Trade Wars, Sanctions and Business Appeasement

Journal of Political Risk, Vol. 7, No. 5, May 2019 

By William R. Hawkins

Chinese President Xi Jinping, center, addresses a U.S.-China business roundtable, comprised of U.S. and Chinese CEOs on September 23, 2015, in Seattle, Washington. The Paulson Institute, in partnership with the China Council for the Promotion of International Trade, co-hosted the event. Elaine Thompson-Pool/Getty Images.

In his book Appeasing Bankers, Jonathan Kirshner, the Stephen and Barbara Friedman Professor of International Political Economy at Cornell, argues that “Bankers dread war. More precisely, financial communities within states favor cautious national security strategies and are acutely averse to war and to policies that risk war.” He finds this to be a “universal” trait (at least within capitalist societies) evident throughout modern history. This should be kept in mind when watching the large swings in the stock market in response to reports about the progress, or lack of, in U.S.-China trade talks, Iranian threats and turmoil at the Mexican border. While Kirshner focuses on “stability” with an emphasis on inflation and debt accumulation, he notes the “breathtaking financial globalization” that took place in the post-Cold War period. This has made markets even more sensitive to the dynamics of a contentious international system. Fortunately, the stock market rapidly recovers from panics generated by headlines thanks to the fundamental strength of the U.S. economy.

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China’s Concentration Camps Are A Test For The International Community

Journal of Political Risk, Vol. 7, No. 5, May 2019 

By Nijat Turghun, Stockholm University

Barbed wire sky. Ryan Brideau/Getty

It’s now no secret that in East Turkistan, the oppression has reached a the boiling point.  Since China’s occupation in 1949, an entire people are going through an unimaginably cruel process, in which Uyghurs and other groups are being pared from their original identity. Their culture, language, values, tradition and religion have been regarded as a poisonous barrier for China’s new project: the Belt and Road Initiative (BRI). To fulfill the final mission China set up of concentration camps in East Turkistan, where people are being tortured, indoctrinated, abused and brainwashed again and  again because they barely belong to what Beijing considers risky groups, including simple communities of faith or people with family abroad. People outside the camps are not free, and every 100 meters people must be checked by Chinese policemen. Video cameras on the street continuously report one’s movement and at home people are obliged to welcome Han Chinese guests who have been sent by the Chinese government for ‘’good intention’’. They impose themselves into Uyghur homes, where they eat and live together with Uyghur families. If any religious or other “risky” things or behaviors are discovered they will be placed in concentration camps.

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Why Chaos Is Here To Stay

Journal of Political Risk, Vol. 7, No. 5, May 2019

By Laurent Chamontin

A confusing traffic light system with multiple signal heads. Getty

The 2010s are characterized by an exceptional amount of political volatility (e.g., Brexit, and Donald Trump’s election). This volatility resulted from an unprecedented level of complexity, whether at the level of individuals, nations, or the world, generating outbursts of populism, loss of long-term orientation, dysfunctional newspeak, and decay of international institutions. To overcome this challenge, democracies must rethink their education policies and promote a redesign of multilateral institutions to better coexist with the nation state.

If the purpose of politics is to provide mankind with the consideration of perspectives for the purpose of organization, then indeed we are experiencing a world-scale political crisis. Any nostalgia for supposedly more stable eras put aside, political volatility has increased to a level unprecedented since the collapse of the Soviet Union. Continue reading

Clash of Ancient Philosophy and Modern Politics in China

Journal of Political Risk, Vol. 7, No. 5, May 2019

By Victor Mair, University of Pennsylvania

This photo taken on August 20, 2017 shows a drone flying in front of the statue of Lord Laozi during the Laojun Mountain Drone Convention in Luoyang in China’s central Henan province. STR/AFP/Getty Images

A new round of censorship in China is sufficiently significant that it should be called to the attention of readers, because it has not been brought to the surface outside of China, and even inside China the censors have done their best to hush it up.

In a nutshell, there’s a well-known scholar of ancient Chinese thought, especially Lao Zi (the fictive author of the Tao Te Ching / Daode jing), who has recently and suddenly run afoul of the authorities.

The imbroglio of Yin Zhenhuan 尹振环 and Lao Zi 老子 are occasionally mentioned online. News of Professor Yin Zhenhuan’s troubles surfaced on WeChat about two weeks ago.  It’s rather hard to figure out how research on an ancient thinker could arouse such a sensational reaction, even though from the contents of Yin’s book one may perceive slight, indirect indications of current politics.

Perhaps the best way to expose the complex nature of the current contretemps is by relaying the personal communications of three People’s Republic of China (PRC) scholars on the subject, which I reproduce below.

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Boycott the Chinese Language: Standard Mandarin is the Medium of Chinese Communist Party Expansion

Journal of Political Risk, Vol. 7, No. 11, November 2018 

By Anders Corr, Ph.D.

These urban traffic signs in English and Mandarin are located in the Chinatown district of Seattle. Consciously preferring the use of traditional characters and Taiwanese Mandarin in the U.S. would be a statement against the Chinese Communist Party and its usage of Standard Mandarin and simplified characters. Interestingly, the characters in these street signs are the same in the traditional and simplified sets.

China is one of history’s most dangerous countries. In August, the United Nations reported that China is holding approximately one million minority Muslims in Xinjiang concentration camps. China supports anti-democratic regimes and terrorist groups worldwide. Its military is seeking to expand its territory in: Japanese and South Korean areas of the East China Sea; Philippine, Malaysian, Bruneian, Indonesian, and Vietnamese parts of the South China Sea; and Indian and Bhutanese territory in the Himalayan mountains. President Xi Jinping has since 2013 increased military spending, hyped China’s nationalism, repressed minorities and human rights activists, eliminated term limits on his increasingly personal form of rule, and extended the geographic reach and individual depth of state surveillance.

Average citizens in democracies who see this trend can feel powerless in response. But there are tools at the disposal of empowered citizens and social movements to encourage, complement and accentuate actions taken by our democratic governments. Both citizen and government action is essential to encourage democracy and democratic elements in China, history’s most powerful totalitarian state.

These tools include consumer boycotts and protests at Chinese embassies, for example. But there is an additional social movement tactic that could powerfully communicate the world’s criticism: a boycott of mainland China’s national language, Standard Mandarin, a combination of the Putonghua dialect spoken in Beijing with simplified characters. Putonghua is also called Modern Standard Chinese, which was promoted since the 1940s, and which the People’s Republic of China (PRC) and Chinese Communist Party (CCP) have zealously promoted since 1956 as a form of increasing state control beyond Beijing. I here call the combination of simplified characters and Putonghua, “PRC Mandarin” or “CCP Chinese”. Taiwan uses traditional characters and speaks a slight variant of Mandarin called Taiwanese Mandarin (Guoyu).

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We Need a New Approach to China Even if We don’t Care About Human Rights and Free Trade

Journal of Political Risk, Vol. 6, No. 2, February 2018

By Ho-fung Hung, Ph.D.

Obama era officials Kurt M. Campbell and Ely Ratner recently published “The China Reckoning: How Beijing Defied American Expectations” in Foreign Affairs, arguing US’ assumption underlying its China Policy over the past several decades has been wrong. They admit that China has not changed in the direction most China hands in the US had expected. Rather than becoming more liberal and democratic, it became more authoritarian; rather than more opening to trade, it became more protectionist. They call for a reorientation of Washington’s approach to China. This article has triggered some internal debate and soul searching in the China watchers’ community.

It is understandable that many who expect China to embrace liberal democracy and more economic openness have been disappointed. What is missing in the discussion is that even many realists and corporations who do not care too much about the ideals and principles of economic and political liberalism are frustrated with China too. Over the last few years, another China reckoning is that China is unable, or never intended, to deliver and keep its promises even on many economic and geopolitical issues that are unrelated to the sensitive areas of political reform and change.

Graffiti depicting a portrait of former Chinese leader Mao Zedong with Chinese yuan signs in his eyes, on a wall in Shanghai on March 1, 2017. Source: JOHANNES EISELE/AFP/Getty Images.

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China’s Sociopathy, and its Cowardly Watchers

Journal of Political Risk, Vol. 6, No. 2, February 2018

WHAT’S WRONG WITH CHINA
By Paul Midler
227 pp. Wiley. $25.00

Paul Midler’s What’s Wrong With China doesn’t disappoint. Anecdotes, theories, and historical curiosities fall from its pages in answer to its titular question. Midler’s stories of caution are current, enjoyable, accessible, historically grounded, and witty. But the deeper importance of the book is that Midler, as a sharp and knowledgeable outsider to academic China studies, can criticize, revive, and develop theories in a way that staid academics would never dare. In a field careful about even mentioning sensitive topics like Taiwan, Tibet, and Xinjiang, Midler’s latest book is a bulldozer with bumper-stickers to offend almost anyone. Which is why it’s a great read. The field is being shaken up by President Trump’s tweets, President Xi’s disconnect with how his increasingly totalitarian government is perceived abroad, and now by Midler.

Guangdong, China, in 2011. Source: Paul Midler.

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