Quotulatiousness

April 12, 2015

The Great Firewall of China has a new capability

Filed under: China,Technology — Tags: , , — Nicholas @ 04:00

At The Register, Shaun Nichols talks about the new, weaponized Great Firewall of China:

China has upgraded the website-blocking systems on its borders, dubbed The Great Firewall, so it can blast foreign businesses and orgs off the internet.

Researchers hailing from the University of Toronto, the International Computer Science Institute, the University of California Berkeley, and Princeton University, have confirmed what we’ve all suspected: China is hijacking web traffic entering the Middle Kingdom to overpower sites critical of the authoritarian state.

Typically, connections to web servers in the People’s Republic must pass through the nation’s border routers, which may inject malicious JavaScript into the fetched web pages. This code forces victims’ browsers to silently and continuously fire requests at selected targets.

These sites may end up being overwhelmed and crash as a result — a classic denial of service — meaning no one in the world can access them.

It is a clear case of China engineering a way to knock arbitrary websites off the internet for everyone, it seems.

Such an attack was launched last month at California-based GitHub.com, which was hosting two projects that circumvented the Great Firewall’s censorship mechanisms, and GreatFire.org, a website dedicated to fighting China’s web blocking. GitHub mitigated the assault to mostly stay online.

This weaponized firewall has been dubbed the Great Cannon by the researchers, and typically hijacks requests to Baidu’s advertising network in China. Anyone visiting a website that serves ads from Baidu, for example, could end up unwittingly silencing a foreign site disliked by the Chinese authorities.

April 9, 2015

Former US Army colonel would be “disgusted” if US doesn’t have plan to invade Canada

Filed under: Cancon,China,Military,USA — Tags: — Nicholas @ 03:00

Retired US officer-turned-SF writer Tom Kratman thinks heads should roll in the Pentagon if they do not have up-to-date plans to invade Canada … among other current allies … because creating and maintaining plans is what the general staff is supposed to do:

Since at least the time of world class fool, blunderer, jackass, and complete and utter failure, Woodrow Wilson, there’s been a lot of confusion about what military planning is and means. For these purposes, it falls into two categories: planning to actually do something you intend to do, and planning to react to something you do not really want to happen but must be prepared for.

In terms of the latter, I would be not just surprised but disgusted if somewhere in the bowels of the five-sided puzzle palace there are no plans, kept more or less up to date, for invading Canada. I would be at least as surprised and disgusted if Canada doesn’t have some plans to resist that invasion, too. Sure, ours might be hidden as a response to a humanitarian crisis, or couched in terms of responding to a request from Canada’s government for help/intervention, while theirs – for all I know – may reference “Fenians,” or the like. Still, if the plans don’t exist – quite despite that none of us want to invade Canada – then a large number of multi-starred idiots need to be relieved. Why? Because you never really know. Because the future defies prediction in any detail.

That is different in kind from things like Hitler’s invasions of Poland and the USSR which fell not into the category of things that the planner would rather not happen (but had to be prepared to react to) but of things the planner absolutely intended to do.

So is China planning for a war as some claim? Sure they are; it’s their general staff’s job to do that planning. Do they want that war or wars? Puhleeze; as discussed previously, a real war is about the last thing they want. They’re much, much more likely engaged in the first, contingency, class of planning than the second, aggressive, class.

March 16, 2015

Parallels between the Regia Marina of the 1930s and the PLAN today

Filed under: China,Europe,History,Military — Tags: , — Nicholas @ 02:00

In The Diplomat, Franz-Stefan Gady shows how it could be that China’s People’s Liberation Army Navy (PLAN) may be following a similar strategy to Mussolini’s Regia Marina (Royal Italian Navy):

The history of the inter-war Italian navy, the Regia Marina, which faced a strategic outlook similar to the PLAN and was also confronted by technologically superior naval opponents, provides a great lesson in why overestimating your enemy’s capabilities is maybe just as dangerous as underestimating military power.

In short, miscalculating the fighting strengths of Mussolini’s navy prior to and during World War II diverted precious allied resources from dealing with more important military challenges (and as a consequence it inadvertently contributed to various allied defeats in the first three years of the war, such as during the Battle of France, and especially during the campaigns in North Africa). It also influenced policy making by granting Italy too big of a say in European politics (e.g., look up the history of the signing of the Munich Agreement) in comparison to the country’s real military capabilities.

Like the PLAN today, the Italians were engaged in many military innovations throughout the 1930s. For example, one article notes: “The Italian navy was impressive for its pioneering naval research into radar and its prowess in torpedo technology — the latter resulting in powerful aerial and magnetic torpedoes and contributing to the maiali, or small human-guided torpedoes — the ultimate weapons in asymmetric naval warfare.”

Also, the post-World War I Italian Navy, similar to today’s People’s Liberation Army Navy, harbored regional aspirations. With the conclusion of the war in 1918, the Italian admirals agreed that the navy must first dominate the Adriatic Sea and then expand into the Mediterranean and the Red Sea. China has a similar sequential strategy with attempting to dominate the Taiwan Strait as well as the South China Sea, followed by a push beyond the First Island Chain, and finally projecting power all the way to the Second Island Chain and beyond.

March 11, 2015

China’s “Catch up” growth

Filed under: China,Economics — Tags: , , , — Nicholas @ 02:00

In Forbes, Tim Worstall looks at last week’s announcement that China is (slightly) lowering their economic growth forecast.

On that larger scale though what people are worrying about is this. Catch up growth is easier than growth from the technological frontier. What is meant by this is that it’s a great deal easier to generate economic growth if you have an example in front of you of how to do things. To take a trivial example, if you can go and buy a mobile phone, take it apart to see how it works, it’s a lot easier to copy that technology than it is to invent it for the first time. And this is true of how you make cement, how you put up buildings, how you farm a field and so on. And at root that’s what economic growth is: becoming more efficient at doing all of these things as well as everything else. Each time you become more efficient at doing one task you free up resources to be doing something else. Thus you get both the original thing plus the new one from the same resources: this is the very definition of economic growth.

However, there’s a limit to such catch up growth. In certain areas China is right at that technological frontier (in some areas ahead of the rest of the world in fact). Which is where things become more difficult: there’s no one to copy. Therefore that invention has to happen domestically. This is obviously more difficult. But also it rather requires a certain set of institutions. The rule of law, property rights and so on. These aren’t things that China notably has (although things are very much better than they were decades ago). It’s those headwinds that need to be beaten. Bringing in these new institutions, embedding them in the society and the economy, without causing so much disruption as to slow down growth while they are done.

The standard jargon for this is “middle income trap”. To be crude about it the general feeling is that it’s pretty easy to go from dirt poor to middling income. The essence is really just to stop doing stupid things that hold economic development back. China’s done that very well even though they did start from a very low level of an immense number of very stupid things that Maoism did to hold economic growth back. The middle income trap is where the transition over to those institutions that promote technological frontier growth don’t appear (or are not imposed). And thus the stunning growth peters out.

February 7, 2015

Now afflicting Chinese internet users – “Straight Man Cancer”

Filed under: China,Media,Technology — Tags: , , , — Nicholas @ 04:00

At The Diplomat, Nancy Tang explains a sudden outbreak of “Straight Man Cancer” among China’s Weibo users:

“A woman only has one ambition. In her heart, she sees love and childrearing as the most important thing in life.” On January 12, 2015, scholar Zhou Guoping thus tweeted on Weibo, the popular Chinese microblogging platform. Zhou later responded to the backlash, saying, “I agree with women’s liberation and equality between women and men… However, no matter how talented [women] are or what achievements they reach, if [a woman] refuses to, or doesn’t know how to be a gentle lover, a caring wife, a loving mother, the sense of beauty she gives me will be greatly reduced.” Both tweets were subsequently removed by Zhou.

Chinese commentators quickly diagnosed Zhou, a popular public intellectual at the state think tank Chinese Academy of Social Sciences, with “Straight Man Cancer.” The term “Straight Man Cancer,” coined in mid-2014, refers to chauvinist, judgmental behavior and language that propels sexist double standards or belittles women. Zhou’s controversial tweets exposed him to public scrutiny and attracted state attention. Communist Party mouthpiece People’s Daily re-posted an editorial, calling for the use of law and public opinion in order to “prevent ‘Straight Man Cancer’” in the private realm from “spreading into the public domain.” State news agency Xinhua also published the transcript of a newspaper interview with Zhou, in which he shamelessly called himself a “feminist.”

Zhou is by no means the sole Chinese straight man afflicted with Straight Man Cancer. In the aftermath of Zhou’s tweets, Chinese netizens have dug up other notable cases of public figures infected by the “epidemic.” Han Han, popular author-blogger and youth icon, is another representative of the cancerous straight male among Chinese millennials. He has stated in an interview that “there is no way that my girlfriend would [be allowed to] work outside of the household.” The renowned Chinese translator of Haruki Murakami, Lin Shaohua, has warned men against housework, which he thinks of as detrimental to masculinity and having the potential to make men effeminate or gender-bent. Tsinghua University sociologist Sun Liping has suggested that decreasing female employment and facilitating earlier female retirement would alleviate the social pressure caused by China’s large population. New Confucian scholar Qi Yihu has also advocated that women work only half-time so that they can rear children. Meanwhile, even these infuriating sexist remarks are eclipsed by intolerable misogynistic violence: While most sexists perpetrate unfair stereotypes, some actively hate on women and harm women’s well-being. For instance, the celebrity English teacher Li Yang, misogynist and perpetrator of domestic violence, is considered a “terminally ill” case of Straight Man Cancer.

January 22, 2015

China (barely) misses growth target … as if we can trust their numbers anyway

Filed under: China,Economics,Government — Tags: , , , — Nicholas @ 04:00

Ah, well, I haven’t ridden this old hobby horse for a while, so let’s just let Tim Worstall explain why this time, we might be able to get a bit of perspective from the otherwise unreliable official Chinese government economic figures:

Many observers have been slightly sceptical of Chinese GDP numbers for some years now. Regional GDP numbers don’t seem to quite match with other regional numbers (say, oil consumption, other proxies for economic activity) and national numbers don’t necessarily reflect the sum of all of those regional numbers either. There’s absolutely no doubt at all that the place has been getting richer but whether quite so much or quite in the manner being reported is another matter. And then there’s another group of observers (this one including myself) who have some experience of how communists report economic numbers. There’s a plan, the Communist Party is in charge of executing that plan and, amazingly, the plan is always reported to have either worked or been exceeded. Anything less would reflected badly on said Communist Party. As I’ve also been exposed to the old Soviet accounting systems I’m more sceptical than most on this point.

So, there’s that slight worry that a slowing China (or one not growing at the former breakneck pace perhaps) will also lower growth in other countries. We’re pretty sure that’s going to happen. But we’ve also got this other thing to ponder. If the Communist Party is allowing the reporting of numbers that don’t meet the plan then what’s going on with that?

Is this some sea change in the management of the numbers? They’re actually reporting the correct numbers? Or are those suspected massages of the numbers still going on but they underlying reality is so bad that they just couldn’t get up to the planned target? This is, I agree, all wild surmise. But it is a surprise that the numbers came in below target because that’s just not what we’ve come to expect in such a political system. And that could be very bad news indeed.

The seductive appeal of the big project

Filed under: China,Railways,USA — Tags: , , — Nicholas @ 02:00

In a Forbes post from a few years back, Warren Meyer looks at the appeal of the megaproject to those inclined to think that what society really needs is someone in control:

What is it about intellectuals that seem to, generation after generation, fall in love with totalitarian regimes because of their grand and triumphal projects? Whether it was the trains running on time in Italy, or the Moscow subways, or now high-speed rail lines in China, western dupes constantly fall for the lure of the great pyramid without seeing the diversion of resources and loss of liberty that went into building it.

Writers like Thomas Friedman and Joel Epstein in the Huffington Post have eulogized China and its monumental spending projects. These are the same folks who, generations ago, tried disastrously to emulate Mussolini’s “forward-thinking” economic regime in the National Industrial Recovery Act. These are the same folks who wanted to emulate MITI’s management of the Japanese economy (which drove them right into a 20-year recession). These are the same folks who oohed and ahhed over the multi-billion dollar Beijing Olympics venues while ignoring the air that was un-breathable. These are the same folks who actually believed the one Cuban health clinic in Sicko actually represented the standard of care received by average citizens. To outsiders, the costs of these triumphal programs are often not visible, at least not until years or decades later when the rubes have moved on to new man crushes.

These writers worry that the US is somehow being left behind by China because its government builds more stuff than we do. We are “asleep.” Well, here is my retort: Most of the great progress in this country occurred when the government was asleep. The railroads, the steel industry, the auto industry, the computer industry — all were built by individuals when the government was at best uninvolved and at worst fighting their progress at every step.

In particular, both Friedman and Epstein think we need to build more high speed passenger trains. This is exactly the kind of gauzy non-fact-based wishful thinking that makes me extremely pleased that these folks do not have the dictatorial powers they long for. High speed rail is a terrible investment, a black hole for pouring away money, that has little net impact on efficiency or pollution. But rail is a powerful example because it demonstrates exactly how this bias for high-profile triumphal projects causes people to miss the obvious.

Which is this: The US rail system, unlike nearly every other system in the world, was built (mostly) by private individuals with private capital. It is operated privately, and runs without taxpayer subsidies. And, it is by far the greatest rail system in the world. It has by far the cheapest rates in the world (1/2 of China’s, 1/8 of Germany’s). But here is the real key: it is almost all freight.

January 17, 2015

If anything, Blade Runner was too optimistic

Filed under: China,Media — Tags: , , , — Nicholas @ 10:20

Joey DeVilla posted a few images comparing the dystopian future envisioned in Blade Runner with the modern cityscape of Beijing:

Click to embiggenate

Click to embiggenate

The crowded, dirty Los Angeles of 2019 featured in the 1982 film Blade Runner looks rather pristine compared to the real-life Beijing of 2015.

October 26, 2014

A bit of perspective on the damage to China’s aircraft carrier

Filed under: China,Military,Pacific — Tags: , , — Nicholas @ 12:40

At The Diplomat, James R. Holmes talks about the recent accident on board the Chinese carrier Liaoning:

Reports of Chinese aircraft carrier Liaoning’s death — or debilitating wounds — are greatly exaggerated. The flattop suffered some sort of steam leak that prompted her crew to stop at sea and conduct repairs before resuming operations. The news comes from Robert Beckhusen of War Is Boring, who relays a Sina.com story that Liaoning suffered a “steam explosion” following “a leak in ‘the machine oven compartment to the water pipes.’”

Beckhusen denies that PLA Navy leaders will decommission the flattop because of mechanical problems. (By raising the possibility, though, he seems to imply they might.) He does speculate that the accident will force the navy to relegate her to training duty.

Would an engineering casualty represent a setback unseen in the annals of naval history? Hardly. All sea services have been there, done that, and will likely find themselves there again. It’s doubtful such travails will induce PLA Navy officials to overreact, demoting Liaoning from whatever plans they have in mind for her. China’s first aircraft carrier is probably destined to serve as a training platform in any event — a ship used to groom China’s first generation of naval aviators, flight-deck crewmen, and air-group commanders. She will remain such despite minor hardware problems belowdecks.

Indeed, if suffering zero engineering casualties were the standard for maritime competence, the briny main would be empty of shipping. Think about what going to sea involves. A warship is a metal box largely encased in an environment hostile to metal — namely seawater and salt air. And it’s a box packed with machinery, flammables and explosives of various sorts, and human bodies. In such surroundings, rare is the seaman without a hair-raising tale to tell about fires or floods, equipment failures, and sundry mishaps.

I could spin a few such yarns myself. One involves a pipe springing a pinhole leak. And spraying fuel. On a steaming boiler. While crewmen are loading ammunition. At anchor. In rough weather. And that was a good-luck ship for the most part. Murphy’s Law — a.k.a. s*#t happens — is an iron law of marine engineering, and of seafaring writ large. When it does happen, you fix the damage, learn whatever lessons there are to learn, and move on.

October 5, 2014

Protest locations in Hong Kong

Filed under: China,Government,Politics — Tags: , , — Nicholas @ 10:03

In The Atlantic, Bourree Lam looks at where the Hong Kong protests tend to be located:

Hong Kong’s “umbrella revolution” — an anticipated protest movement with unanticipated mass turnout — is currently spreading across an island slightly bigger than Manhattan.

The Occupy Central with Love and Peace (OCLP) campaign, whose main demands are the resignation of Chief Executive CY Leung and true democracy for Hong Kong, announced months ago that it planned to shut down Hong Kong’s Central District — the city’s financial hub, which also houses government offices (including the Legislative Council’s buildings and the chief executive’s residence) and a luxury-shopping strip featuring a city block-wide Louis Vuitton store (by night it’s where tourist and locals go drinking and clubbing, especially in the Lan Kwai Fong area). Beginning with British colonial rule in 1841, the district has gradually become the main artery of Hong Kong’s business and social life.

But the protest movement, of which the OCLP is now just one part, has expanded in the last few days to the districts of Admiralty, Causeway Bay, and Mongkok — some of the city’s most bustling commercial sectors. On Tuesday, the protests encompassed the areas of Tsim Sha Tsui and Wan Chai. And, in a twist on the ‘Occupy’ movement in the United States, the demonstrations haven’t been confined to public squares; they’ve also spread to intersections, forcing road closures. Protesters, for instance, are currently holding their positions on Connaught Road Central, a major six-lane throughway that connects four districts on the island.

[…]

Hong Kong protest locations, October 2014

Update: Zachary Keck is quite pessimistic on the chances for success.

As covered extensively in The Diplomat, tens of thousands of protesters have taken to the streets of Hong Kong demanding democratic reforms. Specifically, the protesters want free and fair elections and universal suffrage to select the city’s government, which Beijing promised as part of the condition for the U.K. handing back the city to mainland China.

Sadly, Occupy Central is doomed to fail. The Chinese government will not accept the protesters’ demands.

Beijing has already made it clear that it views free and fair elections in Hong Kong to be a threat to one-party rule in the country. At most, it will allow Hongkongers to select one of the candidates that it pre-approves. It has also deemed Occupy Central illegal. In other words, the Chinese Communist Party views the issue as one of its “core interests,” and it hasn’t stayed in power this long by compromising on issues that it views as threats to its survival.

[…]

The massive protests that have swept through Hong Kong in recent days have only made it more urgent that the CCP hold the line on the issue. The Party can ill afford an example of mass demonstrations forcing it to compromise on an issue deemed to be of core importance. Before the protests, it was possible the CCP might have assessed that free and fair elections in Hong Kong would not threaten one-Party rule on the mainland because of the “one country, two systems” mantra. However, the Party giving in on a core issue because of mass protests would, without question, set a dangerous precedent for the CCP’s grip on power in mainland China. It therefore will not be done.

This isn’t to say that a violent crackdown is coming. Indeed, as is almost always the case, the CCP will want the local government on the frontlines in handling the protesters, while Beijing directs things from behind the scenes. As Steve Hess has pointed out in The Diplomat, using local governments as scapegoats has long been an effective tool of the CCP. If it means the restoration of stability, that could very well mean the end of CY Leung’s career. It’s also possible some sort of “compromise” will be worked out that allows the protesters to claim some sort of victory without compromising the CCP’s ability to maintain a large degree of control over the chief executive of Hong Kong.

October 2, 2014

Russian TV claims Hong Kong protests are US/UK plot against … Russia

Filed under: China,Media — Tags: , , , — Nicholas @ 08:32

We’re used to Russian talking points being a bit off-centre, but as Karoun Demirjian reports, the Russians are now seeing things like the Hong Kong student protests as “really” being directed against Russian interests by shadowy American and British puppetmasters:

Here in Russia, the umbrella-wielding demonstrators of Hong Kong are being presented as pawns in a Western plot to foment instability in yet another one of Moscow’s allies — and Russia wonders if it could be the ultimate target.

“Was the student protest organized by Great Britain and the USA?” state television station Russia 24 asked Tuesday, citing reports in the Chinese media that “the leaders of the movement received special training from the American intelligence services.”

[…]

“The tactics of the protesters are exactly the same as at the beginning of all ‘orange’ revolutions, which in fact were state coups,” a Russia 24 news presenter said Tuesday, referring to the signature color of Ukraine’s 2004 protests. “Besides, the White House officially confirmed through its spokesman that Washington supports the intentions of the citizens of Hong Kong to protect their basic rights and freedoms.”

Russian state media have also suggested that Britain supports the protests as a way of safeguarding its business interests in Hong Kong, especially as Beijing is “gradually abolishing benefits” for British companies located there.

Yet there is one thing missing in the Russian analysis: Any specific advice as to how China’s government should proceed. Russia’s leaders have neither cautioned China’s leaders to show restraint nor urged them toward a crackdown.

September 14, 2014

QotD: Chinese millionaires

Filed under: China,Humour,Quotations — Tags: , , , — Nicholas @ 00:01

Up to a point, as we recognized, the problem of the coolie-millionaire offers no real difficulty. The Chinese coolie lives in a palm-thatched hovel on a bowl of rice. When he has risen to a higher occupation — hawking peanuts, for example, from a barrow — he still lives on rice and still lives in a hovel. When he has risen farther — to the selling, say, of possibly stolen bicycle parts, he keeps to his hovel and his rice. The result is that he has money to invest. Of ten coolies in this situation, nine will lose their money by unwise speculation. The tenth will be clever or lucky. He will live, nevertheless, in his hovel. He will eat, as before, his rice. As a success technique this is well worthy of study.

In the American log cabin story the point is soon reached at which the future millionaire must wear a tie. He explains that he cannot otherwise inspire confidence. He must also acquire a better address, purely (he says) to gain prestige. In point of fact, the tie is to please his wife and the address to satisfy his daughter. The Chinese have their womenfolk under better control. So the prosperous coolie sticks to his hovel and his rice. This is a known fact and admits of two explanations. In the first place his home (whatever its other disadvantages) has undeniably brought him luck. In the second place, a better house would unquestionably attract the notice of the tax collector. So he wisely stays where he is. He will often keep the original hovel — at any rate as an office — for the rest of his life. He quits it so reluctantly that his decision to move marks a major crisis in his career.

When he moves it is primarily to evade the exactions of secret societies, blackmailers, and gangs. To conceal his growing wealth from the tax collector is a relatively easy matter; but to conceal it from his business associates is practically impossible. Once the word goes round that he is prospering, accurate guesses will be made as to the sum for which he can be “touched.” All this is admittedly well known, but previous investigators have jumped too readily to the conclusion that there is only one sum involved. In point of fact there are three: the sum the victim would pay if kidnapped and held to ransom; the sum he would pay to keep a defamatory article out of a Chinese newspaper; the sum he would subscribe to charity rather than lose face.

Our task was to ascertain the figure the first sum will have reached (on an average) at the moment when migration takes place from the original hovel to a well-fenced house guarded by an Alsatian hound. It is this move that has been termed “Breaking the Hound Barrier.” Social scientists believe that it will tend to occur as soon as the ransom to be exacted comes to exceed the overhead costs of the “snatch.”

C. Northcote Parkinson, “Palm Thatch To Packard Or A Formula For Success”, Parkinson’s Law (and other studies in administration), 1957.

September 8, 2014

QotD: The Economist‘s whitewash of the “Great Leap Forward”

Filed under: China,History,Media,Quotations — Tags: , , — Nicholas @ 00:01

When Mao died, The Economist wrote:

    “In the final reckoning, Mao must be accepted as one of history’s great achievers: for devising a peasant-centered revolutionary strategy which enabled China’s Communist Party to seize power, against Marx’s prescriptions, from bases in the countryside; for directing the transformation of China from a feudal society, wracked by war and bled by corruption, into a unified, egalitarian state where nobody starves; and for reviving national pride and confidence so that China could, in Mao’s words, ‘stand up’ among the great powers.” (emphasis mine)

The current estimate is that, during the Great Leap Forward, between thirty and forty million Chinese peasants starved to death. Critics questioning that figure have suggested that the number might have been as low as two and half million.

I am curious — has the Economist ever published an explicit apology or an explanation of how they got the facts so completely backwards, crediting the man responsible for what was probably the worst famine in history with creating a state “where nobody starves?” Is it known who wrote that passage, and has anyone ever asked him how he could have gotten the facts so terribly wrong?

David D. Friedman, “A Small Mistake”, Ideas, 2014-09-07.

September 7, 2014

Hong Kong’s chief executive – you can vote for anyone we nominate

Filed under: China — Tags: , , — Nicholas @ 11:20

Sara Hsu reports on the Chinese government’s plans for how Hong Kong’s chief executive will be elected:

Hong Kong is at a political crossroads, as the National People’s Congress (NPC) in Mainland China has proposed to allow universal suffrage in final selection of the Chief Executive, as long as a nominating committee chooses candidates approved by the Communist Party. The proposal is to be voted upon by the Legislative Council; if rejected, the 2017 will be by committee, as in the last election (of Chun-ying Leung). Mainland China’s involvement in Hong Kong’s elections has reduced the ability of Hong Kong residents to freely run for and elect a candidate of their choice for the most powerful government position of this Special Administrative Region. Does this constraint negatively or positively impact the economy?

Hong Kong’s market economy is to be maintained at least through 2047 according to the Basic Law. China and Hong Kong have strong interests in upholding their mutual economies, as Hong Kong is the largest source of inward investment for Mainland China, and also the largest recipient of foreign direct investment from the Mainland. The economies are intricately intertwined through trade and investment, so in these respects, interests are intertwined.

Nor has the movement against Beijing political involvement gained widespread popularity from an economic perspective. Hong Kong’s pro-democracy movement, Occupy Central with Love and Peace, has in fact been accused by some of putting Hong Kong’s economy at risk. Even though the movement has had little direct impact on the economy thus far, pro-Beijing groups worry that the pro-democracy movement will give rise to political instability and jeopardize the economic well-being of Hong Kong residents.

September 3, 2014

QotD: The relative size of the Chinese economy, historically speaking

Filed under: China,Economics,History,Quotations — Tags: , , — Nicholas @ 00:01

People seem to want to get freaked out about China passing the US in terms of the size of its economy. But in the history of Civilization there have probably been barely 200 years in the last 4000 that China hasn’t been the largest economy in the world. It probably only lost that title in the early 19th century and is just now getting it back. We are in some senses ending an unusual period, not starting one.

Warren Meyer, “It is Historically Unusual for China NOT to be the Largest Economy on Earth”, Coyote Blog, 2014-08-30.

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