The US dollar is so important in today’s economy for three main reasons: the huge amount of petrodollars; the use of the dollar as the world’s reserve currency and the decision taken by US President Nixon in 1971 to end the dollar convertibility into gold.
The US currency is still a large part of the Special Drawing Rights (SDR), the IMF’s “paper money”.
A share ranging between 41% and 46% depending on the periods.
Petrodollarsemerged when Henry Kissinger dealt with King Fahd of Saudi Arabia, after “Black September” in Jordan.
The agreement was simple. Saudi Arabia had to accept only dollars as payments for the oil it sold, but was forced to invest that huge amount of US currency only in the US financial channels while, in return, the United States placed Saudi Arabia and the other OPEC neighbouring countries under its own military protection.
Hence the turning of the dollar into a world currency, considering the importance and extent of the oil market. Not to mention that this large amount of dollars circulating in the world definitely marginalized gold and later convinced the FED that the demand for dollars in the world washuge and unstoppable.
An unlimited amount of liquidity that kept various US industrial sectors alive but, above all, guaranteed huge financial markets such as the derivatives – markets based on the structural surplus of US liquidity.
After the Soviet Union’s collapse, the United States always thought about world’s hegemony and, above all, imagined to oppose the already active Eurasian union between China, Iran and Russia – the worst nightmare for US decision-makers – both at military and financial levels.
As early as those years, following Brzezinsky’s policy line, the US analysts warned against the unification of Eurasia – to be absolutely prevented – and against the subsequent reunification of Eurasia with the Eurasian peninsula, to be avoided even with a war.
At that time, the three aforementioned Statesstill conducted their business in dollars: China wanted to keep on becoming the “world factory”; Russia had run out of steam and wasnear breaking point; Iran had to inevitably adapt to the rest of Sunni OPEC.
With Putin’s rise to power, Russia’s de-dollarization began immediately.
The share of dollar reserves declinedyear after year, while Putin proposed new oil contracts.
Since last year, for example, dollars cannot be used in ports.
In the case of Iran, the sanction regime – in particular – has favoured the discovery of means other than the dollar for international settlements.
The operations and signs of the de-dollarization continued.
The war in Iraq against Saddam Hussein was also a fight against the Rais who wanted to start selling his oil barrels in euros, while the war in Afghanistan wasviewed by China as part of the ongoing overall encirclement of its territory.
Hence the importance of the Belt and Road Initiative. Also the war in Afghanistan was an attempt to stop the Eurasian project of economic and commercial (as well as political) union between Russia, Iran and China.
As further sanction, the EU required EU designated Iranian banks to be removed from the SWIFT network, which is also a private company.
Iran, however, has immediately joined the Chinese CIPS, a recent network, similar to SWIFT, with which it is already fully connected.
Basically China’s idea is to create an international currency based on the IMF’s Special Drawing Rights and freely expendable on world markets, in lieu of the US dollar, so as to avoid “the dangerous fluctuations stemming from the US currency and the uncertainties on its real value “- just to quote the Governor of the Chinese central bank, Zhou Xiaochuan, who will soon be replaced by Yi Gang.
In the meantime, Russia and China are acquiring significant amounts of gold.
In recent years China has bought gold to the tune of at least 1842.6 tons, but the international index could be distorted, as many transactions on the Shanghai Gold Exchange are Over the Counter (OTC) and hence are not reported.
Again according to official data, so far Russia is supposed to have reached 1857.7 tons.
Both countries have so far bought 10% of the gold available in the world.
Meanwhile, Saudi Arabia has already accepted payments in yuan for the oil sold to China, which is its largest customer. This is a turning point. If Saudi Arabia gives in, sooner or later all OPEC countries will follow suit.
In many cases, India and Russia have already traded with Iran by accepting oil in exchange for primary goods and commodities.
China has also opened a credit line with Iran amounting to as many as 10 billion euros, with a view to gettingaround sanctions.
It is also assumed that North Korea uses cryptocurrencies to buy oil from China.
As devastated as its economy is, Venezuela no longer sells its oil in dollars – and it is worth recalling it can boast the largest world reserves known to date.
Furthermore, China will buy gas and oil from Russia in yuan, with Russia being able to convert yuan into gold directly on the Shanghai International Energy Exchange.
Keynes’ “tribal residue” takes its revenge.
So far the agreements for trade in their respective currencies were signed between China and Kazakhstan (on December 14, 2014),between China and South Africa (on April 10, 2015) and between Russia and India (on May 26, 2015) while, at the end of November 2015, the Russian central bank included the yuan into the list of currencies that can be accepted as reserves. On November 3, 2016 an agreement was signed between Turkey and Russia for the exchange of their currencies and in October 2017 a similar agreement was reached between Turkey and Iran.
For financial institutions, the de-dollarization continued with the establishment of the BRICS Fund worth 100 billion dollars (on July 16, 2014) and with the establishment – on January 16, 2016 – of the Asian Infrastructure Investment Bank (AIIB), made up of 57 member countries, including Italy, which automatically caused the US anger.
In May 2015 the Russian-Chinese Investment Bank was created, followed in July 2015 by the opening of the new bank for the development of BRICS, based in Shanghai. In November 2015, however, Iran approved the establishment of a bank together with Russia.
It is worth underlining that in April 2015 the Russian national credit card system was opened, dealing also with small currency transfers.
It is also worth recalling the Duma law on de-offshorization of November 18, 2014, i.e. the legislation obliging the Russian companiesresident abroad to pay taxes directly to the Russian Treasury.
The above mentioned Chinese CIPS started operating in October 2015, while in March 2017 Russia implemented a system similar to SWIFT (interacting with the Chinese one).
The issue is complex because with fracking, the United States has become the first oil producer – hence there is less need to keep the huge amount of petrodollars. This happens while a natural oil and gas shale deposit has just been discovered, off the coast of Bahrain, with reserves of 80 billion oil barrels and 4 trillion cubic meters of gas.
The United States does no longer buy oil and gas because it does not need them, but China is increasingly the best global buyer.
Apart from the stability of gas and oil prices, which should be guaranteed in the coming years, China and its allies should be ever more able to select between the supply and, certainly, between the countries which accept the non-oil bilateral exchange with China and payments in yuan or gold.
Still today, the US GDP accounts for 22% of world’s GDP, while 80% of international payments are made in dollars.
Hence the United States receives goods from abroad always at comparatively very low prices, while the massive demand for dollars from the rest of the world allows to refinance the US public debt at very low costs.
This is the economic and political core of the issue.
In fact, the Russian government held a specific meeting on de-dollarization in spring 2014.
This is another fact to be highlighted. It is a political operation that appears to be a financial one, often in contrast with the “volatility” of current markets, but its core is strategic and geopolitical.
In theory, the de-dollarization regards three specific issues: payments, the real economy issue and ultimately the financial issue, namely the financial contracts denominated in dollars.
In the first case, China will tend to eliminate every transaction denominated in US dollars by third countries and to removesettlement mechanisms involving the dollar and operating in its neighbouring areas.
In the second case, the dollar transactions will be – and are already – largely prohibited for individuals.
In the third case, the share of foreign contracts denominated in yuan is now equal to 40% and strong acceleration will be recorded in 2018.
The oil futures denominated in yuan are now booming. The first attempt was made in 1993, when China opened its stock exchanges in Beijing and Shanghai.
China itself closed operations two years later, due to market instability and to the yuan weakness.
Two other things have changed since then: in 2016 the yuan was admitted as a currency making up the IMF Special Drawing Rights and in 2017 China overtook the United States as the world’s largest oil importer.
Hence, thanks to the oil futures denominated in yuan, China is reducing its dependence on the dollar and, in the meantime, it is supporting its oil imports, as well as promoting the use of the yuan globally and expanding its presence in the world.
Russia has done the same.
Therefore the United States is about to be ousted as world’s currency due to its continuous series of wars and military failures (former President Cossiga always told me: “The United States is always on the warpath and up in arms, but then it is not able to get out of it”) and, like everyone else, it shall pay for its public debt, which is huge and will be ever more its problem, not ours.
Here it is worth recalling what the US Treasury Secretary,John Connally, said to his European counterparts during a meeting in 1971: “The dollar is our currency, but your problem”.
Obviously, in relation to all these issues which also concern primarily the euro, the European Union is silent and sleepy.
Borders and identities in the globalised world
“We intend to be kind to everyone. We have many friends. But just as importantly, we aspire to remain ourselves.”–Lee Kuan Yen (1923-2015), Prime Minister of Singapore (1959-1990) (Source: Zajec 2016, 236).
A new global governance
The effects of globalisation are radically challenging our perception of the world. In order to respond effectively to current challenges, we must change our mindset, open up to the world, consider those around us and create a new global governance (Brown 2019; Foucher 2019).
The geopolitical transition is underway. China is not only an economic powerhouse, but also a global geopolitical force. Meant to revitalise the “Silk Roads”, the Belt and Road Initiative (BRI) aims to control the strategic space in which world trade occurs. Inevitably, BRI is meant to shape future global trade routes, and whoever controls these routes will control the world.
US President Donald Trump is pursuing a policy to protect American interests. His “America first” strategy is challenging global governance as we know it. It is revealing, in various ways, the world’s“ unpaid bills”, especially Europe’s(Foucher, 2019).
The persistent institutional crisis within Europe follows the same logic. Created in the aftermath of the Second World War, the European Union is now divided, mainly about refugee flows, BRI, Chinese investments in Europe, and Brexit, to name a few issues.
It is therefore essential to consider the problem’s origins while avoiding ad hoc or, even worse, simplistic solutions, such as those advocated daily by populists on social networks. Thus, we must reset our mindset and have the audacity and imagination to create a new global governance – one that is fairer, more equitable and more responsive not only to current challenges, but to the needs of all humanity:
- Identities and borders: How can the right to self-determination be respected and ensured without being divisive? How can we respect the sovereignty of states and territories without renouncing the positive effects of globalisation?
- How is it possible to manage Chinese power, power exerted by a country that does not share universal values – the values of the West, especially those of Europe and the United States? How can we integrate this geopolitical force, one which is based on an authoritarian capitalist system and which is expanding not only economically but also geographically? This means a China that is engaging in a conquest of space without making war in the classic sense of the term.
- Beyond borders: How can we integrate these two systems of opposing values into a new structure ensuring global cosmopolitical governance?
French geopolitics can provide us with part of the answer. It was Jacques Ancel (1879-1943) who added a very human concept –the identity of the heart – to geopolitical considerations (Ancel 1938, 97-99; Gauchon 2008,11-12). His concept is based on the need for balance and harmony within a society, country or region.
According to Ancel, “The border is a political isobar, which fixes, for a time, the balance between two pressures: the balance of masses, the balance of forces.” In the same spirit:“A solid nation, one in harmony, exists even without visible borders.”(Ancel 1938,196; foreword by Siegfried in Ancel (1938, VIII).
Geopolitics is the study of the relationships between space and power. It is a multidisciplinary undertaking that encompasses economic, political, cultural, historical and social dimensions. The term “space” refers to land, sea and cyberspace (Banik2016, 19-21).
Ancel’s geopolitics stand in contrast to the German geopolitics of Friedrich Ratzel (1869-1904), which consider states to be “entities determined by people and territory”(Gauchon 2008, 7-9).
Klaus Haushofer (1869-1946) added the notion of “living space and pan-ideas” to this German geopolitical discussion. That is to say, he highlighted the potential solidarity of a people scattered throughout the world in order to justify the expansion ofits living space. Conversely, Ancel placed the human being at the centre of his geopolitical considerations, i.e.man as creator. Thus, “human groups [are what] achieve a harmonious balance, ultimately recognising borders based on a common memory, history and language”. The result is “a nation of the heart in and of itself, non-rational” (Ancel 1938, 106; Gauchon2008, 7-9).
In search of a new balance
The characteristics of globalisation are ambivalent, even contradictory. Thanks to the Internet and digital technology, we are connected with each other to an ever-greater degree. We have access to many sources of information which provide us with seemingly endless facts and figures. The transparency and availability of information might increase, but knowledge and expertise do not necessarily follow suit.
At the same time, the world’s various actors are becoming both more interdependent and more competitive. Nation-states find themselves at odds with the transnational powers resulting from globalisation, such as global companies, economic and political associations and interest groups. All these transnational forces often act beyond the borders, rules and standards set by national laws. This cross-border activity requires greater strategic coordination between the various national and transnational actors (Banik 2016, 17-24).
Yet it is precisely the lack of coordination that causes not only a feeling of loss of control among the public, but also a general feeling of insecurity. Consequently, globalisation engenders an opening to the world, while simultaneously increasing the need to belong to a country or region. It is the need for identity, the need to remain ourselves in the whirlwind of globalisation.
This feeling of insecurity fuels the populist discourse of the far-right parties calling for a return to a Europe of Nations, a return to national thinking. According to this populist, simplistic perspective, the only means to regain control and sovereignty is to restore and strengthen visible borders within and outside the EU.
Moreover, our current world order contains a sort of ideological contradiction between two systems with opposing values: on one side, the West, the EU and the United States; on the other, China with its authoritarian capitalist system. This is highlighted by a renewal of the cult of personality surrounding “strong men”, such as Trump, Xi Jinping and Vladimir Putin. This resurgence of personality cults reinforces the identity aspect in the relevant political strategies.
Despite the advent of these “strong men”, there is a lack of foresight among the entire political class, or even incompetence on its part, whatever the country of origin, at both the national and international levels. This lack of foresight manifests as the chaos found within international organisations and institutions, which all emerged following the Second World War and which are now struggling to find adequate solutions to current challenges (Banik, 2019). The current political storytelling has become obsolete.
Due to the measurable and undeniable economic success of the authoritarian capitalist system in China, our democratic system is experiencing a crisis of confidence – a crisis that can be found mainly in the EU member states. Thus weakened, Europe is no longer able to respond to current geopolitical and economic challenges and is torn instead between two powers, the United States and China. In the absence of a real, common strategy, the EU is unable to find effective solutions to the issues faced by all actors, such as demographic shifts, increased global urbanisation, worldwide competition for natural resources, technological impacts on the labour market (particularly artificial intelligence), and international terrorism.
Borders and their hallmarks
The process of transnationalisation and deterritorialisation inevitably brings us back to the issues of border, identity and nationality. Nationality is defined as the legal relationship between an individual and a country (Gauchon 2008, 33). It is obvious, even if it is difficult to admit: “Globalisation’s flows do not erase borders, countries, regions, territories or places”(Zajec 2016, 238). On the contrary, the more connected the world is, the more the debate around borders is crucial in any geopolitical discussion. “[N]o natural borders, no closed physical domains that can close states, nations ad aeternum.”(Ancel 1938, 194).
According to Ancel, borders can be described using the “three Ps”: precarious, persistent and permeable. In addition, borderscan be visible or invisible, for example when moving from an urban area to a maritime one. (Ancel 1938, 97-99; foreword by Siegfriedin Ancel, XI).
Arbitrary borders and ‘borders of civilisation’
Ancel mainly differentiates between two types of border. On the one hand, there arethe so-called arbitrary borders, which are tense and strategic, resulting from military claims. The treaties that delineate these borders are temporal and purely based on the national interests of the states involved.
“Borders of civilisation”, on the other hand, are more permanent, since they are based on a memory, history and common language resulting from the balance achieved by a specific group of human beings. Such borders are “nevertheless more complicated, because they are subject to many political and commercial interpretations”. Even if commercial interpretations aim to “pave the way” and not to “enclose” as military interpretations do (Ancel 1938, 102-107), “paving the way” also means, in our current world, a conquest, an expansion, sometimes using military means, into the territory of others.
BRI – a true opening of borders?
The positive effects of globalisation can largely be seen as “paving the way”. Even if BRI is based on a commercial justification, the new Silk Roads are nevertheless closely linked with the idea of geographic and, above all, geopolitical expansion. China’s geopolitical influence is growing, especially in the Eurasian region as a whole, a region which is currently of great strategic import. Thus, BRIis part of China’s security strategy and is developing considerable geostrategic significance.
For years, China has been investing heavily in its military sector. Although the 7.5% increase in 2019 is less than the increase in 2018 (8.1%), the country plans to spend CNY1,190 billion, or €156 billion, to achieve Xi’s goal of having its armed forces “combat ready” (Le Point économique, 2019).
The conquest of space without making war
Having already had a large army, especially in terms of manpower, China has now become a great naval force, a fact Westerners are only beginning to acclimate to, since, for them, China has traditionally been a weak country located very far away.BRI, the revival of the Silk Roads, is the counterpart to Trump’s “America first” policy. The initiative increasingly has military implications: “BRI will likely result in increased overseas access and presence for the People’s Liberation Army”(Ratner, 2018; CNBC Asia Politics, 2018). In addition, the majority of workers on BRI construction sites are Chinese and not members of the local workforce. As a result, the initiative is the manifestation of a “China first” policy, one that primarily pursues Chinese interests. The positive impact on countries in the BRI region is quite limited. Worse yet, these countries are becoming more dependent on China, playing the role of debtor to Beijing’s creditor.
In addition, China has skilfully bundled its civil and military interests under the rubric “security”, a concern that now determines its internal and external strategy. In 2017, the budget of the Ministry of the Interior even exceeded that of the Ministry of Defence by 19% (Strittmatter2019, 35).Preserving external security means safeguarding China’s sovereignty, while preserving internal security means ensuring internal stability and control by the Communist Party of China (CPC). Despite the apparent opening of its external borders, China is increasingly enclosing its population, especially through censorship –its invisible border.
The term “harmony” has acquired a special meaning since Xi came to power. He has been the CPC’s “president for life” since 2018. All civil, military and administrative power rests with him and he is pursuing a strategy to protect China’s internal and external interests. As a result, China is extending its borders without making war or conquering territory in the traditional sense of the word. Instead, itis conquering geostrategic space by expanding its geopolitical influence. In China, it seems there is no longer a state, there is only the Communist Party.
In keeping with Jacques Ancel’s analysis, especially from the perspective of the “three Ps”– the persistence, precariousness and permeability of borders – developments such as“America first”, China’s Social Credit System, its Corporate Social Credit System(Le Monde 2019), BRI and Brexit are all challenging the very concept of borders.
Faced by two superpowers, China and the United States, the EU is experiencing a full-blown identity crisis and finds itself confronted with a major strategic dilemma. “A solid nation in harmony exists even without visible borders” (Ancel 1938, 196; foreword by Siegfriedin Ancel, VIII). Neither solid nor in harmony, the EU is being dragged into a false discussion on border reinforcement. The visible strengthening of borders does not address the root of the problem.
The solution can be found instead in strengthening the solidity of and identity within the European population. The only basis for a stronger and more harmonious Europe is to ensure that the different identities within the Union are perceived positively and that the shared– and not common – interests of its member states are protected and promoted.
China has introduced a new ideology derived from the notion of “harmony”, which is the key factor in its all-important internal and external strategy. As noted, the aim of BRI is not only to build up a huge network of commercial infrastructure in order to “develop wealth in the region and preserve peace, friendship and trust and understanding between different peoples”, as the CPC has expressed it. BRI is also an integral part of the Party’s plan for preserving national unity and internal stability. Harmony is China’s “leitmotiv”, its mantra while it pursues a policy of expansion, of conquest, geographically and geopolitically, without resorting to armed force.
Although less elegant, Donald Trump’s policy maintains the same logic: the return to national sovereignty, to protecting and defending national interests. The US government has renounced many policy and trade agreements in order to better protect its interest and to expand its sphere of influence. Stability and preserving unity, identity and sovereignty are the top priorities.
Thus, the balance of power, the field of engagement between the countries and actors is changing. Two systems with opposing values are facing off in a race for global leadership. The EU finds itself squarely in the centre of this field of engagement.
The EU: a political union of shared interests
The European Union has three major problems: First, it lacks a real strategy or vision; second, the European institutions do not function in a truly democratic manner; third, the different national identities within the EU are misperceived and, subsequently, hard to manage. It is precisely this unsuccessful management of European identities that fuels the discourse on strengthening borders as the sole remedy for the Union’s difficulties.
The EU is not a national power like the United States, China and Russia, but a “forward-thinking” geopolitical actor that must find its own way as globalisation progresses. Without a new political narrative, Europe must inevitably lose influence on the international scene. Only close cooperation between EU member states and the promotion of shared interests can ensure that Europe will become a power to reckon with on the geopolitical stage, on par with China and the United States.
First and foremost, the emotional charge must be removed from the discourse on borders and national identities. Europe must ensure a space exists where people can live in freedom, a space where we can live our different European identities. Were this to be realised, it would not be a threat to Brussels but, on the contrary, a complementary force ensuring the right to self-determination.
In addition, the European institutions must be democratised. What is needed is a European Parliament that reflects the voice of Europeans and that, after elections, forms a truly European government, an assembly of specialists and experts that transcends party politics. The EU must stop being divided along party lines. Were that the case, the EU would become the main driver for improving the democratic system.
Democracy should never be called into question, but democratic structures must be adapted on an ongoing basis. A harmonious Europe is the only way to ensure a secure space – one surrounded by borders –that defends its shared political, economic and geopolitical interests. This is how the EU could take the lead in creating a new type of global governance. In view of the weaknesses of nation-states such as China and the United States, Europe is in a favourable position to lead the way in building a new system of cosmopolitical governance – a cosmopolitical system with “borders of civilisation” which might be visible, arbitrary or even invisible, but which, above all, would not divide but provide the framework needed to consolidate the required cosmopolitical standards.
Conclusion: new “storytelling” for the EU
As noted, Ancel emphasises the human notion in his geopolitical approach. The important thing is to recognise and calmly accept the feeling of belonging to a country, to a region –accept, that is, the very natural need for identity. Such an identity ensures the political unity that would sustain the evolution towards a new Europe and, subsequently, towards a new global governance. A European identity must be cultivated, in addition to the various national identities. This European identity, moreover, can help define the objective interests shared by most member states.
Globalisation is forcing us to think and act in terms of geo-economics (Overholt 2018). Safeguarding economic interests has become imperative. The EU must build a political union of shared interests and must create strategic alliances as a result. The important thing is to build these alliances in the spirit of cooperation and not, as is the case in today’s world, in the spirit of competition. Facing today’s challenges is only possible in a spirit of cooperation and tolerance, especially since the ultimate goal is not only to improve our democratic processes, but to move humanity forward as well. According to Ancel, a border is “a political isobar, which fixes, for a time, the balance between two pressures: the balance of masses, the balance of forces”(Ancel 1938, 195). In this spirit, we must change our global governance and, above all, our political narratives.
A new “storytelling”is required since today’s political practices and narrative strategies have lost their significance. The balance of power has changed radically. Neither the West nor China will alter its political system. It is therefore necessary to integrate China into the new global governance, even if it clearly does not adhere to our values.
Shared interests and common cosmopolitical standards must be defined in order to ensure social justice (Nida Rümelin 2017, 70, 178-180) and greater equity, particularly in the distribution of natural resources, in order to effectively combat global poverty. Globalisation requires the establishment of more regulations, standards, laws and coordination between national and transnational forces.
The real problem does not stem from the issue of borders. Borders will always exist, even in the globalised world. “There are no problems with borders. There are only problems with nations.” (Ancel 1938, 196). It is important to tolerate and accept different national identities and lifestyles and, above all, to recognise that we all live in a world which requires more and not fewer regulations and laws.
Moreover, only the existence of a true European identity can ensure the necessary political unity for evolving towards a solid, harmonious Europe. By acting boldly, this new Europe can take the lead in establishing a new cosmopolitical governance. What is needed is a politically united Europe that asserts its shared objective interests and values by creating a space providing freedom and tolerance. Consequently, we must revitalise an idea advanced by Jacques Ancel: “We do not change borders except by force; we change our minds” (Ancel 1938; foreword by Lomnica in Ancel 1938, 2).
Let us change our way of thinking
Note: This is a translation of an article originally written in French. The original will be published by L’Harmattan, Paris, in spring 2020.
China, the “New Things” of New Year’s Eve
The world’s most massive seasonal migration begins. From 10th to 15th February 2020, as every year, millions of Chinese will move from one part of the country to the other to celebrate the Lunar New Year.
According to China State Railway Group, the public company that operates rail transport in the People’s Republic, over five weeks, about 440 million rail journeys will be made (8% more than in 2019) with an average of 11 million transfers per day.
To cope with the rising numbers, 5,275 extra train journeys per day will be made available, while for the first time, in some train stations, it will be possible to access with digital tickets and carry out checks with facial recognition.
In Guangzhou and Shenzhen fast ticketing will allow, through facial recognition, to deduct the ticket fare directly from the WeChat Pay account of a traveler once they arrive at their destination.
Hong Kong: one in five Adults suffer from Stress Disorder
The political crisis facing Hong Kong is rapidly compromising people’s mental health -this is revealed by a study published in the authoritative lancet scientific journal that in 2019 – coinciding with the onset of anti-extradition protests – a third of Hong-Kong inhabitants in adulthood – almost 2 million people – have shown signs of Post Traumatic Stress Disorder (PTSD), up from 5% five years ago.
The survey, conducted by the University of Hong Kong, reveals a close relationship between the mental state of citizens and the massive circulation of strong images through social networks.
According to the researchers, the discomfort highlighted by the population of the former British colony is comparable to “the state of mental health reported as a result of large-scale disasters, armed conflicts or terrorist attacks.”
Renewables: Greenpeace rejects Chinese Big High-tech Companies
Greenpeace has – for the first time ever – released a ranking of Chinese technology companies based on its commitment to the transition to renewables. Within two decades, cloud storage and data center services could account for one-third of global energy demand.
A sector that in China, in 2018, was powered by 73% of coal. But overall, the response of Chinese big tech discolours from what competitors in other countries have undertaken.
Among the 15 large companies considered by Greenpeace, only one – digital service provider Chindata – has committed to meet 100% of its energy needs through renewable sources, in line with what Apple and Google promised.
Among the companies that rely most on cloud computing, e-commerce giant Alibaba is the best performing in terms of transparency and emissions levels. But to date, 80% of the companies surveyed – with the exception of Tencent – have not made public data on electricity consumption or greenhouse gas emissions.
Huawei is the only company to have set pollutant reduction targets
Virus from the Strange Pneumonia Epidemics identified
Chinese researchers have finally identified the virus behind the strange cases of pneumonia reported in Wuhan since mid-December – it would be a corona virus, a family of viruses at the origin of diseases of various severity, from the common cold to Sars.
According to the Centers for Disease Control and Prevention (CDC), this is a new corona virus “different from those previously discovered and more scientific research is needed for greater understanding.”
At the moment there is no evidence that the new virus is easily transmissible from man to man. Since last month, a total of 59 cases have been reported in the city of Wuhan, in 15 of which corona virus turned out to be the pathogen of the infection.
As in the case of Sars, the epidemic could have started from contact with wild animals since almost all the affected individuals worked in a fish market where wild species, such as pheasants and snakes, were also present.
No deaths have been reported so far, although seven people are in serious condition – 8 were discharged from the hospital with no more symptoms. During the 2003 Sars outbreak, nearly 800 people were killed.
Unlike then, this time the response of the Chinese authorities has won the acclaim of the World Health Organization.
Tmall, a Support of Gay Couples
Lunar New Year is one of the rare occasions when Chinese families gather under one roof. For many undeclared homosexuals, however, the party is a source of embarrassment and coincides with long interrogations about that heir who strangely never arrives.
Tmall, Alibaba’s retail site, decided to break with tradition by launching a video dedicated to the return home of gay and lesbian couples.
The clip, which captures the presentation of their mates to their parents, was made to attract purchases before the holiday.
It therefore has first and foremost commercial purposes. But the underlying message did not go unnoticed, winning the approval of much of the web.
According to a report released by Euromonitor, the economy driven by China’s LGBT community – which has more than 70 million individuals – was already worth 300 billion dollars a year in 2017.
Douyin, Beyond the Numbers
As many as 400 million daily active users – this is the goal reached by Douyin, the Chinese microvideo app known abroad as Tik Tok, which in 2019 has seen the number of its users increase by 90%.
According to its parent company ByteDance Ltd. on Sunday, the backward northeastern provinces of Liaoning, Jilin and Heilongjiang dominate the top five of the most active regions on the platform, although the top spot is ahead of Beijing.
As is often the case, online behavior also reveals interesting information about users’ lifestylehabits – In fact, the report confirms that while those born in the 1970s are more inclined to share food videos, the previous generation prefers group dances and anime and animals.
But Douyin, as they say, is not just pure garbage- the platform seems to have served to give visibility to 93% of the 1,372 articles classified as national intangible cultural heritage.
Misconceptions about modern China
China is, at once, feared and envied by many countries, the United States of America in the forefront. Its sheer size and population is awesome. China’s economic progress has engendered apprehensions that it may overtake the USA and emerge as the new hegemon. The USA harbours a love-hate relation with China dragon. The relation reflects distrust, fractiousness and tension coupled with watchful competitiveness.
The USA looks upon China as a copycat out to obtain economic advantage for its state-owned enterprises through cyber-espionage. Cognitive dissonance in US-China relation is obvious. The USA likes China’s economic progress, as long as it suits American interests. But, it abhors China’s efforts to occupy more strategic space in the region around it, particularly the South China Sea.
China, too, wants to keep an eye on the USA. Its universities and think tanks teem with specialists on the USA, European Union and the rest of the world. There are 150 think tanks focusing on Australia alone. Though India shares border with C china, Chinese students have little interest in exploring Indian culture and history. The Chinese display an indifferent attitude, bordering ignorance about India. Let us mention a few of the misconceptions about modern China heretofore.
Misconception1: Chinese loans are predatory: The US has expressed its apprehensions about Chinese investment in Pakistan, Sri Lanka as elsewhere. For the US, the investments are a predatory debt trap that could lead to ‘asset seizures’ like Hambantota port of Sri Lanka.
The factual position is that Chinese infrastructure loans have not led to the forfeiture of a single valuable asset abroad. The US view is based on Rhodium Group study, which mentions only Hambantota port as the lone instance of seizure. The claim of forced lease or seizure is questionable. The Hambantota port lease, held jointly by the Hong Kong-based China Merchants Port and the Sri Lanka Ports Authority, was negotiated over 2016-2017.
Payments of the principal and interest for the port loans included only about 1.5 per cent of Sri Lanka’s external debt repayment obligations. The Sri Lanka Ports Authority promptly paid dues using revenues from Colombo port, which includes a container terminal run by China Merchants Port.
China holds an estimated nine to 15pc of Sri Lanka’s low-interest external debt. It owes high-interest loans to Western commercial banks. International sovereign bonds account for about half of the external debt, with Americans holding two-thirds of their value and Asians only about eight per cent.
Sri Lanka is liable to pay interest averaging 6.3 per cent on international sovereign bonds and the principal must be fully repaid in about seven years. In contrast, more than two-thirds of the value of Chinese state funds lent to Sri Lanka from 2001-2017 (including two-thirds of the Hambantota port loans) were at two per cent interest, and mostly repayable over 20 years.
Media reports about Sri Lanka’s government being forced to sign the port away on a 99-year lease after failing to repay Chinese loans at 6.3pc are untenable.
The Sri Lankan government still owns the Hambantota port and funds received for the lease were used to pay off expensive Western loans. There is no Chinese military base at Hambantota
Misconception 2: China wants to colonise Pakistan: China never harboured any such ambition. History tells that China did its best to ensure protection of Pakistan’s sovereignty. A strong Pakistan is a bulwark for C china’s security as well. Andrew Small, in The China-Pakistan Axis (page 34) tells `In 1982, a C-130 Hercules transport aircraft belonging to the Pakistan military left Urumqi, capital of the North-Western Chinese province of Xinxiang, headed for Islamabad, carrying five lead-lined, stainless steel boxes, inside each were 10 single-kilogram ingots of highly enriched uranium, enough for two atomic’ bombs. He adds, `China began supplying both M-11s and M-9s in unassembled form, which required development of a dedicated missile assembly facility near Rawalpindi’ (p. 40, ibid.).
There are marked differences between China and Pakistan that rule out Pakistan as a colony for China. China’s pragmatism as `religion’, now dollar-orientation, obedient labour force, enlightened leadership with a world vision, and hard work ethos is different from Pakistan’s.
Take water aspect alone. Our lethargy marks a contrast with China’s history. There are more than 22,104 dams in China over the height of 15 m (49 ft.). Of the world’s total large dams, China accounts for 20 per cent of them, 45 percent for irrigation. The oldest dam in China Dujiangyan Irrigation System dates back to 256 BC. In 2005, there were over 80,000 reservoirs in the country and over 4,800 dams completed or under construction that stands at or exceed 30 metre (98 ft) in height. As of 2007, China is also the world’s leader in the construction of large dams. The tallest dam in China is the Jinping-I Dam at 305 metre (1,001 ft), an arch dam, which is also the tallest dam in the world. The largest reservoir is created by the Three Gorges Dam, which stores 39.3 billion m3 (31,900,000 acre feet) of water and has a surface area of 1,045 km2 (403 sq mi). Three Gorges is also the world’s largest power station.
China’s Marxist-social metamorphosis defies our religious moorings. China was able to bridge the stark differences that existed between rural and urban lifestyles. The hukou system was designed to prevent rural to urban migration.
Our banking sector has consumer orientation. The Chinese system with about 37 tiers has investment orientation. China `entertained’ foreign investors in every possible way. `In 2001, a count of the out-of wedlock children produced by Shenzhen’s working women and mistresses over two decades numbered 5,20,000…the sex industry is one of the few robust conduits of money backs to China’s impoverished areas (Ted C. Fishman, China Inc. 2003, p. 98). There are karaoke clubs to entertain burly foreign investors.
Aside from Tiananmen Square political protest, China has no tradition of industrial protests. `A fundamental problem with the Chinese working class is that it was disorganized and its protests were often leaderless (Alvin Y.So and Yin Wah Chu, The Global Rise of China, p.144). The so-called unions just collected funds to organise birthday parties and recreational events. In November 1999, the government announced new rules for public gatherings regarding assemblies larger than 200 to obtain approval from local public-security authorities.
Pakistani onlookers. C Chinese leaders have a world vision Weltanschanschauung.
Pakistani sand-dune `leaders’ have none.
Misconception 3: Chinese to be Pakistan’s second language: The popularity of a language rises or falls pari passu with a country’s place in the comity of nations. Historically, English, French, Russian, Arabic and mandarin were the languages of imperialistic or conquering states. Shifts in power triggered shifts in the status of languages. English continues to hold sway as it has dominated the commercial, scientific, commercial, scientific and technological fields.
Sir Syed understood the link between power and language. Britain and France insisted upon enforcing English and French in their colonies. During the heyday of the Soviet Union, Russian was the lingua franca from Prague to Hanoi.
After the demolition of the Berlin Wall in November 1989, the Germans began to take pride in speaking German at international forums. People follow language of the dominant power. In the subcontinent, the English language supplanted Persian, the language of the Moghuls. So much so, that that Persian is now archaic in South Asia.
Hong Kong’s effervescence for mandarin is due to the rise of China. When, around 2050, China displaces the USA as the world’s premier economy, English is likely to give way to mandarin as the world’s new lingua franca.
In Pakistan, Sindh set the trend. The NED Engineering University and many private school systems have started teaching mandarin. The Technical Education and Vocational Training Authority, Punjab, offers free language courses for students of all ages.
To attract, Chinese investment in our country, we should say Ni hao to Chinese language.
Misconception 4; The 21st Century will be China’s, not America’s: The fear is that China will surpass the USA within next 10 to 20 years. Cash-rich Beijing with over US$ 30 trillion in foreign capital-reserves will be increasingly uncompromising diplomatically. To entertain a rising Chinese middle class, the world would become more and more `Sinicised’.
The truth is that the Western view of China is a bit too alarmist. The world will have to compromise with China’s economic and cultural heft. The two world views can coexist. One is based on protection of individual self-interest, and the other is top-down Confucian patriarchy. Yet, the diarchy may co-exist peacefully without a Manichian struggle of the ilk of good and evil, darkness and light. Be it observed, aside from hype China has so far been non-hegemonic at heart. It has no desire to spin existing geo-politico-economic order out its axis. China will move on its peaceful trajectory for another thirty years. China is unlikely to replay misadventures of the Great Leap Forward’ and the `Cultural Revolution’ to re-shape the nation in Mao Zedong’s image.
The people are becoming more and more resentful against bureaucratic control, lethargy and even perceived corruption. On average over 150000 `public disorder events’ occur each year. Massive abuse of `eminent domain’ is conspicuous from compensating owners of seized lands at fire-scale prices. Restructuring led to dislocation of workers. Internet is an outlet to fan concerns about government’s impartiality and favouritism. People are sick of fat-cat-like bureaucratic lifestyle. Chinese ministry of state security has about 100,000 employees who employ sophisticated algorithms to monitor and censor sensitive online chats, and micro-blogs. Mao Zedong is still revered as `70 per cent positive and 30 per cent negative’.
Misconception 5: Ascendancy of American style individualism: Chinese are becoming better off with a rising middle class and concomitant changes in cultural outlook. Yet, they are far off from American ethos of `life, liberty, and pursuit of happiness’. The cultural wave is manifest from China’s role rock scene, loaded with a rebellious spirit, and bands like Hutong Fist, Tomahawks, Catcher in the Rye, Twisted machine, Queen Sea, Big Shark and Wild Children. Surely people have abandoned colorless conformity in favour of individualism.
Yet, the brutal; truth is family life discourages individualism. `Pursuit of happiness’ is at best an adolescent fantasy. It is soon forsaken under stress of marriage mortgage, mother-in-law and motor car ownership.
Parents teachers bosses never encourage defining oneself independent of society. The clan, not society is the primary productive unit of society. Ego gratification is not synonymous with individualism,. Success with societal acknowledgment is the norm, not sol flights.
Misconception 6: Atheism: Chinese aretraditionally obsessed with survival, not eternity, or higher spiritual values. C Chinese philosophy of Daoism, Confucianism, and legalism are mechanistic. They are concerned with values as a means to an end. Pragmatism is the key attitude. Buddhism stands secularized to align gods with wealth and kitchen not spiritual alignment.
The Chinese society is in transition. Materialism now means faith in a bright future. Even spread of C Christianity in both rural and urban areas is not tantamount to rejection of traditional values. During the Tang dynasty, Buddhism emerged as complement to, not repudiation material secularism.
Misconception 7: revolutionary influence of Internet: China is a country in East Asia and is the world’s most populous country, with a population of around 1.428 billion in 2017. As of July 2016, 730,723,960 people (53.2% of the country’s total population) were internet users. They are free to play violent computer games, indulge in free music-downloads access to boot-legged movies, and e-commerce. Too, gap between rulers and the ruled have been narrowing. Anonymous sentinels (Weibo, China’s Twitter clone) relay reports of corruption in real time.
Yet, internet is unlikely to upend people-to-government relationship. Internet chats do not crystallise into massive organised dissent. Pre-occupied with welfare of their families few would dare risking trouble with authorities. Very few people knew of dissident Liu Xiabo’s arrest, or his Noble Peace Prize..
Chinese cyberspace is like a walled crystal-globe. People can gaze through it over the world around but they can’t take part in violent agitation. The government cleverly uses cyberspace in advancing social harmony. It facilitates e-commerce platforms. They expand supply and improve quality of consumer goods available in lower-tier markets, down to the rural fringe.
Digital technology has improved Party’s responsiveness. There are over 50,000 net-police monitor-bulletin-boards which alert leadership about discussion on sensitive topics and unharmonious rumblings before they flare up into untoward incidents.
Misconception 8: Chinese people are akin to Europeans: Not so. Average Chinese values stability in family above individualism. There are no political or religious divides as in Europe: lackadaisical Italians versus industrious Germans, anti-institutional Protestants versus statist Catholic.
China displays differences in the north, dominated by bureaucratic state-owned enterprises and the south close to the sea, encumbered by governmental hierarchy. Generally, the Chinese have an identical world view.
As of November 2019, China’s population stands at 1.435 billion, the largest of any country in the world. According to the 2010 census, 91.51% of the population was Han Chinese, and 8.49% were minorities. China’s population growth rate is only 0.59%, ranking 159th in the world.
The major minority ethnic groups in China are Zhuang (16.9 million), Hui (10.5 million), Manchu (10.3 million), Uyghur (10 million), Miao (9.4 million), Yi (8.7 million), Tujia (8.3 million), Tibetan (6.2 million), Mongol (5.9 million), Dong (2.8 million), Buyei (2.8 million), and Yao (2.7 million), Bai (1.9 million). The identified 56 minorities remain outside Han cultural fold.
Misconception 9: Inscrutable Chinese consumer: Usually reticent, Chinese evince warmth once trust has been established. They are not complicated and display warmth and directness in everyday attitude. They are attracted to Western brands just as any other consumer.
Misconception 10; China growth bubble is about to burst: Critics outline a host of challenges to Chinese growth model. They include rising inflation and commodity prices, wage increases inimical to low-cost manufacturing, bureaucratic hurdles to bold structural reforms, urban-rural income militating against social harmony, and an education system that squelches harmony. The fact is that resilient Chinese economy is not over-heating. The economist noted that China’s accumulated investment in fixed assets is still low and real wages have been rising strongly, which should help boos consumption in the medium term. Talk of popping bubbles is confined to high-end neighbourhoods in coastal capitals.
China is emulating American experience in becoming an industrial powerhouse in the twentieth century. Formation of supplier-and-producer clusters is facilitates through cost-slashing in different regions now specializing in different sectors. The middle class has completed a successful production-consumption circle akin to the USA.
Misconception 11: burgeoning poverty due to unbalanced growth: China was able to bridge the stark differences that existed between rural and urban lifestyles. The hukou system was designed to prevent rural to urban migration. In China today, poverty refers mainly to the rural poor, as decades of economic growth have largely eradicated urban poverty. The dramatic progress in reducing poverty over the past three decades in China is well known. According to the World Bank, more than 850 million Chinese people have been lifted out of extreme poverty. China’s poverty rate fell from 88 percent in 1981 to 0.7 percent in 2015, as measured by the percentage of people living on the equivalent of US$1.90 or less per day in 2011 purchasing price parity terms.In 2017, China lifted 12.89 million rural people from poverty which put the poverty rate at 3.1 percent compared to its 4.5 percent the previous year. Around 500 million people, or 40 percent of the population within China, survive on $5.50 per day or less.
Productivity has overpowered lack of innovation, creaky distribution networks, patchy tax collection, and even corruption…
Misconception 12; China is militarily aggressive: China is accused of harbouring outlandish territorial claims in South China Sea, confronting Japan on the high seas and the Philippines. Over 1000 ballistic weapons aim at Taiwan.
Its annual defence spending has been increasing by 13 per cent since 1989. The Stockholm International Peace Research Institute (SIPRI) estimates the overall 2018 figure at $250 billion and the International Institute for Strategic Studies (IISS) puts the number at $209 billion in 2017. The US Department of Defense concludes that China’s 2018 defense budget likely exceeded $200 billion. In 2017, the magazine Popular Mechanics estimated that China’s annual military spending is greater than $200 billion, around 2% of the GDP.
But, be it noted that the U.S. spent $649 billion on its military to 2018, according to a report published in 2019 by the Stockholm International Peace Research Institute. That’s significantly more than China, second on the list of top military spenders. Of course China is now making aircraft carriers and missiles with range over 900 kilometers. Still, China is nowhere near the USA in military capability. Nor does it have any ambition to invade other countries or challenge USA’s military supremacy in any way.
Temperamentally, Chinese shield themselves from danger (The great Wall). But, they have no itch to wage a war.
India unilaterally `annexed’ Chinese territory in her maps. China did nothing more than protesting verbally or sending emissaries to India for talks.
Misconception 13: Uyghur’s persecution and social issues: The Uyghurs, alternately Uygurs, Uighurs or Uigurs, are a
Minority Turkic ethnic group originating from and culturally affiliated with the general region of Central and East Asia. The Uyghurs are recognized as native to the Xinjiang Uyghur Autonomous Region of the People’s Republic of China. The Uighurs are the people whom Old Russian travellers called Sart (a name which they used for sedentary, Turkish-speaking Central Asians in general), while Western travellers called them Turki, in recognition of their language.
The Uighurs are the people whom old Russian travellers called Sart (a name which they used for sedentary, Turkish-speaking Central Asians in general), while Western travellers called them Turki, in recognition of their language. They are mentioned in Chinese records from the 3rd century. They first rose to prominence in the 8th century, when they established a kingdom along the Orhon River in what is now north-central Mongolia.
Insider dated December 24, 2019 reported that China has initiated a “Pair Up and Become Family” program to dilute Uyghur minority. Han Chinese men are sent to live with Uighur women in China’s western region of Xinjiang. “Neither the girls nor their families can reject such a marriage because they will be viewed [by Chinese authorities] as Islamic extremists for not wanting to marry atheist Han Chinese. They have no choice but to marry them. It is alleged that the Han Chinese have been raping Uighur women in the name of marriage for years. China denies the allegation.
Be it observed that the Uighurs is not like Orthodox Muslims. Both Pakistan and the Uighurs criticise each other. Andre Small (p.80, ibid.) states `Pakistan’s criticism of the Uighurs’ irreligiousness or fondness casts aspersions on their standing as Muslims’. It is said that `Turkistan separatists are supported by the United States or India in order to drive a wedge between China and Pakistan.
Chinese concept of Social evils differs from Pakistan’s. Divested of morality, an ordinary Chinese consider it just normal to give or take `body pleasure’ for money. In Khanewal some Chinese engineers scuffled with police when it tried to prevent them from going to a `red-light area’. Recently some Chinese gangs have been busted at Faislalabad, Lahore and Rawalpindi for fake marriages with Pakistani girls including some underage and later exploiting them as sex slaves (Dawn, Tribune, etc. dated May 9, 2019). The police recovered illicit aphrodisiac `drugs’, `gold ornaments’, `dowry’, Chinese passports and weapons. It is generally believed that the arrests are just a tip of the iceberg. In some Karachi areas, Chinese have rented congested adjacent housing units in various Karachi areas and turned them into `out of bound’ to Pakistanis. What they do there is anybody’s guess. Traditionally, Chinese prefer to develop and live in China towns wherever they go on the globe. In Pakistan, they have avoided doing so as what they eat (cats, dogs, monkey brains, insects) may sound revulsive and non-kosher to
Conclusion: Though China wants to overcome present and future challenges, it has no manifesto detailing goals for the next two decades. The alarmist or envious view of a rising China engendered many misconceptions. Once could however peek through XI Jinping’s pronouncements, or his predecessors, to sift his `benchmark vision’. There are three benchmarks. In the first ten years, the goal was to provide adequate food and clothing to Chinese population (already achieved). In the second phase, the plan is to build a moderately-prosperous country by 20120 with a per capita gross Domestic Product of around US$ 13,000. The final phase, 2020 to 2050, envisions complete modernization of both rural and urban parts of China.
Since early 2013, XI has been talking about `fuqiang guojia’ (`rich, strong, powerful country’). To realise his dreams, he need to stay in power. Yet, his dream is threatened by emerging challenges to China’s stability and development. The most potent challenge emanates from US machinations to destabilize China (tariff and trade war, religious concerns, BRI/CPEC concerns). True, there are social issues involving China’s unity, need for political reform in view of the Party’s long continuation in power and economic or political deterioration in the international environment.
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