was easier than assuaging public outrage. An unheard-of lawsuit by victims’ relatives accused the government of reverse discrimination so they stepped up security and published their objectives:

  1. restore law and order
  2. prevent terrorists from inflicting more violence
  3. use ‘high-intensity regulation’
  4. contain the spread of terrorism beyond Xinjiang
  5. purge extremists and separatists from society.

Neighborhood community centres–labelled ‘concentration camps’ in the western press–educate rural Uyghurs about the perils of religious extremism and train them for urban jobs.
In 2013 President Xi toured Eurasia and proposed the Belt and Road Initiative for three billion people, designed to create the biggest market in the world with unparalleled development potential, and built a gas pipeline to China from Turkmenistan through Uzbekistan, Tajikistan and Kyrgyzstan which, like China’s other western pipelines, power lines, and rail and road networks, runs through the Xinjiang Uyghur Autonomous Region.

Beijing then moved jobs to Xinjiang and opened vocational schools to train rural youth in literacy and job skills and swore to protect its neighbors from terrorism in exchange for their pledge to reciprocate. To create jobs in the province Xi directed investment from forty-five of China’s top companies and eighty Fortune 500 manufacturers to Urumqi. Corporate investment increased from $10 billion in 2015 to $15 billion in 2017 and infrastructure investments of $70 billion in both 2017 and 2018 lifted the annual goods shipments past 100 million tons with a goal of hourly departures to fifteen European capitals. Half a million Uyghurs have relocated from remote villages to cities and, as a result, 600,000 Uighurs were lifted out of poverty in 2016, 312,000 in 2017 and 400,000 in 2018. The last poor Uyghurs will join the cash economy in mid-2020.

The PBOC, China’s central bank, is partnering with ride-hailing giant Didi Chuxing to test the use of its sovereign digital currency, AKA Central Bank Digital Currency, CBDC. The regulator is working with Didi to apply digital currency electronic payment (DCEP) to the ride-hailing app, which currently serves a total of over 550 million users and is often described as China’s Uber. According to Didi, “the government seeks to support the development of the real economy sectors with innovative financial services.” Didi has more than 30 million daily ride-sharing orders and its bike-sharing daily orders reached 10 million. Meituan and Bilibilibili are also cooperating with banks in the digital yuan project. Meituan’s service platform has over 240 million consumers and five million local merchants, and Bilibilibili is China’s largest video-sharing website.

Sign up for your free one month sub to Godfree’s very extensive newsletter here. At the Saker blog, only a fraction of all the material can be covered.

Nixon-Trump vs. the Strategy of Tension

Nixon-Trump vs. the Strategy of Tension, by Pepe Escobar - The Unz ...
Nixon-Trump vs. the Strategy of Tension
Pepe ESCOBAR
Independent geopolitical analyst, writer and journalist

Pepe Escobar June 18, 2020©

Nixon 68 is back with a vengeance, with President Trump placing himself as the guarantor/enforcer of Law & Order.

That slogan guaranteed Nixon’s election, and was coined by Kevin Phillips, then an expert in “ethnic voting patterns”.

Philips makes for a very interesting case. In 1999, he became the author of a seminal book: The Cousins’ Wars: Religion, Politics, and the Triumph of Anglo-America, where he tracks how a “small Tudor kingdom” ended up establishing global hegemony.

The division of the English-speaking community into two great powers – “one aristocratic, ‘chosen’ and imperial; and one democratic, ‘chosen’ and manifest destiny-driven”, as Philips correctly establishes – was accomplished by, what else, a war triptych: the English Civil War, the American revolution and the U.S. Civil War.

Now, we may be at the threshold of a fourth war – with unpredictable and unforeseen consequences.

As it stands, what we have is a do-or-die clash of models: MAGA against an exclusivist Fed/Wall Street/Silicon Valley-controlled system.

MAGA – which is a rehash of the American dream – simply cannot happen when society is viciously polarized; vast sectors of the middle class are being completely erased; and mass immigration is coming from the Global South.

In contrast, the Fed as a Wall Street hedge fund meets Silicon Valley model, a supremely elitist 0.001% concoction, has ample margins to thrive.

The model is based on even more rigid corporate monopoly; the preeminence of capital markets, where a Wall Street boom is guaranteed by government debt-buybacks of its own debt; and life itself regulated by algorithms and Big Data.

This is the Brave New World dreamed by the techno-financial Masters of the Universe.

Trump’s MAGA woes have been compounded by a shoddy geopolitical move in tandem with Law and Order: his re-election campaign will be under the sign of “China, China, China.” When in trouble, blame a foreign enemy.

That comes from serially failed opportunist Steve Bannon and his Chinese billionaire sidekick Guo Wengui, or Miles Guo. Here they are in Statue of Liberty mode announcing their no holds barred infowar campaign to demonize the Chinese Communist Party (CCP) to Kingdom Come and “free the Chinese people”.

Bannon’s preferred talking point is that if his infowar fails, there will be “kinetic war”. That is nonsense. Beijing’s priorities are elsewhere. Only a few neo-conned Dr. Strangeloves would envisage “kinetic war”- as in a pre-emptive nuclear strike against Chinese territory.

Alastair Crooke has masterfully shown how the geoeconomic game, as Trump sees it, is above all to preserve the power of the U.S. dollar: “His particular concern would be to see a Europe that was umbilically linked to the financial and technological heavyweight that is China. This, in itself, effectively would presage a different world financial governance.”

But then there’s The Leopard syndrome: “If we want things to stay as they are, things will have to change”. Enter Covid-19 as a particle accelerator, used by the Masters of the Universe to tweak “things” a bit so they not only stay as they are but the Master grip on the world tightens.

The problem is Covid-19 behaves as a set of – uncontrollable – free electrons. That means nobody, even the Masters of the Universe, is able to really weigh the full consequences of a runaway, compounded financial/social crisis.

Deconstructing Nixon-Trump

Russiagate, now totally debunked, has unfolded in effect as a running coup: a color non-revolution metastasizing into Ukrainegate and the impeachment fiasco. In this poorly scripted and evidence-free morality play with shades of Watergate, Trump was cast by the Democrats as Nixon.

Big mistake. Watergate had nothing to do with a Hollywood-celebrated couple of daring reporters. Watergate represented the industrial-military-security-media complex going after Nixon. Deep Throat and other sources came from inside the Deep State. And it was not by accident that they were steering the Washington Post – which, among other roles, plays the part of CIA mouthpiece to perfection.

Trump is a completely different matter. The Deep State keeps him under control. One just needs to look at the record: more funds for the Pentagon, $1 trillion in brand new nuclear weapons, perennial sanctions on Russia, non-stop threats to Russia’s western borders, (failed) efforts to derail Nord Stream 2. And this is only a partial list.

So, from a Deep State point of view, the geopolitical front – containment of Russia-China – is assured. Domestically, it’s much more complicated.

As much as Black Lives Matter does not threaten the system even remotely like the Black Panthers in the 60s, Trump believes his own Law & Order, like Nixon, will once again prevail. The key will be to attract the white women suburban vote. Republican pollsters are extremely optimistic and even talking about a “landslide”.

Yet the behavior of an extra crucial vector must be understood: what corporate America wants.

When we look at who’s supporting Black Lives Matter – and Antifa – we find, among others, Adidas, Amazon, Airbnb, American Express, Bank of America, BMW, Burger King, Citigroup, Coca Cola, DHL, Disney, eBay, General Motors, Goldman Sachs, Google, IBM, Mastercard, McDonald’s, Microsoft, Netflix, Nike, Pfizer, Procter & Gamble, Sony, Starbucks, Twitter, Verizon, WalMart, Warner Brothers and YouTube.

This who’s who would suggest a completely isolated Trump. But then we have to look at what really matters; the class war dynamics in what is in fact a caste system, as Laurence Brahm argues.

Black Lives Matter, the organization and its ramifications, is essentially being instrumentalized by selected corporate interests to accelerate their own priority: to crush the U.S. working classes into a state of perpetual anomie, as a new automated economy rises.

That may always happen under Trump. But it will be faster without Trump.

What’s fascinating is how this current strategy of tension scenario is being developed as a classic CIA/NED playbook color revolution.

An undisputed, genuine grievance – over police brutality and systemic racism – has been completely manipulated, showered with lavish funds, infiltrated, and even weaponized against “the regime”.

Just to control Trump is not enough for the Deep State – due to the maximum instability and unreliability of his Demented Narcissus persona. Thus, in yet another priceless historical irony, “Assad must go” metastasized into “Trump must go”.

The cadaver in the basement

One must never lose track of the fundamental objectives of those who firmly control that assembly of bought and paid for patsies in Capitol Hill: to always privilege Divide and Rule – on class, race, identity politics.

After all, the majority of the population is considered expendable. It helps that the instrumentalized are playing their part to perfection, totally legitimized by mainstream media. No one will hear lavishly funded Black Lives Matter addressing the real heart of the matter: the reset of the predatory Restored Neoliberalism project, barely purged of its veneer of Hybrid Neofascism. The blueprint is the Great Reset to be launched by the World Economic Forum in January 2021.

It will be fascinating to watch how Trump deals with this “Summer of Love” remake of Maidan transposed to the Seattle commune. The hint from Team Trump circles is that he will do nothing: a coalition of white supremacists and motorcycle gangs might take care of the “problem” on the Fourth of July.

None of this sweetens the fact that Trump is at the heart of a crossfire hurricane: his disastrous response to Covid-19; the upcoming, devastating effects of the New Great Depression; and his intimations pointing to what could turn into martial law.

Still, the legendary Hollywood maxim – “no one knows anything” – rules. Even running with a semi-cadaver in a basement, the Democrats may win in November just by doing nothing. Yet Teflon Trump should never be underestimated. The Deep State may even realize he’s more useful than they think.

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