Tag Archives: Economy

Foreign Affairs: China’s Alternative Order

And What America Should Learn From It

By Elizabeth Economy

May/June 2024 Published on April 23, 2

By now, Chinese President Xi Jinping’s ambition to remake the world is undeniable. He wants to dissolve Washington’s network of alliances and purge what he dismisses as “Western” values from international bodies. He wants to knock the U.S. dollar off its pedestal and eliminate Washington’s chokehold over critical technology. In his new multipolar order, global institutions and norms will be underpinned by Chinese notions of common security and economic development, Chinese values of state-determined political rights, and Chinese technology. China will no longer have to fight for leadership. Its centrality will be guaranteed.

To hear Xi tell it, this world is within reach. At the Central Conference on Work Relating to Foreign Affairs last December, he boasted that Beijing was (in the words of a government press release) a “confident, self-reliant, open and inclusive major country,” one that had created the world’s “largest platform for international cooperation” and led the way in “reforming the international system.” He asserted that his conception for the global order—a “community with a shared future for mankind”—had evolved from a “Chinese initiative” to an “international consensus,” to be realized through the implementation of four Chinese programs: the Belt and Road Initiative, the Global Development Initiative, the Global Security Initiative, and the Global Civilization Initiative.

Outside China, such brash, self-congratulatory proclamations are generally disregarded or dismissed—including by American officials, who have tended to discount the appeal of Beijing’s strategy. It is easy to see why: a large number of China’s plans appear to be failing or backfiring. Many of China’s neighbors are drawing closer to Washington, and its economy is faltering. The country’s confrontational “Wolf Warrior” style of diplomacy may have pleased Xi, but it won China few friends overseas. And polls indicate that Beijing is broadly unpopular worldwide: A 2023 Pew Research Center study, for example, surveyed attitudes toward China and the United States in 24 countries on six continents. It found that only 28 percent of respondents had a favorable opinion of Beijing, and just 23 percent said China contributes to global peace. Nearly 60 percent of respondents, by contrast, had a positive view of the United States, and 61 percent said Washington contributes to peace and stability.

But Xi’s vision is far more formidable than it seems. China’s proposals would give power to the many countries that have been frustrated and sidelined by the present order, but it would still afford the states Washington currently favors with valuable international roles. Beijing’s initiatives are backed by a comprehensive, well-resourced, and disciplined operational strategy—one that features outreach to governments and people in seemingly every country. These techniques have gained Beijing newfound support, particularly in some multilateral organizations and from nondemocracies. China is succeeding in making itself an agent of welcome change while portraying the United States as the defender of a status quo that few particularly like.

Rather than dismissing Beijing’s playbook, U.S. policymakers should learn from it. To win what will be a long-term competition, the United States must seize the mantle of change that China has claimed. Washington needs to articulate and push forward its own vision for a transformed international system and the U.S. role within that system—one that is inclusive of countries at different economic levels and with different political systems. Like China, the United States needs to invest deeply in the technological, military, and diplomatic foundations that enable both security at home and leadership abroad. Yet as the country commits to that competition, U.S. policymakers must understand that near-term stabilization of the bilateral relationship advances rather than hinders ultimate U.S. objectives. They should build on last year’s summit between President Joe Biden and Xi, curtailing inflammatory anti-Chinese rhetoric and creating a more functional diplomatic relationship. That way, the United States can focus on the more important task: winning the long-term game.

I CAN SEE CLEARLY NOW

Beijing’s playbook begins with a well-defined vision of a transformed world order. The Chinese government wants a system built not just on multipolarity but also on absolute sovereignty; security rooted in international consensus and the UN Charter; state-determined human rights based on each country’s circumstances; development as the “master key” to all solutions; the end of U.S. dollar dominance; and a pledge to leave no country and no one behind.

This vision, in Beijing’s telling, stands in stark contrast to the system the United States supports. In a 2023 report, China’s Ministry of Foreign Affairs claimed Washington was “clinging to the Cold War mentality” and “piecing together small blocs through its alliance system” to “create division in the region, stoke confrontation and undermine peace.” The United States, the report continued, interferes “in the internal affairs of other countries,” uses the dollar’s status as the international reserve currency to coerce “other countries into serving America’s political and economic strategy,” and seeks to “deter other countries’ scientific, technological and economic development.”

Finally, the ministry argued, the United States advances “cultural hegemony.” The “real weapons in U.S. cultural expansion,” it declared, were the “production lines of Mattel Company and Coca-Cola.”

Beijing claims that its vision, by contrast, advances the interests of the majority of the world’s people. China is center stage, but every country, including the United States, has a role to play. At the 2024 Munich Security Conference in February, for example, Chinese Foreign Minister Wang Yi said that China and the United States are responsible for global strategic stability. China and Russia, meanwhile, represent the exploration of a new model for major-country relations.

China and the European Union are the world’s two major markets and civilizations and should resist establishing blocs based on ideology. And China, as what Wang called the “largest developing country,” promotes solidarity and cooperation with the global South to increase its representation in global affairs.

China’s vision is designed to be compelling for nearly all countries. Those that are not democracies will have their choices validated. Those that are democracies but not major powers will gain a greater voice in the international system and a bigger share of the benefits of globalization. Even the major democratic powers can reflect on whether the current system is adequate for meeting today’s challenges or whether China has something better to offer. Observers in the United States and elsewhere may roll their eyes at the grandiose phrasing, but they do so at their peril: dissatisfaction with the current international order has created a global audience more amenable to China’s proposals than might have existed not long ago.

D/C: Certainly China has been buying huge amounts of gold to get off their dependency on the dollar, But also they need to get American’s a little on side to aid their exports, as their economy is a problem right now!

CNN: Choose between stability and ‘downward spiral,’ China tells Blinken during Beijing trip

https://www.cnn.com/2024/04/25/world/stability-spiral-china-blinken-intl-hnk/index.html

DW: Cars and Transportation China

Decoding China: Driving ahead towards EV dominance

https://www.dw.com/en/decoding-china-driving-ahead-towards-ev-dominance/a-68606783

Dang Yuan

Consumer electronics companies like Huawei and Xiaomi, known for building smartphones, are now producing electronic vehicles that combine data and artificial intelligence.

https://p.dw.com/p/4drl1

https://static.dw.com/image/50380568_605.webp

Chinese electronics manufacturer Xiaomi plans to deliver its first electric vehicle in China on March 28, three years after the company first pitched its idea for a battery-powered sports car.

Now, premium car manufacturers in the US and Germany will have to deal with another competitor from the Far East.

The new vehicle is called the SU7, with SU standing for “speed ultra.” The car needs just 2.78 seconds to accelerate from 0 to 100 kph (0-60 mph). The top speed is 265 kph.

The maximum range with a fully charged battery is specified by the manufacturer as 800 kilometers (500 miles). The base price of the SU7 is around €33,000 ($36,000), making the SU7’s comparable with a Tesla model 3, and only around a third of the price of Porsche’s Taycan.

Xiaomi CEO Lei Jun has his sight set on competitors from the US and Germany. “We don’t want compromise or mediocrity,” Lei said. “We want to build a dream car that stands up to Tesla and Porsche.”

From smartphones to cars

China has long been the world’s largest manufacturer of electric cars. E-mobility would be unimaginable without innovations from Chinese companies, this includes many electronics companies that were not originally focused on the automotive industry.

Xiaomi mainly produces so-called intelligent household appliances with web functions, such as door sensors or rice cookers that send notifications to one’s cell phone when the rice is ready.

In Europe, Xiaomi is primarily known for its smartphones, just like the other telecommunications supplier Huawei, which has been launching its e-SUVs under the name AITO in China since 2021.

Byton: another ‘Tesla killer’ from China?

Electronics companies trying to cross over into car making is not limited to China. The Californian company Apple also had the idea of producing cars 14 years ago. However, at the end of February 2024, the iPhone manufacturer from Cupertino announced that the “Apple Car” project had finally been discontinued. The company is said to have invested a total of $10 billion.

China’s dominant automobile market

China is the largest and fastest growing car market in the world. Germany’s major car manufacturers sold around one in three cars worldwide in 2023. But their market position is now being challenged by domestic e-car manufacturers.

 “China leads the global supply chain for lithium-ion batteries,” said Bernd Diepenseifen, partner at the consulting firm KPMG.

In terms of battery production, industrial innovation and sales, China is clearly number one on the scale of competitiveness. “Asian suppliers have a dominant position here, at least for the time being,” he added. And for German car makers, things are not moving in the right direction.

“The production of raw materials is certainly not a field in which German suppliers are sensibly looking for opportunities, nor is battery production,” said Diepenseifen.

The high standards China’s car makers are aiming for became even more clear at the Geneva International Motor Show in February.

Not a single car manufacturer from Germany was present, but there were plenty from China. Exhibition vehicles demonstrated a new generation of connected cars, with entertainment packages integrating audio and video streaming services, and navigation that indicates with a countdown when the next traffic light turns green.

China builds a new generation of cars

China’s automobile industry today is looking at cars more than as a mere means of transportation. Cars are more than just an engine plus gearbox, and e-mobility is not just a chassis with a socket.

China is thinking ahead with emphasis on automated driving and artificial intelligence, an environmentally friendly transportation concept and technological leadership in industrial production.

This is why electronics and telecommunications giants like Huawei and Xiaomi are positioning themselves in this competitive market.

“Currently, cars are ‘mobile data centers’,” said Xiaomi boss Lei. “The automotive industry of the future will produce advanced and connected ‘smart spaces’.”

Chinese EV maker NIO has called its cars a “living room on wheels.”

At the IAA 2023 motor show in Munich, Wan Gang, China’s former research minister, enthused that electric cars could be used to store energy in the power grid when charging and discharging.

How strong is Chinese competition in the e-car market?

A data-driven future

“For production and the vehicle of the future, ‘smart’ is the next big step,” said Jürgen Unser, who was President of Audi China until January 2024. This includes smart cars, smart production and smart infrastructure.

Production will soon be controlled by data and artificial intelligence. “It is very important for our society, including in Germany, that we become much more open in the way we handle and use data,” he added.

Compared to other countries, Chinese drivers are not sensitive to the collection of private data. By using data, the innovative digital industry is then able to develop algorithms for the application of artificial intelligence to develop tools in the future.

“Artificial intelligence will contribute to our progress and prosperity,” Unser said. “We need to be fast, open and flexible.” However, the data collected must also be exchanged in a regulated manner.

In 2018, the German government and China signed a joint declaration of intent for automated and connected driving.

According to the document, both countries want to create and develop “non-discriminatory multilateral standards and requirements for data access and storage, data transmission and IT security (cybersecurity) in the field of automated and connected driving and the associated infrastructure.”

Why big automakers are losing China

But the reality of sharing data across borders is far more complicated. According to the EU Commission, many EU companies are complaining about difficulties in using industrial data from their subsidiaries in China.

Foreign investors must operate their data centers in China which are usually decoupled from the database or cloud service of the parent company.

China’s data and cyber security regulations are “a problem” for European industry, according to reports from Brussels. The transfer of data out of China requires state approval from the cyber supervisory authority CAC, which wants to check all exports of “important data.”

The German government is also aware of the high hurdles. Federal Digital Minister Volker Wissing emphasized the need for free data transfer at the German-Chinese intergovernmental consultations in 2023.

The EU and China are currently negotiating uniform industry standards for information and communication technologies (ICT) in the interests of borderless data regulation. They are still looking for common ground.

“Decoding China” is a DW series that examines Chinese positions and arguments on current international issues from a critical German and European perspective.

This article was originally written in German.

D/C: Canada and US miles behind .. maybe put all those billions into R&D. You might want to read original article as there are a couple of very good videos that I am blocked from copying.

https://mark3ds.wordpress.com/?s=tesla

A surprisingly honest post from SCMP about China’s economy and future,

Xi Jinping speech calling for patience released amid economic gloom

Party mouthpiece highlights president’s address to top cadres in February, hours after more weak economic data was published Xi says the country ‘cannot simply follow the beaten path’ and stresses that common prosperity is a ‘long-term mission’

“As China’s economic slump worsens, a Communist Party mouthpiece has highlighted a speech given by President Xi Jinping calling for patience and resilience in the pursuit of “the national rejuvenation”.

Xi was addressing hundreds of top party members during the February 7 speech, part of which was published in the official Qiushi journal on Tuesday – hours after Beijing released more disappointing monthly economic data.

The party journal regularly highlights internal leadership speeches months after they are given.Xi Jinping told top cadres to “be patient and move forward in a steadfast manner”. Photo: Xinhua

Xi Jinping told top cadres to “be patient and move forward in a steadfast manner”. Photo: Xinhua

Tuesday’s article emphasised the difficulties of modernising a country of China’s size and said its unique development model was still its best hope.

It asked the public to take the long view and stay focused, balancing progress and stability with sustainability.

“We should first consider the size of the population and the large rural-urban development gap. We cannot be ambitious and unrealistic, but we cannot simply follow the beaten path,” Xi was quoted as saying by Quishi.

“We should be patient [with a historical perspective] and move forward in a steadfast manner.”

Xi gave the speech months after his historic third term as party leader began in October and ahead of the annual parliamentary meetings in Beijing.

No bright spots for China’s economy. Calls grow for property, spending action15 Aug 2023

He repeated his major policy initiatives – “common prosperity”, the green economy and upholding socialist values as the cornerstone of China’s development.

The part of the speech published in Qiushi focused on the task of steering one of the world’s most populous countries towards a national renaissance and stressed the need for patience and perseverance.cy Policy

“A super big population can provide sufficient manpower and a super big domestic market, but it also brings about a series of difficulties and challenges,” Xi told his new team in February.

“It is quite a challenge just to make sure 1.4 billion people are fed. Then there are problems such as employment, [wealth] distribution, education, healthcare, housing, elderly care and childcare. They are all not easy to resolve and they all involve an astronomical number of people.”

The article came after China published a raft of weak economic data showing sluggish retail sales, industrial production and property investment. Beijing has stopped releasing youth unemployment data, which hit a record high of 21.3 per cent in June.

The latest economic data has prompted fears about the country’s slowdown, which analysts say will not be turned around by measures such as interest rate cuts that were also announced on Tuesday.

China is also reeling from widespread flooding in recent weeks, while there is growing pressure from demographic problems such as a low birth rate and a rapidly greying society.

Xi also spoke about the middle-income trap, where countries fail to emerge as high-income.

China signals support for struggling economy with surprise major policy rate cut15 Aug 2023

“Some developing countries have almost reached the threshold of developed countries in their process of modernisation, but they have fallen into the middle-income trap and been stuck in stagnation for a long time or even backtracked substantially,” Xi said.

“One of the reasons is that they have not resolved [social] polarisation and stratification.”

Xi said the common prosperity policy was a “long-term mission” that must be carried out persistently and make continuous progress.

Calling the policy the essence of Chinese modernisation, Xi condemned Western modernisation, saying it maximised the interests of capitalists and was characterised by “wars, slavery, colonisation and exploitation”.

Common prosperity – a policy aimed at narrowing the wealth gap – has caused anxiety among entrepreneurs and foreign companies in recent years, but Beijing denies it is seeking to suppress private enterprises.

Alfred Wu Muluan, an associate professor at the National University of Singapore’s Lee Kuan Yew School of Public Policy, said the Qiushi article was aimed at boosting confidence.

“At a time when an economic crisis is looming, the party wants to paint a rosy picture … to ensure people that the goals Xi has set are realistic and that China’s path is unique and better than the West’s,” he said.

D/C: A growing discontent across the country?

https://mark3ds.wordpress.com/?s=China

China’s Great Leap Backward: So much for the next dominant superpower

The Chinese century is over. Facing upside-down demographic and economic trends, China is heading off the cliff

https://www.salon.com/2023/07/30/chinas-great-leap-backward-so-much-for-the-next-dominant-superpower/

“Much has been made of the difficulties China will face in attempting to manage a rapidly-shrinking workforce against a rapidly-growing retirement age population, which is projected to double by 2050. But that issue may actually be preferable to what is likely to happen afterward, or perhaps sooner if some of China’s older population doesn’t wind up living as long as expected. Here are the UN estimates for China’s total population between now and 2100:”

“The ironic lack of social safety nets in an ostensibly Communist country, combined with a seemingly unstoppable regime of compulsive over-investment, has for many years resulted in the exact opposite of what China needs — consumers have felt and still feel it necessary to have some of the highest savings rates in the world, which means they aren’t becoming a larger part of the economy but rather a smaller part of it. Here’s a graph published by Reuters, which shows that private consumption as a share of Chinese GDP has been falling for decades. A similar chart from the Reserve Bank of Australia compares household consumption in China to other major Asian economies:”

(Reserve Bank of Australia)

D.C Desperate times can call for desperate measures. One wonders what they will plan to do!