Winners, losers in Xinjiang cotton row

Not many will gain in the current furore over Xinjiang cotton, but the West may end up losing more.

As the soil and climate is ideal for cotton farming, Xinjiang produces one of the best quality cotton crops in the world. 

 

XINJIANG has never left the radar of the United States and its allies in their relentless efforts in recent years to vilify Beijing. They have hurled accusations ranging from human rights violations to baseless claim of “genocide” against the Muslim minority groups.

The most recent blow, which has kicked up a huge international firestorm since March 24, centered on the alleged use of “forced labour” in the huge and vibrant cotton industry in Xinjiang.

Calling these accusations “malicious lies and fabrications”, Beijing has imposed tit-for-tat sanctions on politicians and groups in the US, Britain and the European Union (EU), in retaliation for Western sanctions on Chinese officials over their role in alleged human right violations in Xinjiang.

In its attempt to show the brain and culprits behind these allegations, Beijing has also said there are geopolitical and economic reasons in the conspiracy to “blacken” Xinjiang cotton.

Accusing the US of aiming to destabilise China, Beijing’s foreign ministry on March 26 showed the media a 2018 video that recorded a speech by career US army officer Lawrence Wilkerson, who told the US Central Intelligence Agency to use Uyghurs in Xinjiang to hit China from within.

Beijing has also highlighted the subtle link between US government and Geneva-based NGO Better Cotton Initiative (BCI), which has sanctioned Xinjiang cotton despite being informed by its Shanghai branch there are no signs of forced labour in Xinjiang in the latter’s own investigation.

The BCI, hitherto thought to be an independent trade group to promote better standards, is accused by China to have allegedly taken funding from US Agency for International Development (USAID).

According to USAID’s website, the work of the agency “advances the government’s national security and economic interest”.

The Chinese social media has taken this further. It points out that BCI council chairman Marc Lewkowitz is the president of Supima – the promotion and marketing organisation for American Pima cotton growers.

“The US has no right to accuse China over human rights. It’s time for some US politicians to end the drama they made up, directed and performed themselves, and it’s time for them to wake up from their own Truman Show, ” said Hua Chunying, China’s key foreign ministry spokesperson, at a regular press briefing last Wednesday.

As the history of Xinjiang is marred with bloody terrorism and separatism, which was only put to an end by the central government in 2016, the province populated with 12 million Muslim Uyghurs has become an easy target for anti-China groups to fan up religious and anti-China sentiment.

However, amid allegations against China, leaders from the Muslim world who have visited Xinjiang have not uttered disapproval. In fact, some Middle East nations even voiced support for Beijing’s treatment of the Uyghurs.

A 25-year strategic cooperation agreement signed on March 27 between China and Iran is seen as a stamp of confidence on China by a major Muslim country. The pact, signed at the height of the cotton conflict, covers military, trade, energy and economic cooperation. It has attracted Western media and eyes.

In countering the claim that Xinjiang cotton is tarnished by forced labour, China has questioned why its accusers have persistently refused to visit Xinjiang and do their own fact-finding.

In the past, Beijing has adopted a relatively passive response towards western accusations. Its rebuttals often came in the form of press statements and media interviews to show the good work they have done in Xinjiang, which include eradicating extreme poverty in this arid mountainous north-western province, setting up schools for the young, and creating employment for the jobless.

But this time around, China has dropped its soft approach. It has hit back mercilessly.

For politicians with wide-ranging commercial interest in China, it really hurts. One named person facing China’s sanctions saw his family fortune dwindle by US$1bil as businesses linked to him are hit, according to social media posts.

It is understandable that Beijing has to respond fast as these claims are hurting Xinjiang and undermining China’s economy. It has triggered boycott of Xinjiang cotton by Western brands led by H&M, Nike and Adidas – all members of the BCI.

According to China Daily, the boycott has had an instant impact on Xinjiang’s cotton/textile industry. Textile factories are planning to lay off workers and cutting purchase from local farmers due to cancelled orders.

The cotton/textile industry in Xinjiang has created jobs for 600,000 local people. More than 50% of farmers in Xinjiang grow cotton, with over 70% of these farmers coming from ethnic minority groups – the Uyghurs, Kazaks and Uzbeks, says the daily.

The boycott has had an instant impact on Xinjiang’s cotton/textile industry.

According to commentators on China’s official CCTV television (Channel 4) last Sunday, cotton farming was introduced to help eradicate abject poverty. As the soil and climate is ideal for cotton farming, Xinjiang produces one of the best cotton crops (in terms of quality) in the world.

With an annual output of 5.2 million tonnes, Xinjiang’s cottonco accounts for 87% of China’s output and 23% of world supplies. By end-2019, there were 808 cotton processing plants in Xinjiang, accounting for 84% of China’s total, says a report in Global Times.

These statistics show that cotton farming and textile manufacturing has become a mainstay of Xinjiang’s economy, apart from tourism.

If Xinjiang’s cotton is tarnished, this segment of Chinese economy will be affected. More so will be China’s efforts in poverty eradication, hailed by the World Bank as a great achievement.

Hence, it is no surprise China has had to roar back to stop further damage.

Arguing against the “forced labour” claim, the Global Times noted that over 90% of cotton fields in the northern part of Xinjiang is mechanised.

And interestingly, the cotton-picking machines of Xinjiang are imported from the US. John Deere of the US has sold US$500mil worth of cotton-harvesting equipment to Xinjiang since 2017, according to the South China Morning Post.

But the loss in this row is not just confined to China. Western brands that have dropped Xinjiang cotton are feeling backlash from the mainland’s consumers, who have called for a nationwide boycott by China’s 1.4 billion people.

Sweden’s garment company H&M, reported to have 505 sales outlets in China, saw its stores empty on March 25, shunned by local customers. It was reported that six stores have closed after landlords cancelled their leasing contracts.

As China is a major market for H&M in terms of revenue, H&M last Wednesday posted a statement on its website to defuse tension. It said without mentioning Xinjing: “We are dedicated to regaining the trust and confidence of our customers, colleagues, and business partners in China.”

 Shuttered shops: Sweden's garment company H&M, reported to have 505 sales outlets in China, saw its stores empty recently due to backlash from irate locals - Reuters

But Chinese netizens are not happy with this statement.

The Chinese sentiment is largely reflected by a post by China’s Communist Youth League: “Spreading rumours to boycott Xinjiang cotton, while trying to make a profit in China? Wishful thinking!”

The foreign ministry’s Hua Chunying stated similar stance: “Chinese people will not allow foreigners to eat our rice and break Chinese bowl”.

More than 40 celebrities in the entertainment world have responded to call for boycott by quitting as brand ambassadors for foreign companies.

It was not a surprise when share price of some multinational companies plunged after the public outcry in China.

According to media reports, Germany’s Adidas saw its share price plunge by over 6% on March 25. Adidas and US-based Nike saw their combined market value dissipate by more than 70 billion yuan or US$10.7bil. The market value of H&M slumped by about 4.8bil yuan.

But if these multi-national corporations (MNC) want to continue to operate in China and earn billions from 400 million middle-class consumers, they may have to do soul-searching and research.

Zhang Yi, CEO of Shenzhen-based iiMedia Research, told Global Times these MNCs may find prospects and growth potential in the rapidly-expanding Chinese market dimmed, and their brand value could be reduced by half.

Before this cotton episode, many MNCs had rosy growth projections for 2021 in the Chinese market. For instance, Adidas was expecting 20%-30% growth in China in 2021, Zhang noted.

Apart from growth, MNCs could also face an irreversible loss in the world’s largest market. When an MNC loses its market share in China, another will promptly scramble in to fill the vaccum, according to Zhang.

 According to media reports, Germany’s Adidas saw its share price plunge by over 6% on March 25.

However, not all MNCs are losers. Companies that have aired support for Xinjiang, such as Fila China and Muji China, are enjoying consumer support.

And California-based Skechers has won generous praise for having done its own fact-checking. The footwear firm has said its audits found no evidence its Chinese supplier had used “forced labour”.

Some Chinese brands have also emerged winners in this conflict as consumers turn nationalistic. These include Li Ning and Anta.

Globally, the losers are consumers.

Yang Shu, associate professor of China Agricultural University, said this cotton row would disrupt supply chain and push up costs.

Hence, consumers in EU, the US and Southeast Asia will have to pay more for products with Xinjiang cotton.

For China, this cotton row may be a wake-up call to review its international strategies.

Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation, told Global Times Beijing might have to exert “a far greater say in the global cotton/textile industry and in the formulation of standards and pricing”.

And rightly so, as China is the world’s second biggest cotton producer and largest textile/apparel exporter. Last year, it sold US$291.22bil worth of cotton-linked products to the world.

As US President Joe Biden has declared he will not allow China to overtake the US during his term of office, China can expect to see more blows from the US to contain China and counter President Xi Jinping’s successful Belt and Road Initiative.

But as the Alaska talk last month shows, Beijing is prepared to stand up to the US and the West. It has declared it will not allow China to be bullied and humiliated by the West like 120 years ago.

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Blinken (far right) speaking at the dialogue as Yang (far left) and China’s State Councillor Wang Yi (second from left) listen.

 

 Chinese diplomats’ face-off with their US counterparts at a recent bilateral meet has won applause from many around the globe.

ALTHOUGH the two-day in-person meeting in Alaska between top Chinese and American officials ended last weekend, the fiery exchanges at its opening session have continued to reverberate and it is now a talking point among Chinese globally.

The strong phrases used by the Chinese diplomats on United States soil against their American counterparts have won applause globally, particularly from Chinese nationals and people of Chinese descent.

To the Chinese who remember history, the great humiliation exacted by the West on China in 1901 was avenged by the opening address of Beijing’s foreign policy chief Yang Jiechi at the Washington-initiated dialogue in Anchorage, Alaska.

Soon after the testy opening on March 18, photos of the Protocol of 1901 reminding readers of the unfair and degrading treaty forced on China began circulating widely on social media.

The treaty was signed on Sept 7,1901, by China’s Qing government after it could no longer muster resistance to invading troops sent by Britain, Germany, the United States, France, Tsarist Russia, Japan, Italy and Austria – the grouping was known as the Eight-Power Allied Forces..

The protocol stipulated that “the Qing government shall pay 450 million taels of silver to the Eight-Power Allied Forces for 39 years”. Together with “reparations” from provincial governments, the total sum of indemnity came to one billion taels of silver, equivalent to China’s revenue over 10 years then, says Chinese history..

According to the Global Talk show on TV station CTI Taiwan, the video of the 16-minute opening address by Yang, director of the Office of the Central Leading Group for Foreign Affairs of China, has attracted “explosive hits” all over the world..

“In the past, no country bullied by the US dared to stand up to the US. This is the first time China told them off bluntly and demanded respect. People who are happy with Yang are not only the Chinese but also people from countries invaded by the US or who are suffering from US sanctions, like Iran..

“From now on, Washington must rethink how it should deal with Beijing. Everybody must watch this outstanding speech by Yang Jiechi, ” said commentator Yong See Kuan on the show early last week..

In another Taiwan talk show with opinion leaders, China was voted winner in this “most interesting diplomatic talk in history” and the United States was the loser in diplomacy and legitimacy..

Chinese nationals feel particularly proud, as it is clear that in this first high-level US-China meeting under President Joe Biden administration, the uncompromising and righteous stance adopted by Yang has cast a long shadow over American supremacy and diplomacy..

What was initially meant to be a several-minute photo shoot ended up lasting over an hour as both sides traded barbs. Members of the media were told not to leave so they could listen to rebuttals..

The expected diplomatic niceties were missing when US Secretary of State Antony Blinken and National Security Advisor Jake Sullivan commenced proceedings with sharp criticisms of China on issues ranging from bilateral relations and human rights to cyber attacks and violation of international rules..

In response to that hostile opening, Yang responded to each allegation blow-by-blow, shooting past the time allocated..

On human rights, Yang reminded the United States about the killing of African-Americans, saying: “We do hope the US will do better on human rights. The challenges facing the US in human rights are deep-seated. They did not just emerge over the past four years with Black Lives Matter.”.

On cyber attacks, he said: “Let me say that whether it’s the ability to launch cyber attacks or the technologies that could be deployed, the US is the champion.”.

On international rules, he said: “I don’t think the overwhelming majority of countries in the world would recognise that the universal values advocated by the US or the opinion of the US could represent international public opinion.... And the rules made by a small number of people would not serve as the basis for the international order.”.

With choice barbs, Yang belittled the Americans..

He shocked all by saying: “The US does not have the qualification to speak to us from a position of strength.”.

He told the United States to “stop interfering in China’s internal politics” on Hong Kong, Xinjiang and Taiwan. On this subject, he added in Mandarin emphatically: “China will not buy (accept) the American way.”.

On democracy, he said: “You have your style of democracy and China has its own style.”.

Other phrases that appeared to hit hard at the United States and its Western allies include: “The US does not represent international opinion, and neither does the Western world.”.

Indeed, the 70-year-old veteran diplomat with tertiary British education has become a Chinese hero for showing the United States – and the world – how confident and assertive China can be after rising to become the world’s second largest economy and global power, with technology and military might..

Yang also reminded the United States that China, now led by President Xi Jinping, is not the China of 100 years ago, after saying China has suffered enough..

One of his most notable Mandarin phrase, “Chinese people will not buy the American way” is now appearing on T-shirts, umbrellas and other merchandise that is selling like hot cakes on the Chinese mainland..

Actually, not many observers had high expectations of this dialogue. Ahead of the meeting, top US officials visited regional allies Japan and South Korea and issued statements hostile towards China..

And just before the Chinese diplomats flew to Alaska, the US State Department announced it would impose sanctions on 24 Chinese officials for their role in “eroding” Hong Kong’s electoral system under a new Beijing law..

The timing of the sanctions and anti-China statements caused China’s Foreign Minister Wang Yi to make this pointed remark: “This is not supposed to be the way one welcomes guests”..

Amidst these hostilities from Washington, many people had thought that Beijing might cancel the talks unilaterally..

But the Chinese went. By attending this face-to-face dialogue amid insults, China showed off its confidence to the world, attracting much attention..

China’s confidence stems from its achievements since it opened up to the world, according to Wang Wen, a professor at the Renmin University of China..

“In the past decade, China has become the world’s largest manufacturing country, the world’s largest goods trading country, and the world’s largest consumer market. In the next five to 10 years, China will most likely surpass the US to become the world’s largest economy, ” he wrote..

Wang sees China-US relations at their worst since diplomatic ties were established..

“After taking office, Biden has made it clear that he views China as the ‘most serious competitor’ to the US. He takes Donald Trump’s legacy as a bargaining chip in a new round of games with China.”.

Noting that the balance of power between the two countries has changed, The New York Times said in a commentary: “China today feels far more assured in its ability to challenge the US and push for its own vision of international cooperation. It is a confidence embraced since 2012 when Xi Jinping became the top leader of China..

“For decades, China approached American governments from positions of weakness. That forced it at times to accede to American demands, however grudgingly, whether it was to release detained human rights advocates or to accept Washington’s conditions for joining the World Trade Organisation.”.

The newspaper added that the Alaska dialogue shows that the Biden administration’s strategy to curb Beijing is facing a stiff challenge..

Martin Jacques, a visiting professor at the Institute of Modern International Relations at Beijing’s Tsinghua University, said the United States cannot accept the “painful fact” that China is now its equal..

In his opinion piece, he wrote: “Yang Jiechi gave a bravura performance. He let his American counterparts have it with both barrels, challenging not just the US position but also its very legitimacy. This is not normally the Chinese manner on such occasions. It is a sign that something has changed..

“There is a new sense of confidence on the part of the Chinese. That they are winning – or can win – the argument. That they are at least the equals of America. That they speak from a position of strength and America from a position of weakness. That history is on their side.”.

According to the scholar, the Americans have hitherto always thought of themselves as running the show: “The shock visible in the body language of Blinken and Sullivan was the realisation that this was no longer the case.”.

Jacques added: “America is in the process of coming to the painful realisation that China is now its equal. However, it cannot bring itself to accept what is already an historical reality.”.

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Malaysia, Asean to benefit most from China’s new economic strategies

Beijing's 14th five-year economic plan and 2035 goal promise a new era of development for China and the greater wealth for the world.

Momentous meeting: China’s top political advisory body wrapped up its annual session recently. — Xinhua

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CHINA’s most important meetings of the year – “Two Sessions” – have unveiled Beijing’s medium- and long-term economic goals and strategies that experts believe will not only boost China’s quality development and modernisation but will also benefit the world, in particular Asean.

As Malaysia is part of the 10-nation Asean, China’s biggest trading partner, it will gain from Beijing’s strategies as long as Putrajaya continues to embrace foreign policies deemed as friendly – or at least non-toxic – towards Beijing.

The “Two Sessions” or Lianghui refers to the annual meetings of the National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC).

The NPC is the Parliament where laws and policies are adopted, while the CPPCC is the top political consultative body comprising the Communist Party of China (CPC) and other interest groups that provide policy input for the NPC.

At the start of the NPC in Beijing on March 5, Premier Li Keqiang, while unveiling the 14th five- year plan (2021-2025), announced that China had set an economic growth target of more than 6% for 2021 – with emphasis on high-quality development, green economy, modernisation and innovation.

The GDP of China, the first country to be hit by and recover from the Covid-19 pandemic, grew by only 2.3% in 2020. Still, China was the only major economy to post growth last year.

Li also announced that China – the world’s second largest economy in the world – wants to double the size of its economy to 202 trillion yuan (RM128 trillion) in 2035, from 102 trillion yuan (RM64.5 trillion) in 2020.

Over the next five years, Beijing will aim to keep unemployment low, strive for 7% annual growth in research and development spending and forge a new development pattern.

China also aims to become an advanced manufacturing powerhouse by 2025. This involves upgrading its manufacturing capabilities in rare earth, robotics, aircraft engines, new energy vehicles, high-end medical equipment and innovative medicine, aviation, high-speed rail and industrial applications of the BeiDou satellite system.

Ultimately, China wants to reduce reliance on foreign technologies and enhance competitiveness against the United States after being trapped in a long and acrimonious US-initiated trade war.

According to a Xinhua commentary, the CPC wants to lay the foundation to transform China into “a great modern socialist country that is prosperous, strong, democratic, culturally advanced, harmonious and beautiful” by the middle of the 21st century.

To double its GDP, China needs to achieve an average annual growth rate of 4.7-5.0% in the next 15 years, according to estimates of economists.

Prof Justin Lin Yifu, a top economist in planning Beijing’s poverty eradication programmes, projects that China will become a high-income nation by 2025.

The dean at the Institute of New Structural Economics of Peking University told Chinese newspaper Global Times that his optimistic prognosis “is based on China’s complete industrial chain, rich industrial range and advantages in new technologies, including 5G and artificial intelligence”.

Chen Fengying, a research fellow at the China Institutes of Contemporary International Relations, told Global Times the five-year plan has taken into account risks and challenges, particularly those posed by the US and its allies that try to contain China’s rise and technology advancement.

Despite challenges ahead, Beijing has demonstrated that it is capable of achieving targets. A good example is shown in the eradication of extreme poverty in 2020, achieved on the back of economic disruption induced by Covid-19.

While China’s economic strategies aim primarily at developing domestic growth, they are seen as benefiting investors and foreign nations.

“Given the size of the Chinese economy and the important role it plays in the global economy, the 14th Plan also offers a bright spot for the global economy in this difficult time, ” Bai Ming, deputy director of the International Market Research Institute, told Global Times.

Indeed, China has contributed about 30% in global economic growth on average over the past 20 years. Within the next five to 10 years, China is expected to contribute 25-30% to global economic growth, says Gobal Times.

Christina Zhu, an economist at Moody’s Analytics, notes that Beijing plans to increase spending on fundamental research by 10.6% this year and encourages manufacturers to invest in research and development by offering greater tax benefits.

“China will further open up its domestic market to foreign businesses and investors. It has lifted restrictions in areas such as high-end manufacturing, new energy and service industries, and has committed to trimming down the negative list and providing a level playing field for foreign enterprises, ” she writes in a note.

Foreign trade stability and growth in foreign investment are critical to China’s ambition for greater connectivity with the world economy, she adds in the note also issued to Sunday Star.

Judging from what China’s Foreign Minister Wang Yi has said, Malaysia and its Asean neighbours can expect to enjoy preferential treatment from China.

Last Sunday, Wang Yi told a press conference: “China is willing to work with Asean to build an even closer community with a shared future and another 30 years of even greater cooperation.

“In the new development stage, China is like an express train with greater driving force and load capacity. China welcomes all countries to get on board and move towards a future of shared prosperity.”

Locally, the Associated Chinese Chamber of Commerce and Industry of Malaysia (ACCCIM) sees Asean becoming a strong beneficiary of Beijing’s economic plan and goals.

“With China regaining its strong growth momentum in 2021, its economic strategies will help to support Malaysia and Asean’s economic recovery from the pandemic, ” says Tan Sri Ter Leong Yap, president of ACCCIM.

The trade group sees China as intensifying external connectivity via the Belt and Road Initiative (BRI) of President Xi Jinping to accelerate China’s involvement in international trade.

Touching on Malaysia, ACCCIM notes that China has become Malaysia’s largest trading partner for the 12th consecutive year in 2020, with total trade valued at RM329.8bil or 18.6% of Malaysia’s total trade. Exports to China accounted for 16.2% while imports from China stood at 21.5%.

In 2020, China’s investment in Malaysia jumped 43.8% to RM5.8bil to become Malaysia’s sixth largest foreign investor.

“China’s long-term sustainable economic growth and greater emphasis on quality and technology-driven investment will open up more trade and investment cooperation in the areas that can help Malaysia’s industrial development.

“China’s signature BRI can continue to be a catalyst to spur more China investment to Malaysia and Asean, ” Ter tells Sunday Star.

The growing influence of China on the global stage will boost China-Asean economic cooperation, which can be further cemented by the signing of the 15-member Regional Comprehensive Economic Partnership (RCEP), he adds.

Malaysia’s development focus on IR 4.0, digitalisation, 5-G technology, e-commerce, green investment, renewable energy, electric cars and smart transport infrastructure also means that both nations can work together to foster win-win deals.

Ter opines: “Malaysia can learn a lot from China in high technology, digitalisation, agri-tech and the building of smart and eco-industrial parks.

“We hope that the Prime Minister’s planned visit to China could further strengthen bilateral relations, taking it to a new level of win-win partnership. Both countries have come a long way in deepening trade and investment flows, enhanced connectivity and people-people exchange.”

For Prof Datuk Dr Chin Yew Sin, China’s BRI strategy under its 14th five-year plan could help Beijing achieve its economic targets.

“Between 2013 and 2019, China had signed with 138 counties, including Asean countries, for a total of 790 BRI projects. These overseas BRI projects undertaken by China will help spur the economic growth rate of China by about one per cent annually.

“The BRI projects implemented in Malaysia and other Asean countries will enhance the economic growth rates of these countries also, ” says Dr Chin, adviser for the Global One Belt One Road Association (Asia Pacific Region).

Dr Chin believes China’s demand for Asean’s natural produces and manufactured products will be even greater when it overtakes the US to become the largest economy in the world before 2035.

“By then, Malaysia will be able to export more of its electrical and electronic products, palm oil, rubber, oil and gas, timber products and others to China due to a higher demand of these goods.

“In addition, Malaysia will be able to attract more direct investments from China because of its long-standing good relationship with China, ” he adds.

Malaysia was the first Asean country to establish diplomatic ties with China in 1974 and Beijing has never failed to repeat its gratitude to Malaysian leaders at meetings, Dr Chin notes.

Datuk Keith Li, a mainland Chinese business leader in Malaysia, shares the views of his Malaysian counterparts.

“China will definitely focus more on the Asean market since the bloc is China’s biggest trading partner amid the pandemic. Moreover, China’s current ties with the US, Europe and Australia are tense, ” says Li, president of the China Entrepreneurs’ Association in Malaysia.

He adds: “There will be more to be done when the RCEP is implemented. China is expected to help Malaysia build a high-speed railway, an essential link with other Asean countries” Cambodia, Myanmar, Laos, Thailand and Singapore. This will also facilitate China to enhance economic cooperation with Asean in tourism, trade, logistics and communication.”

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Economic freedom: Xi leading other Chinese leaders at the fifth plenary session of the 19th Central Committee of the CPC in Beijing on Oct 29. China’s leaders are vowing to make their country a self-reliant “technology power” after a meeting to draft a development blueprint for the state-dominated economy over the next five years. — Xinhua via AP

 WHILE the world was following the US presidential elections closely hoping for a positive change in international dynamics, they did not ignore the most important political meeting taking place in China on Oct 26-29.

The developments in China – the only country showing solid economic recovery after combating the Covid-19 epidemic in Wuhan – are too important to be eclipsed by the drama in Washington led by President Donald Trump.

The Oct 26-29 meeting gave a glimpse of the future plans of China, after Beijing withstood two major challenges: the containment from the US and a major public health crisis caused by the novel coronavirus.

The effective control of the virus has enabled China to revitalise its economy, which it contracted in the first half of the year. In the third quarter, China’s GDP posted a positive growth and is expected to see even stronger expansion this quarter.

It is against this backdrop that China was holding its most important policy meeting this year.

Over the four days, top leaders of the Communist Party of China (CPC) led by President Xi Jinping deliberated China’s 14th Five-Year Plan (2021-2025) to chart the future development path for the world’s second largest economy.

They also endorsed a blueprint to achieve President Xi’s vision of turning China into a “great modern socialist nation” by 2035, which by then is expected to be “prosperous, strong, democratic, culturally advanced and harmonious”.

The Fifth Plenary Session of the 19th CPC Central Committee set goals to spur China’s modernisation drive, pursue self-reliance in science and technology to support its development and modernise defense capabilities, according to a post-plenum press conference live on CCTV4.

A communique summarizing the decisions was released on Oct 29 night to the media.

More than 200 leaders and elite members of CPC met behind closed doors to identify policy priorities for keeping the economy growing in the middle of a pandemic, supply chain disruptions, toxic relations with the West and global economic downturn, according to the South China Morning Post.“This five year plan is China’s most important policy program, which sets goals and directions for the national economic and social development, ” said Professor Wang Wen, who was involved in drafting the plan.

The executive dean of Chongyang Institute for Financial Studies at Renmin University of China added that this plan is a “very comprehensive plan” as public opinion was collected on the Internet and reported to decision-making levels.

And President Xi had personally held frequent symposiums on various fields and sectors ahead of the plenary session.

“The plan takes into account the interests and demands of the whole country, various industries, regions and institutions. It is a design to start a new journey of fully building a modern socialist country after China completes the building of a moderately prosperous society in all respects, ” Wang said in a post-event comment piece emailed to Sunday Star.

At the post-event press conference on Oct 30, the media were told Beijing would actively promote “technological self-reliance” to speed up China’s ambition as a “technology power.”

Self-reliance is the main theme of the five-year plan as China faces the threats of economic decoupling and de-globalisation, as well as other headwinds, the media learnt.

China had to nurture its own microchip producers and high technology in the face of US export curbs that has hurt China’s tech industry.

According to a report, Chinese telecommunications giant Huawei has lost a lot of its supply sources of high-precision chips; and if the US ban continues and Beijing does not act, Huawei may have to stop its high-end smart-phone production.

“We will take scientific and technological self-reliance as a strategic support for national development, ” Han Wenxiu, an adviser to President Xi, said at the Oct 30 news conference.

State-linked Global Times, in its editorial, said Trump’s China policies have awakened the Chinese from complacency.

It said: “If it were not for the US’ suppression, Chinese people may have always built our industries on American semiconductors.

“Over the past four years, the US’ China policy has awakened China. It has made us understand we may be stuck on key technologies and we must make up for technological shortcomings.

“It has also convinced us that the US will not accept China’s rise and will do everything to suppress China. This is a cold reality.”

The CPC plenary session has also endorsed the “dual circulation” economic strategy.

Under this new strategy, China will remain open to foreign investment and trade, while moving its pivot to build up an internal economy. The model looks at the domestic market as the country’s economic mainstay, with domestic and foreign markets complementing each other.

Although there is greater emphasis to create the domestic economy by spurring local spending, China will continue to open more sectors to foreign investors.

The message sent to foreigners is: China will not isolate itself from the global economy while developing its domestic economy to be self-reliant in all aspects.

And in fact, at the opening of Shanghai’s third import expo on Wednesday, Xi announced China wants to import more and be the market of the world. He added China’s 400 million-strong middle class will be ready consumers.

According to Han, the Oct 26-29 meeting also decided that China will continue to pursue reforms and open up as it believes in multilateralism and globalisation.

He said: “We will never waver in our national policy of opening up. China will provide countries around the world with larger markets and more opportunities.”

In the next five years, China will focus on high-quality growth and expansion of domestic markets, as well as increasing its innovation capability.

“As China is no longer a follower but a front-runner, the meeting must have considered how China can lead the global economy. The following five years will not be easy. However, as long as we grasp the law, enhance awareness of risks and opportunities... China will witness a completely new scene of development, ” commented Wang.

As China is facing possible risks of clashes with the US and its allies that are conducting extensive military exercises in waters in South China Sea and nearby waters, military buildup is on the agenda in the next five years.

“China’s necessary military buildup is urgent. Based on the principle of effective defense, besides establishing military advantages in coastal waters, we must consolidate our strategic deterrence based on nuclear capabilities, ” explained Global Times in its editorial.

“We must make Washington realise that it is facing a China that it should be wary of trifling with, and that treating China as a friend rather than a foe much better fits US national interests, ” added Global Times.

Despite this, the communiqué released said the party plans to promote peaceful reunification of Taiwan.

In the four-day intense meeting, the welfare and interests of the people were not left out.

After eradicating the last of extreme poverty this year and lifting 700 million out of abject poverty in the past 40 years, the next goal for the CPC leaders is to hit its target of building a “moderately prosperous society” in 2021.

In fact, the goal to become “a moderately prosperous society” in by 2021 has been achieved, according to state media.

Acknowledging that the Covid-19 pandemic has affected many people, the plenary session discussed employment, income disparity, the quality of life and education, health issues and elderly care, the media were told on Oct 30. While the plenary session deliberated a lot on economic issues, foreign media are keen to scrutinise it from a political angle. To Japan’s Nikkei, the “2035”

figure is a magical figure that could provide indication on the leadership tenure of Xi, who became president in 2013.

“The long-running speculation that Xi is considering staying in power way past 2022 was in effect confirmed as China put in motion an ultralong 15-year vision promising new levels of prosperity by 2035, ” reported Nikkei.

But whether outsiders love CPC or not, China’s 1.4 billion Chinese have the final say.

According to a nationwide survey, about 95% of Chinese nationals polled said they support the CPC leaders and are satisfied with the manner they govern the country and overcome the Covid-19 crisis.

“History has selected the CPC to lead China and its people. The CPC, under the strong and excellent leadership of President Xi, will continue to rule China, ” declared one of four spokesmen at the Oct 30 live press conference.

He added: “The plenary session believes that under the leadership of Xi Jinping, China will be able to face risks and tackle challenges ahead and advance a socialist economy with Chinese characteristics.”

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Beijing is helping the US and other unfriendly countries to combat the Covid-19 pandemic, but is this kind gesture worth it?

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今天，中美正式摊牌！百年国运之战已经开始！

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Free to travel: The Wuhan lockdown was lifted on april 8 after 76 days of tough isolation measures. — Bloomberg

IN three to nine months when the global Covid-19 pandemic subsides or ends, Beijing, which has put its domestic coronavirus contagion under control, may not be able to smile and celebrate with the rest of the world.

The path ahead is filled with challenges for China, the magnitude of which could be frightening.

This economic giant of the East, now leading the global fight against Covid-19, is likely to continue to face a barrage of accusations – or even lies – that could prompt opportunistic and hostile countries to demand compensations to the tune of billions or even trillions from Beijing based on the current narratives.

In short, China – the first country to be hit by the coronavirus, will have to brace itself for another intense battle after defeating the invisible coronavirus with a huge cost and sacrifice. If the republic is not prepared for these future challenges, its strong manufacturing sector may suffer, its important position in the global supply chain and its economy will be derailed.

This is the post Covid-19 scenario painted by Chinese netizens on social media, as they warn their leaders to stop giving free aid or sell medical supplies cheap to “ungrateful and evil” countries.

The worries of the Chinese nationals are not unfounded. They stem from recent news flow and anti-China remarks made by the US and its allies.

In Washington, China faces criticism over the way it had handled the pandemic, lack of transparency and alleged delay in sharing crucial information with the world on the virus. US President Donald Trump, who labelled the coronavirus the “Chinese virus” last month, has often said Beijing should have acted faster to warn the world of the risk. He has even expressed doubt over Chinese data on infections and deaths. All these verbal assaults are hurled at China even as the US and its allies are receiving Chinese aid or made-in-China surgical masks, ventilators, Covid-19 test kits and protective gear. As its production of masks is fast and efficient, accounting for about 50% of the world’s output, countries short of supply now have to turn to China for this essential commodity.

Out and about: People wearing face masks walking near a shopping complex after the lockdown in Wuhan was lifted. — Reuter

Although China has been sharing its experience and expertise in locking down Wuhan from Jan 23 to April 7 to curb the spread of the virus, it still has to endure incessant finger-pointing just because the first Covid-19 outbreak occured there.

While Trump has stopped calling it the “Chinese virus”, US Secretary of State Mike Pompeo and other senior officials have stepped up their campaign against China, insisting on labelling Covid-19 as “Chinese virus” and “Wuhan virus”.

By using the label, they are insinuating that the virus had originated from Wuhan. And by extention, China should compensate the virus-hit countries whose economies have been derailed and social life disrupted.

One class action lawsuit against China has been filed in the Federal Court in the US seeking damages suffered from the Covid-19 pandemic. The stigmatisation of China by US continues unabated despite the release of more and more studies – including those from the US – indicating that the virus could have originated from the US.

China has become the scapegoat for the US and other countries for their failings. They have not taken speedy action to control the spread of the disease despite watching China suffer in January through to March.

What angers the Chinese most is that in some countries, China’s kindness and generosity in extending help is cast with suspicion. It is not reciprocated with gratitude.

Recently, the European Union’s foreign policy chief Josep Borrell called on the bloc to be ready for a “struggle for influence” with Beijing. Some EU ministers even insinuated that Chinese aid is aimed at undermining European unity, after Italy and Serbia thanked Beijing profusedly for its help.

In response to remarks by a French minister claiming Beijing is waging a global propaganda campaign, China’s Foreign Ministry spokesman Hua Chunying retorted: “Do they wish to see China standing by idly while witnessing other countries suffer from the severe pandemic and losing lives? Do they think they can do better than China in handling the disease?”

Hua took the opportunity to reiterate China’s belief that only international solidarity, cooperation and mutual respect can overcome the difficulties. Stating Beijing’s objective is to save lives and help the world end the pandemic, she added: “China will not forget the international community had given it valuable support and help at the most difficult time in the country’s fight against Covid-19. Beijing is willing to reciprocate the kindness of others.”

China has said it has extended help to more than 127 countries in their fight against coronavirus.

It has given free medical aid to the world’s least-developed nations, such as Laos, Myanmar, Bangladesh and some African countries. Together with its private sector led by Alibaba Foundation and Huawei, it has also donated free medical supplies to almost all Southeast Asian nations and Pakistan. In response to calls for help from the US and traditional American allies like Spain, France and Japan, China has acted without hesitation. However, after getting medical supplies from China, some countries showed their ugly side.

Spain’s action was shocking and crude. After receiving the first batch of supplies in late March, the Spanish government returned 9,000 “quick result” test kits to China because they were “sub-standard”.

The sensibility of the test was only 30%, against the 80% expected. China responded by conducting its own probe. It was discovered that the test kits Spain bought were from an unlicensed Chinese firm, and the test kits the Spanish government ordered from the Chinese government had not arrived. Currently, Spain is among the worst-hit countries in the pandemic that has engulfed the whole globe.

In Asia, Beijing came to the rescue of Japan – one of the earliest countries to donate medical supplies to China in late January. When the Princess Diamond cruise ship docked in Japan, China donated test kits to the National Institute of Infectious Diseases in Japan. In the West, China sent France, Germany, Britain and US the much-needed medical supplies.

Chinese presence is also felt in Iran, the Czech Republic, Ethiopia, Liberia, Serbia and India.

But not all news is depressing for the Chinese.

Beijing has been showered with praise and gratitude by countries desperate for help. Many Italians sang Chinese national anthem and hoisted Chinese national flag from their flats after Beijing sent more than 300 experienced doctors to Rome to share their expertise and experience.

In early March, Serbian President Aleksandar Vucic – who failed to get help from EU countries – said during a televised address: “European solidarity does not exist. I believe in my brother and friend Xi Jinping.”

Although China had admitted it was not perfect in its initial handling of Covid-19, the World Health Organisation (WHO) still praises Beijing’s response and for its appropriate strategies in battling the virus, which has claimed over 3,300 deaths in the country.

The crisis in China is largely over, while the rest of the world is still busy fighting the Covid-19 war. In recent days, the daily domestic infections in China have fallen to zero or near zero, although it is still dealing with imported cases.

On Wednesday, the 76-day lockdown on Wuhan was lifted with cheer and celebrations.

While China has often emphasized international solidarity and cooperation to end the pandemic, its leaders have indicated the country will face more challenges post Covid-19.

The concerns of its people on social media could be felt in the editorial of Global Times on April 6: “As a major country that was among the firsts to bring the novel coronavirus under control, China must prepare to face an extremely complicated situation.”

China believes the pandemic is unlikely to end quickly and knows this will impact the world order and trigger turmoil, according to the official media of China.

It said: “Nationalists and populists may have more room to fan the flames and China is likely to become the target of certain Western leaders to displace their peoples’ anger and disappointment. China may face much more serious risks in international politics.”

During a key leadership meeting on Wednesday, Xi warned that new challenges have emerged for China’s work resumption and economic/social development. In a statement released after the meeting, Xi called for “preparedness in mind and work” to cope with external environment changes and demanded other Chinese leaders to redouble efforts in economic and social development.

Lest others forget this: China Today is not the Old China during the Ching Dynasty.

By HO WAH FOON


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