Quotulatiousness

December 15, 2011

China’s first aircraft carrier at sea

Filed under: China, Military, Pacific — Tags: , , , — Nicholas @ 12:17

From the Guardian, including this satellite image:

A US satellite company says it has taken a photograph of China’s first aircraft carrier during trials in the Yellow Sea.

It is believed to be the first time the 300-metre ship, a refitted former Soviet carrier, has been photographed at sea since it was launched in August.

DigitalGlobe said one of its satellites took the picture on 8 December and an analyst at the firm spotted the ship this week while searching through images.

Stephen Wood, director of DigitalGlobe’s analysis centre, said he was confident the ship was the Chinese carrier because of the location and date of the image. The carrier has generated intense international interest because of what it might portend about China’s intentions as a military power.

The former Soviet Union started building the carrier, which it called the Varyag, but never finished it. When the USSR collapsed, the ship ended up in Ukraine.

December 14, 2011

Revolt in a Chinese fishing village

Filed under: China, Government, Media — Tags: , , , — Nicholas @ 13:08

Local unrest is hardly uncommon in China, but unrest of this nature is almost unheard of:

For the first time on record, the Chinese Communist party has lost all control, with the population of 20,000 in this southern fishing village now in open revolt.

The last of Wukan’s dozen party officials fled on Monday after thousands of people blocked armed police from retaking the village, standing firm against tear gas and water cannons.

Since then, the police have retreated to a roadblock, some three miles away, in order to prevent food and water from entering, and villagers from leaving. Wukan’s fishing fleet, its main source of income, has also been stopped from leaving harbour.

The plan appears to be to lay siege to Wukan and choke a rebellion which began three months ago when an angry mob, incensed at having the village’s land sold off, rampaged through the streets and overturned cars.

Of course, one of the reasons we rarely hear about protests of this nature is that the Chinese government actively suppresses media coverage. This is only coming to our attention because western journalists are there and able to communicate with their employers.

H/T to Jon, my former virtual landlord, who commented “You have to admire these 20,000 future organ donors for their intestinal fortitude”.

December 7, 2011

Beijing’s “smog blog” at the US Embassy

Filed under: China, Environment, Media, USA — Tags: , , , , — Nicholas @ 12:04

The official line is that the smog in Beijing is merely inconvenient, while the US Embassy’s Twitter account sends out regular readings that conflict with the official story:

It was a contest over smog that was being fought across two social networks in two completely different languages between two contenders separated by the world’s biggest firewall. At stake was the authority to define “unhealthy air” and, as a result, to shape public perceptions and expectations.

On one side was an automated air quality monitoring station set up by the US embassy in Beijing that issues hourly updates via Twitter on the @beijingair account. It states the date, time, pollutions readings for ozone and PM2.5 and a terse English summary of the health implications. At 8am, it read “very unhealthy” — an improvement on the “hazardous” level of the previous day and the alarming “beyond index” of last Friday.

On the other side was the personal microblog of Du Shaozhong, the deputy director of the Beijing Municipal Environmental Protection Administration, who has taken his passionate defence of the city’s policies onto China’s most influential website, Sina Weibo. One of his most recent posts read: “It is understandable if people hate bad weather, but venting your emotions is not helpful.”

December 3, 2011

QotD: How to emulate China’s success

Filed under: China, Economics, History, Quotations — Tags: , , , — Nicholas @ 11:36

To be clear, Andy Stern believes that the United States needs a Chinese-style central plan to flourish, one that will be executed by a streamlined government.

To really learn from the Chinese, and to enjoy such staggering growth rates, we should go about things differently: let’s have a Maoist insurrection followed by a civil war that lasts for several years. Then let’s destroy most of the wealth in the country, and drive out millions of our most enterprising and educated citizens by launching systematic terror campaigns during which millions of others will die in violence or of starvation. Next, let’s have a modest economic opening in coastal regions: impoverished citizens will be allowed to launch small-scale township and village enterprises and components will be assembled in a handful of cities by our stunted descendants. Then let’s severely curb those township and village enterprises because they represent a potential political threat and invite large foreign multinationals and state-owned enterprises [let’s not forget those!] to work our population to the bone at artificially suppressed wage rates, threatening those who complain with serious reprisals up to and including death. Let us also initiate a population control policy designed to improve our dependency ratio for a few decades. As large numbers of workers shift from low-value agricultural work to manufacturing, we will experience . . . rapid growth! Mind you, getting from here to there will involve destroying an enormous swathe of our present-day GDP. And that sectoral shift from rural to urban work will run out of gas pretty fast, as will the population control policy that will guarantee rapid aging.

Reihan Salam, “Andy Stern’s Peculiar Idea”, National Review Online, 2011-12-03

November 27, 2011

China to address the surplus of unemployable university graduates

Filed under: Bureaucracy, China, Education, Government — Tags: , — Nicholas @ 11:47

No, not the old fashioned way of “re-education”, but by reviewing the university programs and eliminating the ones that produce the largest number of graduates who cannot find jobs:

Much like the U.S., China is aiming to address a problematic demographic that has recently emerged: a generation of jobless graduates. China’s solution to that problem, however, has some in the country scratching their heads.

China’s Ministry of Education announced this week plans to phase out majors producing unemployable graduates, according to state-run media Xinhua. The government will soon start evaluating college majors by their employment rates, downsizing or cutting those studies in which less than 60% of graduates fail for two consecutive years to find work.

The move is meant to solve a problem that has surfaced as the number of China’s university educated have jumped to 8,930 people per every 100,000 in 2010, up nearly 150% from 2000, according to China’s 2010 Census. The surge of college grads, while an accomplishment for the country, has contributed to an overflow of workers whose skillsets don’t match with the needs of the export-led, manufacturing-based economy.

November 24, 2011

US to be crushed by Oriental economic juggernaut, film at 11

Filed under: China, Economics, Japan, Media — Tags: , , , — Nicholas @ 09:27

Do any of these statements sound familiar?

  • “I don’t mean to be an alarmist, but I get the uneasy feeling that America is history”
  • “The power behind the [. . .] juggernaut is much greater than most Americans suspect, and the juggernaut cannot stop of its own volition, for [it] has created a kind of automatic wealth machine, perhaps the first since King Midas.”

This kind of statement can be found in all the prestigious newspapers, opinion journals, and magazines . . . in the late 1970s through the late 1980s. The economic juggernaut of the day was Japan. It was poised to crush the feeble remnants of American capitalism with the all-powerful keiretsu, Japan’s corporate conglomerate organizations. The strong would smash the weak, leaving America (and the rest of the Anglosphere) in the dust. Just in case you didn’t follow economic history, it didn’t happen.

Today, the economic bogeyman is China:

“We are getting our clock cleaned by Chinese state capitalism,” wrote Robert Kuttner, now editor of The American Prospect, earlier this year at The Huffington Post. Massachusetts Institute of Technology economist Simon Johnson piled on at the annual conference of the American Economic Association, declaring, “The age of American predominance is over. The [Chinese] Yuan will be the world’s reserve currency within two decades.” The conservative Citizens Against Government Waste even aired a television commercial featuring a Beijing economics class in 2030 in which a professor explains how America became indebted to China. The professor concludes, “So now they work for us.” The class chuckles knowingly.

This gloomy message of American decline relative to China appears to be seeping into popular consciousness. An April 2011 poll by Xavier University found that “a stunning 63 percent believe that the Chinese economy is more powerful than the US economy.”

“The U.S. could lose its status as the world’s biggest economic power within five years,” reported The Daily Mail in April. The Mail article was based on calculations released by the International Monetary Fund projecting that total Chinese GDP, adjusted for purchasing power, will surpass U.S. GDP by 2016.

Can that be? Let’s do the math: China’s total GDP is around $6 trillion today. Assuming 10 percent GDP growth for the next 20 years, China’s GDP would rise to $40 trillion. If the U.S. economy grew at, say, 3 percent a year, total GDP would be $27 trillion. Back in 2007, before the financial crisis, the investment bank Goldman Sachs issued a report projecting that Chinese GDP would be $26 trillion in 2030, compared to $23 trillion for the U.S. It bears noting that current Chinese purchasing power per capita is about $6,000, compared to $46,000 for Americans.

That’s not to say that it’s impossible — the longer the US government struggles to avoid cutting back, the more likely it is that the US will enter a long economic decline — but China has economic problems a-plenty.

November 18, 2011

An antidote to the “OMG! China will eat our lunches” meme

Filed under: Americas, China, Economics — Tags: , , — Nicholas @ 12:02

For those inclined to worry overmuch about the rise of China as a world power (as opposed to merely as an economic competitor):

The real importance of this story does not, however, have much to do with Brazil’s jittery nerves about Chinese investment. It is to remind us about a key Chinese vulnerability that is often overlooked by pundits: China’s growing dependence on natural resources located far from its frontiers.

Beijing’s chosen national strategy — to achieve great power status by becoming the industrial workshop of the world — locks it into a complex and difficult set of dependencies and relationships with countries and markets all over the world. Access to those resources traps China in complicated geopolitical tradeoffs that can blow up in unexpected ways — as when China had to scramble to protect its citizens in Libya. Chinese companies become the object of public anger if they are seen to be economically exploitative, unwelcoming to local labor, or environmentally destructive. And, of course, in the event of a confrontation with the United States, China’s entire supply chain and overseas investments are helpless hostages.

Strategically, the only way out of this trap would be to build a blue water navy and air force that could threaten US command of the seas. But a build up of that kind would not only trigger a massive US response; other countries like Japan, India and Australia would join together to ensure that China did not overturn a maritime status quo that is well trusted by other world powers.

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

November 16, 2011

Don’t expect China to save your economy

Filed under: China, Economics, Government, Media — Tags: , , , , , — Nicholas @ 09:19

Jon, my former virtual landlord, sent along this link which should pour cold water on the notion that China will step in to save the economies of other countries:

China’s economy has a reputation for being strong and prosperous, but according to a well-known Chinese television personality the country’s Gross Domestic Product is going in reverse.

Larry Lang, chair professor of Finance at the Chinese University of Hong Kong, said in a lecture that he didn’t think was being recorded that the Chinese regime is in a serious economic crisis — on the brink of bankruptcy. In his memorable formulation: every province in China is Greece.

The restrictions Lang placed on the Oct. 22 speech in Shenyang City, in northern China’s Liaoning Province, included no audio or video recording, and no media. He can be heard saying that people should not post his speech online, or “everyone will look bad,” in the audio that is now on Youtube.

In the unusual, closed-door lecture, Lang gave a frank analysis of the Chinese economy and the censorship that is placed on intellectuals and public figures. “What I’m about to say is all true. But under this system, we are not allowed to speak the truth,” he said.

Despite Lang’s polished appearance on his high-profile TV shows, he said: “Don’t think that we are living in a peaceful time now. Actually the media cannot report anything at all. Those of us who do TV shows are so miserable and frustrated, because we cannot do any programs. As long as something is related to the government, we cannot report about it.”

China, for all its amazing growth and rising economic prospects for (some of) its population, is still not a modern economy. The government — specifically the military — is too deeply involved at far deeper levels than other governments and the reported economic figures may or may not have any relationship with reality. When your boss is a general, he has ways of ensuring that you report the “right” results that a civilian CEO cannot match. It’s not just your job you risk by reporting unwelcome results.

I’ve ridden this hobby horse, as Jon calls it, many times over the years.

October 31, 2011

China’s increased output of scientific papers masks deeper problems

Filed under: China, Media, Science — Tags: , , , — Nicholas @ 12:01

Colby Cosh linked to an interesting press release from the Chinese Academy of Sciences, which shows a surge in published papers from China, but a significant drop in the rate at which those papers are cited:

Chinese researchers published more than 1.2 million papers from 2006 to 2010 — second only to the United States but well ahead of Britain, Germany and Japan, according to data recently published by Elsevier, a leading international scientific publisher and data provider. This figure represents a 14 percent increase over the period from 2005 to 2009.

The number of published academic papers in science and technology is often seen as a gauge of national scientific prowess.

But these impressive numbers mask an uncomfortable fact: most of these papers are of low quality or have little impact. Citation per article (CPA) measures the quality and impact of papers. China’s CPA is 1.47, the lowest figure among the top 20 publishing countries, according to Elsevier’s Scopus citation database.

China’s CPA dropped from 1.72 for the period from 2005 to 2009, and is now below emerging countries such as India and Brazil. Among papers lead-authored by Chinese researchers, most citations were by domestic peers and, in many cases, were self-citations.

Being published is very important for sharing discoveries and advancing the careers of the scientists, but it’s more important that those publications be read and referenced by other scientists. Self-citations are akin to self-published works: it doesn’t guarantee that the work is useless, but it increases the chances that it is.

Perhaps worse than merely useless publication is the culture of corruption that has grown up around the scientific community:

In China, the avid pursuit of publishing sometimes gives rise to scientific fraud. In the most high-profile case in recent years, two lecturers from central China’s Jinggangshan University were sacked in 2010 after a journal that published their work admitted 70 papers they wrote over two years had been falsified.

[. . .]

A study done by researchers at Wuhan University in 2010 says more than 100 million U.S. dollars changes hands in China every year for ghost-written academic papers. The market in buying and selling scientific papers has grown five-fold in the past three years.

The study says Chinese academics and students often buy and sell scientific papers to swell publication lists and many of the purported authors never write the papers they sign. Some master’s or doctoral students are making a living by churning out papers for others. Others mass-produce scientific papers in order to get monetary rewards from their institutions.

October 7, 2011

When Apple stopped being the status indicator of choice for the “opinion leaders”

Filed under: China, Media, Technology — Tags: , , , — Nicholas @ 08:56

In his defence of the late Steve Jobs, Brendan O’Neill pinpoints the exact moment that Apple stopped being the ne plus ultra of status signalling devices for the Guardianista set:

It is absolutely no coincidence that it became cool to hate Apple just as Apple started to make products for (whisper it) ‘the masses’. Back when Apple was largely known as the provider of smooth computers to graphic designers and Guardian columnists, there was nothing cooler than being an Applehead. But then it made the iPod and the iPhone, which you can now see everyone from paint-covered builders to Romanian au pairs tapping away on, and that meant it was just another engine of ‘mass consumerism’, the thing the chattering classes hate most. So where in the Nineties, people who used Apple products were presumed to be erudite and tasteful, now people who use Apple products are ‘iZombies’ or ‘hostages’, as one columnist calls them. In the eyes of the opinion-forming classes, Jobs’ great crime was to include the little people in his techno-revolution, to give glossy gadgets to the masses as well as the intellectuals, since that robbed these gadgets of the special symbolism that allowed their users to declare: ‘I am above the crowd.’

As to the idea that Jobs was the killer of Chinese people, this, too, is fuelled by the perverse fantasies of the uncomfortable-with-capitalism cultural elite. Following some suicides at the factories in China in which Apple stuff is put together, it became fashionable here in the West to indulge in orgies of iGuilt, to whip both yourself and everyone else for wanting gadgets so badly that we’re willing to turn a blind eye to ‘enslavement’ in China. The deaths in China were referred to as ‘The iPad suicides’, with journalists saying: ‘Should you blame yourself for all those deaths at the Chinese electronics factory? Yes.’

Yet as I argued on spiked last year, anyone who looked at the number of suicides in these vast factories, which can employ up to 400,000 people, would have realised that the suicide rate was lower in these places than it was in China as a whole. The self-flagellation of iPad-using hacks in the West merely revealed how shallow and moralistic so-called anti-capitalism is these days, where the aim is not to analyse social relations, all the better to overhaul them, but rather to partake in a borderline Catholic guilt trip about the impact of our greed on their lives. In one fell swoop, Jobs-bashers manage to criminalise the material aspirations of Western consumers, the iZombies whose desires are apparently dangerous, and to infantilise Chinese workers, who are depicted as hapless victims, in need of rescue by that super-super-cool tribe of East Coast and Shoreditch hipsters who now actually boycott Apple products. Rad, man.

September 20, 2011

China’s local and regional governments may be sitting on massive hidden debts

Filed under: China, Economics, Government, Law — Tags: , , — Nicholas @ 12:13

As with the US or Canadian government’s debt, not all debt is held at the federal level. It may take some digging to discover what the actual debt levels might be, but it’s possible. In China, however, as local governments are forbidden to issue bonds or to borrow from banks, they’ve had to become extremely creative in finding ways to borrow money for their pet projects. Not just creative — at least in some cases — legally dubious:

About 85% of Liaoning province’s 184 financing companies defaulted on debt service payments in 2010 according to a report from the province’s Audit Office. The report also noted that 120 of these borrowers, de facto government agencies, operated at a loss last year.

Since 1994, provinces and lower-tier governments have not been permitted to issue bonds or borrow from banks. Despite the strict prohibition, their debt has skyrocketed as local officials incurred obligations through LGFVs, local government finance vehicles. The central government’s National Audit Office said these companies, at the end of last year, had taken on 10.7 trillion yuan of debt. No one, however, knows the true amount of LGFV indebtedness, and some have calculated the real amount to be more than double the official figure.

Why the disagreement as to the amount of debt? Local governments have gone out of their way to hide borrowings, perhaps in part because of their doubtful legality. As famed economic journalist Hu Shuli points out, new local officials sometimes do not know the extent of obligations left by their predecessors. There have been a number of stratagems employed, from the issuance of illegal government guarantees to the transfer of funds in roundabout routes.

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

September 18, 2011

Chinese censors crack down on . . . talent shows?

Filed under: China, Liberty, Media — Tags: , — Nicholas @ 12:49

They’ve become too popular, and the text voting for winners sets too much of a democratic example, so China’s State Administration of Radio, Film and Television (SARFT) is ordering talent shows off the air:

The latest run of the hugely popular Super Girl contest finished on Friday. A spokesman for Hunan Satellite Television said it would not show any TV talent shows with mass participation next year because it had been accused of breaking time limits.

“Hunan Satellite Television obeys the state watchdog’s decision and will not hold similar talent shows next year,” said Li Hao.

“Instead, the channel will air programmes that promote moral ethics and public safety, and provide practical information for housework.”

[. . .]

SARFT decreed that talent shows could not be shown in prime time — between 7.30pm and 10.30pm — or screened for more than two hours a day. It also banned text voting — with some suggesting officials were concerned that the democratic method of choosing the winner was a bad influence.

September 12, 2011

Is the People’s Liberation Army a paper tiger?

Filed under: China, Economics, Military, Weapons — Tags: , , , — Nicholas @ 09:36

An interesting article at Strategy Page looks at the myth and reality of China’s army and navy:

You don’t see much in the media about the poor training of Chinese military personnel. You don’t hear much about the poor leadership and low readiness for combat. But all of this is common knowledge in China. There, the military is not walled off from everyone else. Cell phone cameras and the Internet make it easy to pass around evidence (often in the form of “hey, this one is hilarious”). The government tries to play up how modern and efficient the military is, but most Chinese know better, and don’t really care. China is winning victories on the economic front, and that what really counts to the average Chinese.

Meanwhile, U.S. military leaders and defense industries are looking for a sufficiently impressive foe to help scare more money out of Congress. The Chinese Navy (or, more correctly, the Chinese Peoples’ Liberation Army Navy) is now the favorite candidate, for navy and defense industry analysts, to become the new Big Bad. Just how dangerous are these Chinese sailors and their ships? It turns out that, on closer inspection, not very.

This is the sort of thing that what went on during the Cold War. Russian military prowess was hyped by the American military, and their defense suppliers, to justify further increases in defense spending. When the Cold War ended, it was revealed how the Russian military, and defense manufacturers, played the same game. It also revealed that Russian military capabilities were far less than the hype indicated.

The basic weapon for this sort of thing is FUD (Fear, Uncertainty and Doubt). Works every time, although it is difficult to pitch the Chinese navy as a crack force. Most of their ships are elderly, poorly designed and rarely used. Their nuclear subs are worse than the first generation of Russian nukes back in the 1960s. The most modern Chinese ships are Russian made, Cold War era models. Chinese ships don’t go to sea much, not just because it’s expensive, but because Chinese ships tend to get involved in nasty incidents. Like the submarine that killed its crew when the boat submerged (and the diesel engines did not shut down when the batteries kicked in, thus using up all the oxygen.) Breakdowns are more common, as well as a lot of accidents you don’t hear about (weapons and equipment malfunctions that kill and maim.) Nevertheless, the Chinese are working to change this. Ships are going to sea more each year, and troops are getting more training. But unless the corruption is curbed, this could all be wasted.

Of course, if China isn’t the big military threat to the rest of the world, how will the Pentagon get Congress to go along with its perpetual demands for more funding?

August 10, 2011

China’s second-hand aircraft carrier puts to sea for initial trials

Filed under: China, Military, Pacific — Tags: , — Nicholas @ 08:45

The Shi Lang, formerly the Varyag, is undergoing a set of sea trials:

China’s first aircraft carrier began sea trials on Wednesday, the state-run Xinhua news service reported, a highly symbolic step in what is certain to be a years-long effort to create a carrier presence in the Pacific waters off its coast.

The carrier, once known as the Varyag, left Dalian, its northeast China port for what analysts said would be a test of its rudder, propulsion system and other basics. Xinhua’s two-sentence report stated only that the carrier would make a short voyage before returning to Dalian for further tests.

The Chinese Defense Ministry said last month that the carrier would be used largely for scientific research and training. Foreign military analysts say it could be a decade or more before the Chinese can deploy and operate a true fleet of carriers, the most costly and complex weapons systems in any nation’s arsenal.

August 8, 2011

China discovers that “You can’t stop the signal” again

Filed under: China, Government, Media, Technology — Tags: , , , , , — Nicholas @ 12:32

Strategy Page looks at the way news was disseminated about the high speed rail crash despite the Chinese government’s attempts to quash the story:

Since July 27th, China got another reminder that it no longer can control the news. On July 27th, China’s high-speed “bullet train” had a fatal accident, leaving over 30 dead and many more injured. The cause was inadequate safety and communications systems. In this case, one train was halted by a flaw in the signalling system and another came up from behind and there was the collision that sent four train cars off the tracks, and a bridge. The government immediately tried to keep the accident out of the news. This effort failed because of the ingenuity of Chinese Internet users, despite the government ban on Twitter in China. The ban was meant to impede the rapid spread of news the government wanted to control. Given enough time, the state controlled media could get out a story the government could live with. But blog, RSS and other Internet tools have been tweaked to do the same thing Twitter does. This was especially true of “micro-blogs” that quickly distribute the same 140 character messages Twitter does. Not as well, but good enough, and the news the government wanted to control spread uncontrollably. This included pictures and video of the accident, which the government planned to keep out of the news.

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