Wandering China

An East/West pulse of China's fourth rise from down under.

Foreign companies eye new ‘opening-up’ [China Daily] #RisingChina #GrowthModel

A packed piece from China Daily online – the China dream translated in economy mode. Catch up or lose out on rising China’s winds of change.

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Foreign companies eye new ‘opening-up’
By DING Qingfen and LIU Jie
Source – China Daily, published June 24, 2013

20130626-102645.jpg

A model of Nanjing Software Park. Multinational companies are rushing to set up research and development centers in this kind of high-tech parks around China. [Provided to China Daily]

High-end industry, research and development are biggest attraction

Over the past three decades, many foreign companies set up manufacturing facilities in China because of the country’s low labor costs, turning the world’s most populous nation into a global factory.

That is now looking like history.

Please click here to read the entire article at the China Daily.

Read the rest of this entry »

Filed under: Beijing Consensus, Charm Offensive, China Dream, Chinese Model, Communications, Culture, Domestic Growth, Economics, Finance, Government & Policy, Ideology, Influence, Infrastructure, Modernisation, New Leadership, Peaceful Development, Public Diplomacy, Reform, Resources, Social, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), Trade, Yuan

Central Committee elected #China #Leadership[Global Times]

The way forward has been set. Scientific development joins the hallways of contemporary Chinese statecraft.

For the full list of the 205 members of the 18th Central Committee of the Communist Party of China (CPC) elected at the 18th CPC National Congress on Wednesday, please go here.

“In the past, the authorities focused on so-called political, economic, cultural and social development, now they have realized the importance of sustainable development, which is related not only to people’s well-being now, but future generations,” Zhang Yaocan, professor of political science with Central China Normal University.

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Central Committee elected
by Wu Gang
Source – Global Times, November 15, 2012

Delegates raise their hands to show approval for a work report at the closing ceremony of the 18th Party congress held at the Great Hall of the People Wednesday. Photo: IC, 2012

The Constitution of the Communist Party of China (CPC) has enshrined the “Scientific Outlook on Development,” a political guideline that puts people first and calls for balanced and sustainable development, the 18th CPC National Congress announced as the week-long event concluded on Wednesday.

Some 2,270 Party delegates cast votes Wednesday, electing the new CPC Central Committee and the new Central Commission for Discipline Inspection.

Nearly 50 percent of the new Central Committee are newcomers, indicating that the CPC, with 91 years of history and more than 82 million members, has again completed its leadership transition. Read the rest of this entry »

Filed under: Beijing Consensus, Charm Offensive, Chinese Model, Collectivism, Communications, Confucius, Culture, Democracy, Domestic Growth, Economics, Environment, Finance, global times, Government & Policy, Greater China, Human Rights, Influence, International Relations, Mapping Feelings, Media, Modernisation, Natural Disasters, New Leadership, Peaceful Development, Politics, Public Diplomacy, Reform, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), The Chinese Identity, The construction of Chinese and Non-Chinese identities, Trade, Yuan, , , , , , , , , , , , ,

Wary of Future, Professionals Leave China in Record Numbers [New York Times]

Headlines and titles may inadvertently seem skewed as it frames thought. Like a mental snapshot, it can oversimplify or at its worst, misdirect (in the wider ecosystem of political rhetoric, this looks part of the inadvertent Sino-US leadership transitional exchange of shaping mind-share). I think if one reads on, this article can be taken rather positively.

The recent movement of these professional, educated Chinese across the world can further help build bridges where mass media glosses over. In others ways, it is not a bad thing it is an educated, professional group that carries Chinese thought extending outwards. Where most of all the previous batches who left largely by push factors or war, the case now is markedly different.

In Singapore’s case, the overarching narrative, its Chinese are largely descended from craftsmen and coolies. As Lee Kuan Yew once pointed out – in response to Deng’s question if China would ever succeed looking at how Singapore successful hybridization of central power with Confucian meritocracy at the forefront and free market capitalism with its socio-cultural tradeoffs.

Indeed, on closer examination, the numbers today who move due to socio-economic pull factors are still small in percentage terms. As reported by this article, even fewer (perhaps few would admit) regard political reasons as the chief factor.

Over millennia of movement the number of overseas Chinese number at 55million . That cumulative number makes it as large as most medium sized countries so they are not insignificant either. Change your lenses change your sight.

Perhaps looking at the bright side can be a decent point of view. I know a few Chinese aged between 19 and 35 now residing in Australia. We have been on camping trips far out in the bush carrying our own water without much fuss, Others I know, by competing against in futsal teams  in the local leagues, many others love dressing up for the Melbourne Cup day.

Some may find it hard to empathize the competition in China because they may not have set foot in China, or met the Chinese on the ground. 9 to 10 million compete for a spot in university a the college examinations each year. Those who don’t make the grade fight for very little. A 2 to 3000RMB monthly salary, hardly enough to cover rent for a decent sized rental home is norm for those striking out.

Have personally known a few bright hardworking of China’s digital natives who just couldn’t make the grade despite sometimes seemingly overboard preparations. Such is their reality. Many have integrated well here, Melbourne thrives with a former mayor who is Chinese, and many live just like the Aussies do adding to the multicultural social fabric down under.

In monetary terms, they automatically make six times the amount due to the strong Aussie dollar with far less working hours with plenty of time for family and other pursuits. Many of them make efficient workers who get things done so promptly it is hard for work to keep up. This is not representative across the board of course. For every one that excels there potentially is another who just wants to get by. But I digress.

In return as well, for those who work with or live in communities with Aussies, they become a real life conduit for Aussies to understand China in its own terms too. Its cuisine has proven immensely popular here with all 8 major branches of Chinese cooking represented those from all corners of China proving extremely popular – right down to Sichuan hotpot, a regular in winter for many. It then moves onto the locally adapted local favorite the dim sim (does not exist in real Chinese culinary palates I think), to the classy Beijing Hutong themed Xiao long bao restaurants.

I meet many of them at vineyards, organic farms, strawberry farms and fishing spots. About half happily drive the Aussie-made Holden because it feels right to drive a locally made car in Australia. Just the tip of the iceberg. I think it is a great thing. Overseas Chinese who mingle well with host environments naturally make vehicles of the wider Chinese culture and national identity. It also shows like that others, there are those who seek out a balanced life too where work doesn’t dominate all their headspace.

More importantly, they help others see we can all get along, share other ideals and worldviews. Interestingly too, in the field of diasporic identities, that overseas Chinese end up being all too aware of their own Chineseness is common across most other diaporic groups too – from the Greeks and Italians I know here – they celebrate their identity with zeal and vigour.

Not all assimilate or adapt of course. It would oversimplify to say all enjoy life here. Many of them feel the pace of life is a little too slow. I have also known a fair few who can’t wait to return, but do so at least, with a broadened outlook and first hand experience of another way of living.

They return with a first hand glimpse of a rather liberal, western society where the channels to exercise one’s right to voice, its deferences shows other paradigms exist successfully elsewhere. When they enter the work force, they are valued for their more globalised outlook, with a practical experience of using English in school and at work, the culture, history, norms and processes. And this is celebrated in the mass media there in game shows – this comes with Chinese subtitles only.

And 非你莫属 is just one of many state funded shows out there. It features distinctly American style sports commentary and a debate that involves mentors, employers, the host and the job seeker. They reserve the right to say no at the end of their final round offers, and negotiate outside the show. And its the wide range of jobseekers on offer, from the clerk to driver, to partner or director raking in six figure RMB a month.

Cultural capital has been identified as a pillar industry and the production values are apparent, it has taken care to weed out what was deemed low culture reality tv and today the focus on more productive shows like this is ramping up. This employment-seeking show emphasises the need for more internationally minded employees in their midst. This episode talks about it is unavoidable now China has risen that it needs an upgrade in a globalised mindset. It actively advertises for Haigui 海归; pinyin: hǎiguī on foreign television. A fair few of them seem genuinely proud in returning to contribute.

This is highly recommended and it gives a glimpse of how the Chinese are democratising on their own terms, in their unique own way. The adaptations from American and European game shows are obvious at the onset, but their process are far more intricate and involve far more depth of discourse) that see many returning candidates have the right to take questions, present competently, then proceed into the final rounds where they exercise the right to eliminate and haggle salary with interested employers.

As a student of media, it is important to discern the agenda setting potential of media. Although the political economy of the mass media no longer dominate the spectrum of messages as they used to, transnational media corporations remain nevertheless powerful.

As such, we consume, at best, selected, well-informed, well intended, rationalized textual and visual constructions of the macro, but never of the real thing until all five senses are fed. Even then, sometimes the right messages don’t go right through. A lover’s tiff for example, where misreading of body language triggers a chain of cascading misunderstandings is one most can relate with. The primacy of first hand experience is equally,  important to get a full picture – to try to make the best of the information available, to more accurately inform opinion.

The movement is not all one way. With economies stagnant in the West and job opportunities limited, the number of students returning to China was up 40 percent in 2011 compared with the previous year. The government has also established high-profile programs to lure back Chinese scientists and academics by temporarily offering various perks and privileges. Professor Cao from Nottingham, however, says these programs have achieved less than advertised.

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Wary of Future, Professionals Leave China in Record Numbers
by Ian Johnson
Source – New York Times, published October 31, 2012

Lee Yangang and his wife, Wang Lu, emigrated to Sydney, Australia, from Beijing last year, saying they felt insecure in China. Source – New York Times, 2012

BEIJING — At 30, Chen Kuo had what many Chinese dream of: her own apartment and a well-paying job at a multinational corporation. But in mid-October, Ms. Chen boarded a midnight flight for Australia to begin a new life with no sure prospects.

Like hundreds of thousands of Chinese who leave each year, she was driven by an overriding sense that she could do better outside China. Despite China’s tremendous economic successes in recent years, she was lured by Australia’s healthier environment, robust social services and the freedom to start a family in a country that guarantees religious freedoms.

“It’s very stressful in China — sometimes I was working 128 hours a week for my auditing company,” Ms. Chen said in her Beijing apartment a few hours before leaving. “And it will be easier raising my children as Christians abroad. It is more free in Australia.” Read the rest of this entry »

Filed under: Back to China, Beijing Consensus, Charm Offensive, Chinese Model, Communications, Culture, Democracy, Domestic Growth, Economics, Finance, Government & Policy, Greater China, Influence, International Relations, Lifestyle, Mapping Feelings, Media, New York Times, Peaceful Development, Politics, Public Diplomacy, Social, Strategy, Tao Guang Yang Hui (韬光养晦), The Chinese Identity, Trade, Yuan, , , , , , , , , , , ,

To Renminbi Or Not to Renminbi? [Foreign Policy]

Foreign Policy ponders China’s intent and capabilities using the yardstick of major global reserve currency as litmus test for its arrival as genuine global power.

In my mind the question feels like this – Will top-down stability prioritising China drop the bicycle, adopt a paradigm shift, pick up the surf board and embrace the complicit volatility of internationalisation? How will it fare being influenced by the knitty gritty of another’s backyard just when it’s getting used to being the influencer?

There are three degrees of RMB internationalization. First, China and its major trading partners transact in RMB; this has been happening since 2009. The next step is widespread third-party usage of the RMB in financial and trade transactions. In other words, only when parties undertaking transactions unrelated to China regularly use the RMB will it truly be an international currency. For the RMB to take the final step and become a global reserve currency, central banks around the world would have to maintain sizable holdings of RMB to insure against their own financial risks. In other words, the RMB would become a so-called safe-haven currency the way that the dollar and the yen are today.

Victor Shih is an assistant professor at Northwestern who investigates the political economies of developing countries and how politics affect economic outcomes in China. His personal blog is available here (last updated in 2011, he is far more active on his Twitter account these days)

Susan Shirk is chair of the 21st Century China Program and Ho Miu Lam Professor of China and Pacific Relations at the School of International Relations and Pacific Studies at UC San Diego. She is also behind the books Changing Media, Changing China and China: Fragile Superpower

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To Renminbi Or Not to Renminbi?
Why China’s currency isn’t taking over the world.
by Victor Shih and Susan Shirk
Source – Foreign Policy, October 18, 2012

Source – Foreign Policy, 2012

As China moves up the economic pecking order, it has been trying to promote its currency, the renminbi (RMB), as an alternative to the U.S. dollar. The Chinese government has ambitious plans for establishing offshore centers where companies can raise RMB funds, internationalizing its currency, and possibly enabling the RMB to supplant the dollar as the global reserve currency. The U.S. dollar isn’t the only global reserve currency — countries also keep some of their foreign exchange reserves in euros and yen — but it has been the dominant one since the 1944 Bretton Woods conference.

During Tuesday night’s presidential debate, Republican nominee Mitt Romney repeated his promise to label China a “currency manipulator” on his first day in office. The heated rhetoric on China in the debate, and throughout the campaign, over which candidate would be tougher on China’s currency manipulation and other unfair trade practices reflects Americans’ anxieties about the relative standing of the U.S. and Chinese economies, and it suggests that a shift to the RMB would resonate deeply in U.S. domestic politics. However, despite the bluster, the dollar will remain dominant.

Americans benefit from the dollar’s hegemony: Because the world needs dollars, the U.S. government and American consumers can borrow at a lower cost. By conducting transactions in their own currency, U.S. companies reduce the hassle and the risk of sudden shifts in exchange rates. Americans also hold their heads a bit higher knowing that even with a struggling economy, governments all over the world still view the United States as the most reliable country for protecting their foreign exchange reserves. As the title of economist Barry Eichengreen’s 2011 book puts it, it is an “exorbitant privilege” that Americans have come to take for granted. If the RMB supplants the U.S. dollar as the global reserve currency, the world financial system will hum to the tunes of China, and U.S. fiscal and economic policies will become more constrained by international pressures, including the threat of a sharp currency depreciation. Read the rest of this entry »

Filed under: Beijing Consensus, Charm Offensive, Chinese Model, Collectivism, Communications, Crime, Domestic Growth, Economics, Finance, Government & Policy, Influence, International Relations, Mapping Feelings, Media, Modernisation, Peaceful Development, Politics, Public Diplomacy, Reform, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), The Chinese Identity, Trade, U.S., Yuan, , , , , , ,

Chinese leaders pick stability over reform [The Age]

From the Age: Setting the tone for the new five-year plan starting 2012, China’s National Peoples’ Congress (Premier Wen Jiabao and President Hu Jintao address the country’s annual parliamentary session for the last time) moots for the cautious yet flexible approach. Arguably however, the ‘grand show’ of the National Peoples’  Congress is said to be less important than the National Party Congress in October. Indicators should be clearer then.

According to this report, reforms for rising income gaps, food safety, and energy preservation are to take a back seat for the next generation of leaders to tackle come 2013.

For more, see

China Daily – China sets 2012 growth target at 7.5 percent (March 6, 2012) –

“We aim to promote steady and robust economic development, keep prices stable, and guard against financial risks by keeping the total money and credit supply at an appropriate level, and taking a cautious and flexible approach,” Wen Jiabao in his annual work report to the National People’s Congress (NPC).

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Chinese leaders pick stability over reform
Wei Gu
Source – The Age, published March 6, 2012

China's reforms won't get much of a lift this year. Photo - The Age

Wei Gu is a columnist for Reuters Breakingviews

Wen Jiabao didn’t throw any curveballs in his last government report as Chinese premier. Instead, his opening speech for China’s annual national parliament meeting focused on economic continuity. That gives a clear sign that big reforms will have to wait for the next generation of leaders, who take over in early 2013. By then, the cost of the necessary changes may be higher.

Wen’s speech, which will help set the tone for the Five Year Plan that starts in 2012, delivered some big numbers. China’s GDP growth goal was lowered modestly to 7.5 percent from 8 percent, and its inflation target kept stable at 4 per cent.

The fiscal deficit was targeted at 1.5 percent of GDP, up slightly from 2011 to reflect more spending on housing and welfare. All worthy but unexciting revelations. Read the rest of this entry »

Filed under: Beijing Consensus, Chinese Model, Democracy, Domestic Growth, Economics, Education, Environment, Government & Policy, Human Rights, Influence, Mapping Feelings, Peaceful Development, Politics, Public Diplomacy, Reform, Resources, Reuters, Social, Strategy, The Age, The Chinese Identity, Trade, Yuan

Wealthy residents favor yuan in 2012 [China Daily]

Greetings readers, I am still off the grid. Getting reconnected onto the internet as I switch service providers in suburban Melbourne has a long waiting period. If all goes well I’ll be back to daily analysis early next week.

In the meantime, here’s a glimpse into how wealthy Hong Kongers rate the yuan for 2012 with a 13% increase of millionaires holding yuan-dominated assets last year.

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Wealthy residents favor yuan in 2012
by Bao Daozu
Source – China Daily, published February 29, 2012

HONG KONG – Wealthy people in Hong Kong favor yuan-denominated assets over property or other investments, according to a survey released by Citibank on Tuesday.

The survey said that 40 percent of the city’s millionaires, defined as individuals with liquid assets exceeding HK$1 million ($128,955), held a positive view of yuan deposits and yuan-denominated investments for the next 12 months, indicating general optimism about the Chinese currency.

The report said 73 percent of the millionaires held yuan-denominated assets last year, up from 60 percent in 2010. Read the rest of this entry »

Filed under: Charm Offensive, China Daily, Chinese Model, Economics, Finance, Greater China, Hong Kong, Soft Power, Yuan

China fades as Europe’s saviour [The Age]

From the Guardian, published in Australia’s the Age: January data on Chinese imports seem to compound a gloomy worldwide economy picture with Europe still on the brink and anticipated global oil demand.

Another way to look at it is to hold one’s horses – for China, January has seen an unusually high number of public holidays if one factors in the long spring festival break.

And on the back of that report just two days later we have the BBC reporting that Chinese and European leaders from  are meeting for talks ‘likely to be dominated by Europe’s debt crisis.’ In the report, Chinese foreign ministry spokesman Liu Weimin said the debt issue was “at a critical juncture…We believe that as China’s largest trading partner and the largest economy in the world [collectively], it is important for the European Union to resolve this issue”.

Update: Feb 14 – EU leaders in China for debt crisis talks (BBC News)

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China fades as Europe’s saviour
Katie Allen, London
Guardian
Source – The Age, published February 12, 2012

A SHARP drop in Chinese imports, a gloomy outlook for global oil demand and a burgeoning US trade deficit are fanning growing fears of a deteriorating global economy.

Signs that demand was slowing in China raised concerns for European nations relying on an export-led recovery from their economic crisis.

There was another blow when the International Energy Agency cut its oil demand forecast for a sixth consecutive month, citing a weak global economy. China said its imports fell last month at the fastest annual pace since the low point of the financial crisis in 2009. Read the rest of this entry »

Filed under: Beijing Consensus, Charm Offensive, Chinese Model, Domestic Growth, Economics, European Union, Influence, International Relations, Peaceful Development, Public Diplomacy, Soft Power, Strategy, Trade, U.S., Yuan

Government set to act as export expansion slides [China Daily]

Update on the Central Economic Work Conference in Beijing.

Brace for impact: Chinese economic leaders prepare measures for 2012 on the predication export growth might dip right down to zero.

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Government set to act as export expansion slides
By Ding Qingfen
Source – China Daily, published December 14, 2011

Source - China Daily

BEIJING – With China’s export growth continually decelerating and possibly falling to zero next year, the government is set to take action to prevent further declines, said the Ministry of Commerce on Monday.

These measures include supporting exporters’ drive to tap emerging markets, approving the establishment of 59 export bases, strengthening traditional industries and helping exporters in the central and western regions expand overseas.

Conditions next year “will be more complicated and severe for Chinese exporters, and the task for the Chinese government in maintaining stable export growth will be harder” said Zhong Shan, vice-minister of commerce, during a foreign trade meeting in Beijing. Read the rest of this entry »

Filed under: Beijing Consensus, Chinese Model, Culture, Domestic Growth, Economics, European Union, Influence, International Relations, Mapping Feelings, Politics, Strategy, The Chinese Identity, The construction of Chinese and Non-Chinese identities, Yuan

China’s central bank plans $300b investment fund: report [The Age]

China indicates it will not put all its eggs in one basket, perhaps indicative of a departure of the traditional habit of hoarding? Central bank governer Zhou Xiaochuan, who overlooks China’s monetary policy hints at new ventures to manage its $US3.2trillion stash of foreign reserves.

Chinese foresight? Reportedly planned way before the current Eurozone woes and more pertinent now in the wake of the European sovereign debt crisis, is a reported new vehicle affiliated with the State Administration of Foreign Exchange (SAFE) set up to manage investment funds worth a total of $US300 billion ($295 billion).

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China’s central bank plans $300b investment fund: report
Reuters
Source – The Age, published December 10, 2011

China’s central bank plans to create a new vehicle to manage investment funds worth a total of $US300 billion ($295 billion) to improve returns on the world’s largest stockpile of foreign exchange reserves, a source with knowledge of the matter told Reuters.

The vehicle, which was planned well before the start of Europe’s debt crisis and is aimed at improving returns on China’s foreign exchange reserves, would operate two funds, one targeting investments in the United States and the other focused on Europe, said the source, who asked not to be named because of the sensitivity of the matter.

The vehicle’s goal is to make more aggressive overseas investments for higher returns, said the source along with a second, independent source, who also declined to be named. Read the rest of this entry »

Filed under: Beijing Consensus, Chinese Model, Domestic Growth, Economics, European Union, Finance, Foreign aid, International Relations, Mapping Feelings, Politics, Public Diplomacy, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), U.S., Yuan

Wen and Obama’s brief Bali encounter [China Daily]

Will the Chinese are tired of the periodic American blasts at China to please their domestic supporters? While the Obama continues to focus on yuan valuation and the flashpoints of the South China Sea, the Chinese do not seem easily provoked, at least their politicians don’t on the international relations front. Wen’s remarks stayed focused on the bottom line – stating the yuan situation “is not man-made but is the market’s response to the exchanging rate of the renminbi.”‘

Seemingly seeing the forest for the trees and therefore taking a neutral tone is China’s Assistant Foreign Minister Liu Zhenmin,”Historically speaking, criticizing China would not definitely win points for US president candidates. But it is a safe strategy that definitely would not lose points.”

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Wen and Obama’s brief Bali encounter
Source – China Daily, published November 20, 2011

China’s Premier Wen Jiabao (left) meets with US President Barack Obama on the sidelines of the East Asia Summit in Nusa Dua, Bali, on Saturday. Photo: Agencies

BALI, Indonesia – Premier Wen Jiabao and US President Barack Obama vowed to keep bilateral ties stable on Saturday, amid subtle tensions between the world’s two largest economies.

The two leaders made the remarks as they met briefly on the sidelines of the East Asia Summit on Saturday.

Obama’s national security adviser Tom Donilon told reporters after the session that Obama stressed the importance of China adjusting its currency value, while territorial disputes in the South China Sea were briefly touched upon. Read the rest of this entry »

Filed under: Beijing Consensus, Charm Offensive, China Daily, Chinese Model, Communications, Culture, Domestic Growth, Economics, Finance, Government & Policy, Influence, International Relations, Mapping Feelings, Politics, Public Diplomacy, Soft Power, Strategy, Tao Guang Yang Hui (韬光养晦), The Chinese Identity, The construction of Chinese and Non-Chinese identities, Trade, U.S., Yuan

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