- internal turmoil
- political infighting
- encirclement by democracies (India, Japan, Australia, US, UK, Canada, France, South Korea, Taiwan). Once Merkel is out in sept 2021, Germany will be onboard
- negative sentiment from most of population in the world due to covid
- exploding debt/bankruptcies
- lack of efficient feedback loops to self correct, as dictatorship has little of that. Thus Jack Ma is no more.
If you have a foreign commercial presence in China, expect
- kidnapping of executives (for layoffs, unpaid bills)
- no delivery for paid merchandises
- seizure of molds/machines/factories (nationalization)
- seizure of tangible assets (nationalization)
- trademark/copyrights given to Chinese entities
with no recourses.
China does have one compelling advantage: its enormous population. Even if a horrible plague or even a civil war happened and 100m people died, they still have plenty of people to accomplish anything they want.
They have Ph.D. scientists, many trained at top Western universities, who are equal to anyone in the West. They are doing an amazing job in manufacturing and technology; virtually all high value objects are manufactured in China, and, increasingly, designed there as well.
They're pushing into automotive and aerospace and every other field. I don't see them slowing down any time soon.
Now the one child policy has been relaxed, but it will take a while before extra kids are available to work, and at this point it’s sort of a cultural norm to have one kid (plus prohibitively expensive to raise two kids and provide them decent resources).
Meanwhile, the West has its own implosion well underway... but, unlike China we have immigration. The U.S. population is still growing thanks to immigration, as is Europe's, even though both regions have replacement-level or below-replacement birthrates by natives. Immigrants tend to have higher birthrates however.
Still, I would prefer to "quotient out the money", and say either the demand is met or it isn't? To the extent it is met, perhaps there are imports of material goods or domestic labor (nurses?)
I don't think it makes sense to worry about "domestic debt" in the same way, given the non-liberal political economy. Of course that doesn't mean there aren't limits, but the limits maybe would take the form of e.g. rising discontent and decreased productivity if it feels like an old-people-focused service economy with nothing in it for the workers.
You can't just blindly apply the economics of traditional liberal economies to a 21st century high tech illiberal economy.
China suffers brain drain to the West. Many of Chinese Ph.D students and scientists I know curse the day Xi Jing Ping declared himself to be the emperor, and is actively moving their families out of China as quickly as possible after 2018.
China has had very little luck in advanced semiconductor or airplane engine productions
Not to disagree, but I believe it's just a matter of time. They're working hard in these areas.
Also, recent stats I read somewhere say Chinese Ph.D.'s are returning to China in increasing numbers these days, somewhere around 50% or more compared to the old days when the majority stayed in America or Europe.
Turns out, people with the means generally prefer living in countries with (a) individual freedom and rights, (b) freedom of the press, (c) an independent judiciary, & (d) economic surplus that responds to demand for luxury goods.
We can whataboutism on where the West currently stands with regards to these things, but if you're pro- and con- ing various options as an educated professional then you have a choice.
And if culture is a major consideration, then you could do worse than the Chinese communities in neighboring democratic states, or the literal democratic Chinese island...
Which so far translates into ability to outcompete robots on cost and not much else.
Uncle Xi is killing China. After Mao the whole political model was "collective" so no one could become so strong he would become an Emperor, Xi changes that by removing the two term (10 Yrs) rule of leadership. The CCP had one thing for legitimacy, economic growth. For 30 years China become richer and freer. In 2007 even people in HK were proud to be Chinese. That is not the case anymore. China peaked internationally in 2017.
Post-Xi China whenever that occurs will be a large poor country surrounded by enemies without easy access to global markets. It is impossible to use any Chinese product without the possibility of the use of slave or child labour within the supply chain.
China is more likely to return to Warlordism than become rich.
TL:DR - China became richer and freer post-Mao and now that process has reversed and China is becoming less free and poorer.
In how many months do you expect your predictions will come true, in a way that will cause the majority of Fortune 500 firms to leave China? Three? Six? Sixty? Six hundred?
I, for one, have strong doubts that the majority of those firms will ever leave China.
I will also note that all of your criticisms can be applied even more-so to democracies. Internal turmoil, political infighting, negative world sentiment (for some of them), exploding debt, aging demographics, ossification of political structures and poor ability to self-correct, check, check, check. It's true that, say, the United States is not encircled, but it has a separate problem of having to over-reach to maintain an incredibly ambitious, and unsustainable overseas military presence.
If those criteria were sufficient for a social collapse, then we're all living on borrowed time, and I don't see why you're singling China out as a likely point of failure.
Firms will leave China once democracies around the world make a multi-lateral trade agreement and put our money elsewhere that's aligned with our core beliefs including or primarily free speech, say India. Get the agreement in place, have it come into effect in 2 years ahead of time, provide investment grants or loans to businesses (globally if they're aligned with democracy/free speech) who want to manufacture whatever will fill a gap in production for what the 80% of what consumers buy currently from China.
CCP could easily prevent this redirection of resources by allowing free speech and having elections.
The fine people of India believes that cows are sacred gods. They also believe that drinking cow piss is good for you. They also believe that bathing and wallowing in cow sh*t is healthy for you, because it’ll help strengthen your immune system.
India has a very very long way to go.
But hey, India has free speech and elections. So maybe you should tell all your multi-national corporations to relocate to India.
Xi is just a little red guard grew up from the culture revolution the only economic solution solution was follow Mao's "Nationalize" way.
It's easy to make non-specific, non-committal predictions of doom and gloom. I can say with absolute certainty that, say, the Euro will become worthless sometime between now and the heat death of the universe. My prediction is as useless, as it is accurate.
What kind of prediction, with what kind of error bar, are you ready to commit to?
As part of the 'pivot to Asia' initiated by Obama, America has helped many neighbors of Israel make peace with it formally. Iran vs. Saudi Arabia is the only other major engagement in the region. America will also likely extricate itself from Afghanistan completely in order to focus its resources on containing China.
Here's a piece that draws quite different picture from yours.
https://worldaffairs.blog/2020/12/31/from-terrified-to-trium...
"Objective Nonpartisan Insightful", really now! I think your source needs to learn how to write non-editorial English.
Regarding covid, Taiwan did very well, despite being very close to China.
- The government responded quickly, tracing everyone who entered Taiwan to control for spread of covid.
- The civil society took it seriously, with the experience of SARS.
Taiwan beat covid because the society has trust in science and the government [1].
[1]: https://www.wired.com/story/how-taiwans-unlikely-digital-min...
P.S. your link has a very pro-Beijing tone throughout:
- It calls India and Australia as the vassal states of the US, and framing China's actions towards Australia as sending a warning to other vassal states.
- The numbers cited there are not comprehensive: when measuring space launches, not counting SpaceX.
Now given that the judiciary in China is just another arm of the CCP, there is no rule of law, there's just the rule of the CCP and the whims of whomever is in charge.
So you build something successful, someone in charge gets envious, then one small misstep and it all gets taken away from you. I don't actually know if it needs an actual misstep or just enough people to conspire against you.
This is also what worries me about Chinese companies buying other companies and property outside of China. There's a danger that at any moment the entire company will get nationalised and therefore China (or rather the CCP) will own it all. I'm not against some foreign ownership and investment, but usually this has originated from a country where the law rules the land and not some arbitrary dictator. (Yes I'm also concerned about middle-east money flowing in, but to a lesser extent because they don't try to hide it)
Play that out long enough, and you have all the "China {X} Industries" being owned by someone whose chief qualification was working their way up the CCP hierarchy. To the detriment of the company's functioning, and the alternate candidates who could perform better in the position.
And that, ultimately, hurts China more than anyone else.
Anti-corruption drives are no substitute for constant, actual market pressures, because weasels will always corrupt the very vehicles you use to implement anti-corruption campaigns. Or equally inevitably, end up in charge of the entire apparatus.
I don't think most of the people praising the CCP or (any other similar system where one's life work can easily be taken) know what it's like to be in business for one's self.
The good news for the West and China's Asian competitors is that he is effectively helping slow and cripple China's progress. Xi advocates a return to Mao centralism while ignoring all the good that came with Deng Xiaoping's decentralization reforms. With this act, he is also introducing a lot of uncertainty for any foreign investors. This gives the West time to recuperate since the failure of the anti-BRIC TPP.
Everyone is talking like the CCP are the culprit here. There is big turmoil within the party right now, because Xi has taken absolute control of all areas of government.
He wants to be a Mao 2 and all the moderates in the party are gone (Deng, Chou, Bo, Hu) The good thing about this is hopefully when Xi dies it gives China an opportunity to change things maybe even away from the party. The bad thing is... well dictatorships...
Not to mention his deep ties with Steve bannon
I would agree that he often exaggerates, and some of his claims do turn out to be false, but I think we should recognize that he correctly predicted a series of unlikely events w/ regards to China. I think his general intuition of the inner workings of the CCP is correct.
doesn't change the fact it's shit
He's responsible for the abomination of misinformation that is gnews and gtv which has been consistently spreading absolute bogus regarding the pandemic, the election, and politics, for a really long time.
Yes, Guo is right about some things every now and then, and yes he without a doubt knows more about the inner workings of CCP than 99.9% of people.
But let's not give him more credit than he deserves, he's not a fucking prophet. Let's not build another political cult of personality around an eccentric billionaire. If you take a look at gnews/gtv, a Guo cult of personality really is the only description you can think of.
Pick a random guy from the street of Shanghai Beijing Guangzhou, any college educated person, they'll prefix the same.
> the CCP lying/withholding information on the transmission and the origins of the virus;
This was largely accepted as a fact of any government handling an emergency. CCP of course is worst at this.
> billionaires being kidnapped/murdered after conflict with the CCP
Think about it, if this is true, how Mr. Guo still milking money from his cult followers. It's either that he is producing nonsense that CCP doesn't care, or he is protected by “deep state” or Trump? You probably want to accept the fact that Mr. Guo is producing junks, otherwise you are leaving with a worse alternative...
And aren't there a lot of negatives by taking over the largest IPO in history only a few months later???
https://www.youtube.com/channel/UCO3pO3ykAUybrjv3RBbXEHw/vid...
They do? I don't think this describes a large population.
https://www.msn.com/en-us/money/markets/alibaba-founder-jack...
I often wonder how much the CCP studies Scientology, as I think Scientology has been really successful in avoiding any real consequences.
Corporate geed is the reason CCP is so powerful today.
Every single corporation I have worked with is willing to comply with China,it's censorship laws, and it's atrocities on the work force.
Who is praising the CCP's economic rise? The American consensus as far as I can tell is that we need to shut them out and push them into decline.
The West should brain drain the best and brightest from China.
Did you miss the last 40 years in which US economic policy was underpinned by the thesis that shipping manufacturing jobs to China would give rise to a middle class that supports democracy?
Well, here's a reminder if you needed it.
A majority of Americans until relatively recently? China was seen favorably by most Americans until the last decade. An economic world power that we should strengthen relations with if polls are to be believed.
For example:
https://www.pewresearch.org/global/2020/10/06/unfavorable-vi...
That doest' mean we should praise the CCP (at least not in its current form!), though. Far from it!! Now that people have a decent life standard, they should, and probably will, raise against injustices being committed by the governing party.
Maybe they don't want a democracy modelled on the West, and that's ok!! We need to understand that there may be other ways to govern a country as big as China. But everyone in China definitely wants to be given a fair go to live their lives as best as they can, and to have at least a level of freedom that lets them live a happy life without causing problems to others (after the last few days, even the most avid defender of free speech in the US seems to agree a level of moderation in the public discourse is required, the only point of disagreement seems to be in how much).
It is really painful to see China moving back to authoritarianism in this way after a couple of decades in which it looked like they were embracing, slowly but surely, more freedoms and human rights. Let's hope that they find a way out of this instead of incessantly criticising them as if they were the devil all the time!! I honestly believe that even the CCP highest party members want to see the improvement of the Chinese people's lives, it would be completely irrational to believe otherwise... they are just humans like all of us... the problem cannot that they are evil!! The problem is that they have misguided fears of what may happen if the people is given too much freedom and try to mercilessly prevent their fears from becoming reality (like, you know, a revolutionary government taking power by force, which is the worse that could happen anywhere, even in China).
It's completely rational to, especially now, when Chinese analogue of bolsheviks are now in power in the party.
USSR's elites lived in the most obscene luxuries, and the CPC has beaten that few times over.
Their raison d'etre was to get more of that.
Chinese civil wars (for lack of a better term to capture the sheer scale and complexity) have had body counts that make the American Civil War look like a drunken bar fight.
This has not happened at all in the US with 5X the income per capita (at least in nominal terms), why are you expecting to happen in China?Maybe the relationship is inverse, the more money the Chinese have the less probable they will rebel, same as in America and the rest of the world
> It is really painful to see China moving back to authoritarianism in this way after a couple of decades in which it looked like they were embracing, slowly but surely, more freedoms and human rights.
No country moves in a straight line (assuming you can even trace its "movement"), you should notice that easily with the US. Compared to 30 years ago China is better in almost all indicators, and yes that includes things like freedom of expression, because despite of still having an iron hand on censorship the CCP cannot avoid the common folk to communicate among themselves in million ways. Western people are too naive or arrogant if they think the regular Chinese just buy wholesale everything that is told. This does not mean the other naive take of course, that they dont buy anything that the politicians say and they will align with the western countries if they just had the chance. It turns out, surprise surprise, chinese are as much people as the Americans.
> The problem is that they have misguided fears of what may happen if the people is given too much freedom and try to mercilessly prevent their fears from becoming reality
This fear is not misguided and it is not exclusive to the Chinese by the way. The external threat is very real, and the CCP as every power structure takes very seriously the internal threats too. If you think the US is different I kindly invite you to revise the history on how any political movement not called mainstream Democrat/Republican party has been treated covertly and in the open by the power structures in America. So again, you are not saying nothing new or particular about China that you could not repeat about your own country.
I'd argue against it on the grounds that the planet doesn't have enough resources for everyone to live a middle class lifestyle.
Where is the basis of this not enough resources for middle class life style?
Tell me, what is middle class life style anyway? If you are talking about the American consumerism middle class life style, sure, I think most educated people nowadays do not really like that form of life style, or find it actually comfortable.
And even if that's the style everyone wants to. With tech advancement, why cannot everyone afford that, while still keep the environment health and sustainable for human?
Please enlighten me...
The only set of charts that matches your description re: Americans viewing China favorably is the first set of charts, which is in response to question 8b, do you view China _unfavorably_, for a worldwide survey broken down by country.
Question framing matters a lot on surveys, particularly for questions outside people's daily concerns. you'll get dramatically different distributions on the questions "do you view china favorably" or "do you view china favorably"
Probably people who have some axe to grind about poverty.
China's rate of extreme poverty from 1990-2016 declined from 66% to 0.7%
During that time the US rate of extreme poverty more than doubled, from .5% to 1.2%
https://ourworldindata.org/grapher/share-of-population-livin...
If people counter me and reiterate stating that the EU deal is going to miraculously discipline China somewhat, boy do I have a bridge to sell to you. Maybe some gutter oil to go along with it too.
I will answer that: no it shouldn't. You can have a certain level of engagement even when you strongly disagree with another country. Showing aggressive behaviour, specially taking into account the history of agression and colonisation by the West as recently as 50 years ago, will not do anything at all to make life better to the victims of Chinese prosecution. By engaging with the Chinese, the EU may at least have some leverage to politely request that the Chinese , as sovereign people, start displaying a little more respect to other cultures within their own borders.
Now, with technology, in fact things are getting worse. Everyone is required to have a cell phone, everyone is spied upon, a "social score" is maintained and if your score dips below a certain threshold, you may not travel etc.
If the EU thinks that making more trade deals with China is going to temper any of these, they're naive indeed.
Yes. Sanctions can be very effective in curbing China's outsize influence worldwide and cut their economy by half. Just embargo them as long as they persecute Uighurs and HKers.
Unfortunately that can't be done, since American and European companies were too stupid to give away their schematics and let the Chinese copy them outright, while also simultaneously reducing their indigenous production capabilities in important sectors such as rare earths mining and refining, solar manufacturing and extraction technologies.
That's why the superich in these countries buy any asset they can in countries like USA and EU. 20 billion is funny money and can disappear...might as well have plan B, C and D ready
It's quite disturbing to see an uptick in this claim in the recent years, as if democracy in principle is not American and ought be discarded in favor of a more illiberal system of governance.
(Also, the pledge is not law, so it's a curious reference to cite as some authority on the matter.)
- Non compulsory voting - first past the post - superpacs - the electoral college
All contribute to an oligarchy, not a democracy. The US system seems to be designed to “feel” like a democracy while actually preserving the power of moneyed interests and land owners. It’s crazy to me that the UK has less if an oligarchy despite still having a monarchy.
Of course the media is still an impressive machine of control (see Chomsky's Manufacturing Consent), but again even the media is a little bit better outside the US.
One is Greek for a concept. The other is Latin for the same concept. How this concept expressed itself in Greek and Roman society and law is complex and there were cultural differences, but what has happened between 1789 and 2021 is a whole lot of tea leaf reading into nothing.
We don’t have a King, nor Nobility, nor Serfs, nor Knights, and slavery has been abolished, so we’re a Republic. Or a Democracy, because we govern ourselves and this is the concept these words describe.
A serf or knight can always blame their Lord for their problems, and Lords can always blame a King, but we get no one but ourselves to blame for our problems because they are entirely of our own making. That’s self-government, that’s democracy, and that’s responsibility.
At this point its not even a question of whether we will see Jack Ma in public again. Overnight he went from billionaire to peasantry. We've seen dozen cases like this:
1) Billionaire disappears or is "killed"
2) Billionaire's company becomes nationalized
3) Rinse & Repeat
Everybody who isn't familiar with the inner workings of the CCP thinks that Jack Ma openly challenged the CCP. That simply isn't the case. They are using as an excuse to take over the company because they can.
As much as people in the West praise CCP's economic rise, and some even point to its authoritarian system as superior to our democracy, but little do they know the very laws that protect them isn't an option in China.
Imagine spending most of your life building a massive business and then one day it is taken from you by force by an authoritarian ruler.
This is why anyone that has money send their kids abroad and move permanently to a Western country that their kids despise and criticize their host for calling out the CCP.
[1] https://www.youtube.com/watch?v=YtJK_5qDraM