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China 中国 Insider March 25, 2013, 5:10 pm 8 Comments

A Highly Public Trip for China’s President, and Its First Lady

President Xi Jinping of China in Tanzania on Monday.Thomas Mukoya/ReutersPresident Xi Jinping of China in Tanzania on Monday.
President Xi Jinping of China is on his inaugural overseas trip. Mr. Xi stopped first in Russia, went to Tanzania, and will then  visit the Republic of Congo and South Africa, where he will also attend a summit meeting of emerging BRICS economies — Brazil, Russia, India, China and South Africa.
His visit to Russia yielded “breakthrough” oil deals, an agreement to buy 24 Su-35 fighters and four Lada-class submarines, a commitment to strengthen defense ties and a pledge for more cooperation on tourism. The Chinese and Russian leaders apparently got along quite well, as Mr. Xi told President Vladimir Putin that their “souls are open to each other”.
China and Russia have a history of mutual distrust, and we should view the happy talk of closer ties with some skepticism, though dismissing it as a “nothingburger of an event” may be a bit too flip. The two countries have many shared interests, including a desire to stymie United States influence and, for China at least, counter the United States “pivot” to Asia.
Mr. Xi visits Africa with trade between China and the continent worth more than $200 billion a year. In Tanzania on Monday, he said China wanted a “relationship of equals,” remarks aimed at countering the growing sentiment that China is exploiting the continent. At the BRICS meeting Mr. Xi may “endorse plans to create a joint foreign exchange reserves pool” that theoretically could help emerging market countries lessen reliance on the World Bank and International Monetary Fund.
Peng Liyuan, China's new first lady, with Salma Kikwete, Tanzania's first ladyThomas Mukoya/ReutersPeng Liyuan, China’s new first lady, with Salma Kikwete, Tanzania’s first lady.
Peng Liyuan, the president’s wife, has been an unexpected star of the trip. Mrs. Peng, a singer who holds the rank of major general in the People’s Liberation Army  and is known for her patriotic songs, is China’s most glamorous and public first lady in a long time. Pictures of her on the trip lit up Chinese social media and her fashion choices, all Chinese brands, should be both a boon to the designers and a message to other Chinese officials and their spouses that homegrown brands are more appropriate than foreign, luxury ones.
The “Chinese Dream” is a concept that the new leadership has been promoting, both domestically and internationally. The domestic version ties together national rejuvenation, improvement of people’s livelihoods, prosperity, construction of a better society and military strengthening as the common dream of the Chinese people that can be best achieved under one party, Socialist rule.
The official, global version of the Chinese Dream:
will benefit not only the Chinese people, but also people of all countries. The Chinese dream is not a call for revanchism and Chinese nationalism at the expense of its neighbors. It is the dream of China, which once suffered invasions and turmoil, to maintain lasting peace.
Continued economic growth is the sine qua non of the Chinese Dream. A new report by the Organization for Economic Cooperation and Development forecasts that China’s economy can continue grow at 8 percent a year through 2020 if it enacts many of the reforms that Beijing has already repeatedly said it intends to. At the China Development Forum in Beijing over the weekend, the vice premier and Politburo standing committee member, Zhang Gaoli, reiterated the government’s resolve in pushing through difficult reforms.
Stable relations with the United States are also important to the realization of the Chinese Dream. Perhaps to underscore that although Mr. Xi’s first, heavily publicized overseas trip is to Russia and Africa, Monday night’s CCTV Evening News broadcast showed Henry Kissinger meeting with Premier Li Keqiang and former Secretary of Defense William Cohen meeting with Mr. Zhang. Premier Li stressed the importance of the United States-China relationship and reiterated China’s desire for a “new type of great power relationship” while the vice premier pledged fairness for foreign companies.
APPLE MAY WANT TO TAKE MR. ZHANG UP on his fairness pledge. On March 15, CCTV claimed that Apple’s support policies discriminate against Chinese consumers. Last week, Xinhua bemoaned the mindless consumption of Apple products by Wuhan students in “Apple pursuit lures 20,000 students into high-interest loans.” And Monday morning, The People’s Daily criticized the company for both its support policies and its public relations response, even going so far as to mock the response with a cartoon.
As of last quarter, China is Apple’s second-biggest and fastest-growing market. It is not clear whether these official media attacks are part of a broader attack on an American company whose size and success may make Beijing uncomfortable.
In the United States, you would never see a government official using a Huawei device, but a fair number of Chinese ones use Apple products. So far, there have not been official media calls for government workers to stop using Apple devices, though the crackdown on corruption may have dented purchases of iPhones and iPads intended for gifts.
When Apple reports earnings April 23, we should learn whether Apple’s Chinese dream is still on track.
Bill Bishop publishes the daily Sinocism China Newsletter from Beijing. You can follow him on Twitter @niubi and Sina Weibo @billbishop.

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    • plang1
    • rhode island
    china thanks to the incredible failure of obama is now the worlds leading power and has simply ordering obama there to give hi instructions on what they want done with the countries budget…..
    • franks289
    • LA
    But iPhones are made in China! Add to that recent article ” Apple supplier Foxconn has record profit” why the complaints? They make BMW X6s in the USA but I can’t afford to buy one. Do they discriminate against American buyers?
    • Goubulibaozi
    • Australia
    Apple is probably in the final throes of negotiations with China’s largest carrier China Mobile (700 million customers) to carry the iPhone on its 4G LTE network to be launched later this year. The majority shareholder in China Mobile is the government.
    Few in the media outside China are tying the China Mobile negotiations possibility to this negative coordinated reporting when I find it a strong likelihood given the launch of the China Mobile 4G LTE network later this year and the need to test handsets months ahead of the launch, recent loss of customers to iPhone carrying networks of two domestic competitors, and previous expressions over the last 3 years that they wanted to carry the iPhone but are blocked from officials.
    In other words China Mobile leaders have pleaded they are out of time & excuses to the government. This is a top down directed effort and “not up” from the millions of satisfied consumers in China.
    The new political leadership in China is just in office and they will be cautious and careful on signing off.
    The media campaign costs very little compared to what is to be gained.
    It is also short-sighted that China’s sovereign wealth fund (CIC) has not invested in Apple and embraced some of the consumer demand for Apple products in China while also earning profits for the country.
    • franks289
    • LA
    But, iphones (and many others) are made in china, at a factory with conditions and competive wages (for china) such that tens of thousands line up to apply for new openings.
    So shouldn’t we be complaining that a US official uses an iPhone or any other made in China device?
    • Lynn Shepler MD JD
    • Tucson, AZ
    China dream sounds like the American dream.
    • Richmond
    • San Francisco, CA
    You’re complaining because China is bad-mouthing American products like Apple? Isn’t that all Americans do with anything from China? You call that fair? What a bunch of cry-babies! Sorry to tell you Chinese slave labor makes Apple products and in turn Apple products cost the most in the world in China and according to this article that’s unfair to point out? And you wonder with that kind of thinking why the world hates the US?
    • JamesLG
    • Honolulu
    We, the humans of this planet, are facing a life threatening crisis because of the massive climate changes we are causing – by the combined effects of overpopulation and the continued burning of Coal, Oil, and Natural Gas.
    We no longer should be using any of our resources or the planet’s resources to manufacture weapons of war. To do so is simply to admit that we have not created anything that qualifies as a sane civilization. To do so is courting certain disaster, not just through the possibility of a devastating war, but through the certain devastation that will result from ignoring the impending perils of Global Warming.
    The leaders of China, Russia, and the US must realize this soon, and cooperate to save the only planet we all have.
    Stop the foolish power games. We will only kill ourselves and everything else on the planet.
      • Newfie
      • Newfoundland
      Economic growth is fuelled by fossil fuels. Burning fossil fuels is destabilizing the climate. An unstable climate will not support large scale agriculture, the basis of civilization. Connect the dots…
      We evolved for millions of years as hunter-gatherers. Our genes are thus optimized for short term thinking. We can’t think far enough ahead to avoid the consequences of burning fossil fuels.
      Industrial civilization is doomed…




What’s Worse, The New York Times‘ Sinophobia or Sinophilia?

|Jan. 13, 2010 10:51 am
From the blame-China files, comes this editorial in yesterday’s paper pinning the world’s economic problems to Beijing’s currency policies:
While the strategy is still working for China, it is exacerbating economic weakness around the globe. If China keeps it up, other countries are likely to use their last available weapon — protectionism — to stop the onslaught of artificially cheap Chinese goods. A trade war is easy to start and hard to contain. [...]
As China has flooded the world with exports, it has edged out suppliers from other developing countries. This was bad enough when the world economy was growing briskly.
Now China’s strategy is doing considerably more harm. In many countries, fiscal stimulus efforts have been weakened by inflows of cheap Chinese imports that have soaked up some of the money added by these government programs. [...]
If China continues its beggar-thy-neighbor currency policy, it will make it even harder for countries and the global economy to revive. As overextended governments wind down their fiscal stimulus, many economies will have to rely on exports as a crucial source of demand while their consumers restructure their sorry personal finances.
This follows a New Year’s shot across the bow from econo-columnist Paul Krugman:
China has become a major financial and trade power. But it doesn’t act like other big economies. Instead, it follows a mercantilist policy, keeping its trade surplus artificially high. And in today’s depressed world, that policy is, to put it bluntly, predatory. [...]
[T]hat trade surplus drains much-needed demand away from a depressed world economy. My back-of-the-envelope calculations suggest that for the next couple of years Chinese mercantilism may end up reducing U.S. employment by around 1.4 million jobs.
[O]ther countries are taking (modest) protectionist measures precisely because China refuses to let its currency rise. And more such measures are entirely appropriate. [...]
[T]here’s the claim that protectionism is always a bad thing, in any circumstances. If that’s what you believe, however, you learned Econ 101 from the wrong people — because when unemployment is high and the government can’t restore full employment, the usual rules don’t apply.
Then, just when you’re ready to imagine the entire NYT opinion section doing voice-overs for 1960s Jell-O commercials or body doubles for 1980s David Bowie videos, along comes authoritarian-apologist Thomas L. Friedman, doubling down on his offensive/idiotic claim that the Chinese political system is better than ours:
I am reluctant to sell China short, not because I think it has no problems or corruption or bubbles, but because I think it has all those problems in spades — and some will blow up along the way (the most dangerous being pollution). But it also has a political class focused on addressing its real problems, as well as a mountain of savings with which to do so (unlike us).
Unlike Friedman, I’ve never read “The Herald Tribune over breakfast in Hong Kong harbor,” let alone put that in the lede of a column (though I will take this opportunity to reiterate my complaint that the IHT really sucks œuf à la coque compared to its past glory now that it’s basically The New York Times International), but hick intuition tells me that a regime that depends on restricting the freedom of its own people is by definition not addressing its “real problems,” but rather putting them off for a day of unpredictable reckoning. Meanwhile, blaming another country for America’s woes strikes me as, at the bare minimum, weak.

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Sinophobia: The Huawei Story [Kindle Edition]

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Publication Date: January 21, 2013
Sinophobia: The Huawei Story is an exhaustive study of the firm’s rise to global prominence and the subsequent difficulties it has encountered in trying to enter the U.S. market. Employing over 1,000 reports from academia, blogs, media sources, and techie news sites, I have been able to assemble the evidence that suggests the U.S. Congress has been engaged in a witch hunt—and reveal some of the warts Huawei has exposed in its business practices over the last 25 years. Prologue: A brief history of Sinophobia in the United States since Chinese immigrants first came to work the California gold rush and its consequences for today’s response to news Chinese firms are seeking to do business in this country.
Chapter 1: Huawei’s failed first attempt to purchase a U.S. business and a brief history of the Chinese company including culture and marketing practices.
Chapter 2: Huawei’s failure to win a multi-billion dollar contract to upgrade Sprint’s U.S. telecommunications network and an in-depth evaluation and refutation of congressional claims the Chinese company is up to widespread nefarious activities.
Chapter 3: Huawei’s battle with the Committee for Foreign Investment in the United States—including the Chinese firm’s unprecedented decision to initially tell the Committee to “drop dead” thereby forcing presidential action. I look at Huawei’s efforts to start a division in the United States and then close with a discussion on the value of foreign direct investment for Washington and American citizens as a whole.
Chapter 4: Huawei’s battle with the House Permanent Select Committee on Intelligence, a look at the rumors that fueled this fight, and the final outcome—a disappointed set of House members, who fail to find the “smoking gun” that substantiates their charges.
Chapter 5: Representative Frank Wolf’s one-man crusade to sink Huawei and his ridiculous claims. I also examine Huawei’s public relations campaign and efforts to put the critics at ease.
Chapter 6: Huawei’s travails in Australia—echoing the situation in Washington, also without evidence—and the subsequent debates in Canada and New Zealand. I also look at Huawei’s effort at perception management with the release of a controversial white paper on cyber security.
Epilogue: A discussion of Huawei’s 13 Sep 2012 congressional testimony and the crestfallen members of the committee holding the hearing. I examine “warts” that have yet to be exposed and close with final thoughts on the causes and costs of Sinophobia.

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About the Author

Eric C. Anderson is a faculty member with the National Intelligence University. As a long-standing member of the U.S. intelligence community, he has written over 600 articles for the President’s Daily Brief, National Intelligence Council, International Security Advisory Board and the Department of Defense. In addition, he is a leading scholar on the rise of sovereign wealth funds. His book, Take the Money and Run: Sovereign Wealth Funds and the Demise of American Prosperity was published in March 2009. His focus on events in Asia is reflected in a text published in 2010, China Restored: The Middle Kingdom Looks Forward to 2020. He has also written a book on private adoption, Adopting Ainsley: There’s No Place for a Car Seat on a Motorcycle and has just finished Sinophobia: The Huawei Story. Prior to assuming his current position, Mr. Anderson served on the CIA Red Cell, as a member of Hicks and Associates, and at the Defense Intelligence Agency as a senior intelligence analyst. In addition, he has been a senior intelligence analyst for the Multi National Forces-Iraq in Baghdad and at the U.S. Pacific Command in Hawaii. From 1990-2000, Mr. Anderson was an active duty intelligence officer in the United States Air Force—with assignments in Japan, Korea and Saudi Arabia. He remains on duty as an Air Force reserve officer. He has also taught for the University of Missouri, University of Maryland, and the Air Force Academy. Mr. Anderson has a PhD in political science from the University of Missouri, a MA from Bowling Green State University in Ohio, and a BA from Illinois Wesleyan University. A Harley rider, Mr. Anderson claims to have put over 200,000 miles on motorcycles during the last 25 years.

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Reckoning: Vietnam and America's Cold War Experience, 1945-1991 by Neal F. Thompson (Mar 1, 2013)

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Southeast Asia
     Jul 13, 2011


Sinophobia on the rise in the Philippines
By Joel D Adriano MANILA - A rising tide of Sinophobia in the Philippines threatens to accelerate deteriorating relations and jeopardize growing trade and investment ties with China. A two-month long diplomatic spat over contested territories in the South China Sea has animated the wave of anti-Chinese sentiment, including calls for a boycott of Chinese-made products.
On Monday, Philippine Foreign Secretary Albert del Rosario announced plans to take the dispute with China to a United Nations tribunal. This came after Manila banned a senior Chinese diplomat from local meetings for alleged rude behavior during bilateral discussions last month. President Benigno Aquino indirectly referred to the incident, telling a press briefing that Filipinos should not allow themselves to be "bullied" by bigger nations.
That appeal to nationalism has added to a rising clamor to
boycott Chinese-made goods, which is gaining popular traction, judging by surveys and postings to the Internet. In a Philippines online poll conducted by Yahoo!, over 70% of 31,000 respondents supported calls to boycott all Chinese-made products. In a similar TV news poll, the percentage of respondents in favor of a boycott was even higher. Popular Catholic bishops have also publicly endorsed an anti-China boycott.
Calls for the boycott were first galvanized by Albay Governor Joey Salceda, an outspoken political ally of the Aquino administration who has criticized China's perceived aggressiveness over territories in the potentially oil and gas rich Spratly Islands. Salceda has argued that a boycott would hurt China - which last year maintained a US$1 billion bilateral trade surplus - more than the Philippines. He has said that China has made no investments in the Philippines since 2008, a claim disputed by trade groups.
The Aquino administration has played down the calls for a boycott, stressing that the disputes over the Spratly Islands should not undermine overall relations. In a press briefing, the government urged the public to temper its response to perceived provocations, including threats made by a Chinese patrol vessel to a Philippine oil exploration ship in March.
Philippine officials say they have recorded seven run-ins with Chinese vessels so far this year. A retaliatory trade war, however, would have a wide-reaching impact on the Philippines - and potentially the wider Southeast Asia region. Edgardo Lacson, honorary chairman of the Philippine Chamber of Commerce and Industry (PCCI), said that a boycott of Chinese-made goods would spark inflation throughout the Philippine economy.
He said the Philippines is heavily dependent on cheap Chinese goods, ranging from wares sold in luxury shopping malls to agricultural products peddled in traditional markets. China is currently the Philippines largest trading partner; the Philippines recorded in May its first annual decline in exports in over two years. A potential retaliatory ban from China would put $6 billion worth of Philippine exports at risk. There are currently an estimated 8,000 overseas Filipino workers in mainland China, a small number compared with the millions deployed across the Middle East.
Current PCCI head Francis Chua has urged the Aquino administration to let the private sector take the lead in solving the Spratlys conflict. Chua, a former trade envoy to China, has suggested that the Filipino-Chinese community could play a key role in mending fences, leveraging into their shared common language, culture and business interests with China.
In a bid to cool passions, presidential spokesperson Edwin Lacierda has noted that many Filipinos, including Aquino, have Chinese roots. The late president Corazon Aquino made a trip in April 1988 to a village named Hongjian to trace her ancestral roots. There Aquino declared that she is "not only the president of the Philippines" but "I'm also the daughter of Hongjian".
With that in mind, Chua has proposed an economic solution to the issue, including the establishment of a mechanism for joint development of the Spratlys. Philippine political commentators, however, have argued such an arrangement would imply that Manila recognized Beijing's sovereignty over the contested maritime areas and that China would likely in time leverage its comparative military strength to dominate any such arrangement.
That view is consistent with past official Philippine complaints about a perceived mismatch between China's words and actions. During the Joseph Estrada administration, former defense secretary Orlando Mercado accused China of implementing a "talk and take" policy where it seized territory in the South China Sea while avoiding actual conflict. A decade later, after making massive investments across Southeast Asia, China is no longer shying from conflict.
Walden Bello, an Akbayan party-list congressman, also believes that a boycott would cause more problems than it would solve. He says that Chinese-Filipinos taipans should be kept out of the debate so as "not to put them in a terrible position of having to choose between their country [the Philippines] and their host country [China]“. Chinese-Filipinos have in recent years made major investments in China’s industrial Guangdong province.
While politicians like Bello favor a multilateral solution to the conflict, China has emphasized bilateral tracks where it can leverage its comparative size and power to its advantage. Yet much of the goodwill China accrued through an emphasis on economic diplomacy with Association of Southeast Asian Nations (ASEAN), including a recently inked free trade agreement, has come into question with its assertiveness in the South China Sea.
“Through its rapidly growing economic links and adroit diplomacy, Beijing had ameliorated the perception in Southeast Asia that China is a regional security threat,” said Renato Cruz de Castro, an associate professor of international studies and US foreign policy at the De La Salle University in Manila. “The soft power approach actually fits well with the preferred way of doing business” in most ASEAN countries, he said.
With rising Sinophobia and calls for an anti-China boycott, the Philippines has openly spurned China’s earlier soft power, trade and investment-oriented advances. Whether those sentiments materialize into concrete anti-China policies and actions is unclear. But the popular response shows that rising tensions in the South China Sea now also threaten ASEAN-China trade and economic integration.
Joel D Adriano is an independent consultant and award-winning freelance journalist. He was a sub-editor for the business section of The Manila Times and writes for ASEAN BizTimes, Safe Democracy and People’s Tonight.
(Copyright 2011 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)
…and I am Sid Harth @elcidharthavatar92