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