Archive for the ‘Asia’ Category

Fat Pang’s Man of the Year

December 21, 2020

I have mixed emotions about Fat Pang, or Chris Patten, the last governor of Hong Kong. I guess I am just suspicious of British Tory politicians holding forth about matters of political principle in former British colonies. When Fat Pang was recently arrived as governor, I asked to interview him about his understanding of British colonial history (he read history as an undergraduate). His press manager asked what books I had read on the subject, and for a rough idea of questions. When I provided the requested information, the interview failed to materialise.

Nonetheless, Fat Pang’s Man of the Year article from Project Syndicate (original version and subscription details here), is worth a read. It is, of course, about the estimable Jimmy Lai.

Dec 17, 2020 Chris Patten

By jailing fearless Hong Kong pro-democracy campaigner Jimmy Lai on charges of breaking its new national security law, the Communist Party of China intends to reinforce the new limits to the rule of law, dissent, and autonomy in the city. But imprisonment often ennobles fighters for democracy and bolsters support for their cause.

LONDON – On December 12, Jimmy Lai, a successful businessman and brave campaigner for freedom and democracy, was led into court in Hong Kong in handcuffs and chains, accused of breaking the national security law recently imposed by the Communist Party of China (CPC). The Chinese authorities’ goal in charging Lai was to reinforce the new limits to the rule of law, dissent, and autonomy in the city.

The judge was handpicked by Hong Kong’s pliant chief executive, Carrie Lam, whose primary responsibility is to execute the CPC’s malevolent instructions regarding the city. Supporters of the 72-year-old Lai, including Catholic Cardinal Joseph Zen, were in the courtroom to witness him being denied bail until a trial scheduled for April 2021.

The Chinese government hates Lai, because he embodies a passionate belief in freedom, and we must hope that any time Lai spends in prison will be in Hong Kong rather than the mainland. His handcuffs and chains are a tragic symbol of what has happened to Hong Kong’s once-free society in 2020.

The CPC has of course victimized us all this year. The party initially covered up the COVID-19 outbreak in China and silenced brave doctors when they tried to warn the world about what we would soon face.

Some national leaders have added to the gloom. US President Donald Trump’s refusal to accept the result of an election that he lost by seven million votes has undermined America’s democratic system. His appalling behavior – abetted by Republican leaders and the GOP’s media allies – demeans him and his party and weakens the case for liberal democracy everywhere.

Meanwhile, Russian President Vladimir Putin continues to connive in the security services’ murders of his opponents and to undermine democratic states wherever he can. Other authoritarian leaders, from Turkish President Recep Tayyip Erdo?an to Hungarian Prime Minister Viktor Orbán, have consolidated illiberal regimes by changing their countries’ constitutions and electoral systems.

But it is Chinese President Xi Jinping who has represented the most serious threat to liberal democratic values this year. Exploiting the world’s preoccupation with the pandemic, Chinese forces have killed Indian soldiers in the Himalayas, sunk and threatened other countries’ fishing vessels in international waters, and menaced Taiwan. Xi’s regime has also continued to pursue genocidal policies toward Muslim Uighurs in Xinjiang, in addition to targeting Hong Kong’s freedoms.

When Hong Kong returned from British to Chinese sovereignty in 1997, China’s leaders promised in an international treaty lodged at the United Nations that the city would continue to enjoy its way of life and high level of autonomy for 50 years. That promise, like so many of the CPC’s undertakings, has now been junked.

China was clearly horrified that elections and demonstrations increasingly showed that the majority of people in Hong Kong refused (like the Taiwanese) to accept that to love China, they had to love the CPC. But at least two-thirds of Hong Kong citizens were themselves refugees or relatives of refugees from the horrors of China’s communist history.

These people wanted to retain the system that had helped them prosper and made Hong Kong an international economic hub. The city’s governance, like that of other free societies, was based on the separation of executive, legislative, and judicial powers, freedom of expression, and a market economy.

These aspects of an open society terrify Xi’s regime. The CPC’s control depends on party bosses at the center maintaining an iron grip on everything. Universities and schools must be “engineers of the soul,” to use Stalin’s phrase. Courts should do what the CPC tells them. The free flow of information is too dangerous, and any notion of democratic accountability must be stifled.

Countries from Australia to Canada that criticize some of the CPC’s behavior are singled out for commercial bullying, or worse. China has taken two Canadian citizens hostage because of Canada’s 2018 decision to detain a senior executive of Chinese telecommunications firm Huawei; the men are about to spend a third Christmas in solitary confinement.

This year, it was Hong Kong’s turn. The comprehensive stifling of the city’s freedom has proceeded remorselessly, encompassing schools and universities, the legislature, courts, civil service, and the media. All dissent is to be crushed, with democracy campaigners thrown into prison.

Lai is the latest and most prominent victim of the CPC’s idea of law, which the American China scholar Perry Link once described as like “an anaconda in the chandelier.” Lai was born in China but escaped to Hong Kong as a 12-year-old stowaway without a penny to his name. He worked in a garment factory, earned enough to start his own business, and founded the international retail fashion chain Giordano.

Lai never forgot that it was freedom and the rule of law that allowed him and others to prosper, and he denounced communism’s contempt for both. After the 1989 massacre of demonstrators in Tiananmen Square and elsewhere in China, he criticized then-Chinese premier Li Peng directly. As a result, his home and businesses were attacked and bombed by United Front communist activists and their fellow travelers in Hong Kong’s criminal triads.

Forced to close his garment business, Lai established a hugely popular magazine and newspaper group. He strongly supported democracy and never toned down his criticisms of Chinese communism. A devout Catholic, Lai regarded Hong Kong as his home, and was determined to stay and fight for the city he loved.

For the apparent crimes of principle and courage, and his refusal to surrender his beliefs, Lai has been targeted by a vengeful CPC with the collaboration of a few Hong Kong lickspittles whose reputations will forever be tarred by shame and infamy. But imprisonment often ennobles fighters for democracy and bolsters support for their cause: think of Martin Luther King, Jr., Nelson Mandela, or Václav Havel. And now think of Jimmy Lai, my man of the year.

Vogel passes, leaving lessons for us all

December 21, 2020

Ezra Vogel, a remarkable East Asia scholar, author of the best biography of Deng Xiaoping, and all round generous, decent man, has passed away. Below is an obituary posted by his son. If you work on developing countries, the takeaway for me is the breadth of intellectual tools that Ezra Vogel applied during his life to produce outstanding scholarship. This was no one-trick pony.

Ezra F. Vogel, 90, one of the country’s leading experts on East Asia through a career that spanned six decades, passed away in Cambridge, MA, December 20 due to complications from surgery.

Vogel studied an extraordinary range of substantive topics in multiple countries from the perspectives of various academic disciplines, retooling himself as a scholar many times over in his academic career.  He was originally trained as a sociologist studying the family in the United States.  He devoted two years to language study and field research in Japan in 1958-60, emerging as a specialist on Japanese society.  He then embarked on Chinese-language study in the 1960s, before it was possible to travel to mainland China, and became an accomplished scholar of Chinese society as well.  His scholarship spanned from family issues, to social welfare, industrial policy, international relations, and history.  He served as the National Intelligence Officer for East Asia with the National Intelligence Council from 1993 to 1995, and maintained a strong interest in U.S. foreign and security policy in Asia from that time.  He turned to history in his later years, producing magisterial works on Deng Xiaoping and Sino-Japanese relations. 

Vogel’s scholarship was not restricted to any single methodology, but rather reflected his drive to get the story right through whatever means necessary.  For his research on the Japanese family, he engaged in intensive ethnographic research with his first wife, Suzanne Hall Vogel, interviewing six families about once a week for a year.  He kept up with some of the families over the years, and the family friendships now span three generations.  For his first book on China, he relied primarily on interviews in Hong Kong with refugees who had escaped from the Guangzhou region.  He was a passionate life-long student of language, and he mastered both Japanese and Chinese.  He took pride in his ability to conduct research and give public lectures in both languages.

Vogel will be most remembered for his boundless good cheer and boyish enthusiasm.  He grew up in the small town of Delaware, Ohio, the son of Jewish immigrants, Joe and Edith Vogel.  His father ran a men’s and boys’ clothing store in the center of town, the People’s Store, and he often helped out.  He managed to transfer the effusive friendliness of a small-town shoe salesman to the unlikely corridors of Harvard University and Washington D.C.  He had an irrepressible ability to see the good in every person and every nation, while recognizing nonetheless that many of us fall short of our ideals.  He sustained a network of Japanese graduate students and young scholars at Harvard, the “juku” (study group), which met regularly at his home in Cambridge until the Coronovirus pandemic intervened.  He hosted smaller groups of students working on China as well.  He participated in a reunion of former students, colleagues, and “juku” members almost every summer in Tokyo.

Vogel was a devoted husband and father, who hosted a celebration for his extended family at his home every holiday season for the past 25 years.  The 2020 reunion was to be via Zoom on the day he passed away.  He loved keeping up with friends, family and colleagues.  Undeterred by COVID-19, he raved about his ability to talk to family and colleagues in Japan, China, and other parts of the world with Zoom.  He and his wife Charlotte were supportive companions.  Among other activities, they enjoyed running daily for twenty years.  When his knees began to falter, they turned to biking for the last twenty years.  He even biked four miles one day shortly before he died.  He maintained long-term friendships, regularly going back for high school and college reunions in his hometown.  He made a major gift to his hometown alma mater, Ohio Wesleyan, of the entire royalties from the mainland Chinese edition of his biography of Deng Xiaoping.

Vogel was the Henry Ford II Professor of the Social Sciences Emeritus at Harvard.  After graduating from Ohio Wesleyan in 1950 and serving two years in the U.S. Army, he studied sociology in the Department of Social Relations at Harvard, receiving his Ph.D. in 1958.  In 1960-1961 he was assistant professor at Yale University and from 1961-1964 a post-doctoral fellow at Harvard, studying Chinese language and history.  He remained at Harvard, becoming a lecturer in 1964 and a professor in 1967.  He retired from teaching in 2000.

Vogel was also an institution builder at Harvard.  He succeeded John Fairbank to become the second Director (1972-1977) of Harvard’s East Asian Research Center and Chairman of the Council for East Asian Studies (1977-1980).  He co-founded the Program on U.S.-Japan Relations at the Center for International Affairs and served as its first Director (1980-1987) and as Honorary Director ever since.  He was Chairman of the undergraduate concentration in East Asian Studies from its inception in 1972 until 1991.  He was Director of the Fairbank Center (1995-1999) and the first Director of the Asia Center (1997-1999).  He was Chairman of the Harvard Committee to Welcome President Jiang Zemin (1998).  He also served as Co-Director of the Asia Foundation Task Force on East Asian Policy Recommendations for the New Administration (2001).

Drawing on his original field work in Japan, he wrote Japan’s New Middle Class (1963).  A book based on several years of interviewing and reading materials from China, Canton Under Communism (1969), won the Harvard University Press faculty book of the year award.  The Japanese edition of his book Japan as Number One: Lessons for America (1979) was a breakaway best-seller in Japan.  In Comeback (1988), he suggested things America might do to respond to the Japanese challenge.  He spent eight months in 1987, at the invitation of the Guangdong Provincial Government, studying the economic and social progress of the province since it took the lead in pioneering economic reform in 1978.  The results are reported in One Step Ahead in China: Guangdong Under Reform (1989).  His Reischauer Lectures were published as The Four Little Dragons: The Spread of Industrialization in East Asia (1991).  He visited East Asia every year after 1958 and spent a total of over six years in the region.  He returned from his most recent trip to China in January, just as word was first coming out about the COVID-19 pandemic.

At the age of 81, Vogel published the definitive biography of Deng Xiaoping, Deng Xiaoping and the Transformation of China (2011).  The book won: the 2012 Lionel Gelber Prize, Lionel Gelber Foundation, Munk School of Global Affairs at the University of Toronto; Honorable Mention 2012 for the Bernard Schwartz Book Award, Asia Society; Finalist 2011 for the National Book Critics Circle Award for Biography; a Bloomberg News Favorite Book of 2014; and Esquire China Book of the Year 2012; a Gates Notes Top Read of 2012; an Economist Best Book of 2011; a Financial Times Best Book of 2011; a New York Times Book Review Editor’s Choice 2011; a Wall Street Journal Book of the Year 2011, and a Washington Post Best Book of 2011.  The book became a bestseller in China.

At the age of 89, he published China and Japan: Facing History (2019), which reviews the history of political and cultural ties between the two nations over 1500 years.  Vogel hoped that the book would offer an accurate portrayal of how the two countries learned from each other over the centuries, but also serve to encourage the Chinese and Japanese leaders to forge a more constructive relationship going forward.  Vogel was also concerned about the state of U.S.-China relations

Vogel received honorary degrees from Kwansei Gakuin (Japan), the Monterrey Institute, the Universities of Maryland, Massachusetts (Lowell), Wittenberg, Bowling Green, Albion, Ohio Wesleyan, Chinese University (Hong Kong) and Yamaguchi University (Japan).  He received the Japan Foundation Prize in 1996 and the Japan Society Prize in 1998.

Vogel is survived by his wife of 41 years, Charlotte Ikels; son David Vogel of Cambridge, MA; son Steven Vogel of Berkeley, CA; daughter Eve Vogel of Amherst, MA; sister Fay Bussgang of Dedham, MA; and five grandchildren. 

Resource links

Scholar profile here.

Harvard Fairbank Center profile here.

Wikipedia page here.

Amazon book page here.

YouTube videos here.

New York Times interviews here.

Oz and China go head to head

September 22, 2020

China’s relationships with all sorts of countries are, to say the least, fraying. Much of the coverage in this respect focuses on Sino-US relations. But more interesting from a fight-lover’s perspective is a confrontation such as Australia versus China. A nation of 25 million, heavily dependent on trade with the Middle Kingdom, squares up against a nation of 1.3 billion.

Without going into the background of why the Aussies are ready to deck Beijing, this article about personal experience highlights how ugly the fight is getting. A journalist describes a threat to put his 14-year-old daughter in prison and his family’s flight from China.

To my understanding, although the minimum age of legal responsibility in China is 14, it would not be easy under Chinese law to put a 14-year-old in prison for a non-violent crime (probably easier to lock up the parents and put the child in an orphanage — a favourite tactic in Tibet and spectacularly unpleasant). But the fact that Foreign Ministry and police employees threatened prison in this case tells you something about what is going on.

It is also a reminder of how un-Chinese the Chinese Communist Party is becoming. Respect for kids is one of the more reliable and charming aspects of Chinese culture. Just not in this case.

Busting Baidu

August 31, 2020

BuzzFeed, which I must confess I have not previously paid attention to, has produced a couple of fantastic reports on Chinese repression in Xinjiang. The two reports are here and here.

What is even more interesting than these reports if you are concerned about research methodologies is the nuts and bolts of how BuzzFeed used the efforts of China’s leading search engine, Baidu, to hide what is going on to instead expose what is going on.

That fascinating story is here. It is to do with how the airbrushing of satellite maps by Baidu actually led researchers to the location of hundreds of new internment and forced labour camps.

Baidu is often described as the Google of China. This is a near-literal comparison because most of what Baidu does it ripped off straight from Google, even down to ‘moonshot’ investments like self-driving cars. Baidu has never, to my knowledge, produced meaningful innovation, unlike firms such as Tencent and Bytedance, the Tik Tok creator.

If you own Baidu stock (BIDU), I would get rid of it. The rising Economic Social and Governance (ESG) movement that seeks to promote more ethical investing is presented with a very juicy target here. Plus, Baidu doesn’t seem to be able to innovate anyway, so you won’t even get rich from supporting the concealment of genocide.

Another day in Hong Kong

August 27, 2020

Further confirmation — if indeed it is needed — that press freedom is a thing of the past in Hong Kong. The city’s lickspittle government has denied a visa to the incoming editor of the excellent Hong Kong Free Press. This type of behaviour is standard practice in autocracies like China when governments want to censor without being seen to explicitly do so. However, it is a relatively new phenomenon in Hong Kong.

The piece pasted below explains the context. If you can spare any money, I would encourage you to donate to HKFP to support their free-to-reader coverage while raising a middle finger to the Hong Kong government. The donation process is very quick.

After Jimmy Lai was arrested and his Chinese-language tabloid Apple Daily‘s offices raided, Hong Kong people variously bought the company’s stock and purchased record volumes of the newspaper as a means to support Mr Lai and his paper and to show the government what they thought. The English-language HKFP doesn’t have the same audience-reach in Hong Kong and relies on donations from around the world.

The Hong Kong government will doubtless thank you for supporting quality journalism because it says the media are absolutely hopeless at their job. Only yesterday government and police spokespeople were pointing out that journalists completely misinterpreted photographs and video footage of police officers hanging out with suspected triad members.

The police were not consorting with triad members in attacks on pro-democracy protesters and random members of the public. Instead they were forcing the naughty triad types to go home. Anyone who cannot see the police actively pushing those ‘white shirts’ away hasn’t watched the video footage closely enough. The police didn’t take their names — despite the men being armed — because… err, well, that bit we haven’t come up with a cunning answer to yet. The main thing is that everyone agrees that there should not be an independent enquiry because we all trust the Hong Kong police and Carrie Lam.

Here is some ridiculous mis-reporting of the issue by more of those terrible journalists, in this instance ones who work for the Hong Kong equivalent of the BBC.

Visas ‘weaponised’: Gov’t denies Hong Kong Free Press editor a work visa, without explanation, after 6-month wait


Hong Kong Free Press has been denied a work visa for an established journalist following an almost 6-month wait. The Immigration Department’s rejection for HKFP’s incoming editor Aaron Mc Nicholas was handed down without any official reason on Tuesday, raising further concerns for the business community and the city’s press freedom in light of the new security law.

The news comes weeks after New York Times journalist Chris Buckley was forced to leave the city after being denied a visa without reason amid a tit-for-tat dispute between Washington and Beijing. The US newspaper subsequently shifted a third of their local workforce to South Korea.

Editor-in-chief Tom Grundy said that many other news outlets remain in limbo amid unprecedented visa delays, and a pattern had now emerged: “We are a local news outlet and our prospective editor was a journalist originally from Ireland, so this is not another tit-for-tat measure under the US-China trade dispute. It appears we have been targeted under the climate of the new security law and because of our impartial, fact-based coverage.”

He said that neither the applicant, nor HKFP, had been denied a visa before: “Other sectors can expect to be subjected to a similar bureaucratic rigmarole in light of the security law. Companies are already leaving or avoiding the city for this very reason,” Grundy said. “Businesses can be assured that visa issues are now a feature, not a bug. They may decide that Hong Kong is no longer a suitable place to set up a regional headquarters or base.”

He added that HKFP would press the government to offer reasons for the denial and will consider an appeal and legal challenge. 

Work visas ‘weaponised’

A senior lawyer – who has represented a number of media organisations and journalists but did not wish to be named – said the denial of visas for two respected journalists in such a short time was “unprecedented and deeply concerning.”

“This strongly indicates that the Hong Kong authorities, like those in the PRC [People’s Republic of China], have now weaponised work visas as a tool to control the reporting of Hong Kong affairs by international and local media, as well as silence free speech for all those needing a visa,” he said.

“Press freedom in Hong Kong has been under attack since the Victor Mallet case in late 2018. These actual and de-facto denial of visas for journalists since the national security law indicates how far and how fast the authorities are prepared to degrade press freedom in Hong Kong,” he added, referring to visa delays.

In an emailed response to HKFP on Tuesday, a spokesperson for Immigration did not state why the visa was denied: “Hong Kong has always adopted a pragmatic and open policy on the employment of professionals in Hong Kong, allowing those possessing special skills, knowledge or experience of value to and not readily available in Hong Kong to apply to come to work, including journalistic work,” they said. They added that each case was processed in accordance with the law.

‘Against press freedom’

The Committee to Protect Journalists’ Asia Programme Coordinator Steven Butler told HKFP that the incident undermined the city’s free status: “Denial of a work visa to a thriving local news operation bashes the most basic promise of press freedom given repeatedly by the Hong Kong government. It also severely undermines Hong Kong’s status as an international city and financial centre, which cannot flourish unless journalists are free to do their work.”

Meanwhile, in a statement, Reporters Without Borders’ East Asia chief Cédric Alviani told HKFP that months-long delays were highly unusual: “The Hong Kong government must revert this decision that clearly goes against press freedom, a principle enshrined in the Basic Law.”

The Hong Kong government must revert this decision that clearly goes against press freedom, a principle enshrined in the Basic Law”, Alviani said adding the the rejection is another sign of the decline in press freedom following the implementation of the security law whereby “the Beijing regime allows themselves to directly intervene on the territory.” He also cited the arrest of pro-democracy media tycoon Jimmy Lai this month, and the raid on the Apple Daily offices.

6-month delay

News outlets such as the Wall Street Journal, New York Times and South China Morning Post have also reportedly suffered months-long delays in a process that normally takes a few weeks. Despite the Covid-19 pandemic, HKFP knows of visas for professionals in other industries that have been processed within reasonable time-frames.

Local media reported earlier this month that visas for journalists are now being vetting by a new national security unit within the Immigration Department. When asked about the unit last week, Immigration did not answer directly or deny its existence, but a spokesperson said that visas were processed by the Visa and Policies Branch.

Earlier this month, the Foreign Correspondents’ Club said that highly unusual processing delays have “affected journalists of multiple nationalities and in some cases have prevented journalists from working.” It has yet to receive a response to its latest letter demanding an explanation.

Jodi Schneider, president of the press club, told HKFP on Wednesday that they were closely following the issue: “This is obviously a key concern for the media working in Hong Kong. It is a press freedom issue.”

More:

I just ordered a new board game about Hong Kong police corruption via Kickstarter. It was inspired by the legendary Hong Kong police corruption of the 1960s and early 1970s. But maybe the game is relevant today? Let’s hope it arrives! Billionaire Seargeant is sold here.

Essential viewing for Johnson, Hancock and Trump

August 19, 2020

Just in case the leaders of Britain and the United States want to know what competent management of Covid looks like, Taiwan’s Digital Minister Audrey Tang explains how the island identified the Covid threat early and used, built and modified technical systems to deal with it effectively.

The leaders of Britain and the United States are warned that the content is a bit ‘sciency’ and ‘experty’ and they may find it harder to follow than Love Island. However, it is well worth watching.

Ms Tang’s explication begins at 12 minutes.

She explains the advantages of attentive research and using your brain after minute 14.

She explains the advantages of trusting your population around minute 16.

She explains the advantages of being honest, open and transparent about levels of PPE supply after minute 17.

She explains how to counter idiotic misinformation and establish facts after minute 23.

She talks about data privacy and quarantine monitoring after minute 26. And again at minute 39.

She explains why masks are important and offers to share the technology to make millions of them every day after minute 49. After minute 56 she again stresses the point that masks stop you touching your mouth and nose with potentially infected hands.

She makes several points about false dilemmas that may be presented in relation to Covid after minute 58.

She notes that mainland Chinese whistleblower Li Wenliang likely saved the lives of many people in Taiwan (because Taiwan was paying attention) and reminds us that what is most different about Covid-19 is asymptomatic transmission, after minute 63.

As of today, Taiwan has had just 486 recorded cases of Covid and seven deaths. Here are ongoing data.

Unfortunately Ms Tang’s slides do not appear on the video below.

Good luck Boris, Matt and Donald!

Predicted by Orwell, Designed in China, Running Hong Kong

August 16, 2020

The link below will take you to an excellent review of the activities of China’s United Front Work Department (UFWD) in Hong Kong. It is the UFWD that orchestrated the political, administrative and civil society takeover of Hong Kong in the past 23 years, contrary to China’s ‘binding’ legal agreement with Britain that the place would run itself (with a few understandable exceptions) for at least 50 years. The author is the former New York Times correspondent and long-time China watcher Didi Kirsten Tatlow.

The piece explains the role of the Chinese People’s Political Consultative Conference (CPPCC), which does a great job of co-opting persons who are (usually) not Communist Party members and getting them to act as Communist Party running dogs. Among highlighted Hong Kong CPPCC stars are late tycoons Henry Fok and Tung Chee-hwa, who readers of my 2007 Asian Godfathers will be familiar with.

There is also a nice presentation of evidence about how China has infiltrated and increasingly directed the Hong Kong police force and made use of local triads as ‘patriotic’ allies in its war against ‘Western’ influence and all things liberal. In the interests of historical fairness, it should be noted that the British also made use of patriotic triads when re-taking control of Hong Kong from the Japanese at the end of the Second World War, as beautifully related in Philip Snow’s The Fall of Hong Kong. The mafia in Hong Kong has batted for both sides, although it probably enjoys batting people over the head for Beijing more.

The document is here.

United Front Work Department in HK 0820

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August 10, 2020

No, China isn’t going to take over the world.

If you thought it was, take a look at the dull but important new paper on the country’s history of productivity growth at the link below.

The paper sets out China’s extraordinary record on productivity growth over the past 40 years. At its root was the move out of agriculture and into — in particular — manufacturing, as described in How Asia Works.

In the 1990s, Zhu Rongji kept the game going by laying off state workers and greatly increasing competition among state-owned firms. Contrary to what many economists (such as those who advised Russia) expected, state firms began to quickly close the productivity gap on private firms. It turned out that competition was much more important than ownership.

Productivity gains remained strong in the early 2000s as China’s economic boom came to the world’s attention.

In the past decade, however, the data show that China’s model hit the buffers. After the global financial crisis, more and more investment went into infrastructure and real estate with low productivity gains. State enterprises sucked up easy credit and stopped catching up the private sector in terms of efficiency. And rates of bankruptcy remained low, preventing the exit of less efficient firms, which is an important longer term driver of productivity gains in any highly productive economy.

I have mentioned before that Xi Jinping reminds me of South Korea’s last autocrat, Chun Doo Hwan. As a corollary of the collapse in productivity growth, the credit picture in China is also beginning to resemble Korea in the mid-1980s as smaller, weaker banks and non-bank financial institutions take a much bigger share of financial system assets and make riskier loans to less productive activities. As the paper notes, the Big Four Chinese banks’ share of bank system assets has fallen from more than half before the global financial crisis to well under two-fifths today.

China’s total factor productivity is still less than half that of the United States. There is no reason why China could not catch up, but to do so it would have to change policies on competition and economic openness that just aren’t going to be changed by the Communist Party of China. And that is why China isn’t going to take over the world, or indeed anything close.

Chinas-Productivity-Slowdown-2020 clean

The end of Hong Kong

August 10, 2020

What could be more symbolic of the end of freedom in Hong Kong than a huge police raid on the offices of the leading Chinese-language tabloid newspaper and the arrest of executives including its owner, Jimmy Lai? The raid took place today and was conducted by a police unit created under the new Beijing-imposed national security law. One of the alleged crimes is reported to be ‘foreign collusion’, a new mainland-style catch-all offence that can lead to years in prison.

The national security law is only a few weeks old and we don’t know exactly how it will be applied. However, it makes bail unlikely. Whether court sessions will even be open to the public is unclear. Police already barred several media organisations from a press conference following the arrests.

What amazes me is how the Hong Kong government and the Hong Kong police force have entirely come on side for the new security law and seemingly flipped into an authoritarian police state without even a murmur.

The Communist Party of China hates Jimmy Lai. He escaped from the mainland as a child by sneaking across the Hong Kong border. His tabloid publications are the absolute antithesis of what the Party thinks the press should be. And he doesn’t give a fuck. He has been the victim of numerous attacks, including fire bombings, that are almost certainly Party-sanctioned or Party-condoned. But now the Party doesn’t need to use thugs to deal with Jimmy Lai because it has its national security law and a pliant, Vichy-style administration.

Here is the Washington Post coverage.

Here is a CBC interview with Jimmy Lai a few days ago.

Here is some coverage in long-form Chinese.

Here is the Twitter feed of Mark Simon, an American media executive who has worked for Jimmy Lai for decades.

Here is the Twitter feed of my old Hong Kong friend and rabid misanthrope Hemlock. I wonder which prison they’ll put him in? That said, he does know more Chinese history than the average paid-up Party member. Maybe they will create a prison library for him.

 

More, later:

Jimmy Lai was given police bail. That doesn’t mean he will get bail when he is charged which, as I wrote, the National Security Law (NSL) presumes against. What this means is that the police — or rather the people who are telling the police what to do — haven’t yet decided what to charge Lai with. However, the game looks distinctly mainland China in the way it is being played. In addition to NSL charges the police have also mentioned a fraud inquiry. This leaves the classic Chinese fallback of doing him for some trumped-up ‘economic crime’ if the powers that be decide that international (and local Hong Kong) reaction to a national security conviction will be unacceptably strong at this time. Whatever happens, what people from less brutal societies understand by rule of law is out of the window in Hong Kong.

 

Here is a short new piece about Jimmy Lai from the New Yorker.

Crazy optimism about China

May 8, 2019

There has been so much dreary news about repression in China under Xi Jinping. Lawyers, academics, civil society types, all locked up and brutalised. In the past five years under Xi, China has assumed a new and mundane identity. It is no longer the country of economic miracles, it is a regressive, bullying state, best known for herding a million Uyghurs into ‘re-education’ camps.

To me, Xi’s China recalls South Korea under Chun Doo Hwan in the 1980s. Chun, like Xi, came to power after economic lift-off. Chun, like Xi, established some sort of popular domestic political appeal with an anti-corruption campaign. But Chun, like Xi, was politically backward-looking and unimaginative. Chun was indeed even more politically repressive than what had gone before. Just like Xi Jinping.

It seemed in South Korea that Chun’s repression would go on for ever. And yet, in 1987, his authority quickly dissolved and a year later he was finished. Could such a thing happen to Xi Jinping, a leader who has done away with term limits in place since the demise of Mao Zedong? An essay by Ian Johnson in the New York Review of Books conjectures that such an outcome is not impossible. What a lift for the world it might be.

 

A Specter Is Haunting Xi’s China: ‘Mr. Democracy’

Stuart Franklin/Magnum Photos

Pro-democracy protesters at Tiananmen Square, Beijing, 1989. China’s Communist authorities are wary about the approaching thirtieth anniversary on June 4

Beijing—Something strange is happening in Xi Jinping’s China. This is supposed to be the perfect dictatorship, the most sustained period of authoritarianism since the Cultural Revolution ended more than forty years ago, a period of such damning disappointment that all but the regime’s most acquiescent apologists have become cynics or critics. And yet the past few months have also seen something potentially more interesting: the most serious critique of the system in more than a decade, led by people inside China who are choosing to speak out now, during the most sensitive season of the most sensitive year in decades.

The movement started quietly enough, with several brilliant essays written by a Chinese academic that drew an attack from his university bosses, which in turn stirred a backlash among Chinese public intellectuals. None of this means that the Communist Party is getting ready to loosen its icy grip over the country, but it is a remarkable series of events that is challenging what was supposed to be possible in Xi’s China.

Although the party never ruled over a golden age of free speech in China, it was possible to argue that for a decade up until the late 2000s China was getting freer. The combination of economic reforms and proliferating new media appeared to be permitting citizens more personal autonomy and freedom of expression. That began to change slowly soon after Beijing hosted the 2008 Olympics. First came the detention of Liu Xiaobo for helping to organize “Charter 08,” a document calling for modest constitutional reforms—a stand later recognized by the award of a Nobel Peace Prize. Then the overthrow of autocracies during the Arab Spring in 2011 fed into party neuroses about secret plots and uprisings, and this last decade has seen the end of meaningful public debate of almost any kind.

Enter Xu Zhangrun. A fifty-six-year-old professor of constitutional law at Beijing’s prestigious Tsinghua University, Xu is well known in Beijing as a moderate and prolific critic of the government’s increasing embrace of authoritarianism. Since 2012, he has published and spoken widely about his concern over China’s course. Some of his essays are mentioned in “China’s Moment,” translated by David Ownby, a University of Montreal history professor who, with several other scholars, started an invaluable website called “Reading the China Dream,” which makes available leading Chinese thinkers in English. Others are translated by the scholar Geremie Barmé and collected on this page of the China Heritage website.

While most of Xu’s earlier writing was couched in fairly dense language, he decided last July to make his message much more explicit. Writing for the website of the now-shuttered Unirule Institute of Economics, Xu issued what amounts to a petition to the emperor in the classical style. He bluntly explained that the government’s ever-tightening grip was leading the country to disaster, and he demanded measures to reverse course.

Xu’s original article last year, called “Our Immediate Hopes and Expectations,” was republished by The Initium, an independent Chinese-language website based in Hong Kong. That already helped to make it one of the most widely read recent articles critiquing the government; then it was translated as “Imminent Fears, Immediate Hopes” by Barmé, who added an invaluable preface explaining the long tradition of petitions or memorials to the throne.

Xu writes that ever since the Cultural Revolution, China’s rise has been based on four basic principles: an end to political campaigns; permitting private property and wealth accumulation; tolerance for some personal freedoms; political term limits to prevent the return of dictators like Mao. All of these, he implies, have been breached by Xi; the violation of the fourth principle enables Xi to serve beyond the end of his two five-year terms in 2022.

Xu then sets out eight expectations—in effect, demands of the government—that include the abolition of special privileges for Communist Party cadres, the disclosure of leaders’ personal assets, the end of what he sees as a personality cult around Xi, and a return of term limits. Most incendiary of all, he calls for the overturning of the official verdict on the June 4, 1989, Tiananmen Massacre, which was that the use of deadly force was justified because the protests were a “counter-revolutionary rebellion.”

To get a measure of Xu’s bluntness, here is how he describes (in Barmé’s translation) the privileges enjoyed by party members, including health care:

On one side of the hospital Commoners face the challenge of gaining admission for treatment, while everyone knows that grand suites are reserved on the other side for the care of high-level cadres. The people observe this with mute and heartfelt bitterness. Every iota of this bottled up anger may, at some unexpected moment, explode with thunderous fury.

Also worrying for Xu is the state of Sino–US relations, which he sees as threatened by leaders on both sides of the Pacific. In the US, he says “a crowd of the Ghoulish Undead, nurtured on the politics of the Great Game and the Cold War” is pushing mercantilist politics that are “shortsighted and avaricious.” China, meanwhile, is run by Xi, referred to simply as “the One”:

The One is blind to the Grand Way of current affairs and is scarred indelibly by a political brand from the Cultural Revolution. Overweening pride and official competence leads this One to bend his efforts to serve the wrong ends; talented enough to play the bureaucratic game, and doubtlessly masterful at achieving high office, but as for Guiding the Nation along the Correct Path, [what the One does] is worse than arrant time-wasting for there is something perverse at work.

Xu followed this up with several other articles warning about silence and complicity, as well as an extensive three-part critique of the party since reforms began in 1978. Although all of Xu’s articles were immediately censored, Xu himself initially escaped official criticism—until this year, when in March he was suspended from teaching and placed under investigation.

That led to a series of courageous essays from Chinese public thinkers. One leading voice was Guo Yuhua, a colleague of Professor Xu’s at Tsinghua who has herself been sidelined by the university while her critique of the government has been censored and suppressed. (See the NYR Daily’s 2018 Q&A with her here.) Guo wrote that the university was destroying its reputation by attacking Xu.

Other scholars or prominent voices who joined in include the independent writer Zhang Yihe, the film critic and publisher Geng Xiaonan, the translator and scholar Zi Zhongyun, the law professor Xia Li’an, and the Peking University economics professor Zhang Weiying (who revised a folk ballad to support Xu; it can be heard here). Many others have followed, including some writing sarcastically of the need to get rid of all professors, and some using classical poetry to voice their support. In addition, Chinese and foreign scholars launched a petition to support Xu, which can be viewed, and signed, here.

All the more surprising is that these public statements are happening at an exceptionally delicate time. As always in China, the reason is history. This June 4 will be the thirtieth anniversary of Tiananmen, which will be preceded exactly a month earlier by the hundredth anniversary of the May Fourth Movement, itself a turning point in modern Chinese history when Chinese took to the streets demanding “Mr. Science” and “Mr. Democracy”—in other words, a modern economy and military in tandem with a modern political system. As many commentators are bound to point out in the coming weeks, the country is in the process of obtaining the former while stifling all efforts to create the latter. Finally, this October 1 will be the seventieth anniversary of the founding of the People’s Republic. The collision of all these momentous historical precedents means that it takes inordinate courage for critical public intellectuals to speak out now.

The government is, of course, adept at marginalizing such voices. Inside China, accessing these articles by Xu, Guo, and others requires a VPN, software that enables a user to bypass China’s censored intranet and access the global Internet. As a result, Xu and his supporters are unknown to the vast majority of Chinese people.

That makes it hard for public intellectuals to effect change. But they perform another, important function: reflecting the Zeitgeist of an era. Even though Xi is personally popular among many in Chinese society, my impression in traveling widely through different parts of China and observing different strata of society is that people are also conscious of a sense of loss—that the dynamism of the 1990s and 2000s has been turned into something more rigid and stagnant. Even China’s vaunted economic development, which for decades masked all sorts of popular discontent, is slowing, and the government lacks any impetus for reform that would create new motors of growth.

Xu’s case is therefore about far more than another dissident’s being silenced or a few lonely voices speaking out in protest. Instead, it captures a sense that the government has overplayed its hand on many fronts and that opposition is building.

All of this might well be impossible to sustain. But over the past century, even during the darkest times, the underlying humanism of Chinese culture has never been extinguished and has even, at critical moments, reasserted itself. This might seem too romantically hopeful, but it reminds me of a saying from traditional Chinese thought: wu ji bi fanWhen things reach an extreme, they must move in the opposite direction. We can only hope that this pendulum is now at its farthest extent, and that we are witnessing a slow but steady swing in the opposite direction.