Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
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Embassy in France removes ‘false image’ on Twitter in latest online controversy amid accusations of spreading disinformation
After months of aggressive anti-US posts by Chinese diplomats Beijing is cracking down on ‘smear campaigns’ at home
Beijing’s ‘Wolf Warrior’ diplomacy has coincided with a rise of nationalist content on Chinese social media. Photo: Reuters
Beijing is battling allegations that it is running a disinformation campaign on social media, as robust posts by its diplomats in Western countries promoting nationalist sentiment have escalated into a spat between China and other countries, especially the United States.
In the latest in a series of online controversies, the Chinese embassy in France claimed its official Twitter account had been hacked after it featured a cartoon depicting the US as Death, knocking on a door marked Hong Kong after leaving a trail of blood outside doors marked Iraq, Libya, Syria, Ukraine and Venezuela. The inclusion in the image of a Star of David on the scythe also prompted accusations of anti-Semitism.
Top China diplomats call for ‘Wolf Warrior’ army in foreign relations
25 May 2020
“Someone posted a false image on our official Twitter account by posting a cartoon entitled ‘Who is Next?’. The embassy would like to condemn it and always abides by the principles of truthfulness, objectivity and rationality of information,” it said on Monday.
The rise of China’s aggressive “Wolf Warrior” diplomacy has been regarded by analysts as primarily aimed at building support for the government at home but the latest incident is seen as an attempt by Beijing to take back control of the nationalist narrative it has unleashed.
Florian Schneider, director of the Leiden Asia Centre in the Netherlands, said the removal of the embassy’s tweet reflected a constant concern in Beijing about the range of people – including ordinary citizens – who were involved in spreading nationalistic material online.
“The state insists that its nationalism is ‘rational’, meaning it is meant to inspire domestic unity through patriotism but without impacting national interests or endangering social stability,” he said.
“This makes nationalism a mixed blessing for the authorities … if nationalist stories demonise the US or Japan or some other potential enemy, then any Chinese leader dealing diplomatically with those perceived enemies ends up looking weak.
“Trying to guide nationalist sentiment in ways that further the leadership’s interests is a difficult balancing act and I suspect this is partly the reason why the authorities are currently trying to clamp down on unauthorised, nationalist conspiracy theories.”
Too soon: Chinese advisers tell ‘Wolf Warrior’ diplomats to tone it down
The report came after months of social media posts – including by Chinese diplomats – defending China against accusations it had mishandled the coronavirus pandemic and attacking the US and other perceived enemies.
In March, Chinese foreign ministry spokesman Zhao Lijian promoted a conspiracy theory on Twitter suggesting the virus had originated in the US and was brought to China by the US Army. His comments were later downplayed, with China’s ambassador to the US Cui Tiankai saying questions about the origin of the virus should be answered by scientists.
Schneider said this showed that the state-backed nationalistic propaganda online was at risk of backfiring diplomatically.
“The authorities have to constantly worry that they might lose control of the nationalist narrative they unleashed, especially considering how many people produce content on the internet, how fast ideas spread, and how strongly commercial rationales drive misinformation online,” he said.
Last month, a series of widely shared social media articles about people in different countries “yearning to be part of China” resulted in a diplomatic backlash against Beijing. Kazakhstan’s foreign ministry summoned the Chinese ambassador in April to lodge a formal protest against the article.
Following the incident, the Cyberspace Administration of China, the country’s internet regulator which manages the “firewall” and censors material online, announced a two-month long “internet cleansing” to clear privately owned accounts which engage in “smear campaigns”.
The article had at least 100,000 readers, with 753 people donating money to support the account. According to Xigua Data, a firm that monitors traffic on Chinese social media, the account garnered more than 1.7 million page views for 17 articles in April.
According to a statement from WeChat, the account was closed for fabricating facts, stoking xenophobia and misleading the public.
A journalism professor at the University of Hong Kong said this case differed from the Chinese embassy’s tweet, despite both featuring anti-US sentiment.
Masato Kajimoto, who leads research on news literacy and the misinformation ecosystem, said the closure of the WeChat account seemed to be more about Chinese authorities feeling the need to regulate producers of media content whose motivations were often financial rather than political.
“I would think the government doesn’t like some random misinformation going wild and popular, which affects the overall storylines they would like to push, disseminate and control,” he said.
One way for China to respond to the situation was to fact-check social media and to position itself as a protector facts and defender of the integrity of public information, he said.
“In the age of social media, both fake news and fact-checking are being weaponised by people who try to influence or manipulate the narrative in one way or another,” Kajimoto said.
“Not only China but also many other authoritarian states in Asia are now fact-checking social media. Governments in Singapore, Thailand, Indonesia and other countries all do that.
“Such initiatives benefit them because they can decide what is true and what is not.”
LONDON (Reuters) – China has betrayed the people of Hong Kong so the West should stop kowtowing to Beijing for an illusory great pot of gold, said Chris Patten, the last governor of the former British colony.
Beijing is set to impose new national security legislation on Hong Kong after a sustained campaign of pro-democracy protests last year in the city, which enjoys many freedoms not allowed on mainland China.
“The Hong Kong people have been betrayed by China,” Patten was quoted as saying by The Times newspaper. Britain has a “moral, economic and legal” duty to stand up for Hong Kong, he said.
Patten watched as the British flag was lowered over Hong Kong when the colony was handed back to China in 1997 after more than 150 years of British rule.
Hong Kong’s autonomy was guaranteed under the “one country, two systems” agreement principle enshrined in the 1984 Sino-British Joint Declaration signed by then Chinese Premier Zhao Ziyang and British Prime Minister Margaret Thatcher.
But China’s plans to impose national security laws on Hong Kong risk destroying the Declaration, Patten said. The United States has branded the laws a “death knell” for the city’s autonomy.
“What we are seeing is a new Chinese dictatorship,” Patten said. “The British government should make it clear that what we are seeing is a complete destruction of the Joint Declaration.”
Hong Kong leader Carrie Lam said her government will “fully cooperate” with the Chinese parliament to safeguard national security, which she said would not affect rights, freedoms or judicial independence.
Patten said the West should stop chasing the illusory promise of Chinese gold.
“We should stop being fooled that somehow at the end of the all the kowtowing there’s this great pot of gold waiting for us. It’s always been an illusion,” Patten said.
“We keep on kidding ourselves that unless we do everything that China wants we will somehow miss out on great trading opportunities. It’s drivel.”
The British government did not immediately comment on Saturday.
Prime Minister Boris Johnson’s spokesman said on Friday the government was monitoring the situation and as a party to the Joint Declaration the UK was committed to the upholding Hong Kong’s autonomy and respecting the one country, two systems model.
US President Donald Trump has described the coronavirus pandemic as the “worst attack” ever on the United States, pointing the finger at China.
Mr Trump said the outbreak had hit the US harder than the Japanese bombing of Pearl Harbor in World War Two, or the 9/11 attacks two decades ago.
His administration is weighing punitive actions against China over its early handling of the global emergency.
Beijing says the US wants to distract from its own response to the pandemic.
Since emerging in the Chinese city of Wuhan in December, the coronavirus is confirmed to have infected 1.2 million Americans, killing more than 73,000.
Speaking to reporters in the Oval Office of the White House on Wednesday, Mr Trump said: “We went through the worst attack we’ve ever had on our country, this is worst attack we’ve ever had.
“This is worse than Pearl Harbor, this is worse than the World Trade Center. There’s never been an attack like this.
“And it should have never happened. Could’ve been stopped at the source. Could’ve been stopped in China. It should’ve been stopped right at the source. And it wasn’t.”
Media caption Life for asylum seekers in lockdown on the US-Mexico border
Asked later by a reporter if he saw the pandemic as an actual act of war, Mr Trump indicated the outbreak was America’s foe, rather than China.
“I view the invisible enemy [coronavirus] as a war,” he said. “I don’t like how it got here, because it could have been stopped, but no, I view the invisible enemy like a war.”
Media caption US shopping centres re-open: ‘This is the best day ever’
Who else in Trump’s team is criticising China?
The deepening rift between Washington and Beijing was further underscored on Wednesday as Secretary of State Mike Pompeo renewed his rhetoric against China, accusing it of covering up the outbreak.
He stuck by his so far unsubstantiated charge that there is “enormous evidence” the coronavirus hatched in a Chinese laboratory, even while acknowledging there is still uncertainty about its origins.
“Those statements are both true,” America’s top diplomat told the BBC. “We don’t have certainty and there is significant evidence that it came from a lab.”
One of the most trusted US public health experts has said the best evidence indicates the virus was not made in a lab.
Dr Anthony Fauci, a member of Mr Trump’s coronavirus task force, said on Monday the illness appeared to have “evolved in nature and then jumped species”.
Why is the US blaming China?
President Trump faces a tough re-election campaign in November, but the once humming US economy – which had been his main selling point – is currently in a coronavirus-induced coma.
As Mr Trump found his management of the crisis under scrutiny, he began labelling the outbreak “the China virus”, but dropped that term last month days before speaking by phone with Chinese President Xi Jinping.
Both Mr Trump and his likely Democratic challenger, Joe Biden, appear to be fastening on to China’s unpopularity as an election issue, with each accusing the other of being a patsy for America’s primary economic competitor.
As the coronavirus began spreading in the US back in January, Mr Trump signed phase one of a trade deal with China that called a truce in their tariff war. The US president’s hopes of sealing a more comprehensive phase two deal are now in limbo because of the pandemic.
Hardline politicians want president to fulfil promise to overhaul constitution to reflect the self-ruled island’s political reality
A petition calls for two referendums on the issue – proposing it either be replaced with a new one or revised
The push for constitutional change could lead to a cross-strait conflict. Photo: Handout
Taiwanese President Tsai Ing-wen is under growing pressure from the hardline camp to push for constitutional change to reflect the self-ruled island’s independent status – something observers say could provoke a cross-strait conflict.
With Tsai due to be sworn in for a second four-year term next month after a landslide victory in January’s election, hardline pro-independence politicians want her to fulfil a 2015 campaign promise: to overhaul the constitution so that it reflects Taiwan’s political reality. The process has been stalled since Tsai’s first term, which began in 2016.
Leading the charge is the Taiwan New Constitution Foundation, a group formed last year by a Tsai adviser and long-time independence advocate Koo Kwang-ming.
The foundation launched a petition at the end of March calling for two referendums on the constitution – proposing that it either be replaced with a new one or revised.
The existing constitution was adopted when Kuomintang leader Chiang Kai-shek and the KMT fled to Taiwan and set up an interim government in 1949 following their defeat by Mao Zedong’s communists in mainland China.
Drawn up in 1947, the constitution still puts the mainland and Mongolia under the Republic of China jurisdiction – Taiwan’s official name for itself. In reality, its jurisdiction extends only to Taiwan and its outlying islands of Penghu, Matsu and Quemoy, which is also known as Kinmen.
Taiwan’s constitution was adopted when KMT leader Chiang Kai-shek fled to the island in 1949. Photo: Handout
“We have garnered more than 3,000 signatures from the public for the first phase of initiating the proposals to hold two referendums asking the president to push for constitutional change,” Lin Yi-cheng, executive director of the Taiwan New Constitution Foundation, said on Wednesday.
He said they would propose that voters be asked two questions in the referendums: “Do you support the president in initiating a constitutional reform process for the country?”
And: “Do you support the president in pushing for the establishment of a new constitution reflecting the reality of Taiwan?”
“We’re ready to send the two referendum proposals to the Central Election Commission on Thursday,” he said.
Confusion prompts call for China Airlines name change in Taiwan, but at what cost?
14 Apr 2020
Under Taiwan’s Referendum Act, the process for holding a referendum involves three stages: a proposal, endorsement and voting.
Lin said there should be no problem for the commission to approve the proposal stage since they had gathered far more than the minimum 1,931 signatures needed under the act.
The endorsement stage requires a minimum of 290,000 signatures, and if the referendum is held, they will need at least 5 million votes.
Lin said if the process went smoothly, he expected a referendum could be held in August next year, allowing time for review and making the necessary arrangements.
He said if the referendum questions got enough public support, Tsai would need to deal with the issue.
Tsai Ing-wen visits a military base in Tainan earlier this month. The pressure for constitutional change creates a dilemma for the president. Photo: AFP
Tsai’s Democratic Progressive Party government has been tight-lipped over the constitutional change issue, which Beijing sees as a move for the island to declare formal independence from the mainland.
Beijing considers Taiwan a wayward province that must be returned to the mainland fold, by force if necessary, and it has warned Tsai against declaring formal independence.
A DPP official said the foundation’s push would put Tsai in a difficult position.
“If she ignores the referendums, she will come under constant pressure from the hardline camp, and if she seriously considers taking action and instituting a new Taiwan constitution, she will risk a confrontation with Beijing, the consequence of which could be a cross-strait conflict,” said the official, who requested anonymity.
On Tuesday, Zhu Fenglian, a spokeswoman for the mainland’s Taiwan Affairs Office, warned the island against holding any referendum on constitutional revision, saying it would be doomed to end in an impasse and would ultimately fail.
“It will only push Taiwan towards an extremely dangerous abyss and bring disasters to Taiwanese compatriots,” she said.
Chinese air force’s drill ‘aimed at signalling deterrent around Taiwan’
2 Apr 2020
But according to Wang Kung-yi, a political science professor at Chinese Culture University in Taipei, Tsai should not be too worried about the hardline camp move.
“The hardline camp has been marginalised greatly in the past several years as reflected by the poor showing in the legislative elections in January,” Wang said, adding that he expected Tsai to continue her relatively moderate cross-strait policy of not sharply provoking the mainland.
NEW YORK/SAN FRANCISCO (Reuters) – Amazon.com Inc (AMZN.O) has bought cameras to take temperatures of workers during the coronavirus pandemic from a firm the United States blacklisted over allegations it helped China detain and monitor the Uighurs and other Muslim minorities, three people familiar with the matter told Reuters.
China’s Zhejiang Dahua Technology Co Ltd (002236.SZ) shipped 1,500 cameras to Amazon this month in a deal valued close to $10 million, one of the people said. At least 500 systems from Dahua – the blacklisted firm – are for Amazon’s use in the United States, another person said.
The Amazon procurement, which has not been previously reported, is legal because the rules control U.S. government contract awards and exports to blacklisted firms, but they do not stop sales to the private sector.
However, the United States “considers that transactions of any nature with listed entities carry a ‘red flag’ and recommends that U.S. companies proceed with caution,” according to the Bureau of Industry and Security’s website. Dahua has disputed the designation.
The deal comes as the U.S. Food and Drug Administration warned of a shortage of temperature-reading devices and said it wouldn’t halt certain pandemic uses of thermal cameras that lack the agency’s regulatory approval. Top U.S.-based maker FLIR Systems Inc (FLIR.O) has faced an up to weeks-long order backlog, forcing it to prioritize products for hospitals and other critical facilities.
Amazon declined to confirm its purchase from Dahua, but said its hardware complied with national, state and local law, and its temperature checks were to “support the health and safety of our employees, who continue to provide a critical service in our communities.”
The company added it was implementing thermal imagers from “multiple” manufacturers, which it declined to name. These vendors include Infrared Cameras Inc, which Reuters previously reported, and FLIR, according to employees at Amazon-owned Whole Foods who saw the deployment. FLIR declined to comment on its customers.
Dahua, one of the biggest surveillance camera manufacturers globally, said it does not discuss customer engagements and it adheres to applicable laws. Dahua is committed “to mitigate the spread of the COVID-19” through technology that detects “abnormal elevated skin temperature — with high accuracy,” it said in a statement.
The U.S. Department of Commerce, which maintains the blacklist, declined comment. The FDA said it would use discretion when enforcing regulations during the public health crisis as long as thermal systems lacking compliance posed no “undue risk” and secondary evaluations confirmed fevers.
Dahua’s thermal cameras have been used in hospitals, airports, train stations, government offices and factories during the pandemic. International Business Machines Corp (IBM.N) placed an order for 100 units, and the automaker Chrysler placed an order for 10, one of the sources said. In addition to selling thermal technology, Dahua makes white-label security cameras resold under dozens of other brands such as Honeywell, according to research and reporting firm IPVM.
Honeywell said some but not all its cameras are manufactured by Dahua, and it holds products to its cybersecurity and compliance standards. IBM and Chrysler’s parent Fiat Chrysler Automobiles NV (FCHA.MI) did not comment.
The Trump Administration added Dahua and seven other tech firms last year to the blacklist for acting against U.S. foreign policy interests, saying they were “implicated” in “China’s campaign of repression, mass arbitrary detention, and high-technology surveillance against Uighurs, Kazakhs, and other members of Muslim minority groups.”
More than one million people have been sent to camps in the Xinjiang region as part of China’s campaign to root out terrorism, the United Nations has estimated.
Dahua has said the U.S. decision lacked “any factual basis.” Beijing has denied mistreatment of minorities in Xinjiang and urged the United States to remove the companies from the list.
A provision of U.S. law, which is scheduled to take effect in August, will also bar the federal government from starting or renewing contracts with a company using “any equipment, system, or service” from firms including Dahua “as a substantial or essential component of any system.”
Amazon’s cloud unit is a major contractor with the U.S. intelligence community, and it has been battling Microsoft Corp (MSFT.O) for an up to $10 billion deal with the Pentagon.
Top industry associations have asked Congress for a year-long delay because they say the law would reduce supplies to the government dramatically, and U.S. Secretary of State Mike Pompeo said last week that policies clarifying the implementation of the law were forthcoming.
FACE DETECTION & PRIVACY
The coronavirus has infected staff from dozens of Amazon warehouses, ignited small protests over allegedly unsafe conditions and prompted unions to demand site closures. Temperature checks help Amazon stay operational, and the cameras – a faster, socially distant alternative to forehead thermometers – can speed up lines to enter its buildings. Amazon said the type of temperature reader it uses varies by building.
To see if someone has a fever, Dahua’s camera compares a person’s radiation to a separate infrared calibration device. It uses face detection technology to track subjects walking by and make sure it is looking for heat in the right place.
An additional recording device keeps snapshots of faces the camera has spotted and their temperatures, according to a demonstration of the technology in San Francisco. Optional facial recognition software can fetch images of the same subject across time to determine, for instance, who a virus patient may have been near in a line for temperature checks.
Amazon said it is not using facial recognition on any of its thermal cameras. Civil liberties groups have warned the software could strip people of privacy and lead to arbitrary apprehensions if relied on by police. U.S. authorities have also worried that equipment makers like Dahua could hide a technical “back door” to Chinese government agents seeking intelligence.
In response to questions about the thermal systems, Amazon said in a statement, “None of this equipment has network connectivity, and no personal identifiable information will be visible, collected, or stored.”
Dahua made the decision to market its technology in the United States before the FDA issued the guidance on thermal cameras in the pandemic. Its supply is attracting many U.S. customers not deterred by the blacklist, according to Evan Steiner, who sells surveillance equipment from a range of manufacturers in California through his firm EnterActive Networks LLC.
“You’re seeing a lot of companies doing everything that they possibly can preemptively to prepare for their workforce coming back,” he said.
The richest man in China opened his own Twitter account last month, in the middle of the Covid-19 outbreak. So far, every one of his posts has been devoted to his unrivalled campaign to deliver medical supplies to almost every country around the world.
“One world, one fight!” Jack Ma enthused in one of his first messages. “Together, we can do this!” he cheered in another.
The billionaire entrepreneur is the driving force behind a widespread operation to ship medical supplies to more than 150 countries so far, sending face masks and ventilators to many places that have been elbowed out of the global brawl over life-saving equipment.
But Ma’s critics and even some of his supporters aren’t sure what he’s getting himself into. Has this bold venture into global philanthropy unveiled him as the friendly face of China’s Communist Party? Or is he an independent player who is being used by the Party for propaganda purposes? He appears to be following China’s diplomatic rules, particularly when choosing which countries should benefit from his donations, but his growing clout might put him in the crosshairs of the jealous leaders at the top of China’s political pyramid.
Other tech billionaires have pledged more money to fight the effects of the virus – Twitter’s Jack Dorsey is giving $1bn (£0.8bn) to the cause. Candid, a US-based philanthropy watchdog that tracks private charitable donations, puts Alibaba 12th on a list of private Covid-19 donors. But that list doesn’t include shipments of vital supplies, which some countries might consider to be more important than money at this stage in the global outbreak.
The world’s top coronavirus financial donors
How Alibaba compares to the top five. No one else other than the effervescent Ma is capable of dispatching supplies directly to those who need them. Starting in March, the Jack Ma foundation and the related Alibaba foundation began airlifting supplies to Africa, Asia, Europe, Latin America and even to politically sensitive areas including Iran, Israel, Russia and the US.
Ma has also donated millions to coronavirus vaccine research and a handbook of medical expertise from doctors in his native Zhejiang province has been translated from Chinese into 16 languages. But it’s the medical shipments that have been making headlines, setting Ma apart.
“He has the ability and the money and the lifting power to get a Chinese supply plane out of Hangzhou to land in Addis Ababa, or wherever it needs to go,” explains Ma’s biographer, Duncan Clark. “This is logistics; this is what his company, his people and his province are all about.”
A friendly face
Jack Ma is famous for being the charismatic English teacher who went on to create China’s biggest technology company. Alibaba is now known as the “Amazon of the East”. Ma started the company inside his tiny apartment in the Chinese coastal city of Hangzhou, in the centre of China’s factory belt, back in 1999. Alibaba has since grown to become one of the dominant players in the world’s second largest economy, with key stakes in China’s online, banking and entertainment worlds. Ma himself is worth more than $40bn.
Officially, he stepped down as Alibaba’s chairman in 2018. He said he was going to focus on philanthropy. But Ma retained a permanent seat on Alibaba’s board. Coupled with his wealth and fame, he remains one of the most powerful men in China.
Media caption The BBC’s Secunder Kermani and Anne Soy compare how prepared Asian and African countries are
It appears that Ma’s donations are following Party guidelines: there is no evidence that any of the Jack Ma and Alibaba Foundation donations have gone to countries that have formal ties with Taiwan, China’s neighbour and diplomatic rival. Ma announced on Twitter that he was donating to 22 countries in Latin America. States that side with Taiwan but who have also called for medical supplies – from Honduras to Haiti – are among the few dozen countries that do not appear to be on the list of 150 countries. The foundations repeatedly refused to provide a detailed list of countries that have received donations, explaining that “at this moment in time, we are not sharing this level of detail”.
However, the donations that have been delivered have certainly generated a lot of goodwill. With the exception of problematic deliveries to Cuba and Eritrea, all of the foundations’ shipments dispatched from China appear to have been gratefully received. That success is giving Ma even more positive attention than usual. China’s state media has been mentioning Ma almost as often as the country’s autocratic leader, Xi Jinping.
AFP
So far…
Over 150 countries have received donations from Jack Ma, including about:
120.4mface masks
4,105,000testing kits
3,704ventilators
Source: Alizila
It’s an uncomfortable comparison. As Ma soaks up praise, Xi faces persistent questions about how he handled the early stages of the virus and where, exactly, the outbreak began.
The Chinese government has dispatched medical teams and donations of supplies to a large number of hard-hit countries, particularly in Europe and South-East Asia.
However, those efforts have sometimes fallen flat. China’s been accused of sending faulty supplies to several countries. In some cases, the tests it sent were being misused but in others, low-quality supplies went unused and the donations backfired.
In contrast, Jack Ma’s shipments have only boosted his reputation.
“It’s fair to say that Ma’s donation was universally celebrated across Africa,” says Eric Olander, managing editor of the China Africa Project website and podcast. Ma pledged to visit all countries in Africa and has been a frequent visitor since his retirement.
“What happens to the materials once they land in a country is up to the host government, so any complaints about how Nigeria’s materials were distributed are indeed a domestic Nigerian issue,” Olander adds. “But with respect to the donation itself, the Rwandan leader, Paul Kagame, called it a “shot in the arm” and pretty much everyone saw it for what it was which was: delivering badly-needed materials to a region of the world that nobody else is either willing or capable of helping at that scale.”
Walking the tightrope
But is Ma risking a backlash from Beijing? Xi Jinping isn’t known as someone who likes to share the spotlight and his government has certainly targeted famous faces before. In recent years, the country’s top actress, a celebrated news anchor and several other billionaire entrepreneurs have all “disappeared” for long periods. Some, including the news anchor, end up serving prison sentences. Others re-emerge from detention, chastened and pledging their allegiance to the Party.
“There’s a rumour that [Jack Ma] stepped down in 2018 from being the chairman of the Alibaba Group because he was seen as a homegrown entrepreneur whose popularity would eclipse that of the Communist Party,” explains Ashley Feng, research associate at the Centre for New American Security in Washington DC. Indeed, Ma surprised many when he suddenly announced his retirement in 2018. He has denied persistent rumours that Beijing forced him out of his position.
Image copyright GETTY IMAGESImage caption Ma discussed trade with then-President-elect Donald Trump in January 2017
Duncan Clark, Ma’s biographer, is also aware of reports that Ma was nudged away from Alibaba following a key incident in January 2017. The Chinese billionaire met with then-President-elect Donald Trump in Trump Tower, ostensibly to discuss Sino-US trade. The Chinese president didn’t meet with Trump until months later.
“There was a lot of speculation of time that Jack Ma had moved too fast,” Clark says. “So, I think there’s lessons learned from both sides on the need to try to coordinate.”
“Jack Ma represents a sort of entrepreneurial soft power,” Clark adds. “That also creates challenges though, because the government is quite jealous or nervous of non-Party actors taking that kind of role.”
Technically, Ma isn’t a Communist outsider: China’s wealthiest capitalist has actually been a member of the Communist Party since the 1980s, when he was a university student.
But Ma’s always had a tricky relationship with the Party, famously saying that Alibaba’s attitude towards the Party was to “be in love with it but not to marry it”.
Even if Ma and the foundations connected to him are making decisions without Beijing’s advance blessing, the Chinese government has certainly done what it can to capitalise on Ma’s generosity. Chinese ambassadors are frequently on hand at airport ceremonies to receive the medical supplies shipped over by Ma, from Sierra Leone to Cambodia.
China has also used Ma’s largesse in its critiques of the United States. “The State Department said Taiwan is a true friend as it donated 2 million masks,” the Chinese Foreign Ministry tweeted in early April. “Wonder if @StateDept has any comment on Jack Ma’s donation of 1 million masks and 500k testing kits as well as Chinese companies’ and provinces’ assistance?”
Perhaps Ma can rise above what’s happened to so many others who ran afoul of the Party. China might just need a popular global Chinese figure so much that Ma has done what no one else can: make himself indispensable.
“Here’s the one key takeaway from all that happened with Jack Ma and Africa: he said he would do something and it got done,” explains Eric Olander. “That is an incredibly powerful optic in a place where foreigners often come, make big promises and often fail to deliver. So, the huge Covid-19 donation that he did fit within that pattern. He said he would do it and mere weeks later, those masks were in the hands of healthcare workers.”
Image copyright GETTY IMAGESImage caption Ma at an Electronic World Trade Platform event with Ethiopian Prime Minister Abiy Ahmed last year
Duncan Clark argues that Ma already had a seat at China’s high table because of Alibaba’s economic heft. However, his first-name familiarity with world leaders makes him even more valuable to Beijing as China tries to repair its battered image.
“He has demonstrated the ability, with multiple IPOs under his belt, and multiple friendships overseas, to win friends and influence people. He’s the Dale Carnegie of China and that certainly, we’ve seen that that’s irritated some in the Chinese government but now it’s almost an all hands on deck situation,” Clark says.
There’s no doubt that China’s wider reputation is benefiting from the charitable work of Ma and other wealthy Chinese entrepreneurs. Andrew Grabois from Candid, the philanthropic watchdog that’s been measuring global donations in relation to Covid-19, says that the private donations coming from China are impossible to ignore.
“They’re taking a leadership role, the kind of thing that used to be done by the United States,” he says. “The most obvious past example is the response to Ebola, the Ebola outbreak in 2014. The US sent in doctors and everything to West Africa to help contain that virus before it left West Africa.”
Chinese donors are taking on that role with this virus.
“They are projecting soft power beyond their borders, going into areas, providing aid, monetary aid and expertise,” Grabois adds.
So, it’s not the right time for Beijing to stand in Jack Ma’s way.
“You know, this is a major crisis for the world right now,” Duncan Clark concludes. “But obviously, it’s also a crisis for China’s relationship with the rest of the world. So they need anybody who can help dampen down some of these those pressures.”
NEW DELHI (Reuters) – India’s ruling party was projected to lose a key state election on Tuesday, the vote count showed, in its first electoral test since deadly anti-government protests erupted nearly two months ago.
The Hindu-nationalist Bharatiya Janata Party (BJP) led by Prime Minister Narendra Modi won a bigger majority in a general election in May, but it has lost a string of state elections since then.
The protests, in which at least 25 people have been killed, erupted across the country in mid-December, after the BJP passed a new citizenship law critics say violates India’s secular constitution and discriminates against minority Muslims.
In counting for state polls held in India’s capital New Delhi, data from India’s Election Commission showed the liberal Aam Aadmi Party, led by the city’s chief minister, Arvind Kejriwal, leading 57 out of 70 seats.
The BJP ran a campaign accusing protesters of supporting India’s arch-rival Pakistan and was projected to win 13 seats, up from three in 2015 but far below its own expectations. The party’s local chief Manoj Tiwari had predicted it would win a majority.
AAP activists in distinctive white boat-shaped caps danced outside party headquarters in New Delhi as the result became clear, TV channels showed.
Neelanjan Sircar, an assistant professor at Ashoka University near New Delhi, said that local issues, including delivery of basic services like education and health, appeared to sway voters towards the AAP, even as the BJP ran a polarising campaign on the back of Modi’s image.
“Modi is a larger than life character at the national level, which obviously gives the BJP a huge advantage in national politics,” Sircar said.
“But it doesn’t translate to state level politics, where the BJP often doesn’t have a charismatic face.”
Bespectacled former bureaucrat Kejriwal, 51, formed AAP in 2012 amid an anti-corruption movement that swept India.
The party won a stunning victory in 2015 state elections in the capital, wiping out the BJP and Congress, the party that has ruled India for half its post-independence history.
The Congress – the main opposition at national level – was projected to win no seats in Delhi on Tuesday, data showed, reflecting the deep decline in its fortunes.
SHANGHAI/HONG KONG (Reuters) – China’s President Xi Jinping is enlisting the state-dominated financial sector in a war against a virus outbreak that has killed more than 500, mobilising lenders, brokerages and fund managers to pump resources into stricken parts of the economy.
Answering Beijing’s call, banks are rushing to offer virus-fighting loans at ultra-low rates, investment banks are helping companies issue anti-virus bonds faster, and managers of mutual funds are refraining from selling stocks, to damp market panic.
Concerted efforts to rein in the virus that emerged late last year in the central city of Wuhan highlight the centralized power the ruling Communist Party wields in a sector dominated by state-owned companies.
But the campaign, which has stirred memories of government rescue efforts during a market crash in 2015, deepens concern over corporate governance in China and risks sowing seeds of future trouble.
Wuhan DDMC Culture & Sports Co (600136.SS), a leisure company in the city, won Shanghai Stock Exchange approval to issue bonds of up to 600 million yuan (66.32 million pounds) via a “green channel” created for virus-hit companies, it said on Thursday.
“It’s like receiving charcoal on a snowy day,” the company, whose operations were wrecked by the epidemic, said on its website.
Three other companies – Zhuhai Huafa Group, Sichuan Kelun Pharmaceutical and China Nanshan Development Group – have raised a combined 2.1 billion yuan ($301 million) this week by issuing bonds via the interbank market, to fund virus-battling efforts.
Proceeds from the debt issuance, which won quicker-than-usual approval from regulators, will fund drug discovery programmes and hospital construction, the companies said.
Regulators have also asked banks to inject cheap funds into virus-stricken areas, and not to withdraw loans from companies suffering the impact. Sectors such as tourism, transport and leisure are the worst-hit.
Bank of Suzhou, in the eastern province of Jiangsu, vowed to cut financing costs for hundreds of small corporate clients and bolster lending.
For companies such as food producers, logistics firms and makers of anti-virus drugs, it will cut the rate on loans by 10 basis points below the lending benchmark, to stand as low as 3.98%.
A loan officer at Bank of China promised special treatment for those defaulting because of virus fallout, saying the central bank would cap interest on loans to firms with operations critical to beating the virus, such as makers of masks and drugs.
He added, “Such companies will enjoy the lowest possible rates.”
But the orchestrated support also triggered concerns of moral hazard among some.
“I’m afraid many companies about to go bankrupt will come and say their businesses are affected by the virus outbreak,” said a bond fund manager, who declined to be named.
A flurry of government support has helped stabilise stocks in China’s equity market after a plunge on Monday.
Regulators have told major mutual fund companies and insurers not to cut net equity positions this week, and urged brokerages to limit short-selling activities by clients, said sources who sought anonymity.
Fund managers were also nudged to do their bit. China’s fund association, which is supervised by the securities regulator, said employees at 26 mutual fund houses had put their own money – or more than 2 billion yuan ($287 million) – into fund products since Monday.
It took China less than 70 years to emerge from isolation and become one of the world’s greatest economic powers.
As the country celebrates the anniversary of the founding of the People’s Republic of China, we look back on how its transformation spread unprecedented wealth – and deepened inequality – across the Asian giant.
“When the Communist Party came into control of China it was very, very poor,” says DBS chief China economist Chris Leung.
“There were no trading partners, no diplomatic relationships, they were relying on self-sufficiency.”
Over the past 40 years, China has introduced a series of landmark market reforms to open up trade routes and investment flows, ultimately pulling hundreds of millions of people out of poverty.
The 1950s had seen one of the biggest human disasters of the 20th Century. The Great Leap Forward was Mao Zedong’s attempt to rapidly industrialise China’s peasant economy, but it failed and 10-40 million people died between 1959-1961 – the most costly famine in human history.
This was followed by the economic disruption of the Cultural Revolution in the 1960s, a campaign which Mao launched to rid the Communist party of his rivals, but which ended up destroying much of the country’s social fabric.
‘Workshop of the world’
Yet after Mao’s death in 1976, reforms spearheaded by Deng Xiaoping began to reshape the economy. Peasants were granted rights to farm their own plots, improving living standards and easing food shortages.
The door was opened to foreign investment as the US and China re-established diplomatic ties in 1979. Eager to take advantage of cheap labour and low rent costs, money poured in.
“From the end of the 1970s onwards we’ve seen what is easily the most impressive economic miracle of any economy in history,” says David Mann, global chief economist at Standard Chartered Bank.
Through the 1990s, China began to clock rapid growth rates and joining the World Trade Organization in 2001 gave it another jolt. Trade barriers and tariffs with other countries were lowered and soon Chinese goods were everywhere.
“It became the workshop of the world,” Mr Mann says.
Take these figures from the London School of Economics: in 1978, exports were $10bn (£8.1bn), less than 1% of world trade.
By 1985, they hit $25bn and a little under two decades later exports valued $4.3trn, making China the world’s largest trading nation in goods.
Poverty rates tumble
The economic reforms improved the fortunes of hundreds of millions of Chinese people.
The World Bank says more than 850 million people been lifted out of poverty, and the country is on track to eliminate absolute poverty by 2020.
At the same time, education rates have surged. Standard Chartered projects that by 2030, around 27% of China’s workforce will have a university education – that’s about the same as Germany today.
Rising inequality
Still, the fruits of economic success haven’t spread evenly across China’s population of 1.3 billion people.
Examples of extreme wealth and a rising middle class exist alongside poor rural communities, and a low skilled, ageing workforce. Inequality has deepened, largely along rural and urban divides.
“The entire economy is not advanced, there’s huge divergences between the different parts,” Mr Mann says.
The World Bank says China’s income per person is still that of a developing country, and less than one quarter of the average of advanced economies.
China’s average annual income is nearly $10,000, according to DBS, compared to around $62,000 in the US.
Slower growth
Now, China is shifting to an era of slower growth.
For years it has pushed to wean its dependence off exports and toward consumption-led growth. New challenges have emerged including softer global demand for its goods and a long-running trade war with the US. The pressures of demographic shifts and an ageing population also cloud the country’s economic outlook.
Still, even if the rate of growth in China eases to between 5% and 6%, the country will still be the most powerful engine of world economic growth.
“At that pace China will still be 35% of global growth, which is the biggest single contributor of any country, three times more important to global growth than the US,” Mr Mann says.
The next economic frontier
China is also carving out a new front in global economic development. The country’s next chapter in nation-building is unfolding through a wave of funding in the massive global infrastructure project, the Belt and Road Initiative.
The so-called new Silk Road aims to connect almost half the world’s populations and one-fifth of global GDP, setting up trade and investment links that stretch across the world.
BEIJING, Sept. 21 (Xinhua) — A total of 73 popular domestic scenic spots have joined a campaign to collect garbage as China marked the World Cleanup Day Saturday.
Stalls will be set up in these scenic spots to encourage tourists to pick up garbage, take them away and sort them.
Spearheaded by China’s largest online travel agency Ctrip and charity program Pickup China, the campaign will last through the National Day holiday and is expected to attract about 1 million travelers and reduce 1,000 tonnes of tourism-related waste.
A mobile game was also launched on Ctrip’s app to raise awareness of trash collection and sorting among its users.
Sustainability will contribute to improved travel experiences and the sector’s development, said Fang Hongfeng, general manager of the activities business unit at Ctrip, adding that they are willing to seek broader cooperation with scenic areas in this field.
The World Cleanup Day, which falls on Sept. 21 each year, is a global social action program designed to address the global solid waste problem.
CHINDIA ALERT: You'll be living in their world, very soon 