Wandering China

An East/West pulse of China's fourth rise from down under.

How Chinese Subsidies Changed the World [Harvard Business Review] #RisingChina #Solar #GovernmentSubsidies

Unfair or unacceptable paradigm? China finances its economic reach to extend its soft power. It is perhaps, simply, a more synergistic strategy between state and its business sector.

Chinese solar products I use have proven ruggen and hardy, down to the little solar toys.

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How Chinese Subsidies Changed the World
by Usha C.V. Haley and George T. Haley |
Harvard Business Review, published April 25, 2013

Last week, LDK Solar, a struggling Chinese manufacturer of solar wafers and panels, announced that it had missed $24 million in bond payments. This news followed the bankruptcy in March of Wuxi Suntech, the main operating subsidiary of the world’s largest maker of solar panels, after it defaulted on a $541 million bond payment.

It is no coincidence that this upheaval in the Chinese solar industry is occurring at a time when the central government’s subsidies that had financed the industry’s explosive expansion have declined even as problems in the global solar-panel market have soared.

Since 2008, through government subsidies, the manufacturing capacity of China’s solar-panel industry grew tenfold, leading to a vast global oversupply. A surge in exports of Chinese panels depressed world prices by 75%. In 2012, China’s top six solar companies had debt ratios of over 80%. Our research showed that without subsidies, these companies would be bankrupt. If the Chinese government sticks to its decision to stop funding unprofitable solar-panel manufacturers and support a revamping of the industry, more bankruptcies and restructurings are sure to follow.

Please click here to read the full article at the Harvard Business Review.

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Filed under: Beijing Consensus, Charm Offensive, Chinese Model, Collectivism, Culture, Domestic Growth, Economics, Finance, Government & Policy, Harvard Business Review, Ideology, Influence, Infrastructure, International Relations, Mapping Feelings, Media, New Leadership, Peaceful Development, Politics, Public Diplomacy, Reform, Soft Power, Solar, Strategy, The Chinese Identity, Trade

Escape From China: One-Fifth Of Affluent Chinese Plan To Emigrate [IBT] #RisingChina #Emigration

Third wave of emigration = more agents for Chinese public diplomacy?

To access the International Emigration Report 2012, go here.

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Escape From China: One-Fifth Of Affluent Chinese Plan To Emigrate
By Sophie Song
Source – International Business Times, published May 07 2013

According to China’s International Emigration Report (2012), jointly published by the Center for China & Globalization and the Beijing Institute of Technology School of Law, China is now experiencing a third wave of emigration, one that will take its newly accrued wealth abroad.

20130510-071707.jpg

Photo: REUTERS/Enrique Castro-Mendivil Chinese immigrants eat during the Chinese New Year celebrations in Lima.

“The most significant difference between the current group of emigration and previous emigrants is that the masses are now emigrating by investment,” Wang Huiyao, the director of the Center for China & Globalization, said in an interview with China Youth, a Chinese newspaper focused on China’s young people.

The first Chinese citizens to emigrate en masse left at the end of the 1970s, when China first rolled out its economic reforms, according to Wang. Many from China’s coastal provinces emigrated illegally. The second wave came at the end of the 1980s, when the first generation of Chinese with advanced, often technical, degrees emigrated. Now, with the third wave taking place, China’s richest are bringing their newly acquired wealth elsewhere. They will, or at least their destination countries hope they will, create work opportunities for natives by investing in businesses there.

According to the Chinese Affluent Class Wealth White Paper published by Forbes China, 10.26 million Chinese could be considered affluent. Of this group, 2.6 percent have already emigrated, and 21.4 percent plan to do so. Significantly, when asked whether they want to send their kids to attend school outside of China, 74.9 percent answered yes.

Please click here to read the full article at its source.

Recently, the emigration fever has spread from coastal towns to large cities and even, at a slower pace, to smaller cities.

“Previously, most emigrants came from coastal regions,” said Zhang Yuehui, an immigration expert. “Fujian province, for example, even had whole villages that emigrated together. In Fujian, there might not be anyone willing to loan you money if you wanted to go to college, but if you want to illegally emigrate, many people will lend you money, because they can reasonably expect a higher return.”

Traditionally, Chinese emigrants have aimed for highly developed Western countries. The U.S., Canada, Australia and New Zealand, with their welcoming environments and open immigration policies, have been especially popular.

“These countries are more welcoming toward talented, skilled immigrants,” Wang said. “Their policies are really meant to attract the best talent from China.”

With the recent debt crisis, many smaller countries in Europe are now hoping to attract investors from abroad. Policies have been relaxed so that it is possible to immigrate to some of these countries merely by purchasing a home.

Traditionally, Chinese living abroad have resided in Chinese communities. With considerable language and cultural barriers as well as less than ideal economic conditions, immigrants often could not or were not willing to partake in their host countries’ political and social life. Now, as recent emigrants’ overall wealth and education levels increase, and as the earliest emigrants settle into their host countries, ethnic Chinese are beginning to take a larger, more active role in their communities, notes China Youth.

Filed under: Beijing Consensus, Charm Offensive, Chinese Model, Chinese overseas, Collectivism, Culture, Domestic Growth, Economics, Ethnicity, History, Ideology, International Relations, Mapping Feelings, Modernisation, Overseas Chinese, Peaceful Development, Public Diplomacy, Reform, Social, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), The Chinese Identity, The construction of Chinese and Non-Chinese identities

China’s youngest comrades: Communists at college [CNN] #RisingChina #Ideology #CCPYouth

Leveraging a political head start where ideological adherence brings great reward.

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China’s youngest comrades: Communists at college
By Jonathan Levine, for CNN
Source – CNN, published May 1, 2013

20130506-115749.jpg

Source – CNN File image from 2012 shows students graduating in Anhui Province — many students are targeted for recruitment by the party.

Beijing (CNN) — Allan Yang would be a success story in any country.

Originally from China’s impoverished interior, he was the first member of his family to leave his native Anhui province and is now pursuing an MBA at the prestigious Tsinghua University in Beijing.

At 24, Yang is the face of new China: erudite, sophisticated and a card-carrying member of the Communist Party.

“It’s just like applying for university in the United States,” he said of the party. “You give an application letter and submit some reports that test your knowledge of Communist history.”

In fact the process is a bit more complicated. Unlike applying to college, a successful application for membership in the Chinese Communist Party typically takes years. Arduous “observational periods” are required when prospective members are expected to read the classics of Socialism, become steeped in the party ideology and submit an unending series of essays that are little more than long paeans to the party’s greatness.

Please click here to read the full article at its source.

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Filed under: Beijing Consensus, Charm Offensive, Chinese Model, CNN, Collectivism, Confucius, Culture, Domestic Growth, Economics, Education, Government & Policy, Ideology, Influence, Mapping Feelings, New Leadership, Peaceful Development, People, Politics, Public Diplomacy, Reform, Social, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), The Chinese Identity

Rat Meat Sold as Lamb Highlights Fear in China [New York Times] #RisingChina #FoodSafety

Evidence not all Chinese are positioned to participate in China’s rise as part of a collective leap.

Food safety and environmental protection face the same problem that although regulatory capacity has expanded, there’s been no fundamental change for the better… The fact that the police have become involved shows how serious the problems still are.” Mao Shoulong, professor of public policy at Renmin University in Beijing

To read the actual Ministry of Public Security report please go here (In Chinese)
公安机关集中打击肉制品犯罪保卫餐桌安全

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Rat Meat Sold as Lamb Highlights Fear in China
By Chris Buckley
Source – New York Times, published May 3, 2013

HONG KONG — Even for China’s scandal-numbed diners, inured to endless outrages about food hazards, news that the lamb simmering in the pot may actually be rat tested new depths of disgust.

In an announcement intended to show that the government is serious about improving food safety, the Ministry of Public Security said on Thursday that the police had caught a gang of traders in eastern China who bought rat, fox and mink flesh and sold it as mutton. But that and other cases of meat smuggling, faking and adulteration featured in Chinese newspapers and Web sites on Friday were unlikely to instill confidence in consumers already queasy over many reports about meat, fruit and vegetables laden with disease, toxins, banned dyes and preservatives.

Sixty-three people were arrested and accused of “buying fox, mink and rat and other meat products that had not undergone inspection,” which they doused in gelatin, red pigment and nitrates, and sold as mutton in Shanghai and adjacent Jiangsu Province for about $1.6 million, according to the ministry’s statement. The report, posted on the Internet, did not explain how exactly the traders acquired the rats and other creatures.

“How many rats does it take to put together a sheep?” said one typically baffled and angry user of Sina Weibo, China’s Twitter-like microblog service that often acts as a forum for public venting. “Is it cheaper to raise rats than sheep?”

Please click here to read the full article at its source.

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Filed under: 52 Unacceptable Practices, Beijing Consensus, Bird Flu, China Dream, Chinese Model, Collectivism, Corruption, Crime, Culture, Domestic Growth, Economics, Government & Policy, Health, Infrastructure, Mapping Feelings, Modernisation, New Leadership, Peaceful Development, Poverty, Reform, Resources, The Chinese Identity

Read me like a book [Global Times Mobile] #RisingChina #Reading

The Chinese emancipation of the mind continues as they pick up new ways to decode narratives outside their own long-curated collection. Valuing the primacy of first hand information in a time of relentless media tsunami, this project strikes a chord.

There is ample evidence of discourse at the broadcast level. Just check out the tonnes of current affairs programs on Youtube or Youku. This participatory spirit permeates through entertainment programmes too.

This may well be the best way to augment China’s social fabric in how it makes sense of the rest if the world.

Liang Jiaxin, director of the LCY living library project:

… people are the core of living libraries, and the key is connecting people from different groups, breaking barriers to communication and eliminating prejudice.

“Our slogan is ‘no truth before reading,’ because we believe much misunderstanding and prejudice comes from ignorance or lack of communication on an equal basis. Through many examples in our reading, we found that not only is prejudice reduced, but people even become more interested in learning about others.

… people are usually most interested in three categories of books: marginalized groups and people who are easily ignored or misunderstood; people with distinguishing features or experiences; and ordinary people with their own unknown stories to tell.

To better days ahead.

World views can shape behavior and drive action, and to act with grace requires consensus in the meaning and expression of grace. Hearing and seeing first hand stories with all five senses activated offers more than lines of text or crafted TV can.

If this gains traction, this should have a positive impact on how the Chinese behave as a fellow global villager.
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Read me like a book
By Liu Dong
Source – Global Times, published May 1, 2013

20130502-071728.jpg
A researcher from Sun Yat-Sen University, who is a “living book,” shares her stories with readers at a living library activity in Guangzhou on April 20. Photo: Liu Dong/GT

How can different people discard their prejudices and achieve reconciliation in the face of conflict? This was a question that a group of young people from Denmark tried to answer through a unique form of dialogue they invented in 2000 and called “Living Library.” After growing in popularity worldwide, it has now come to China.

The living library, also known as a human library, is a social movement that began in Europe when several young Danes had the idea of bringing together people from different cultural backgrounds, nations, educational levels, religions and professions to communicate on the basis of equality to dispel hostility and bias.

At a music festival in 2000, the organizers introduced 75 “books,” which were in fact 75 real people with a variety of identities, including a policeman, a Muslim, a stripper, a person living with HIV, an American Indian, and even an extremist far-right Hungarian, to the public, who could be “borrowed” and “read” just like books in a library.

Please click <a href="http://here to read the rest of the story at its source.
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Filed under: Beijing Consensus, Charm Offensive, China Dream, Chinese Model, Collectivism, Communications, Culture, Democracy, Domestic Growth, Education, global times, Government & Policy, Ideology, Influence, International Relations, Mapping Feelings, Media, Peaceful Development, People, Population, Reform, The Chinese Identity, The construction of Chinese and Non-Chinese identities

Elite in China Face Austerity Under Xi’s Rule [New York Times] #ChinaAusterity

Xi reenacts a grand spectacle by giving the table top a clean wipe much like his predecessors did.

The difference is clear with many visual markers of free spending gone.

I don’t agree with the headline bias saying Xi’s rule. The way the leadership is structured is not as such.

Certainly the symbolism of this act to capture the hearts of the people will help give a boost to consensus, but whether what continues under the table gets fixed requires a new paradigm on building relations in its familial, clan, and organisational hierarchal structures.

That Xi Jinping was formerly in the business of fighting corruption is a plus to his street cred, but with so increasing external matters of concern, how much time and conviction he can devote to following this through is important. Whether corruption Fire Chief Wang Qishan manages to enforce this uniformly throughout the party’s internal power bases will also be critical.

Having seen my city of ancestry half built due to the excesses of free wheeling corruption in the early days of opening up, this is encouraging. No one speaks of Shantou when SEZs are mentioned. That it was, early with Zhuhai, Xiamen and Shenzhen given licence to roam should have resulted in a giant leap forward. It did not – half built roads aplenty and children playing in a canal full of rubbish and plastic bags were the common scene in my travels on foot. Wealthy overseas Chinese Teochews tried revitalizing it but failed.

Equitable growth starts by the top leading by example, at the very least, symbolically.

Deng’s maxim still abides.

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Elite in China Face Austerity Under Xi’s Rule
By Andrew Jacobs
Source – New York Times, published March 27, 2013

20130329-095529.jpg
Photo by Sim Chi Yin for The New York Times
A branch in Beijing of Xiang E Qing, a restaurant chain popular with government officials, was quiet at lunchtime recently.

BEIJING — Life for the almighty Chinese government official has come to this: car pools, domestically made wristwatches and self-serve lunch buffets.

In the four months since he was anointed China’s paramount leader and tastemaker-in-chief, President Xi Jinping has imposed a form of austerity on the nation’s famously free-spending civil servants, military brass and provincial party bosses. Warning that graft and gluttony threaten to bring down the ruling Communists, Mr. Xi has ordered an end to boozy, taxpayer-financed banquets and the bribery that often takes the form of a gift-wrapped Louis Vuitton bag.

While the power of the nation’s elite remains unchallenged, the symbols of that power are slipping from view. Gone, for now, are the freshly cut flowers and red-carpet ceremonies that used to greet visiting dignitaries. This month, military officers who arrived here for the annual National People’s Congress were instructed to share hotel rooms and bring their own toiletries.

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Filed under: Beijing Consensus, Chinese Model, Collectivism, Confucius, Culture, Domestic Growth, Economics, Finance, Government & Policy, Lifestyle, Mapping Feelings, Modernisation, New Leadership, People, Politics, Public Diplomacy, Reform, Social, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), The Chinese Identity, Xi Jinping

Being a China Bull – China’s Post-Capital Future [An Abundant World] #China #Economics

James White on the post-capital China paradigm.

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Being a China Bull – China’s Post-Capital Future
By James White
Source – An Abundant World, published December 14, 2012

Michael Pettis’ questions challenged the China Bull to look at three specific issues; the sustainability of China’s debt, the new focus of investment and improving consumption. My response has looked at these questions from different angles. I remain comfortable that being a China Bull is a defendable, though admittedly uncertain position. Uncertain because it means saying:

This time is different.

This phrase has, over decades, led many an economist to an early grave.

The return on capital does not define the economic outlook

My day job and the job of all working in financial markets has been to explain the return on capital for an economy, industry or firm. This is an essential function. Capital markets are about pricing capital and I contribute to that process in a very small way.

The problem comes when the return on capital becomes synonymous with the health of the economy and the welfare of its participants. Yet this is exactly where we’ve collectively arrived. Equity indices have come to reflect the health of an economy. But equity indices are not economic health reports.

Please click here to read the article at its source.

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Filed under: Beijing Consensus, Blogs, Chinese Model, Collectivism, Domestic Growth, Economics, Finance, Government & Policy, New Leadership, Peaceful Development, Politics, Reform, Social, Soft Power, The Chinese Identity

Chinese bus drivers sentenced after going on strike in Singapore [Channel News Asia] #Simgapore #China

It is the first strike in living memory for many Gen X and after Singaporeans… the first in close to three decades. The full force of law was really only going to be the one outcome, whether this was a strike by migrant workers, or by locals despite its long running history as Chinese-majority satellite for cross-pollination. Objectively, industrial action is virtually unheard of in the island state, and it was really until I lived overseas in recent years that i understood and experienced what it meant.

Nevertheless, this evokes questions on the narrative of a cohesive Greater China.

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Chinese bus drivers sentenced after going on strike in Singapore
By Liz Neisloss, CNN
Source – CNN, published February 26, 2013

20130303-083415.jpg
Activists demonstrate against the bid to punish striking drivers at the Singaporean consulate in Hong Kong on December 5, 2012.

STORY HIGHLIGHTS
Four Chinese nationals are sentenced in Singapore to several weeks in prison
They were protesting low wages and poor living conditions
They did not follow Singapore’s law requiring a 14-day notice before a strike

Singapore (CNN) — In a case that brought to light issues of unfair pay and poor living conditions among foreign workers in Singapore, a court sentenced four Chinese nationals to several weeks in prison for instigating an “illegal” strike in late November.

The four, who had pleaded guilty, were led from court in handcuffs to begin their terms in Changi prison immediately.

In announcing their sentence, Judge See Kee Oon said it was necessary so as “not to embolden others.”

Please click here to read the rest of the article at its source.

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Filed under: Beijing Consensus, Channel News Asia, Charm Offensive, Chinese Model, Chinese overseas, Collectivism, Communications, Culture, Economics, Government & Policy, Greater China, Influence, International Relations, Mapping Feelings, Media, Migrant Workers, Overseas Chinese, Peaceful Development, Public Diplomacy, Singapore, Social, The Chinese Identity, The construction of Chinese and Non-Chinese identities

Will China Ever Be No. 1? #ForeignPolicy #China #No1 #LeeKuanYew

Perhaps the question is when, how, and where China wants to be no. 1.

Does China want to be number 1? Why not? From the bottom up standpoint, yes perhaps, and overtly so. The top-down view may differ – a less overt behind the scenes position up top may be desired. Why be number 1 and become a target board? One should stop to ponder the wisdom why China’s name in Chinese reads Middle Kingdom, not Top Kingdom or Centre Kingdom.

However, getting these two views to find consensus with biding time will only get more difficult because of cross pollination with the us and them affliction.

China has collective memory of the rising and ruling power dynamic, this race to the top is cyclical. I doubt the Chinese leadership lose sleep over this ‘race’.

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Will China Ever Be No. 1?
If you want to know the answer, ask Singapore’s Lee Kuan Yew.
by Graham Allison, Robert D. Blackwill
Source – Foreign Policy, published February 16, 2013

Image Source - Foreign Policy

Image Source – Foreign Policy

Will China continue to grow three times faster than the United States to become the No. 1 economy in the world in the decade ahead? Does China aspire to be the No. 1 power in Asia and ultimately the world? As it becomes a great power, will China follow the path taken by Japan in becoming an honorary member of the West?

Despite current punditry to the contrary, the surest answer to these questions is: No one knows. But statesmen, investors, and citizens in the region and beyond are placing their bets. And U.S. policymakers, as they shape the Obama administration’s pivot to Asia, are making these judgments too. In formulating answers to these questions, if you could consult just one person in the world today, who would it be? Henry Kissinger, the American who has spent by far the most time with China’s leaders since Mao, has an answer: Lee Kuan Yew.

Lee is the founding father of modern Singapore and was its prime minister from 1959 to 1990. He has honed his wisdom over more than a half century on the world stage, serving as advisor to Chinese leaders from Deng Xiaoping to Xi Jinping and American presidents from Richard Nixon to Barack Obama. This gives him a uniquely authoritative perspective on the geopolitics and geoeconomics of East and West.

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Filed under: Beijing Consensus, Charm Offensive, Chinese Model, Collectivism, Culture, Domestic Growth, Economics, Foreign Policy Magazine, Government & Policy, Influence, International Relations, Mapping Feelings, Modernisation, Nationalism, Peaceful Development, Politics, Reform, Singapore, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), The Chinese Identity, The construction of Chinese and Non-Chinese identities, U.S.

China turns against official extravagance #BBC #China #Prohibition

BBC: China taking steps to turn against wilful and opulent use of public money.

“It is very normal to have a banquet with over 10 courses. Some have 15 to 20. I’ve seen one where there were so many dishes they had to be stacked three-high.” Shanghai’s Hotel Industry Association Huang Tiemin
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China turns against official extravagance
By John Sudworth
Source – BBC, published February 6, 2013

Source - BBC: Such was the extent of officials' spending on luxuries that the clampdown is said to have depressed share prices in high-end liquors.

Source – BBC: Such was the extent of officials’ spending on luxuries that the clampdown is said to have depressed share prices in high-end liquors.

Shanghai’s Hotel Industry Association is, you would think, naturally a conservative kind of organisation.

It represents more than 50 five-star hotels, which cater for the city’s rich and powerful elite.

The association’s president, Huang Tiemin, is himself a top hotelier and a card-carrying member of the Communist Party.

Please click here to read rest of the article at its source.
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Filed under: 52 Unacceptable Practices, BBC, Charm Offensive, ChinaUS Focus, Collectivism, Culture, Domestic Growth, Economist, Government & Policy, Influence, Mapping Feelings, New Leadership, Politics, Public Diplomacy, Social, Strategy, Tao Guang Yang Hui (韬光养晦), The Chinese Identity

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