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

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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

The Sleeping Giant Awakes And Reveals “The West” as Lilliput

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The Sleeping Giant Awakes And Reveals “The West” as Lilliput

October 27, 2020

This comment was chosen by moderator SA from the post “Weekly China Newsbrief and Sitrep”.Comment by Ahino Wolf Sushanti

I’m from Malaysia. China has traded with Malaysia for 2000 years. In those years, they had been the world’s biggest powers many times. Never once they sent troops to take our land. Admiral Zhenghe came to Malacca five times, in gigantic fleets, and a flagship eight times the size of Christopher Columbus’ flagship, Santa Maria. He could have seized Malacca easily, but he did not. In 1511, the Portuguese came. In 1642, the Dutch came. In the 18th century the British came. We were colonised by each, one after another.

When China wanted spices from India, they traded with the Indians. When they wanted gems, they traded with the Persian. They didn’t take lands. The only time China expanded beyond their current borders was in Yuan Dynasty, when Genghis and his descendants Ogedei Khan, Guyuk Khan & Kublai Khan concurred China, Mid Asia and Eastern Europe. But Yuan Dynasty, although being based in China, was a part of the Mongolian Empire.

Then came the Century of Humiliation. Britain smuggled opium into China to dope the population, a strategy to turn the trade deficit around, after the British could not find enough silver to pay the Qing Dynasty in their tea and porcelain trades. After the opium warehouses were burned down and ports were closed by the Chinese in ordered to curb opium, the British started the opium I, which China lost. Hong Kong was forced to be surrendered to the British in a peace talk (Nanjing Treaty). The British owned 90% of the opium market in China, during that time, Queen Victoria was the world’s biggest drug baron. The remaining 10% was owned by American merchants from Boston. Many of Boston’s institutions were built with profit from opium.

After 12 years of Nanjing Treaty, the West started getting really really greedy. The British wanted the Qing government:
1. To open the borders of China to allow goods coming in and out freely, and tax free.
2. Make opium legal in China.
Insane requests, Qing government said no. The British and French, with supports from the US and Russia from behind, started Opium War II with China, which again, China lost. The Anglo-French military raided the Summer Palace, and threatened to burn down the Imperial Palace, the Qing government was forced to pay with ports, free business zones, 300,000 kilograms of silver and Kowloon was taken. Since then, China’s resources flew out freely through these business zones and ports. In the subsequent amendment to the treaties, Chinese people were sold overseas to serve as labor.

In 1900, China suffered attacks by the 8-National Alliance(Japan, Russia, Britain, France, USA, Germany, Italy, Austria-Hungary). Innocent Chinese civilians in Peking (Beijing now) were murdered, buildings were destroyed & women were raped. The Imperial Palace was raided, and treasures ended up in museums like the British Museum in London and the Louvre in Paris.

In late 1930’s China was occupied by the Japanese in WWII. Millions of Chinese died during the occupancy. 300,000 Chinese died in Nanjing Massacre alone.

Mao brought China together again from the shambles. There were peace and unity for some time. But Mao’s later reign saw sufferings and deaths from famine and power struggles.

Then came Deng Xiao Ping and his infamous “black-cat and white-cat” story. His preference in pragmatism than ideologies has transformed China. This thinking allowed China to evolve all the time to adapt to the actual needs in the country, instead of rigidly bounded to ideologies. It also signified the death of Communism in actually practice in China. The current Socialism+Meritocracy+Market Economy model fits the Chinese like gloves, and it propels the uprise of China. Singapore has a similar model, and has been arguably more successful than Hong Kong, because Hong Kong being gateway to China, was riding on the economic boom in China, while Singapore had no one to gain from.

In just 30 years, the CPC have moved 800 millions of people out from poverty. The rate of growth is unprecedented in human history. They have built the biggest mobile network, by far the biggest high speed rail network in the world, and they have become a behemoth in infrastructure. They made a fishing village called Shenzhen into the world’s second largest technological centre after the Silicon Valley. They are growing into a technological power house. It has the most elaborate e-commerce and cashless payment system in the world. They have launched exploration to Mars. The Chinese are living a good life and China has become one of the safest countries in the world. The level of patriotism in the country has reached an unprecedented height.

For all of the achievements, the West has nothing good to say about it. China suffers from intense anti-China propaganda from the West. Western Media used the keyword “Communist” to instil fear and hatred towards China.
Everything China does is negatively reported.

They claimed China used slave labor in making iPhones. The truth was, Apple was the most profitable company in the world, it took most of the profit, leave some to Foxconn (a Taiwanese company) and little to the labor.

They claimed China was inhuman with one-child policy. By the way absolutely recommended by the UN-Health-Organisation at that time. At the same time, they accused China of polluting the earth with its huge population. The fact is the Chinese consume just 30% of energy per capita compared to the US.

They claimed China underwent ethnic cleansing in Xinjiang. The fact is China has a policy which priorities ethnic minorities. For a long time, the ethnic minorities were allowed to have two children and the majority Han only allowed one. The minorities are allowed a lower score for university intakes. There are 39,000 mosque in China, and 2100 in the US. China has about 3 times more mosque per Muslim than the US.
When terrorist attacks happened in Xinjiang, China had two choices:
1. Re-educate the Uighur extremists before they turned terrorists.
2. Let them be, after they launch attacks and killed innocent people, bomb their homes.
China chose 1 to solve problem from the root and not to do killing. How the US solve terrorism? Fire missiles from battleships, drop bombs from the sky.

During the pandemic,
When China took extreme measures to lock-down the people, they were accused of being inhuman.
When China recovered swiftly because of the extreme measures, they were accused of lying about the actual numbers.
When China’s cases became so low that they could provide medical support to other countries, they were accused of politically motivated.
Western Media always have reasons to bash China.

Just like any country, there are irresponsible individuals from China which do bad and dirty things, but the China government overall has done very well. But I hear this comment over and over by people from the West: I like Chinese people, but the CPC is “evil”\’. What they really want is the Chinese to change the government, because the current one is too good.

Fortunately China is not a multi-party democratic country, otherwise the opposition party in China will be supported by notorious NGOs (Non-Government Organization) of the USA, like the NED (National Endowment for Democracy), to topple the ruling party. The US and the British couldn’t crack Mainland China, so they work on Hong Kong. Of all the ex-British colonial countries, only the Hong Kongers were offered BNOs by the British. Because the UK would like the Hong Kongers to think they are British citizens, not Chinese. A divide-and-conquer strategy, which they often used in Color Revolutions around the world.

They resort to low dirty tricks like detaining Huawei’s CFO & banning Huawei. They raised a silly trade war which benefits no one. Trade deficit always exist between a developing and a developed country. USA is like a luxury car seller who ask a farmer: why am I always buying your vegetables and you haven’t bought any of my cars?

When the Chinese were making socks for the world 30 years ago, the world let it be. But when Chinese started to make high technology products, like Huawei and DJI, it caused red-alert. Because when Western and Japanese products are equal to Chinese in technologies, they could never match the Chinese in prices. First world countries want China to continue in making socks. Instead of stepping up themselves, they want to pull China down.

The recent movement by the US against China has a very important background. When Libya, Iran, and China decided to ditch the US dollar in oil trades, Gaddafi’s was killed by the US, Iran was being sanctioned by the US, and now it’s China’s turn. The US has been printing money out of nothing. The only reason why the US Dollar is still widely accepted, is because it’s the only currency which oil is allowed to be traded with. The US has an agreement with Saudi that oil must be traded in US dollar ONLY. Without the petrol-dollar status, the US dollars will sink, and America will fall. Therefore anyone trying to disobey this order will be eliminated. China will soon use a gold-backed crypto-currency, the alarms in the White House go off like mad.

China’s achievement has been by hard work. Not buy looting the world.

I have deep sympathy for China for all the suffering, but now I feel happy for them. China is not rising, they are going back to where they belong. Good luck China.

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