Category Archives: Politics & Society

China’s New National Security Law Emits An Icy Blast

CHINA HAS PASSED a National Security Law that sweeps a broad range of economic, political and social activities within its remit. The new legislation is far more all-encompassing than the counter-espionage law that it replaces. Pretty much anything Beijing wants to consider as a matter of national security it now has the legal footing to do so.

That can include ideology and culture, energy security, economic development, information, financial stability and just about everything in between. Civil rights campaigners have expressed disquiet about China’s growing crackdown on activism and dissent. Those concerns are only likely to be amplified by forthcoming counterterrorism and foreign NGOs legislation.

However, the greatest impact of the new law could be felt by companies. It requires that internet and information systems must be “secure and controllable” by the government. That makes foreign financial firms and IT companies extremely uncomfortable, but all foreign firms should be uneasy.

Much will depend on how discriminating China chooses to be in implementing the new National Security Law. Many ministries and agencies can make use of it to pursue policy objectives, including the promotion of domestic national champions. Some parts of government may use the new law aggressively, others sparingly.

The selectiveness of application can give foreign companies the impression that they risk having the law brought down on them seemingly randomly. That, in itself, will have a chilling effect.

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Zhou Yongkang Gets His Preordained Day In Court, Life Imprisonment

THE TIANJIN MUNICIPAL No. 1 Intermediate People’s Court has sentenced Zhou Yongkang to life imprisonment. The ruling follows the court’s conviction of the former head of the security apparatus on charges of bribery, abuse of power and disclosing state secrets.  The short trial was held behind closed doors on May 22nd, state media report.

Neither the verdict nor the sentence handed down on the most senior figure to be brought low by President Xi Jinping’s anti-corruption campaign comes as much of a surprise to this Bystander.

Zhou’s protege was the disgraced Chongqing Party boss Bo Xilai, who challenged Xi for the leadership. Bo is now in prison following his wife’s murder of British businessman Neil Heywood and a slew of bribery, embezzlement and abuse of power convictions. The charges against both men were narrowly economic, not specifically political.

However, for all the new leadership’s embrace of rule by law, both cases look a lot like politics by other means.

Zhou is the highest ranking Party official ever to have been found guilty of corruption. His trial broke the Party’s unofficial rule that the highest level officials don’t get prosecuted whatever their crimes. The public message may be that no official is above the law, but the internal one will be that no official is above Xi’s ever-growing authority.

Recognition of that may well mean than Zhou is the last ‘big tiger’ that will be netted by Xi’s anti-corruption campaign. Plenty of flies to be swatted yet though, and also some small tigers if they stand in the way of Xi’s reform plans.

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China’s Edifice Complex

shanghai-skyline

IT WAS ONLY this year that the tallest building in the country was topped out. At 632 metres, Shanghai Tower, an office-cum-hotel development, reaches 140 metres — and 27 floors — further in to the sky than China’s existing height record holder, the Shanghai World Financial Center that was completed in 2008. Both can be seen in the photo above.

The Burj Khalifa in Dubai is the world record holder at 828 metres and 163 floors. But the Shanghai Tower’s place in the sun as China’s tallest building will be short lived. The Ping An Finance Center in Shenzhen is due to be completed next year, at 660 metres. The Suzhou Zhongan Center, a hotel, residential and office complex, is scheduled for completion in 2020, at 729 metres. Even that will be in the shadow of the proposed pair of Bionic Towers, in Shanghai and Hong Kong, if that project ever gets off the ground, so to speak. They are envisioned to be 1.3 kilometres tall and contain 300 floors.

For all the well advertised travails of the property market, China is seeing a continuing boom in skyscraper building. Twenty-two of the world’s 38 tallest buildings under construction are in China. There are four in Shenzhen, two each in Kunming, Nanning and Wuhan, and one each in Changsha, Chengdu, Dalian, Foshan, Guangzhou, Jinan, Taiyuan, Tianjin, Wuhu, Xiamen, Zhenjiang and Zhuhai. None of them will be less than 300 metres tall (the definition of a ‘supertall’ building; 600 metres-plus counts as ‘megatall’, 200 metres plus is merely ‘tall’).

Add in completed and topped-out buildings and China will have 67 buildings higher than 300 metres. That compares with 17 in the United States, where the tallest building under construction, in New York, is a mere 273 metres and 47 stories high. Europe has just six — five in Moscow and one in London, but none higher than 374 metres and 95 floors which will be the height of the tallest building now under construction in Moscow.

The number also stands in marked contrast to China of just 25 years ago. In 1990, there were only four tall buildings, with another 45 under construction. By 2000, there were 25 completed and the same number under construction. By 2010, it was 35 and 14 respectively. This year: 353 completed and 150 under construction.

Improved materials and construction technologies — China is a pioneer of tall prefabricated buildings — are behind the vertical building boom everywhere, along with growing pressure on urban land. Also, cities desire iconic towers designed by world-class architects to give physical expression to their rising economic weight.

China’s developers have overwhelmingly been building office and hotel towers. They are only now starting to put up residential tall buildings as has happened elsewhere in Asia, notably India and South Korea. China has, after all, moved more than 300 million people from the countryside to the cities in the past 20 years. The peak of that unprecedented migration may be passed, but the movement of people is not done.

The wildly ambitious and now stalled Sky City in Changsha in Hunan province was meant to include schools, a hospital, apartments, theatres, cinemas, shopping centres, and a ‘vertical farm’ able to feed the tower’s intended 30,000-plus residents. It may never get built and prove to be the poster child for vanity projects that become white elephants, but it may equally prove to be the model for the future.

The Xi-Li leadership is promoting urbanization as an engine that will move the economy towards more consumption and less reliance on investment and exports for growth. Improving city planning by limiting sprawl is a priority for the National Development and Reform Commission, China’s main economic development policymaker. That ambition may be crimped by the slowing economy or, conversely, made more urgent.

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China’s Environment And The Slowly Expanding Pockets Of Dissent

OFFICIALS IN THE southern Chinese town of Luoding in Guangdong province have cancelled plans to build an incinerator plant following mass protests this week. This volte-face followed more citizen concern about an explosion earlier in the week at a PX petrochemicals plant in Fujian that triggered some of China’s biggest environmental protests in 2007. The week also brought news that the environment ministry on March 30 had vetoed the construction of the $3.75 billion Xiaonanhai hydroelectric dam on the middle reaches of the Yangtze River 40 kilometres upstream of Chongqing.

The proposed dam threatened scores of species of endangered freshwater fish. Its cancellation marks a rare victory for Chinese environmental campaigners over the country’s powerful state-owned dam-building industry.

Environmental issues are highly sensitive for the Party. They are increasingly becoming the locus of social activism and dissent, and constitute the largest class of ‘mass incidents’ involving more than 10,000 people. As such, they are a potential source of that most feared threat to the political status quo, instability. Worse from the authorities point of view, environmental non-government organizations are a seed that could grow into political movements able to challenge the Party’s institutional monopoly of political power.

Beijing is managing this dissent by tolerating it in limited areas, and increasingly allowing spontaneous (i.e., no coordinated collective action) small-scale local activism. It has controlled labour unrest in much the same way. Worker incidents are not allowed to be coordinated by preexisting groups. They have to be specific to an individual enterprise. And they can’t have a life beyond the resolution of the specific incident, i.e. they can’t spawn a lasting organisation. The same blueprint is being applied to environmental protests.

The continuing clampdown on academia and on the media, including social media, which is a potentially powerful way to ‘organise without an organisation’, indicates that this tolerance will not be extended to any bigger thinking dissent or organisation against central government. Ideology remains inviolate.

There is to be no joining of the dots between economic development, environmental degradation and social inequalities. Witness the quick censorship of the online documentary about air pollution, Under the Dome, produced by Chai Jing, a former TV presenter and CCTV investigative journalist, once it had gone viral on social media. Such an approach acts as a social safety valve, allowing a build-up of pressure to be blown off and the system to return to its pre-existing stable state.

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The Case Of Zhou Yongkang And Politics By Other Means

THE FATE OF Zhou Yongkang, former head of the security apparatus and the most senior figure to be brought low by President Xi Jinping’s anti-corruption campaign, neatly underscores the difference between rule of law and rule by law. The 72-year old Zhou faces charges of bribery, abuse of power and the intentional disclosure of state secrets, a formal indictment that, for all the putative improvements to the judicial system, will lead to a guilty verdict as surely as night follows day.

However, Zhou, a former Politburo member, is far from alone among senior Party figures that have enriched themselves and friends and families by dint of their position. The investigation and criminal charges against him are politics by other means.

Zhou’s protege was the disgraced Chongqing Party boss Bo Xilai. Bo challenged Xi for the leadership and is now in prison following his wife’s murder of British businessman Neil Heywood and a slew of bribery, embezzlement and abuse of power convictions.

Scores of Zhou acolytes in Sichuan province and in the oil industry, a powerful vested interest that poses obstacles to Xi’s economic reforms, have also been investigated and in many cases prosecuted. Before becoming security chief Zhou was a senior official at state-owned oil giant China National Petroleum Corp. and Party boss in the southwestern province.

The charges against Zhou are narrowly economic, not specifically political, even though the Supreme Court’s annual work report to last month’s National Peoples Congress accused both Zhou and Bo of “trampling on the rule of law, violating the party’s unity, [and] engaging in unauthorized political activities”. Narrowing the scope makes it easier for Beijing to stage an ‘open’ trial and keep the focus on the anti-corruption campaign rather than subject itself to the risks of airing the Party’s dirty laundry in public.

Zhou’s case will be heard in a court in Tianjin, in accordance with a practice of trying senior party officials in cities where the accused has no power base and local court officials can be relied upon to rule by law.

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China Kicks Schools Football Up A Notch

A Song Dynasty painting by Su Hanchen, depicting Chinese children playing cuju.

A Song Dynasty painting by Su Hanchen, depicting Chinese children playing cuju.

ONE AREA IN which China is not an emerging power but wishes it was, is football. As our man among the muddied oafs has noted before, China quietly harbours ambitions of staging a FIFA World Cup.

However, for now, the national team, still recovering from the corruption and match-fixing scandals that beset the professional game in the not so distant past, does not match up to that expectation. Despite its unexpected success in reaching the quarter-finals of the recent Asian Championships, it currently still ranks joint 83rd in the FIFA World rankings (though the women’s national team ranks 16th).

President Xi Jinxing is a fan of the sport, which China claims to have invented (see picture above). Xi also understands the statements about national soft power that sporting success can make. So there is a state plan.

The State Council has issued a 50-point development plan. One of the central points is to switch responsibility for developing the sport to the China Football Association from the General Administration of Sport. That may restore some of the authority the association lost after the corruption scandals.

Another is to boost the game in schools. One immediate impact of this is the creation of a school football leading group. It comprises the education ministry and five other government departments, including the National Development and Reform Commission, which suggests it will have some clout.

The education ministry says it is increasing the number of primary and secondary schools designated as football academies to 20,000 by 2017 from 5,000 now. This will mean they get new facilities including pitches, which across China have been swallowed up for property development in recent years. Thirty counties will trial promoting the development of young players and raising the popularity of the game among schoolchildren.

Last November, education minister Yuan Guiren said that football would become a compulsory part of physical education classes in all schools and that 6,000 school coaches would be trained this year. Seven volumes of instructional text books are in preparation, according to the People’s Daily. The goal is for there to be 50,000 schools specialising in football by 2025. In 2016, football will become an option in the national university entrance examinations in an attempt to overcome parental reluctance to let their children swap studying time for chasing a ball around a pitch.

With Qatar cementing its hold on the 2022 World Cup, the next likely opportunity for China to host the tournament for the first time is 2034. Would China have a team suitably good enough by then? Never discount the power of Party discipline, but as the U.S. has shown, two decades is the bare minimum for raising a generation of footballers good enough to compete with the world’s best.

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An Architect For A Rich China

RATHER LIKE FINANCIALLY threadbare English nobility marrying American new money in the 19th century China’s Communist Party is embracing the country’s new self-made wealth. Five of the country’s ten richest people will attend the National People’s Congress — China’s parliament — which convenes for its annual showpiece plenary on Thursday. Thirty-six of the country’s 100 richest people will be involved in either the NPC or the meeting of the top political advisory committee that precedes it.

The incongruity is not as pronounced as it might first seem. The trend of the Party co-opting new wealth — and the nascent political interest it represents — is not new, even if it has not been given the same degree of public attention before. Nor are the newly rich necessarily popularly reviled. Many citizens see them as aspiration-worthy models of self-made success, and stark contrasts to the beneficiaries of the corruption and cronyism that has long flourished in the creases where state-owned businesses, government officials and Party elites converge.

Many of these new multibillionaires have made their fortunes in areas such as the internet, e-commerce and telecoms where there were not state vested interests in the first place. As well as having them on the inside of the tent rather than outside it, the new leadership may well find them useful role models in support of President Xi Jinping’s ‘four comprehensives,’ a collection of objectives being bundled up as an ideological foundation for Xi’s vision of the ‘Chinese dream’ — and his contribution to the Party’s theoretical canon.

The quartet of building a moderately prosperous society, deepening (economic) reform, rule by law, and strict party discipline provide plenty of echoes — as does the presence of glorious wealth at the NPC — of Deng Xiaoping’s economic liberalisation of China. That is no accident. Xi continues to establish himself as the country’s paramount leader and take on the Deng-like mantle of being the architect of the country’s future prosperity.

Deng helped a handful of Chinese get rich first, and they they helped a second, if still privileged wave to do so on the back of three decades of helter-skelter growth founded on infrastructure investment and cheap export manufacturing. Xi has to scale that to the mass of Chinese citizens in a more equitable way if the Party is to maintain the legitimacy of its political monopoly. That in turn means making economic growth sustainable by rebalancing the economy on the fulcrum of domestic demand while avoiding the pitfalls of its debt legacy from the old model.

More of his blueprint, in the form of the new five-year plan, will be revealed in more detail over the coming weeks, starting with Prime Minister Li Keqiang’s ‘work report’ to the NPC, which will likely enshrine a new GDP growth target of ‘around 7%’, to replace the existing ’around 7.5%’.

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