Quotulatiousness

July 13, 2012

Questioning the accuracy of official Chinese economic figures

Filed under: Business, China, Economics, Government — Tags: , , , — Nicholas @ 09:50

Yes, we’ve heard this several times before, and for good reason:

China’s relatively mild slowdown in the second quarter has reignited a controversy about whether its official statistics can be trusted.

Chinese growth edged down to 7.6 per cent in the second quarter from 8.1 per cent in the first quarter, and analysts said the momentum in June, from stronger bank lending to rising investment, pointed to a rebound in the second half of the year.

But rather than delivering reassurance, the numbers instead provoked questions about whether the reality is worse than the government is letting on.

Economists with Barclays noted that a deceleration in industrial production was consistent with 7.0-7.3 per cent growth. Analysts at Capital Economics said that the true figure was probably closer to 7.0 per cent.

[. . .]

Doubts about Chinese data have a fine pedigree. Li Keqiang, who is widely expected to succeed Wen Jiabao later this year as premier, confided to U.S. officials in 2007 that gross domestic product was “man made” and “for reference only”, according to a diplomatic cable published by WikiLeaks.

Earlier posts on the Chinese economy are here.

July 6, 2012

US Navy re-thinks their Pacific strategy options

Filed under: China, Military, Pacific, USA — Tags: , , , — Nicholas @ 08:07

Strategy Page discusses the historical uses of the submarine in the Pacific and why things would not be the same in the case of a Chinese war:

The U.S. Navy is rethinking how it will use its submarines in a future Pacific War. The problem is that a campaign against Chinese shipping is unlikely, in part because of what actually happened during the last great anti-shipping campaign, which occurred during World War II (1939-45). After the war, the U.S. analyzed its operations against Japanese shipping and found that submarines were important, but not the only weapon effective against shipping. Some 8.9 million tons of Japanese shipping was sunk or so seriously damaged (disabled) at the end of the war. Submarines accounted for 54.7 percent of this. But 16.3 percent was attributable to carrier-based aircraft, 14.5 percent to land- based planes and 9.3 percent to mines (most dropped by B-29s). Less than one percent was due to surface gunfire, and the balance of 4 percent was caused by accidents.

[. . .]

Meanwhile, the U.S. has adopted a new approach to any potential war with China. The U.S. Department of Defense has been told that, for the foreseeable future, there will be no more large-scale land campaigns. The air force, navy, and marines responded with a plan (AirSea Battle) that has been in the work for years. The new strategy is designed to cope with the rising power of China in the Pacific. AirSea Battle involves tighter planning and coordination of navy, marine, and navy forces, plus the development of some new weapons and tactics and cooperation with allies.

[. . .]

AirSea battle concentrates on military operations. But these will be heavily influenced by economic factors. For example, during World War II the United States was a largely self-sufficient “continental power.” We exported much (more than any other nation on the planet), but did not have to import much. That has changed. Now the U.S. has to import a lot of its oil, special raw materials (like “rare earths” from China) and a lot of manufactured goods. The U.S. is now like much of the rest of the world, China included. If there were a maritime blockade of China, the U.S. and many other Chinese trading partners would suffer severe economic disruptions. There would be massive unemployment for all concerned and that would happen despite energetic efforts by everyone to find alternative sources to goods no longer available because of the disruption of the China trade.

[. . .]

Meanwhile, the nuclear submarine community has done the math and found that their greatest contribution these days is not attacking enemy warships, but land bombardment with cruise missiles and intelligence collecting. Since the first nuclear subs showed up in the 1950s, only one, a British boat, has used a torpedo to sink a hostile warship. But hundreds of cruise missiles have been launched at land targets and uncounted (because they are highly classified) intelligence missions have been, and continue to be, carried out. All that is the recent past for subs, and is likely to be the future as well. World War II in the Pacific is not likely to be rerun. The U.S. Navy still expects its subs to go after enemy warships, and its surface and air forces to battle enemy subs. But a major war on shipping is much less likely.

June 29, 2012

From Maoism to Kleptocracy in one generation

Filed under: Business, China, Economics, Government — Tags: , , , — Nicholas @ 08:14

China’s economic growth has been one of the wonders of the modern world, as one of the poorest nations has pulled itself well up the economic tables over just the last twenty years. What it has not done, however, is replace the communist leadership with democratically elected leaders. What has happened is that switching from a pure command economy to a freer economy has created fantastic opportunities for graft and corruption. Opportunities which have been grasped eagerly by party leaders and their friends and family:

As I set out in The Fall of the Communist Dynasty, and a HT to John Hempton’s piece within which he contends that the entire Chinese economy is a Kleptocracy , this week we have news from Citron Research who reports that Evergrande Real Estate Group Ltd is ‘a deception on a grande scale’ .

Citron quote ;-

‘Evergrande who ranks among the top 5 Chinese property companies. Our analysis and primary research reveal that: 1] Evergrande is insolvent; and 2] Evergrande will be severely challenged from a liquidity perspective. The Company’s management has applied at least 6 accounting shenanigans to mask Evergrande’s insolvency. Our research indicates that a total write-­down of RMB 71bn is required and Evergrande’s pro forma equity is negative 36bn.’

What sparked Citrons interest in Evergrande was the mail order doctorate the chairman claimed from the University of West Alabama, a small college 230 miles north of New Orleans with 2300 on-campus students. Evergrande’s is one of the top 5 players in the Chinese property market that fell for its 8th consecutive month in May. My experience with these types of matters is that small things can be excellent markers to greater problems. Small examples of dishonesty in one area of life are often reflected in larger undiscovered examples in other areas of a person’s life.

[. . .]

Zoomlion has an interesting business model, it is similar in many of ways to Caterpillar, except whereas Caterpillar report falling sales, Zoomlion reports astounding sales growth with a fivefold increase in revenue since 2007. Zoomlion customers sometimes buy ten concrete mixers when they planned to initially by one or two. They have a perverse incentive to buy more than they need because these concrete trucks are purchased via finance packages supplied by Zoomlion.

Then the machines can be garaged and used as collateral to borrow further funds from other lenders. Zoomlion continues to grow while cement sales have plunged. In May, cement output increased 4.3 per cent YoY, down from 19.2 per cent recorded last year. Zoomlion’s new debt of $22.5B buys roughly 900,000 trucks which could produce enough concrete (at six loads a day) to build over thirty Great Pyramids of Giza a day.

[. . .]

All revolutions have class and economic matters at their core. Ironically, the difference in a future Chinese collapse is that the expropriators in China in this cycle have been the Communist Party political class. The CCP have become the Kleptopreneur bourgeoisie who have expropriated from China’s proletariat (the industrial working class), via corruption and theft from the state and state owned enterprises. The Ka-Ching Dynasty is responsible for the greatest looting of a nation in history.

Marx wrote that modern bourgeois society (Capitalism) has conjured up such gigantic means of production and of exchange, that it is like the sorcerer who is no longer able to control the powers of the nether world whom he has called up by his spells (Karl Marx)

The CCP ‘sorcerers’ have summoned up a political and economic nether world that is so systemically corrupted it is in the process of spiralling into same revolutionary physics that destroyed the original Chinese merchant bourgeoisie that Mao overthrew.

Earlier posts on China’s economy are here. H/T to Cory Doctorow for the link.

June 28, 2012

Don’t expect Korean re-unification to follow the German script of the 1990s

Filed under: Asia, China, Japan, Media, Military — Tags: , , , , , , — Nicholas @ 09:03

Some potentially chilling geo-strategic news from China:

The government has had reports issued denying American and Japanese studies of the rapid expansion of Chinese military power in the last decade. The Chinese reports were issued in Chinese, English and Japanese. China’s official line is that their armed forces are only for defense and are growing at a far more modest rate than foreign analysts are claiming. The Chinese are having a hard time refuting the foreign analysts, given the availability of satellite photos and many cell phone images of new Chinese weapons. China tries to control this sort of information leak, but has been unable to do so.

Another problem for China is the fact that internal propaganda campaigns cannot be kept secret from the outside world. This was never possible, but even with a heavily censored Chinese Internet, such embarrassing news quickly gets to an international audience very quickly. The latest example of this is remarks by Chinese officials about the “Great Wall of China.” The new claims are that the wall was larger than its current official size, and incorporates parts of North Korea. This was alarming news in South Korea, which is preparing to take over North Korea when the communist dictatorship up there collapses. The collapse is expected soon. With this new “Great Wall” argument the Chinese are announcing that if the North Korean government losses control, China will reclaim some “lost provinces” and the foreigners (including South Korea, Japan and the United States) had better stay out of it.

Given the Chinese claims in the South China Sea (that is, almost all of it), it is probably no surprise to the other nations that China might also have designs on part or all of the territory of modern day North Korea. When the German Democratic Republic (aka East Germany) collapsed in the early 1990s, the Federal Republic (West Germany) was able to pick up the pieces in a relatively co-ordinated manner. China may not want South Korea doing the same thing after a North Korean collapse.

June 26, 2012

China’s aircraft carrier moves closer to operational status

Filed under: China, Military — Tags: , , — Nicholas @ 09:13

And update from Strategy Page on the Chinese aircraft carrier Shi Lang:

China’s first aircraft carrier, the Shi Lang (formerly the Russian Varyag), recently went to sea for the eighth time since it began sea trials last August. The latest trip is to last 13 days. The previous longest trip was last November 28, when the Shi Lang went out for 12 days. The first trip (last August 11) was for three days, most subsequent ones were for 9-11 days. So far, the Shi Lang has been at sea for ten weeks. All preparations have been made for flight operations, which have not taken place yet.

The Shi Lang has apparently performed well during these extended sea trials. Three months ago some aircraft were spotted on the flight deck. This was probably to make sure aircraft could be moved around the deck, and down to the hanger deck, without any problems. Last year China confirmed that the Shi Lang will primarily be a training carrier. The Chinese Navy is supposed to take possession of the Shi Lang later this year. The Chinese apparently plan to station up to 24 jet fighters and 26 helicopters on the Shi Lang.

[. . .]

China is believed to be building the first of several locally designed aircraft carriers but little is known of this project. The only official announcements have alluded to the need for two or three aircraft carriers, in addition to the Shi Lang. Construction of such large ships has not yet been seen in any shipyard.

Earlier posts on the Chinese carrier program are here.

June 18, 2012

Speculation on the intended mission of the X-37B

Filed under: China, Space, Technology, USA — Tags: , , , , — Nicholas @ 12:24

A blog post at New Scientist compares the achievement of the Chinese space program, which just successfully placed three astronauts aboard the ISS and the highly mysterious X-37B spaceplane which just completed a 469-day mission:

China’s space agency took the plaudits for successfully docking its crewed Shenzhou-9 spacecraft with its orbiting lab Tiangong-1 today, but the feat was slightly overshadowed by the weekend landing of the US X-37B spaceplane, which after a record-breaking orbital flight of 469 days showed just how far China has to go to catch up with advanced spacefaring nations.

At around noon local time, the Beijing Aerospace Control Centre relayed live pictures of Shenzhou-9’s docking on state broadcaster China Central Television. The space capsule held off at a distance of 62 kilometres from Tiangong-1 before making its docking approach just before 2pm — and once the crew had manually locked on to the latter’s cruciform docking target it took only eight minutes to latch the spacecraft together safely.

[. . .]

This Boeing-built spaceplane, roughly one quarter the size of the space shuttle, is equally mysterious. It flies to orbit on a regular rocket and when there deploys a solar array that gives its sensors the power they need for extended missions. It also has enough propellant to fire thrusters that make small changes to its orbit in a bid to foil surveillance. The vehicle re-enters the atmosphere just like the shuttle but lands entirely autonomously, making it a space drone.

At no point has the USAF revealed the craft’s purpose: in addition to spacecraft surveillance, it could deploy a robot that repairs (or disables) satellites in orbit, say some, while at the darker end of the spectrum of possibilities — it was a DARPA project in its early days — it could carry a warhead, using its drone homing capability to provide surprise precision strike from orbit.

May 30, 2012

The end of the “predictable” China

Filed under: China, Economics, Military, Politics, USA — Tags: , , , , , — Nicholas @ 10:03

Robert D. Kaplan on the end of an era in geopolitical calculations:

The United States has had it easy over the past third of a century in regards to China. Washington has been able to proclaim moral superiority over the Communist Party dictatorship in Beijing, even as those very dictators provided Washington with a stable, businesslike relationship that fostered immense opportunities for American companies in China and for the American economy overall. China’s rulers, ever since Deng Xiaoping consolidated power in 1978, may have been nominally communists, but they have also been professionals and technocrats who have ruled in a self-effacing, collegial style. Yes, they may oppress dissidents, but they have also been enlightened autocrats by the standards of the suffocating rulers who have governed in the Middle East.

But the purging of the pseudo populist boss of the megacity of Chongqing, Bo Xilai, may indicate that a less predictable period in Chinese politics lies ahead. Bo was something not seen in China since Mao Zedong: a leader with real charisma. Bo may indicate that the age of the technocrats will give way to the age of politicians — and politicians, even in liberal democracies, exploit people’s emotions. That could lead to more erratic, nationalistic rulers.

[. . .]

China’s autocrats have for many years been nervously riding a domestic tiger. With communism no longer a philosophical organizing principle for the state, they have had to justify their rule by delivering double-digit annual economic growth — or close to that — to provide jobs for a potentially restive younger generation. Thus, even while China has amassed impressive new air and sea power, it has — by and large — not tried to employ that power in a particularly hostile way. China’s communist rulers have had too much domestically to worry about without creating new problems for themselves by constantly challenging the United States or its allies on the high seas. While China’s push to acquire air-sea power most specifically dates to 1996, when Beijing was humiliated by Washington’s ability to drive two aircraft carrier strike groups through waters near the Taiwan Strait, the building of a substantial air force and navy have so far been part of the natural, organic process of a new and rising great power. At least so far, it has not been particularly destabilizing to the world or regional order, unlike Iran’s push to develop a nuclear capability as part of a drive for Near Eastern leadership. China’s rulers may be dictatorial, but they are not radical and messianic.

May 13, 2012

China increases their naval presence near Scarborough Shoal

Filed under: China, Military, Pacific — Tags: , , — Nicholas @ 10:32

I posted an item last month about the stand-off between the Chinese People’s Liberation Army Navy (PLAN) and the Philippine ship BRP Gregorio del Pilar (a former USCG cutter) in the Scarborough Shoal. Now there’s a report from Hong Kong’s largest English-language newspaper that China is sending another flotilla to the area:

China has sent five warships to the disputed Scarborough Shoal off the west coast of the Philippines with the warning that Beijing is ready for “any escalation” of the conflict.

That comes as the outgunned Philippines looks to the United States for naval support in South China Sea territory that may be rich in energy sources.

The five warships are said to be among the most advanced vessels in the Chinese fleet.

They include ships with state-of-the-art systems against attack from the sky, while one is an assault ship that carries 20 amphibious tanks and specialized fighting teams among 800 personnel.

Japanese surveillance aircraft saw the flotilla west of Okinawa and sailing south on Sunday.

Without American support, the Philippine navy is completely out-classed by the PLAN (aside from a large number of in-shore patrol craft, there are only 14 combat-capable ships). And it’s not clear that the US will want to escalate tension at this moment, especially over something like the Scarborough Shoal.

H/T to David Akin for the link.

May 11, 2012

Britain’s government websites under attack

Filed under: Britain, China, Government, Technology — Tags: , , , — Nicholas @ 09:06

Perhaps I’m just cynical, but I had expected that any government website would need to be “hardened” against attack. The British government’s many official websites have indeed been undergoing attacks for quite some time:

The British Ministry of Defense has admitted, for the first time, that it is under heavy attack by hackers. It was also revealed that some of these attacks had succeeded. The good news is that the military is becoming more aggressive and imaginative in dealing with Cyber War defense. China was not directly accused of being behind any of these attacks, but it was mentioned that there are now discussions underway with the Chinese on the matter. All this is an old problem.

Last year, Britain went public to report a higher number of Internet based attacks. The report noted that the emphasis was now on economic assets. This included technology and business plans. For example, the Foreign and Commonwealth Office was under heavy cyber-attack for several months, apparently in an effort to obtain secret details of government plans and techniques for supporting British exports. Government Internet security officials were making all this public to encourage British firms to increase their Internet security.

All this was nothing new. Two years ago Britain’s domestic intelligence service, MI5, went public with numerous charges of Chinese Internet based espionage. MI5 accused China of using both agents and hacker software, to obtain secrets from specific companies and government organizations. This approach had Chinese personnel approaching specific British businessmen at trade shows, and offering gifts, like a thumb drive loaded with hidden hacker software that will load itself on to the victim’s PC and seek out valuable information. Internet based attacks, traced back to China, continue to send real looking email that has an attachment containing another of those stealthy hacker programs that seek out secrets, or even quietly take over the user’s PC. Three years ago, MI-5 sent alerts to major corporations warning them of similar attacks and advising increased security of their data.

May 2, 2012

Demographics as destiny: China’s coming population bust

Filed under: China, Economics, India, USA — Tags: , , — Nicholas @ 08:00

Ramesh Ponnuru hits many of the same points that Mark Steyn has been making for the last several years, only he’s cut out all the jokes:

Today’s most important population trend is falling birthrates. The world’s total fertility rate — the number of children the average woman will bear over her lifetime — has dropped to 2.6 today from 4.9 in 1960. Half of the people in the world live in countries where the fertility rate is below what demographers reckon is the replacement level of 2.1, and are thus in shrinking societies.

[. . .]

As Eberstadt points out, we can make predictions about the next 20 years with reasonable accuracy. The U.S.’s traditional allies in western Europe and Japan will have less weight in the world. Already the median age in western Europe is higher than that of the U.S.’s oldest state: Florida. That median age is rising 1.5 days every week. Japan had only 40 percent as many births in 2007 as it had in 1947.

These countries will have smaller workforces, lower savings rates and higher government debt as a result of their aging. They will probably lose dynamism, as well.

[. . .]

The Census Bureau predicts that China’s population will peak in 2026, just 14 years from now. Its labor force will shrink, and its over-65 population will more than double over the next 20 years, from 115 million to 240 million. It will age very rapidly. Only Japan has aged faster — and Japan had the great advantage of growing rich before it grew old. By 2030, China will have a slightly higher proportion of the population that is elderly than western Europe does today — and western Europe, recall, has a higher median age than Florida.

H/T to Jon, my former virtual landlord, for the link.

April 12, 2012

Chinese vessels left in possession of Scarborough Shoal as Philippine ship withdraws

Filed under: Asia, China, Military — Tags: , , , — Nicholas @ 09:28

An update on the BBC News website about the stand-off between Chinese and Philippine ships in the disputed Scarborough Shoal area of the South China Sea:

Earlier on Thursday a Philippine coastguard vessel arrived in the area, known as the Scarborough Shoal.

The Philippines also says China has sent a third ship to the scene.

The Philippine foreign minister said negotiations with China would continue. Both claim the shoal off the Philippines’ north-west coast.

The Philippines said its warship found eight Chinese fishing vessels at the shoal when it was patrolling the area on Sunday.

The BBC article doesn’t name the Philippine ship, but it’s likely to be the BRP Gregorio del Pilar (formerly the USCGC Hamilton):


Photo from Wikipedia

China’s view of its borders in the South China Sea clashes wildly with those of its neighbours and the international community:

In a statement, the Philippines said that its navy boarded the Chinese fishing vessels on Tuesday and found a large amount of illegally-caught fish and coral.

Two Chinese surveillance ships then apparently arrived in the area, placing themselves between the warship and the fishing vessels, preventing the navy from making arrests.

The Philippines summoned Chinese ambassador Ma Keqing on Wednesday to lodge a protest over the incident. However, China maintained it had sovereign rights over the area and asked that the Philippine warship leave the waters.

April 3, 2012

At the “School of American Declinism”, the NYT is head cheerleader

Filed under: China, Economics, Media, USA — Tags: , — Nicholas @ 08:01

Jon, my former virtual landlord, sent me this link to an article on the inevitable rise of China and matching inevitable decline of the United States:

The senior leadership of the Chinese government increasingly views the competition between the United States and China as a zero-sum game, with China the likely long-range winner if the American economy and domestic political system continue to stumble, according to an influential Chinese policy analyst.

China views the United States as a declining power, but at the same time believes that Washington is trying to fight back to undermine, and even disrupt, the economic and military growth that point to China’s becoming the world’s most powerful country, according to the analyst, Wang Jisi, the co-author of “Addressing U.S.-China Strategic Distrust,” a monograph published this week by the Brookings Institution in Washington and the Institute for International and Strategic Studies at Peking University.

[. . .]

The United States is no longer seen as “that awesome, nor is it trustworthy, and its example to the world and admonitions to China should therefore be much discounted,” Mr. Wang writes of the general view of China’s leadership.

In contrast, China has mounting self-confidence in its own economic and military strides, particularly the closing power gap since the start of the Iraq war. In 2003, he argues, America’s gross domestic product was eight times as large as China’s, but today it is less than three times larger.

[. . .]

Mr. Wang writes that the Chinese leadership, backed by the domestic news media and the education system, believes that China’s turn in the world has arrived, and that it is the United States that is “on the wrong side of history.” The period of “keeping a low profile,” a dictum coined by the Chinese leader Deng Xiaoping in 1989, and continued until now by the departing president, Hu Jintao, is over, Mr. Wang warns.

“It is now a question of how many years, rather than how many decades, before China replaces the United States as the largest economy in the world,” he adds.

March 8, 2012

Sweatshops and Apple

Filed under: China, Economics, Technology — Tags: , , , , — Nicholas @ 11:15

Sam Bowman points out the economic factors which many western critics miss when they slag Apple for working conditions in the factories where iPhones and iPads are assembled:

Like sweatshop workers in China and elsewhere, Foxconn employees endure long hours, low pay and dangerous working environments, but do so because there is no better alternative. In fact, jobs in sweatshops (and Foxconn factories) tend to be massively in demand, because the alternative is worse. It’s not uncommon for a new employee’s first action being to sign up their relatives to the waiting list for new job openings.

It’s easy to recoil from seen evils, while ignoring unseen alternatives that are even worse. No one in the West will ever have to put up with such bad conditions.

If wages and conditions in Apple’s hometown of Cupertino, CA, were as bad, nobody would work there. That people do so in China is because they have no better alternative. China’s economy is growing quickly, but much of it is still grindingly poor, and difficult to do business in. It’s poverty that makes China’s factories such unpleasant places to work in.

[. . .]

It’s no surprise that China is still very poor compared to neighbouring countries like Japan, South Korea, Taiwan and Singapore. Forty years of brutal socialism under Mao’s Communist state halted China’s development, and decimated institutions crucial for wealth creation, like strong civil society and the rule of law.

The exception, of course, is Hong Kong, where conditions and wages are much better than on mainland China — not because of a bigger government, but because of greater wealth caused by freer markets.

February 15, 2012

American consulate chooses not to give asylum to Wang Lijun, former Chongqing City official

Filed under: China, Politics, USA — Tags: , — Nicholas @ 10:08

I got an emailed link to this story at the Epoch Times, providing an account of former vice-mayor and chief of police Wang Lijun’s attempt to claim political asylum in the American consulate in Chengdu:

What exactly happened on the day Wang Lijun fled to the U.S. Consulate is not yet clear; but speculation and comments abound on China’s Internet. U.S. officials are also leaking information about what happened, and a congressional investigation into the affair has been promised.

Wang is the former vice-mayor and chief of police of the southwestern China megapolis of Chongqing City, and was the right-hand man of Bo Xilai, the city’s Communist Party chief who is known as an ultra-leftist hardliner, and who has been wrangling to win a position on the Standing Committee of the Politburo, the group of nine men who stand at the top of the Party’s hierarchy.

Wang was unexpectedly demoted on Feb. 2 from his posts and reassigned to handle “culture, education, and environmental protection.” On Feb. 5 he talked about the importance of his new job responsibilities at Chongqing Normal University and elsewhere. No one suspected that he would flee to the U.S. Consulate in Chengdu the next day.

[. . .]

While what exactly happened in the consulate in Chengdu cannot be confirmed, Bill Gertz of the Washington Free Beacon, citing an unnamed U.S. official, has reported that the Obama administration denied Wang Lijun asylum for fear of upsetting the Chinese regime.

U.S. Congressman Dana Rohrbacher (R-CA), chairman of the House Foreign Affairs subcommittee on oversight and investigations, has promised his subcommittee will investigate the handling of Wang’s case, Gertz also reports.

February 9, 2012

Paul Wells: Harper’s trip to China is going well

Filed under: Cancon, China, Economics, Media — Tags: , , , — Nicholas @ 11:22

In his Maclean’s column, Paul “Inkless” Wells talks about the state of play in prime minister Stephen Harper’s visit to China:

The old-timers in the press gallery know how to defuse an announcement like this. We dust a toolkit from the early Chrétien days off. A Canadian prime minister shows up in a fancy Beijing ballroom with a bunch of business executives wielding Montblanc pens. A big number is being tossed around — say, “$3 billion.” But if we subtract the deals that would have happened anyway, and then subtract the deals that aren’t really deals — then we can wear that number down to some innocuous nub.

But while individual elements of Stephen Harper’s signing ceremony Thursday night in a fancy Beijing ballroom may not pan out, at some point the weight of evidence starts to suggest something real is going on. The evidence at hand comes, not just from Canadian sources, but from Chinese.

The first source of the morning was the semi-official English-language China Daily, which reserves real excitement for vice-premier Xi Jingping’s upcoming trip to the United States but which has been respectful, and a little more than that, toward Stephen Harper all week.

Later in the day came Harper’s bilateral meeting with Hu Jintao. Here, no trace of scolding for time spent posturing in the early years of Harper’s term as prime minister. Now, Hu said, “Mr. Prime Minister, you put a lot of value on Canada’s relationship with China and are strongly committed to promoting the practical cooperation between our two countries. I appreciate your efforts.” Translation: You’re out of the doghouse. Come here, ya big lug.

Update: David Akin contrasts the glowing reviews Harper is getting in the Chinese press this time with his 2009 visit:

I’ve travelled to a lot of spots around the world covering Prime Minister Stephen Harper’s international travels and I cannot recall him ever generating the kind of positive press he’s getting in this morning’s China Daily, the English-language state-run daily newspaper here.

A picture of Harper chatting with Chinese chess players during a visit Wednesday to the Temple of Heaven is the front-page top-of-the-fold main art here with a generally positive article about the two countries improving trade relationship. Inside, there’s two other pieces involving Canada and Harper.

[. . .]

Read between the lines here and China’s government is approvingly showing Canada’s prime minister to be a decent, pious individual deserving of China’s friendship and support.

That’s a sharp contrast to the China Daily‘s coverage of Harper’s 2009 visit. There was front-page coverage then too — of how Premier Wen dressed down Harper for letting the China-Canada relationship languish. The narrative in 2009 was that the Canadian prime minister was a wayward supplicant coming to China to seek forgiveness for his sins. Not this time: He is being profiled in the press as the leader “of a strong delegation of five ministers and 40 business leaders” who, along with Wen, witnessd “the signing of nine deals.” The reader of the China Daily on this Harper visit is meant to be impressed.

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