Kaixin OpEd - September 2010
Kaixin's Daily OpEd
China Daily 30/9/2010
Tougher measures to cool property market
Kaixin OpEd - If America had done that instead of foisting no-deposit un-supported loans onto the world there probably would not have been the GFC.
Greenspan didn’t help by pricing money at zero and de-regulating Wall Street, therefore letting loose the Financial Dogs of Greed.
US House of Representatives passes yuan bill
WASHINGTON - The US House of Representatives on Wednesday passed a bill to press China to let its currency rise faster, amid accusations that China suppressed the value of its currency and placed a drag on US job creation.
Kaixin OpEd - Unless the occupants of the ‘American House of Representatives’ are illiterate (a possibility I grant you) then they would know what China’s position is. They would know that there is not a simple solution, and China will not simply bow down as it was forced to do for so many years.
Indeed, Kaixin muses that the Asian countries that have been glove puppets for Uncle Sam are looking on with interest.
“China is holding down the value of the Yuan and this is the cause of all America’s problems”.
A simple message the American pollies can sell their electorate, which will help to keep the American pollie’s snouts well and truly in the trough.
It’s sad really that the world is being held hostage to such venal self-interest.
Democracy, an institution I (Graeme) took far too much for granted, seems to be broken. It needs fixing so it can once again (if it ever did) reflect the aspirations and hopes of the average person.
See Kaixin's 'Yuan Revalutaion & Internationisation'
The Wall Street Journal 30/9/2010
China Wants Smart Grid, But Not Too Smart
Whoever figures out how much electricity China uses stands to make lots of money.
The country is in the process of adopting a smart electrical grid, including Advanced Metering Infrastructure, or AMI, which includes equipment like meters for residences and companies.
Kaixin – This photo indeed defines China. China is not a developed country, as the huge chimneys suggest. China is not a third world un-developed country as the man pushing the bicycle suggests.
China is a developing country and need to find its way in a complex and competitive world. (Photo Courtesy of WSJ)
House Targets China's Currency Policy
WASHINGTON—The U.S. House of Representatives passed by a wide 348 to 79 margin legislation to penalize China's foreign-exchange practices, sending a powerful signal to Beijing to change its policies but risking a backlash that could harm U.S. companies and consumers.
Kaixin Oped – Horse twaddle …. unless the occupants of the ‘house’ are illiterate (a possibility I grant you) then they would know what China’s position is. They would know that there is not a simple solution, and China will not simply bow down as it was forced to do for so many years.
Indeed, Kaixin muses that the Asian countries that have been glove puppets for Uncle Sam are looking on with interest.
“China is holding down the value of the Yuan and this is the cause of all America’s problems”.
A simple message the pollies can sell their electorate, which will help to keep the pollie’s snouts well and truly in the trough.
It’s sad really that the world is being held hostage to such venal self-interest.
Democracy, an institution I (Graeme) took far too much for granted, seems to be broken. It needs fixing so it can once again (if it ever did) reflect the aspirations and hopes of the average person.
See Kaixin's 'Yuan Revalutaion & Internationisation'
China Adds to Limits on Property
SHANGHAI—China's government took further steps to curb stubbornly high property prices, ordering banks nationwide to halt lending for third and subsequent home purchases and raising down-payment requirements for first-time buyers.
Kaixin OpEd – If it's worth saying, it'w worth saying twice .... if America had done that instead of foisting no-deposit un-supported loans onto the world there probably would not have been the GFC.
Greenspan didn’t help by pricing money at zero and de-regulating Wall Street, therefore letting loose the Financial Dogs of Greed.
Kaixin OpEd - China and Russia are natural partners. If you go back through the Kaixin News Archive you will see this theme developing.
Caterpillar to Build New Plant in China
CHICAGO—Caterpillar Inc. said Tuesday it will build a new assembly plant in China to produce small hydraulic excavators as the company continues to expand its production capacity in developing regions.
Kaixin OpEd - This focus on the under-developed areas of China will carry China well into the 21st century. There are far more resources in that part of China than on the seaboard which was the focus of the first 30 years of growth. Far more resource of labour, materials, minerals, energy and entrepreneurship in those areas of China than on the seaboard.
Watch this space ….
The Australian
Kaixin OpEd – I though I would include this xenophobic claptrap to demonstrate the complete lack of understanding of even senior journalists in the western media.
………… sad really
Caixin Online 29/9/2010
Yuan May Just be Scapegoat for Ailing U.S. Economy
Kaixin OpEd - Nothing 'may ' about it .... it is - 'Yuan Revaluation & Internationalisation'
The Wall Street Journal 29/9/2010
Kaixin Oped – That is like the school bully challenging a much weaker boy to a fight. Obviously the school bully will win a physical fight. The weaker boy has elected to challenge the bully on an academic field and is winning.
The bully throws a tantrum and says he will tell his Mum and if the weaker boy wants to buy anything at the tuck shop the bully’s Mum (who runs the tuck shop using the bully’s specially made bottle tops) will charge extra …… so there!
Of course, all the weaker boys have got their Mum’s to open a second tuck shop and they all go there now (or they will, if the bully keeps on keeping on).
China Row Fuels Japan's Right Wing
TOKYO—A bitter confrontation with China following a ship collision in the East China Sea is fueling nationalism among Japan's conservative politicians and right-wing activists, energizing them in their attacks on Prime Minister Naoto Kan's center-left government.
Kaixin Oped - Japan's Right Wing = Nanking
The New York Times 29/9/2010
Mineral Trade Halt Called a Threat to Japan’s Economy
TOKYO — A halt of Chinese shipments of crucial industrial minerals to Japan poses a threat to the Japanese economy, a top Tokyo government official said Tuesday, amid a dispute over territorial sovereignty that has damaged relations between the regional rivals.
Kaixin Oped - Aww didumms ...... something about what you reap so shall you sow is apt here.
China Daily 29/9/2010
China to keep death penalty for corruption crimes: lawmaker
BEIJING - China's top legislature has never considered scrapping the death penalty for those convicted of corruption in the draft amendment to the Criminal Law, said a legislator.
Criminals convicted of corruption should be subject to harsh penalties and the draft amendment to the Criminal Law was not intended to eliminate capital punishment for such crimes, Chen said.
Kaxin OpEd - Quite right .... you steal from the State, then you steal from the people.
The Age 28/9/2010
China's hollow miracle
John Garnaut
IF THERE is something miraculous about China's world-transforming, poverty-destroying development it is that it continues to happen while grassroots-level governance is almost dysfunctional.
Kaixin OpEd - Garnaut is quite a good journalist when it comes to China. However, he still pushes the 'western' agenda on many issues and he is always looking for the sensational over the substantive.
It is Kaixin's opinion that China will not de-rail. There will be bumps and wobbles along the way, but China will not de-rail.
China sails on as US all at sea
While the US is preoccupied with the Middle-East, China is busy expanding its global influence through naval power.
The Sydney Morning Herald 28/9/2010
Scare over rare-earth minerals underlines fear of a rising China
Peter Hartcher
Kaixin OpEd - I (Aus male) talk about this with my wife, Xiaosui (Chinese Female with degrees + plenty of savvy).
China's rise & rise is assured, absent any wild swan events.
Yet, Mr Hatcher's Q is relevant. At the moment China's rise is peaceful and there is no reason to suppose that will change given China's history and Sun Tzu's advice. Particularly not to go off fighting in far away lands. I guess the US of A skipped that chapter.
However in a couple of decades China will be even more rich and powerful and controlled by only male children who will be as horny as hell with not enough women .... what then?
Probably nothing, probably business as usual. Why throw out a perfectly good business model?
Still, I expect that is at the back of America's mind as it expends great effort in trying to contain China.
Kaixin has been saying tha for some time now. This article should be read.
The Wall Street Journal 28/9/2010
An Overhead View of China’s Pollution
To get a sense of how China’s air quality compares with the rest of the world, there’s a new map of global air-particulate pollution from Canadian scientists using National Aeronautics and Space Administration satellite data.
It’s important to note that the data used for this map are derived from 2001 to 2006.
Kaixin OpEd – At first glance this is indeed an alarming map. BUT, I have learned to be highly sceptical of how American Newspapers report issues relating to China.
So, I delved a little deeper.
First, the picture/data was taken in 2006. There has been significant progress in China since then. It is far from complete, however the issue is clearly recognised in China and is being addressed. China has to balance environmental protection with economic growth.
Second, the good ol’ US of A is blue as blue. Not a hint of pollution. What a utopia!
Perhaps we should delve even deeper …..
Is this a fair comparison of data when comparing China with America? Did the person colouring the map accidentally spill a bottle of blue ink over America??
China did indeed sacrifice its environment for economic growth for the 30 years from 1979. However, that phase of China’s growth has well and truly come to an end.
The environment is front and centre. It can’t be fixed over-night, however fixed it will be over time.
One Chinese engineer we spoke to pointed to a polluted stream and said he used to fish there when he was a child. He said, with absolute certainty, that he will do so again, and if not, his children will.
We met an American Engineer in Li Jian. He pointed out that the ‘west’ had to invent to technology and techniques to address environmental degradation. That took many years from the time that it became an issue in the early 1960’s following Rachel Caron’s clarion call in ‘Silent Sprint’.
That technology is now in place and available for China to use. So, he pointed out, when China is ready it can act quickly, relative to the ‘west’.
China Daily 28/9/2010
China looks to attract more foreign students
Beijing - Self-funding foreign students are set to become the largest overseas group in China, as the country plans to attract 500,000 of them in 2020, a senior official of the Ministry of Education (MOE) said on Monday.
The ministry is due to unveil a comprehensive document on Tuesday to encourage more overseas students to study in China.
Kaixin OpEd – Kaixin has been saying for some time that the flow of students from China to overseas universities will reverse and there will be flow overseas students to Chinese universities.
That can only be for the good, and promote a better understanding of China.
Kaixin OpEd - A Must read ...
The New York Times 27/9/2010
Op-Ed Columnist
Their Moon Shot and Ours
By THOMAS L. FRIEDMAN
China is doing moon shots. Yes, that’s plural. When I say “moon shots” I mean big, multibillion-dollar, 25-year-horizon, game-changing investments.
Not to worry. America today also has its own multibillion-dollar, 25-year-horizon, game-changing moon shot: fixing Afghanistan.
Kaixin OpEd – Kaixin does not agree with everything that Thomas L Friedman writes, but he obviously understands where China is heading.
He is worried about where America is heading, about America’s priorities both domestic and global.
I suspect he is also worried about just who controls America now.
It is Kaixin’s opinion that it is not the people of America. The democratic system in America, and the west, is flawed. It has been high-jacked by powerful and vested interests.
Democracy has become a sop for the people so they will think they have some say ….
China has set out on a clear direction. It will soon lead the world in many vital areas.
Too often, the response from the west is intellectually bereft and combative.
The ‘west’ and America all too often look backward and yearn for the days when they called the shots, look back to the 20th century (and even further).
China is firmly focused on the 21st century.
The west can either stand still gazing back, or embrace the challenges of this new century.
The Wall Street Journal 27/9/2010
Japan-China Tensions Enter New Phase
Kaixin Oped - Why not hold a round table conference in Nanking .....
Are we back there? Is this really an opporunity to stick the boot in, as the headline suggests? What about co-operation and peaceful development ....
China Firms Antidumping Duties on U.S. Chicken
BEIJING—China's Commerce Ministry finalized antidumping duties on U.S. chicken, the latest sign of trade tensions between the two big economies.
Kaixin OpEd – Good Ol’ Uncle Sam wouldn’t do that ….. y’here …. yáll trust y’r good ol’ Uncle.
It’s all just finger lick’n good!
Global Times 27/9/2010
Kaixin OpEd - ... and I bet they said it with a straight face. After all, lying and deception is the stuff of life for these people.
China Daily 27/9/2010
Kaixin OpEd - America perpetrates a massive fraud on the world through manipulating the $US as a reserve currency and through its financial institutions. The GFC was facilitated by the American Ratings Agencies giving Sub-Prime Bonds a AAA rating. It was a fraud. The world knows it, and prancing around naked while Wall Street praises the king's clothes will not change that.
Kaixin OpEd – Kaixin can just imagine the rolled eyes and sighs of diss-belief from the oh-so-serious bleeding hearts in the ‘west’: The ‘latte’ set; the ‘chardonnay swillers’ …
Still, I suppose the cocoon of ignorance is warm and comfortable and beats actually opening the mind and doing their own independent research.
Yes, I suppose that’s it ….
The Wall Street Journal 25/9/2010
Kaixin OpEd - It goes deep ... I wonder if China & Japan can put aside age old emnity and form a strong Asian economic bloc. It should be a welocme relief to Japan to have Uncle Sam remove his huge rubber-gloved digit.
Kaixin OpEd – Actually, Kaixin is not all that alarmed. The advances in Ag science are massive. High-rise agricultural production building can increase the area for cultivation. It is possible, and yes there are problems stalking the issue, such as GM crops and the like + national security issues.
Lets hope our instinct for survival out-weights the lure of nationalism.
China Currency Bill Advances
WASHINGTON—A House committee for the first time passed a bill targeting China's currency policy, ratcheting up the pressure on Beijing to let the yuan appreciate at a faster clip.
Kaixin OpEd - Oink, oink, oink oink ... A simple minded approach for simple minded people so the politicians can keep their snouts in the trough.
Not that all Americans are simple minded, far from it. But they are being led by the nose over this issue.
The Wall Street Journal 24/9/2010
China’s Disputes in Asia Buttress Influence of U.S.
BEIJING — For the last several years, one big theme has dominated talk of the future of Asia: As China rises, its neighbors are being inevitably drawn into its orbit, currying favor with the region’s new hegemonic power.
But rising frictions between China and its neighbors in recent weeks over security issues have handed the United States an opportunity to reassert itself ....
Kaixin OpEd – This is pathetic. America is like a young adolescent who just has to win. Who sees everything in terms of win/lose.
…. who has not acquired wisdom: even if he has a lot of pocket money (which he wastes shamelessly); even if he is has the biggest collection of war toys; even if he did beat the other big bully on the block (the USSR, which has stood up again and is not happy, along with all the other smaller kids the bully dominated for a while).
A young adolescent who has not acquired enough wisdom to know that he cannot always be right.
A young adolescent.
Pearl Harbour is deeply within the American psyche, yet America shows no understanding or empathy with China who suffered much worse under Japan in the 1930's and early 1940's. When this pimply adolescent learns to respect other people and countries it will have taken a small step towards growing up.
The New York Times 21/9/2010
Kaixin OpEd – When I first met Xiaosui in 2006 I took democracy for granted. For me it was a given.
As Churchill noted – "Democracy is the worst form of government, except for all those other forms that have been tried from time to time."
Churchill was instrumental in the early 20th century for universal suffrage in Britain, including, reluctantly, women.
In the 1950’s he was beginning to eye democracy of this kind with suspicion.
He had noted that the great un-washed tended to vote for whoever gave them the most lolly, irrespective of the capacity of the nation to afford it.
Sir Robert Menzies in Australia also observed this flaw in 20th century democracy.
I note that the author of this article has a starry eyed notion of democracy. However, he does not define it except for a couple of quotes designed to elevate the emotion but not add a huge amount to the understanding of just what is democracy.
Also, the quotes where from times when there was no universal suffrage, including women.
When the sacred word is uttered it is usually accompanied in a low earnest whisper by the other sacred word, Athens.
If its been around that long, its gotta be good, ain’t it??
What does it mean?
Fked if I know, but if I votes for Mr Willy Wonker I get lots and lots of lolly, and I gotta tell ya, that’s good.
Mr Friedman in today’s New York Times noted in relation to climate change, ‘So while America’s Republicans turned “climate change” into a four-letter word — J-O-K-E — China’s Communists also turned it into a four-letter word — J-O-B-S.’
As I understand it, democracy in Athens was practised by very few. The great unwashed got nowhere near it. It was for people who had a direct stake in the country and were well educated ….. and were male (but we will let that pass for the moment).
It can be argued, that western democracies were bankrupted in the 20th century by giving the great unwashed lots of lolly. Lolly the countries could not afford.
I noted the irony that Greece was at the forefront of this, shovelling out lots and lots of lolly and cooking the books. Now China is buying up Greek infrastructure.
Perhaps Greece, and the western democracies, should have paid more attention to a better concept of democracy than just giving the vote to anyone that breathes, and a few that don’t.
Xiaosui was born in 1966, into the heart of the Cultural Revolution. Her family suffered terribly in that time. She knows what it is like to be on the rough end of a non-democratic state.
She is proud of today’s China and would not change a thing. She observes the comments in the ‘western’ media and says that they simply do not understand China, therefore how can they presume to comment.
Those in the ‘west’ who think China is still in the 1960’s, still under Mao’s influence, have not been paying attention.
Since 1979 when Deng Xiaoping changed the direction of China, the government has become more and more responsive to the voice of the people. It has also become more and more effective.
People in China support the way things are because they work.
Yes, in around 1.4 billion people, it is not hard to find dissenting voices, but they do not represent the majority. They are just that, dissenting voices.
I believe that the people’s voice will be heard more and more in China. Over the 21st century this voice will become stronger as the education level in China as a whole rises.
You can call that democracy if you like, democracy with Chinese characteristics.
I read about China extensively each day and summarise the news from both Chinese and International media sources.
I am constantly amazed at the lack of knowledge in the west about China and how it has changed politically as well as economically sine 1979.
I would suggest that Mr Cohen move out to the 20th century, study what is going on in China and research just what democracy really means before commenting.
That goes for most western media and most of the great unwashed who vote that we speak to.
The New York Times 20/9/2010
Kaixin OpEd - 'Americans must save and invest more and consume and borrow less, and the Chinese, Germans and Japanese have to recognize that excessive reliance on exports is not to their long-run advantage.'
Have you noticed what China has been doing in the last 5 years or so? Not saying, China tends to do, not talk, as in the 'west' where politicians prefer to talk and not do.
Check out Kaixin's 'Follow the Debate' news archive on the value of the Yuan and its internationalisation.
America was content to slurp at the trough of laziness through the 1990's and early 2000's, letting those little Chinese peasants work for them.
Soon there was no savings and no jobs. Then Wall Street turned American homes into tulips and the GFC was the result.
Kaixin has long argued that America will not dig itself out of the economic hole until it goes back to work and starts saving again.
China is happy to consume and is consuming with gusto. But … America has to make things the Chinese people want to consume. Not make things and tell the Chinese they have to consume.
China is concentrating on developing its own internal consumption and relying less on exports. It has constantly said it would buy more from America, but things that China want to buy.
The solution is there. China is well on the road. America is only just waking up.
This is the first time I have seen an American in a major newspaper actually say the dreaded words - Americans must save and invest more and consume and borrow less.
Mind you .... he could not bring himself to say .... work more.
Maybe he forgot.
America became great through the hard work, enterprise and the skill of its people. Those people are still there and simply need to be allowed to get on with it. Not held back by government regulation and Wall Street greed.
Without going on too much.... Wall Street has been a great engine for capitalism. In the last couple of decades it has distorted and turned on the American people (not to mention the rest of the world). Let Wall Street do what it does best, unleash and direct capital. Don’t let it rely on clever little people doing clever things with numbers.
China and Japan Escalate Standoff Over Fishing Captain
TOKYO — What started nearly two weeks ago with the Japanese Coast Guard’s arrest of a Chinese trawler captain in disputed waters has snowballed into a heated diplomatic standoff between China and Japan, highlighting anxieties in Asia about China’s rising power and assertiveness.
Kaixin OpEd - No, it probably stems from the deep historical contempt Japan has had for China. That does not going away in just a few years. It is one of the issues that has to addressed if Asia is to unite economically.
As Kaixin noted a few days agao. Europe had equally deep historical divisions.
China Daily 20/9/2010
Kaixin OpEd - The world has woken up America.
China is now strong enough to stand up and tell America what to do with its self-serving 'advice'.
See Kaixin's: Follow the Debate - The Yuan it Value & Internationalisation.
Kaixin OpEd - Thus not only increasing the welfare of these (deserving) people, but also increasing domestic consumption. See WSJ below ...
The Wall Street Journal China RealTime Report 17/9/2010
MarketWatch - China’s shadow looms over yen
Included Video: Japan's currency intervention - Japanese authorities intervened in the currency market on Wednesday. Mariko Sanchanta and Yuka Hayashi discuss the timing and political implications of this move.
Kaixin OpEd - An interesting perspective. It has to be seen within the context of the current debate over the value of China's currency. It is all inter-related. America is furious. Japan makes no apologies. Japan is still suffering from the friendly economic 'advice' from America given to it in the 1980’s, which caused a permanent recession there.
As an aside, the oriental mind does not think short term. It hasn't been that long since America trounced Japan and then subjugated it after WWII. Dropping a couple of atomic bombs on Japan did not help long term relations either. The rights and wrongs, justifications etc are not the focus of the OpEd.
America helped Mao's bitter enemy, the Kuomintang (Chinese Nationalist Party), and then taunted Communist China by supporting Taiwan.
Those are not the foundations for deep and abiding trust.
Yes, Japan was made a pre-emptive attack on the world currency market against forces far greater than its own. However, Asia as a whole must remember how it was treated by America last century when America was strong and Asia was weak.
Talking of pre-emptive attacks, I wonder where they got the idea from in recent history? George W must be nodding his head ………. then again, maybe not.
Asia is trying to puts its collective differences aside and come together so it can stand up to America.
This currency tussle will be interesting to observe. It has very deep forces driving it.
Then again, I could be wrong and it will all blow over ........... doubt it though.
China's Yuan Prompts Asia's Currency Moves
Kaixin OpEd
Traders, schmaders…
The battle lines are becoming clear. Asian Governments v International Currency Traders & Speculators.
The issue.
Is Asia, Asia or is it a glove puppet for America?
The American government is being held hostage to the great un-washed who all vote and they want someone or some country to blame. Anything rather than look in the mirror at their own laziness, greed and profligacy.
Not, I hasten to add, that all Americans are like that. On the whole America is a great country with fine people. However in the last decade or so the American dream has been distorted by Wall Street. Time to get back to basics fellas. Work hard, thrift and saving.
If that sounds familiar, it is because that is what the average person in China does. It was once what the average person in America did, and it was what made America great.
The economists in China can work things out just as well as the economists in America. Although the GFC gives some doubt to the expertise of the American economists.
The real agenda is political.
China will protect its own self interest, just as America is protecting its self interest…….. and Japan for that matter.
To stand up to the $US hegemony Asia will have to unite.
An interesting idea.
Wonder if they can. After all, there is a lot of history and great divisions within Asia as well.
Auto Makers Join Criticism of Chinese Policy Makers
BEIJING—Joining a wave of corporate criticism about Chinese industrial policy, foreign auto makers are concerned about a Beijing plan for electric-vehicle development that could force manufacturers like Ford Motor Co. and Toyota Motor Corp. to share cutting-edge technology with Chinese companies in exchange for access to the nation's huge market.
Kaixin OpEd - Hmmmm … it was not that long ago that self-satisfied car manufacturers from the ‘west’ would have sat back and lectured China, in an oh so patronizing way, about competing in an open free market and the rest of that bullshit.
American car manufactures exist because they went on their knees begging to Washington.
If they hadn’t done that, then China could have bought them all in an open free market.
Oh wait … that’s right, those same car manufactures only believe in an open free market when it suits their interests. Otherwise it is off to their governments crying like a small child about "it isn’t fair Mummy, and can I have my pocket money now."
It rhymes with ‘bankers’ ….
The New York Times
China’s Rise Complicates Goal of Using Less Energy
BEIJING — Despite huge investment in new technologies, China is finding it difficult to make its economy more energy-efficient, a senior official said Thursday.
Kaixin OpEd - More energy-efficient per capita. On that score, they are way in front of the 'west'.
Global Times 17/9/2010
Global Times
Kaixin OpEd - Nanjing/Nanking is deep withing the Chinese psyche. It is a barrier to Asian nations forming an economic bloc.
However, Europe had equally deep problems and they managed to unite.
The New York Times 16/9/2010
U.S. Accuses China of Violating Trade Rules on 2 Fronts
WASHINGTON — Tensions between the world’s two largest economies flared on Wednesday, as the United States accused China of setting up illegal barriers to two types of American exports, hours after members of Congress demanded that China stop keeping its currency artificially low to increase its exports.
Kaixin OpEd - Have these American Congressmen ever considered co-operation and peaceful development instead of belligerence and confrontation?
No ......... thought not.
The Wall Street Journal 16/9/2010
Tough Times for Foreign Banks in China
Banks around the world are flocking to China because of its fast-growing economy. But their financial performance there so far isn't pretty.
Kaixin OpEd – Kaixin thinks that is because Chinese people are naturally cautious with their money. The GFC would not have helped build trust in foreign banks.
Also, the Chinese are very nationalistic. They will support a Chinese bank they have dealt with for year, over a foreign bank.
Foreign banks measure their success in quarterly results. The Chinese built up trust and confidence slowly. Kaixin is sure the international banks are aware of this and are in for the long haul. If not, then they will continue to struggle.
China Daily 16/9/2010
Kaixin OpEd - Hmmmm, China sends hospitals and America sends bullets, bombs and refugees.
Go figure ....
The Age 14/9/2010
In China, it's always (Communist) Party time
John Garnaut
Although discreetly out of sight to foreigners, the communists are still running practically everything.
CHINA Minmetals president Zhou Zhongshu gave intelligent and relatively candid answers to all my questions except this one: ''What decisions are made by the Communist Party committee in Minmetals?''
Kaixin Oped - Ummm, John, as you well know, that is not news. Everyone in China knows about it. You have to be a member of the communist party if you seriously want to get on in the public sector, and it doesn't hurt in the private sector. Why report it as though you have discovered a hidden secret? It isn't, and never has been in China since 1949.
Most people Kaixin speaks to support the Communist Party, after all it is doing a good job for China. The 'west', in particular the media, still seem to think of China in terms of the Cultural Revolution and Mao.
The implication of using the term 'communist' as though it was sinister harks to the experiences of the 20th century when it was waved around like a limp flag of ideology by ruthless and generally in-effective governments.
Those governments tended to miss-understand communism, as do most people in the west, me included I suspect. Though I have pondered it deeply. It is not that the goal of communism to spread the wealth of a nation around equally is flawed. It has always been its implementation.
China has well and truly moved on from Mao. As Kaixin has opined, Mao was the right person to take power in China, but he was the wrong person to govern China.
Deng Xiaoping was not into labels. He was into effective government.
Hence he did not care what you labelled government in China, as long as it delivered real benefits to the Chinese people. The government in China has done just that over the last 30 years. Hence, most people in China support it.
If you have to be part of the Communist party, an open ‘secret’, then so be it.
See: Mao's Last Swimmer
"Poverty is not socialism. To be rich is glorious"
The Wall Street Journal 14/9/2010
Overseas farmland can fill empty rice bowls
Kaixin OpEd - So if China is buying food from the world's foodbowls in 10 years and it can afford to pay the most, but that leaves other countries with a food shortage ...... what then??
Global Times 13/9/2010
Overseas farmland can fill empty rice bowls
Kaixin OpEd - So if China is buying food from the world's foodbowls in 10 years and it can afford to pay the most, but that leaves other countries with a food shortage ...... what then??
The Wall Street Journal China RealTime Report 10/9/2010
China’s Reserves Already Diverse, Citi Says
China is probably starting to hit the limits of how much it can diversify its massive holdings of foreign currencies away from the U.S. dollar, Citigroup analysts write in a new report.
Kaixin OpEd - Don’t bet on it. The report is probably written from a U.S centric point of view.
China has shown a clear understanding of the risks in taking on the $US. It has been innovative and careful in its approach to launching the Yuan into the world.
As a recent report indicated, where China chooses to invest the Yuan is starting to have an effect on the bond markets.
Therefore China can either prop up a country or let it sink.
Propping up a country that the U.S has systematically ignored or economically raped would probably go a long way to forming a positive economic relationship.
China is steadily ensuring that America ain’t the only kid on the block no more.
Tokyo Pressures Beijing on Yen
Tokyo turned up the heat on Beijing for contributing to a strong yen, which is threatening Japan's economic recovery and roiling its political scene.
Kaixin OpEd - Mind you, nothing is every straightforward in the world of international relations or finance.
The New York Times 9/9/2010
China Takes Lead in Clean Energy, With Aggressive State Aid
CHANGSHA, China — Big subsidies for clean energy companies, like cheap land and low-interest loans, may be in violation of W.T.O. rules.
Kaixin OpEd - It’s hard to believe isn’t it?
China is actually doing something about the environment and Green Technology rather than holding talk-fests and running around in circles as governments in the ‘west’ are doing.
And the ‘west’ complains.
Mind you, as governments in the 'west' are all broke at the moment they are obviously concerned that China is the world leader in Green Technology.
China Daily 9/9/2010
Kaixin OpEd - The economic potential of Africa and Rural China is enormous and as yet un-tapped.
A symbiotic relationship between the two will propel both nations through-out the 21st century.
Watch this space.
Kaixin OpEd - It is about time the duplicitous U.S was called out.
They have been rorting the world since the $US became the world’s reserve currency.
Finally, there is a country strong enough and prepared to stand up to the U.S.
That is why China effectively ignores America when it bleats about currency, trade and the like. To take America’s advice would be to effectively consent to financial rape.
Japan still finds it hard to walk after taking the lecherous advice from America in the 1980’s.
And there are many countries in the world still undergoing counselling for being violated.
The Wall Street Journal China RealTime Report 8/9/2010
Kaixin OpEd - An interesting insight into how China is changing under this new economic imperative.
Kaixin OpEd - To which Xiaosui would say, in her newfound Australian vernacular ... "Bullshit."
Mao won a lot of support in China precisely because he did fight the Japanese. Chiang Kai-shek opened the door to Japan.
The Australian
China may allow farms as collateral
CHINA'S farmers are possibly about to be sucked into the greatest financial revolution since the invention of the credit card.
Letting the farmers borrow against their land could give Beijing the elusive tools it needs to rebalance and conjure up a second economic miracle when the first hasn't even begun to lose its wow factor.
Kaixin OpEd - Kaixin has been talking about the potential locked up in the rural areas of China for some time. There are many examples of the latent economic forces locked up there. From spending power to entrepreneurs just needing the seed capital.
The Chinese government first concentrated on increasing their social security through retirement pensions and the like. They are now looking to unlock the potential of rural China through financial innovation, infrastructure and education.
China Daily 7/9/2010
Putin says Russia has nothing to fear from China
SOCHI, Russia - Russia has nothing to fear from China and worries that millions of Chinese will some day occupy vast swathes of Russian territory in the Far East are overblown, Prime Minister Vladimir Putin said on Monday.
Kaixin OpEd - From Before: The developing relationship betwen Russia & China
Kaixin OpEd - Even a cursory glance through the Kaixin News Archive shows that China has been forming be-lateral economic relations for some time.
China has always known it could not rely on America forever. That eventually America would wake up and realise that China has quietly been getting stronger and stronger.
Xiaosui and I ponder whether hosting the Olympics and the World Expo were not premature. That as per the injunction by Deng Xiaoping, "Hide your strength, bide your time, and do what you can", China should have quietly gone about its business for a while longer.
That is indeed an interesting topic to ponder and discuss. However the reality is that China did both and is now on the world stage as a serious economic power.
So China will continue with its strategy of forming bi-lateral relationships with other countries and strengthening the concept of a united Asia.
Is that good or bad for the rest of the world?
Time will tell. It is up to the rest of the world as well as China.
Chinese section of Sino-Russia oil pipeline to complete by Oct
HARBIN, HEILONGJIANG - The Chinese section of Russia-China oil pipeline is scheduled for completion by the end of October, construction officials said Thursday.
Construction was going smoothly for the final testing phase, said Lu Jicheng, project manager of the section from Mohe to Daqing of the Daqing Oilfield Construction Group, northeast China's Heilongjiang province.
Lu said 500,000 tons of crude would be pumped through the pipeline in November and a million tons in December according to the agreement signed between China and Russia.
Kaixin OpEd - China has taken the same approach to energy and resource security of supply. It is forming economic relationships all over the world, in particular Russia, the ‘Stans’, Africa and South America.
For the moment it has to play the game with the large resource companies, but that will change over time.
This example of accessing oil from Russia is but an example.
It is also an example of the strengthening relationship between those two natural allies, see below:
Caixin Online 1/9/2010
Kremlin Economist Unfolds Russia's Roadmap
Deputy Premier Igor Shuvalov opens up on Russia's economic challenges, post-crisis opportunities and trade with China
Kaixin OpEd - Now, it would be ironic if Russia and China got together after all these years. After all, that was what America wanted to prevent when it formed an economic relationship with China in the 1970’s. America could not countenance the alliance of two large communist States. A wise move from America's point of view.
America bought the USSR to its knees using the power of capitalism. Well, actually, they rorted the central banking system and the $US’s reserve status …. but that’s another story.
The USSR broke up and the separate countries embraced capitalism.
China embraced capitalism.
God was in his heaven and all was right with the world. (God has to be a he. A woman would have made men give birth).
America smiled and got on with destroying capitalism.
Run that past me again????
America smiled and got on with destroying capitalism.
Now, Russia and China have strong economies. They have used capitalism to their own end while America let loose the dogs of greed from Wall Street and imploded economically.
There is a natural alliance between Russia and China.
Too late America ……. China and Russia did not embrace capitalism, they used it.
As Deng Xiaoping observed: I don’t care what you call it, as long as it works.
China Daily 6/9/2010
Kaixin OpEd - The difference between China and the 'west', in particular America where houses were turned into tulips, is that China has been experiencing a surge in prices driven by demand based on real purchasing power.
The Government is concerned that prices are moving past the capacity of people to pay and is doing something about it.
Note the difference with America where housing floated into the stratosphere on a bubble of excess lending based on Greenspan cranking the $US printing press day and night. It was all hot air and collapsed.
See Kaixin's 'Follow the Debate - China Real Estate'
Kaixin OpEd - It is not just China that is stirring, it is Asia throwing off the final shackles. Japan, Taiwan, South Korea, the Philippines were all ensnared in the iron chains of American Imperialism last century.
Jeez, I’m starting to sound like a Marxist.
But you gotta admit, I’m right, if a little flowery.
Think of the economic potential of all those countries forming a trade bloc with China.
That is where this century is heading.
Sticking your head in the sand while throwing rocks wont work. Besides, with your head in the sand the rocks will miss anyway.
The Wall Street Journal 4/9/2010
U.S. Official Warns of Backlash Against China + Video
WASHINGTON -- China risks a backlash from the U.S. Congress unless it becomes more responsive to international concerns about its currency value and trade practices, a top U.S. State Department official warned.
Kaixin OpEd - These Americans just can't help themselves can they???
America is not the only kid on the block any more. America dug a large economic hole and wants to revert to bullying and fraud to get out of it. Just like the good ol' days.
Well, America, the good old days have gone.
The world has woken up to your economic scams and fraud.
China is now strong enough to dismiss these bleatings by a minor official, at the behest of some pork-barrelling congressman, that are probably only for domestic consumption anyway.
China Daily 3/9/2010
Kaixin OpEd - Even a cursory glance through the Kaixin News Archive shows that China has been forming be-lateral economic relations for some time.
China has always known it could not rely on America forever. That eventually America would wake up and realise that China has quietly been getting stronger and stronger.
Xiaosui and I ponder whether hosting the Olympics and the World Expo were not premature. That as per the injunction by Deng Xiaoping, "Hide your strength, bide your time, and do what you can", China should have quietly gone about its business for a while longer.
That is indeed an interesting topic to ponder and discuss. However the reality is that China did both and is now on the world stage as a serious economic power.
So China will continue with its strategy of forming bi-lateral relationships with other countries and strengthening the concept of a united Asia.
Is that good or bad for the rest of the world?
Time will tell. It is up to the rest of the world as well as China.
Chinese section of Sino-Russia oil pipeline to complete by Oct
HARBIN, HEILONGJIANG - The Chinese section of Russia-China oil pipeline is scheduled for completion by the end of October, construction officials said Thursday.
Construction was going smoothly for the final testing phase, said Lu Jicheng, project manager of the section from Mohe to Daqing of the Daqing Oilfield Construction Group, northeast China's Heilongjiang province.
Lu said 500,000 tons of crude would be pumped through the pipeline in November and a million tons in December according to the agreement signed between China and Russia.
Kaixin OpEd - China has taken the same approach to energy and resource security of supply. It is forming economic relationships all over the world, in particular Russia, the ‘Stans’, Africa and South America.
For the moment it has to play the game with the large resource companies, but that will change over time.
This example of accessing oil from Russia is but an example.
It is also an example of the strengthening relationship between those two natural allies, see below:
Caixin Online 1/9/2010
Kremlin Economist Unfolds Russia's Roadmap
Deputy Premier Igor Shuvalov opens up on Russia's economic challenges, post-crisis opportunities and trade with China
Kaixin OpEd - Now, it would be ironic if Russia and China got together after all these years. After all, that was what America wanted to prevent when it formed an economic relationship with China in the 1970’s. America could not countenance the alliance of two large communist States. A wise move from America's point of view.
America bought the USSR to its knees using the power of capitalism. Well, actually, they rorted the central banking system and the $US’s reserve status …. but that’s another story.
The USSR broke up and the separate countries embraced capitalism.
China embraced capitalism.
God was in his heaven and all was right with the world. (God has to be a he. A woman would have made men give birth).
America smiled and got on with destroying capitalism.
Run that past me again????
America smiled and got on with destroying capitalism.
Now, Russia and China have strong economies. They have used capitalism to their own end while America let loose the dogs of greed from Wall Street and imploded economically.
There is a natural alliance between Russia and China.
Too late America ……. China and Russia did not embrace capitalism, they used it.
As Deng Xiaoping observed: I don’t care what you call it, as long as it works.
Kaixin OpEd - Note: McKinnon called that an "economic fallacy". "The Americans think that as the yuan rises, the American trade deficit will diminish; but that's wrong."
The Wall Street Journal 2/9/2010
Beijing, Saskatchewan Flex Muscles Over Potash
Kaixin OpEd - Jeez, I love these politicians from the ‘west’. They preach capitalism until it hurts your ears.
The only reason that China can afford to buy huge companies in the ‘west’ is that it outplayed the ‘west’ at its own game, capitalism.
Instead of bleating like frightened lambs, why not let capitalism work its magic?
Capitalism promotes the strong over the weak, the successful over the un-successful, winner takes all.
I am sure that this frightened little lamb from Canada had the money he would be buying successful Chinese companies with his ears pinned back. If China resisted he would bleat and bleat and bleat about unfair protectionism.
Wake up ‘west’!
You chose the game, capitalism. You can’t now sulk, take your bat and ball and go home because it is becoming hard to play.
Spain Reaches Out to China on Government Debt
BEIJING—Spain hopes China will increase its investment in Spanish government debt, Prime Minister José Luis Rodríguez Zapatero said on a visit to Beijing, highlighting China's importance as a source of global capital.
Kaixin OpEd - Spain, 西班牙 Xi ban ya in Chinese, literally translated means western teeth.
At the moment, as one of the PIGS, Spain is all gums and no teeth.
As an aside, PIGS, zhu rou, are the principle meat dish of China.
Asia Times Online 1/9/2010
US Southeast Asia pose risks China clash
By Clifford McCoy
A show of force from China appears to have left the United States undeterred in flexing its military muscle in Southeast Asia. As Washington steps up military assistance to Vietnam, Indonesia and Cambodia to support its "soft power" interests in the region, its pose risks provoking a "hard power" confrontation with a China already on edge over naval maneuvers further afield
Kaixin OpEd - I think the U.S. will find that they are not in the cold war era. China and SE Asia are far stronger and sophisticated. They will not sit back and let America ride roughshod and re-write history.
Caixin Online 1/9/2010
Kremlin Economist Unfolds Russia's Roadmap
Kaixin OpEd - Now, it would be ironic if Russia and China got together after all these years. After all, that was what America wanted to prevent when it formed an economic relationship with China in the 1970’s. America could not countenance the alliance of two large communist States. A wise move from America's point of view.
America bought the USSR to its knees using the power of capitalism. Well, actually, they rorted the central banking system and the $US’s reserve status …. but that’s another story.
The USSR broke up and the separate countries embraced capitalism.
China embraced capitalism.
God was in his heaven and all was right with the world. (God has to be a he. A woman would have made men give birth).
America smiled and got on with destroying capitalism.
Run that past me again????
America smiled and got on with destroying capitalism.
Now, Russia and China have strong economies. They have used capitalism to their own end while America let loose the dogs of greed from Wall Street and imploded economically.
There is a natural alliance between Russia and China.
Too late America ……. China and Russia did not embrace capitalism, they used it.
As Deng Xiaoping observed: I don’t care what you call it, as long as it works.
Kaixin's Daily OpEd
Graeme has been using ChinesePod since 2007
"I highly recommend ChinesePod, I haven't found any Online teaching programmes that come close."
Set in Zanzibar in 1910, it is the story of two people from different worlds falling in love. Susan immerses herself in Zanzibar. Asim falls in love with this woman from the nation that killed his wife. Susan is a spy. Asim is the chief advisor to the Sultan of Zanzibar. Germany and France are holding secret negotiations to form a Pan European alliance, which would isolate Britain and destroy her power. Susan and Asim are caught up in all this and their love is finally dashed on the cold, hard reality of international high politics.
Available on Amazon's Kindle $4.99 - Over 400 Pages
Chapter One
Zanzibar
'A maharaja’s ruby cast on a Persian carpet by the blackest of hands'
Their souls danced, honouring his promise.
The ancient dhow stirred in the soft morning breeze. Like a sleepy lion, it began to move through the water, snuffling about the other boats on the harbour; some scurrying, some at anchor, some darting before a brief gust of wind. The lateen sails a bustling panorama of blood-red and sun-bleached white.
Aft, the woman's eyes searched the skyline, drinking in the architecture of Stone Town, the heart of Zanzibar; its jagged, cluttered silhouette so familiar, so much a part of her soul.
Abruptly, her eyes ceased their restless searching, jagged by an invisible hook, transfixed by the grand buildings on the northern shore, Beit-al-Ajaib, the House of Wonders, Palace to the great Sultan of Zanzibar. The distinctive architecture captured in the tropical light: coconut white outlined by contrasting shadow plays of pepper black.
A smile, ever so slight, started to play on the edge of her mouth then disappeared. A memory that should have been fond instantly turned to sharp unbearable pain. Her eyes hardened and moved on.
Without warning the captain threw the rudder over. Stumbling, the woman barked her shin on a wooden box, a rough-hewn coffin. She recoiled, knocking over an untidy stack of cane baskets. Imprisoned in the baskets, rusty cockerels, their scruffy heads straining through the latticework, snapped at her, cried out to her; their raucous din overwhelming her, drowning her.
Dimly, through the fog of noise, the strident swearing of the sailors in Kiswahili seeped into her conscious. Understanding, she smiled mirthlessly.
The coffin had been carelessly stowed, a chore, rather than a labour of respect or love.
London 1910
“Hello, who are you? I am Oliver, is Edward at home?”
The words were spoken by a tall, impeccably dressed young man as he rushed into Edward’s flat shaking off surplus water and calling for whisky while shoving his umbrella into a stand. It was a blustery, grey, bitterly cold February afternoon in the heart of London. He brushed a curl of soft auburn hair from his forehead and smiled charmingly.
Susan laughed, her hazel eyes dancing with the exhilaration of the new. “Yes, he is having a bath. I think he is trying to get warm. I’m Susan, Susan Carey, his sister.”
“Ahhh yes, from Australia. How do you do?” said Sir Oliver, smiling broadly and offering his hand. He noticed the laughter in her eyes, and the depth, particularly the depth, intensified by jade flecks that made them striking and alluring. “So, you have arrived, good trip I trust.”
“I am very well thank you, and yes, it was a good trip,” replied Susan.
He laughed and glanced at the sitting room, “whisky?”
“Oh, I’m sorry, please come in…….. that was silly of me, after all, it is your flat.”
Oliver smiled and gestured for Susan to lead the way. He followed her into the room, and after helping himself to a generous portion of whisky, walked over to the fire.
Shortly after, Edward, wrapped in a huge ruby-coloured dressing gown and wiping soap from his ear strode into the room. He was of similar age to Oliver, late twenties, well built, if slightly podgy, with dark auburn hair and a full moustache. Susan looked up and smiled to herself, she could see now where he had picked up some of his new mannerisms.
“Thought I could hear voices. I see you two have met, no need for introductions then.”
As he was speaking, Edward walked to the side table and grabbed a whisky decanter by the neck. He glanced at Oliver who nodded. A long finger snaked into one of the tumblers followed by the distinctive clink of crystal. He swept the decanter off the table and carried it to where Oliver was sitting. After pouring the whisky, he sank into a lounge chair and sipped from his glass, enjoying the warm glow as it spread through his body.
Suddenly he sat up exclaiming, “Sorry sis, would you like something to drink?”
“Kind of you to remember, but no thank you, and yes, Oliver has already inquired.”
Edward nodded and sank back into his lounge chair.
They chatted, tentatively at first, getting to know one another. Edward had not seen Susan for two years and was unsure how his sister would take his new relationship. Oliver was intrigued by Susan. An attractive, self-assured young lady of high intelligence with a degree was a rare find. And, as fate would have it, she was also a trained and experienced teacher. He suggested a picnic at Oxford, which was met with ready acquiescence. Arrangements were made for the following Sunday.
“I’ll see if the Rolls is available,” mused Oliver. “Must ring father, haven’t spoken to him in ages.”
Oliver, Sir Oliver Marchmaine, was an unaffected young man of intense intelligence who saw life as a great adventure to be lived to the full. He was also unyieldingly loyal to his country, England, which is why he had joined Military Intelligence on leaving Oxford.
It was 1910 and Europe was stirring. It was a time full of interest, intrigue and danger. The European chessboard was becoming increasingly complex, the moves more subtle. A time when an unexpected move or feint could have profound consequences.
Regaining her balance, the woman’s eyes were drawn, hesitantly at first, resisting back to Beit-al-Ajaib. She wondered if it was still the same. Still the same centre of power and intrigue that had been so much a part of her life all those years before; that had defined her life.
She remembered those first few moments, remembered standing in the foyer of the palace, .………… remembered the breathtakingly beautiful Persian tapestry ........
The sea breeze stirred her clothes. She smiled a little sadly, and in her mind the tapestry gently swayed. Two small apparitions ran giggling up the stairs: two small exquisitely rich burkas disappearing along the first floor landing. Childish squeals of mischief and joy left in the air.......
“Move to seaward, you accused of Allah! Move!”
Her thoughts were clawed back to the dhow, the captain crashing the tiller over to avoid another boat on the crowded harbour. The woman instinctively ducked her head to avoid the heavy boom as it swung over her, the rusty cockerels squawked their raucous indignation, their heads straining through the latticework, relentless.
The collision avoided, the dhow continued on its way. The cacophony dying down to the occasional command by the captain or the cry of a seagull.
The woman's thoughts returned to Beit-al-Ajaib
…………. laughing and giggling, girls of seven or eight. A door on the first floor slammed and all sounds of them disappeared. Silence. The woman smiled. She could see herself, a young woman, dressed plainly, unselfconsciously, her sexuality tantalisingly just out of reach, hidden beneath the thin veil of her clothing. She remembered standing alone in the foyer, looking around, perplexed. Asim came through a door to the left of the tapestry.
“Salaam.”
The woman started and looked around. Then, realising, was cold again. Alone again. Alone, rocking to and fro to the rythm of the sea. Alone, beside a rough-hewn coffin.
Now Available on Amazon's Kindle $4.99 - Over 400 Pages
Graeme has been using ChinesePod since 2007
"I highly recommend ChinesePod, I haven't found any Online teaching programmes that come close."
