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Misconceptions about modern China

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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.

Mr. Amjed Jaaved has been contributing free-lance for over five decades. His contributions stand published in the leading dailies at home and abroad (Nepal. Bangladesh, et. al.). He is author of seven e-books including Terrorism, Jihad, Nukes and other Issues in Focus (ISBN: 9781301505944). He holds degrees in economics, business administration, and law.

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From China, A Plan For The Future

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On October 26, the fifth plenary session of the 19th Central Committee of the Communist Party of China opened in Beijing, with the ambitious goal of defining – after months of preparation and four days of debate behind closed doors – the strategic policy lines of the 14th five-year plan of the country, which – unlike the rest of the world -went practically unscathed by the Covid-19 pandemic.

 The plan – designed to cover the 2021-2025 five-year period – has the meaningful title of “Vision 2035”, aimed at underlining its potential medium-term impact on China’s economy and its international relations. The US economic agency Bloomberg called the plan a “Warning Shot”, a “five-year warning shot to the United States”.

 In fact, as Chinese President Xi Jinping pointed out, “Vision 2035” aims at making China a “moderately prosperous country” and redefining its economic (and hence geopolitical) relations on a global level.

Before examining the broad policy lines of the 14th Five-Year Plan, as announced by the Chinese media in recent months, it should be stressed that the Chinese leadership of the third millennium is profoundly different from the Maoist one. In the days of the “Great Helmsman”, five-year plans were dictated by the most integralist ideology and often did irreparable damage to China’s economy and society.

In 1958, the second five-year plan, defined by Mao Zedong as “The Great Leap Forward”, tried to transform the Chinese economic and production system from rural into industrial with an attempt at a huge forced reconversion that wanted to turn farmers into workers and cultivated fields into manufacturing industries by decree.

 The attempt failed miserably and the famine that followed due to the abandonment of the rural areas caused over 20 million deaths.

Post-Maoist China learned from previous mistakes and it shifted from rigid and obtuse ideological beliefs to scientific pragmatism, with the result that today China is on the way to gaining the leadership of the world economy.

The last five-year plan, i.e. the 13thone for the 2016-2020 period, aimed at “replacing unbalanced, uncoordinated and unsustainable growth” with innovative, coordinated and environmentally-sensitive measures for inclusive growth capable of establishing a new “moderately prosperous society from all viewpoints”(which remains the same objective as the new plan).

The basic goal was to make GDP grow by up to 6.5% per year, an objective that has almost been achieved despite the Covid-19 epidemic, thanks to the results reached in the first three years, a period in which the growth of Western economies -ranging from the United States to Germany -recorded levels three times lower than China’s. Once overcome the pandemic crisis last March, in the third quarter of 2020 China’s GDP reached 4.9% compared to the previous year and all economists, not only the Chinese ones, are convinced that it is destined to grow further by the end of the year.

A concrete goal achieved was to reduce carbon dioxide emissions by 12%.According to the Chinese leadership, this augurs well for achieving zero emissions by 2030, thanks to the total abandonment of the use of fossil fuels in energy production.

In China the “green shift” – so dreamt of by the European institutions – has been started concretely while results have been significant also in the fight against poverty: the 56 million “absolute poor” (people with an annual income of 335 dollars) surveyed in 2015 rose to 5.5 million in 2019. In the same period, the housing crisis was tackled with the building of 10 million social housing units that replaced thousands of slums.

It is on the basis of these results that President Xi Jinping has dictated the guidelines of the new five-year plan on which, in these days, the discussion of the Party’s Central Committee is focused.

The central focus of the 14th Plan is “dual circulation”, a strategy that aims at making both domestic demand and foreign investment in consumer goods and technology grow, with a “dual” and coordinated approach of great potential impact on the living conditions of the Chinese population and China’ international relations.

 Morgan Stanley’s economists estimate that China’s GDP will grow by 5.5% per year until 2025, a conservative estimate which, however, is considered sufficient to significantly increase people’s income and domestic demand, to attract significant foreign investment and increase China’s ability to invest abroad, both in financial markets and in industrial and technological markets.

According to Liu Peiqian, a Chinese economist working in Singapore (interviewed by Bloomberg), “in view of 2025, China’s policy is becoming increasingly focused on long-term goals, while investors can expect more continuity and certainty from China’s economic policy over the next 15 years”.

The Economist‘s financial analyst Yue Sue, interviewed by CNBC, said that “she expects the five-year plan to focus strongly on supporting technology and energy security based on diversification of energy sources, rather than relying on increased oil imports, while food security will be looked at carefully in view of possible tensions in relations with food exporting countries (first and foremost, the United States).

The decisions taken at the end of the four days of discussions on the 14th Five-Year Plan will only be made public in March next year, but economists are certain that, all things considered and given President Xi Jinping firm and authoritarian leadership, all what anticipated so far by the State media will be implemented to the letter.

Whatever the final decisions may be, it is certain that the “warning shot” to the United States, about which the Financial Times has talked, will influence – probably in a further negative way – US-China relations in the coming years.

In fact, despite the huge differences existing in domestic policy between Donald Trump and Joe Biden, both candidates in the next US presidential elections are quite in agreement with specific reference to relations with China, as they are both oriented to continue the policy of ongoing confrontation-clash between the two countries.

 For this reason, it is easy to predict that whoever wins the race for the White House, Sino-American relations on the political and economic levels are not bound to improve in the short and medium-term.

Considering the undeniable success of the previous one, the 14th five-year plan will mark a further step forward for the Chinese economy and, if it does not produce positive effects on relations with the United States, it will produce positive effects both on the domestic front and on the global arena.

China has emerged in good condition from the coronavirus epidemic, whose effects, instead, are being felt heavily in Western societies and economies. However, faced with the guidelines dictated by the new Chinese five-year plan, this reality opens up an extraordinary “window of opportunity” for the European and Italian production sector. The “dual circulation” envisaged by the plan opens up huge opportunities for European and Italian companies that want to take advantage of the opportunities offered by China’s economic growth and its increasing financial resources.

Working in effective synergy with Chinese partners is not difficult if you have good professionals, skilful technicians and workers, as well as innovative ideas based on sound scientific foundations.

I can give the example of a reality I know personally: TRAFOMEC, an Italian company established in 1981 by a brave group of engineers, which over the years has become a leader in the production of current transformers and alternators, for industrial and domestic use, as well as in the manufacturing of electrical panels for trains and ships and in technology linked to the development of alternative energies.

After building its production plants in Italy and Poland and setting up joint ventures in India, Poland and China, Trafomec merged with its Chinese subsidiary Indu-Tek in 2016, thus creating a production reality with a dual centre of gravity: in Europe (Italy and Poland) and in China – a reality that has been further enriched thanks to the collaboration recently started with Eldor Corporation, a leading multinational company in the automotive sector and partner of the world’s leading car manufacturers, present in Italy and China.

I have given this example to demonstrate the huge growth potential for Italian companies that will develop forms of collaboration with similar Chinese companies or that will decide, thanks to the opportunities offered also by the 14th five-year plan, to enter the huge Chinese market. Trafomec has grown and will grow also thanks to this challenge that – possibly with the intelligent support of the Italian government and the European authorities- can be taken up also by other Italian and European companies, thus contributing – thanks to the opening of a “new Silk Road” – to the economic recovery of our country, debilitated by the pandemic, in an optimistic vision of the future taking into account an historical fact: after the plague of 1300, Renaissance blossomed in Italy.

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What prevents Japan from ratifying the recently assented Nuclear Ban Treaty?

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With the ratification of Honduras, a Central American country, on 24 October 2020, the Treaty on the Prohibition of Nuclear Weapons (TPNW), adopted in 2017 by the UN General Assembly, crosses the ’50 ratifications’ mark required for its entry-into-force, and is set to become effective on 22 January 2021. But, interestingly, how come Japan, the world’s only nuclear-attacked country, not among the 50 ratified states?

History remembers Japan as the only country in the world falling victim to a nuclear attack that happened 75 years ago, when the Japanese cities of Hiroshima and Nagasaki were attacked using air-dropped atom bombs by the United States with the aim of forcing a surrender from the then Empire of Japan in World War-II.

The U.S. factor in Japan’s security policy

Post-war era saw Japan evolving as a strong U.S. ally, including getting security protection under U.S. nuclear umbrella, a hard fact that prevents the Asian economic powerhouse to ratify the Nuclear Ban Treaty, often abbreviated as TPNW, recently assented for entering into force in January, next year.

Despite calls from anti-nuclear activists and Hiroshima-Nagasaki survivors, both living within the country and around the world, Japan’s ruling establishment faces a big conundrum, but limited in decisional autonomy with regard to a matter involving the United States.

A politician representing the ruling Liberal Democratic Party (LDP) said that even though his party share the idea behind the treaty, it would be too unrealistic to move in the direction of ratification, hinting at Japan’s difficulty to handle how US would perceive such a move that can translate into an open disregard for US-led security arrangements in the region.

Moreover, the perceived threat from across the Sea of Japan, arising from a dictator-ruled, nuclear-armed Pyongyang and a recently more assertive Beijing looms over the island state, something that naturally brings Japan closer to the US.

Moreover, for decades, the security alliance with Japan has been a significant factor in US foreign and defence policies in East Asia, and the wider Asia-Pacific region.

Japan’s post-war security arrangements with the United States

Signed in 1951, the early ‘US-Japan Mutual Security Treaty’ was a ten-year, renewable pact that envisaged how Japan would allow U.S. forces to remain on Japanese soil after the country regained its sovereignty, in light of a new pacifist constitution.

This pact combined with the ‘Yoshida Doctrine’, a postwar policy attributed to Shigeru Yoshida, former Prime Minister of Japan, which stipulated Japan’s reliance on the US for its security needs so the government could focus on economic re-building.

The 1951 agreement was revised in 1960, granting US the right to establish military bases on Japanese islands in exchange for a renewed commitment to defend Japan in the event of an attack. These bases gave the US its first permanent military foothold in Asia.

In 1967, PM Eisaku Sato unveiled the ‘Three Non-Nuclear Principles’ (no possession, no production, and no introduction)to cool down tensions surrounding nuclear arms on US bases in Japanese soil. Since then, Japan has relied on the US nuclear umbrella for deterrence capabilities.

Today, according to a US-based think tank Council on Foreign Relations, there are more than 80 US military facilities in Japan, including key ones in Okinawa and Yokosuka. More U.S. service members are permanently stationed in Japan than in any other foreign country.

The aforementioned close security ties of Japan with the United States act as a barrier for the island state to ratify the Nuclear Ban Treaty.

What does the TPNW entail?

The treaty is going to be the first legally-binding international pact to comprehensively ban nuclear weapons, with the ultimate goal of total elimination.

As it was agreed upon, in 2017, when at least 50 countries ratify the treaty, it will qualify for entering into force within the next 90 days i.e. 22 January, next year.

Many international security analysts, however, questions the efficacy of the treaty as an instrument of war-prevention and disarmament as it does not involve any of the strongest, five permanent members of the United Nations Security Council (P-5), namely, the United States, Russia, France, the United Kingdom, and China, all of them nuclear states along with India, Pakistan, North Korea, and sometimes ambiguously, Israel too.

However, over a quarter of local assemblies across Japan have adopted a written statement demanding that the national government should sign and ratify the TPNW, a difficult choice for Tokyo.

Meanwhile, the United States has been urging countries not to ratify the Treaty, and stated that itself and all the other NATO allies will stand unified in their opposition to the potential repercussions of the TPNW. Washington has also sent letters to the countries that have ratified the treaty, requesting their withdrawal from it.

TPNW requires that all ratifying states should never under any circumstances develop, test, produce, acquire, or possess nuclear weapons or other nuclear explosive devices. It also bans any potential transfer of nuclear materials among each other.

The other treaty to keep checks on horizontal spread

Year 2020 also marked 50 years since another pact aimed at preventing the horizontal spread of nuclear weapons entered into force, the Treaty on the Non-Proliferation of Nuclear Weapons or NPT, in 1970.

While Japan has managed to ratify the NPT in 1976, six years after signing the treaty in 1970, its decisional autonomy with regard to TPNW is much more complex.

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East Asia

Do not panic, we are Chinese: China’s response to the pandemic

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In Europe, in the United States and in South America, the feared second wave of Covid-19 epidemic is spreading. It is generating not only panic among the public and the institutions, but it is beginning to put health systems and economies under stress. They were starting to recover with difficulty after the impact of the first wave of the epidemic which, between the winter and spring of this year, made the pace of industrial and manufacturing production and productivity rates in the trade, tourism and catering sectors plummet globally, with figures suggesting a decidedly dark future.

In Italy, faced with the increase in infections which, however, does not mean an increase in the number of sick people, the Government has decided to delegate to the Regions’ Governors the power to implement measures to limit individual and collective freedom in the name of a “state of emergency” which has been going on since last March and seems bound to accompany us also in the coming months. For the first time since the end of the Second World War, an ominous and worrying word, “curfew”, has reappeared in official communiqués and news reports.

Over the next few days, in the Campania and Lombardy Regions, it will be forbidden to circulate in the streets from 11pm to 5am, while the purchase of alcohol and the opening hours of shopping centres, bars and restaurants will be restricted. Just to complete an increasingly tragic scenario, on October 20 last, the Italian Health Minister, Roberto Speranza, urged Italians to “stay at home as much as possible” with a voluntary lockdown that seems to be a prelude to the adoption of measures that could bring us back to the situation of last spring with incalculable social and economic damage.

Curfews, lockdowns, targeted or generalised closures are now common practice also in France, Great Britain, Ireland and Spain which, like Italy, have suffered the devastating economic impact of the first wave and could be brought to their knees by the new pandemic emergency.

At this juncture we have to ask ourselves a question: what happened and what is happening in the country where it all began? How are things going in China that in our media, obsessively focused on domestic troubles, is mentioned only superficially and in passing?

“China is Near” was the title of a 1967 movie directed by Marco Bellocchio, that evoked the unstoppable expansion of the Maoist thinking. Today we must say that “China is far away”, encapsulated in the stereotypes developed by Western culture, which prevent us from seriously analysing its political, economic and social evolution and, above all, from drawing lessons from the political and health model that has enabled China to come out of the Covid-19 emergency with its head held high.

On September 22 last, in a blunt speech – as usual -at the United Nations General Assembly, President Trump accused China of being responsible “for spreading this plague throughout the world” and – to further underline the concept -he dismissed the coronavirus as a “Chinese virus”. In the same forum, Chinese President Xi Jinping soberly urged all countries affected by the epidemic to follow his country’s example and “to abide by the indications of science without attempting to politicise the problem”.

Figures clearly demonstrate that the Chinese model is important and worthy of attention. In China, where it all began in December 2019, out of a population of about 1.4 billion inhabitants, the Covid-19 epidemic has so far caused 4,739 deaths out of 90,604 sick people. In the United States, over the same period, out of a population that is about one fifth of China’s, 7,382,194 cases of infection were recorded that led to the death of 209,382 people (data provided by the English medical journal, The Lancet, October 8, 2020).

Great Britain, with a population twenty times smaller than the Chinese population, had to deal with five times more infections than China and ten times more deaths.

These are the figures of October 20 last, referring to the whole of China: 19 cases of illness, all imported from abroad. 24 asymptomatic infections and 403 cases testing positive kept under observation. All, except one, imported from abroad(!). Figures which, as you can see, are globally lower than those recorded since the beginning of the emergency in one single Italian region!

Faced with these figures, it seems difficult to shirk a simple, dual question: how could China fight the epidemic and keep it under control? Hence why do we not follow its example by drawing on its experience?

China was accused of responding late to the first outbreak of the epidemic in December 2019 and notifying late the World Health Organization (WHO) of a new outbreak. Both accusations are completely false.

After the outbreak of the new virus in late December, Chinese scientists isolated and identified the genome sequence of Covid-19 on January 10, 2020 and a few days later, after alerting the WHO, the authorities started to take countermeasures.

China was ready for the emergency: since the SARS epidemic – a virus similar to Covid-19 – had caused just over 700 deaths in 2002, but very serious damage to the economy due to the stop of flights, tourism and exports, the government had given orders to prepare accurate contingency plans to be activated promptly in case of new epidemics. Those plans, which were not prepared and put in a drawer but updated and carefully tested, were activated immediately after the first alarm.

With its 12 million inhabitants, Wuhan – the epicentre of the first infections – was immediately imposed a total lockdown, while in the rest of the huge country the population was urged (without curfews or states of emergency) to follow the most elementary and effective prevention and self-protection measures: social distancing, use of masks and frequent hand washing. It has been said in the West that China has reacted so effectively because it is ruled by an authoritarian regime. Indeed, Confucius has counted much more than Mao for the Chinese. The Confucian social philosophy that not even 71 years of Communist rule have managed to wipe out, with its basic rules of respect for the natural hierarchical order, makes the Chinese a naturally well-behaved, orderly and obedient people. Suffice it to recall that since the beginning of the new pandemic emergency the protests in Hong Kong have decreased until disappearing, while in Europe we are witnessing massive demonstrations with diehard “no-mask” people.

It is, however, the quick response of the Chinese political and health authorities that is at the basis of the undeniable success in fighting the epidemic, at first, and later containing it.

As stated above, Wuhan was immediately isolated and subjected to total lockdown for 76 days, while targeted closures were imposed in the Hubei Province. Throughout the country, 14,000 health checkpoints were set up at the main public transport hubs and, within two weeks since the “official” outbreak of the pandemic, in the city of Wuhan alone 9 million inhabitants were tested.

As one of the main producers and exporters of health equipment, China was not caught unprepared in terms of hospital supplies and individual protection devices: in short, no mask crisis.

While in the United States and Europe, despite the lockdown, people did not seem to be inclined to wear masks (President Trump wore a mask in public only last September), the Chinese immediately followed the authorities’ guidelines with a great sense of discipline. All the municipal security cameras were “converted” to control citizens’ use of masks, while drones equipped with loudspeakers were flown over all areas of the huge country to check the inhabitants’ compliance with the rules. The Xinhua State agency released the footage taken by a drone in Inner Mongolia, showing an astonished Mongolian lady rebuked by the drone saying” Hey Auntie, you cannot go around without a mask. Put it on right away and when you go back home remember to wash your hands”. Probably media embroidered the episode a bit, but certainly in China they did not witness the summertime movida that took place in Rome, Naples or Milan, which is at the basis of the many troubles with which we are currently confronted.

On February 5, 2020 the first Fancang hospital was opened in Wuhan, a prefabricated structure dedicated to the treatment of non-severely ill people, while traditional hospitals were reserved for the treatment of severely ill people. The use of Fancang hospitals (dozens of them were built) made it possible to limit the staying at home of people with mild symptoms, but anyway sources of contagion, within their families – the opposite of what is happening in Italy where the people with mild symptoms are advised to stay at home -and prevent the quick spreading of the virus starting from families. The Fancang hospital network made 13,000 beds available and was dismantled as from May 10, 2020 when the first wave of the epidemic ended in China and was not followed by a second wave. To avert this danger, the Chinese authorities have relaxed “internal” checks and made the control measures for those coming from abroad very strict. At a time when in Spain and Italy the checks for incoming travellers are practically derisory, in China all those who enter the country, for whatever reason, are subject to tests and strictly controlled quarantine.

In essence, China has first fought and later controlled the spreading of the Covid-19 epidemic, with drastic but rational measures and above all understood and accepted by a population educated by Confucius to respect hierarchies and discipline. China can currently be an example for the rest of the world and it is there to testify that with strict, but intelligent measures even the most dangerous situations can be tackled successfully.

It is an example that should be studied and followed without the typical arrogance of the “white man”, also considering an important fact: while the economy of Italy and of its European partners is hardly growing, China’s GDP growth rate is 4.9% higher than last year.

There is much to learn from China both in terms of managing a health emergency and in terms of protecting the economic system.

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