CHINAMacroReporter

February 20, 2021
‘UNDERSTANDING DECOUPLING: Macro Trends and Industry Impacts’
‘Comprehensive decoupling is no longer viewed as impossible: if the current trajectory of U.S. decoupling policies continues, a complete rupture would in fact be the most likely outcome. This prospect remains entirely plausible under the Biden administration.’
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February 20, 2021
‘Europe can’t stay neutral in US-China standoff’
‘China aims to create a world that is not safe for Europe — strategically, economically or ideologically. Xi is actively striving to undermine the stature of democracies in the global order. The more power China amasses, the less tolerant it will become with any government that won’t toe its line. China also represents a long-term economic threat to Europe — not merely because it is an advancing competitor in a global market economy, but because Beijing’s policies are designed to use and abuse that open world economy to eventually dominate it.
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February 20, 2021
‘Beat China: Targeted Decoupling and the Economic Long War'
‘The economy is the primary theater of our conflict with China. It is now clear that the U.S. and Chinese economies are too entangled, particularly in critical sectors such as medicine, defense, and technology.'
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February 19, 2021
‘No, China is not the EU’s top trading partner'
‘This week the media seized on a report by Eurostat, the European Union’s statistical agency, to declare that China surpassed the United States in 2020 to become the EU’s main trade partner. This is simply not true.’
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February 18, 2021
‘China faces fateful choices, especially involving Taiwan’
'Should Mr Xi order the People’s Liberation Army to take Taiwan, his decision will be shaped by one judgment above all: whether America can stop him. If China ever believes it can complete the task at a bearable cost, it will act.’ ‘
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February 18, 2021
'An Unsentimental China Policy'
'Jake Sullivan, wrote in Foreign Affairs in 2019, “The era of engagement with China has come to an unceremonious close.”Yet it is worth remembering what engaging China was all about.’ For most of the past half century, efforts to improve ties with the country were not about transforming it. Judged by its own standards, U.S. engagement with China succeeded. It was only after the Cold War that a desire to change China became a prominent objective of U.S. policy.’
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February 18, 2021
'Like It Or Not, America Is Still A Superpower'
‘The twentieth century was littered with the carcasses of foreign leaders and governments that misjudged the United States, from Germany (twice) and Japan to the Soviet Union to Serbia to Iraq. Perhaps the Chinese, careful students of history that they are, will not make the mistake that others have made in misjudging the United States.’
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February 16, 2021
'Is China experiencing an advance of the state sector?'
‘The value-added produced by state-owned enterprises has usually been in the range of 25-30% of China’s GDP. And what’s really striking about those numbers is that they just haven’t changed very much over the past 25 years. The share of China’s economic output being produced by SOEs today, under Xi Jinping, is not significantly different than it was under Hu Jintao, or even in the later years of Jiang Zemin.’
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February 16, 2021
‘China Blocked Jack Ma’s Ant IPO After Investigation Revealed Likely Beneficiaries’
‘Behind layers of opaque investment vehicles that own stakes in Ant Financial are a coterie of well-connected Chinese power players, including some with links to political families that represent a potential challenge to President Xi and his inner circle. Those individuals, along with Mr. Ma and the company’s top managers, stood to pocket billions of dollars from a listing that would have valued the company at more than $300 billion.’
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February 14, 2021
How to Keep U.S.-Chinese Confrontation From Ending in Calamity
'The two countries need to consider something akin to the procedures and mechanisms that the United States and the Soviet Union put in place to govern their relations after the Cuban missile crisis—but in this case, without first going through the near-death experience of a barely avoided war.'
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February 14, 2021
The United States, China, and Taiwan: A Strategy to Prevent War
‘We believe that a crisis is building over Taiwan and that it is becoming the most dangerous flashpoint in the world for a possible war that involved the United States of America, China, and probably other major powers.'
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February 13, 2021
Why China Will Go Green - Really
‘To Communist Party leaders, greenery increasingly aligns with their economic and political interests. China, a populous country that is cruelly lacking in clean water and arable farmland, and which hates having to rely so heavily on imported energy, has a selfish interest in embracing what President Xi Jinping calls “ecological civilisation”.’
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February 11, 2021
'The Biden Team Wants to Transform the Economy. Really.'
‘Biden and his more activist advisers hope to modernize key industries and counter an economic threat from China, swiftly emerging as the world’s other superpower. “The package that they put together is the closest thing we’ve had to a broad industrial policy for generations, really,” says Scott Paul, the president of the Alliance for American Manufacturing.’
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February 10, 2021
‘What the ‘Hong Kong Narrative’ gets wrong'
‘For a significant cohort of the [“pro-democracy”] protesters, the more accurate label would be “anti-China activists.” The one thing that seems to unite them is not a love of democracy, but a hatred of China.'
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February 8, 2021
Why the Anglosphere sees eye to eye on China
‘Some of America’s European allies are very wary of what they fear will be a new cold war with China. By contrast, the US is getting more support from the UK, Australia and Canada.’
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February 7, 2021
' "Longer Telegram" | To Counter China’s Rise, the U.S. Should Focus on Xi'
A strategy that focuses more narrowly on Xi, rather than the CCP as a whole, presents a more achievable objective.'
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February 7, 2021
'The Sources of Soviet Conduct'
'The main element of any United States policy toward the Soviet Union must be that of a long-term, patient but firm and vigilant containment of Russian expansive tendencies.’
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February 7, 2021
'Remarks by President Biden on America's Place in the World'
“We’ll confront China’s economic abuses; counter its aggressive, coercive action; to push back on China’s attack on human rights, intellectual property, and global governance.”“But we are ready to work with Beijing when it’s in America’s interest to do so. We will compete from a position of strength by building back better at home, working with our allies and partners, renewing our role in international institutions, and reclaiming our credibility and moral authority, much of which has been lost.”“That’s why we’ve moved quickly to begin restoring American engagement internationally and earn back our leadership position, to catalyze global action on shared challenges.”
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February 7, 2021
'In Search of Today’s George Kennan'
‘Kennan provided a framework to break through the bitter divide between those who believed America should return to its prewar isolationism, and those who believed the USSR was itching for a dramatic showdown with the capitalist west.’
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February 7, 2021
' "Longer Telegram" Sets Off Fierce Global Debate'
'The fierce global debate set off this week by a thought-provoking paper - “TheLonger Telegram: Toward a New American China Strategy” – has underscored the urgency and difficulty of framing a durable and actionable U.S. approach to China as the country grows more authoritarian, more self-confident and more globally assertive.'
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February 7, 2021
The 'Longer Telegram' & Its Discontents
Why everyone wants to be George Kennan‘In 1947 X penned his history-changing “Sources of Soviet Conduct” in Foreign Affairs,’ wrote Edward Luce in the Financial Times in 2018.‘The piece, which crystallised America’s cold war containment strategy, was the making of George F Kennan’s life-long reputation as a master of geopolitics.’‘ As the architect of a doctrine that won the cold war.’
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February 7, 2021
'Brookings experts analyze President Biden’s first foreign policy speech: Focus China'
'To respond effectively, Biden argued, America will need to rebuild leverage, e.g., by pursuing domestic renewal, investing in alliances, reestablishing U.S. leadership on the world stage, and restoring American authority in advocating for universal values.'
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February 7, 2021
'Why the ‘Longer Telegram’ Won’t Solve the China Challenge'
‘Perhaps the most problematic aspect of the 'Longer Telegram's' emphasis on Xi—“All U.S. political and policy responses to China therefore should be focused through the principal lens of Xi himself”—is the author’s conclusion that Washington should be seeking to escape from, and even try to effect the removal of, Xi’s leadership because that could restore U.S.-China relations to a potentially constructive path: “its pre-2013 path—i.e., the pre-Xi strategic status quo.” ’
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February 4, 2021
Why Beijing Is Bringing Big Tech to Heel
‘Beijing’s recent antitrust efforts are motivated less by worries about the tyrannical nature of monopoly power than by the belief that China’s tech giants are insufficiently committed to promoting the goal advanced by the Chinese Communist Party (CCP) of transformative technological innovation—and thus may be undermining the effectiveness of Chinese industrial policy.’
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February 3, 2021
'Secretary of State Antony Blinken on U.S. Policy Toward China'
‘There’s no doubt that China poses the most significant challenge to us of any other country, but it’s a complicated one.’
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February 3, 2021
'Burma’s Coup and Biden’s Choice'
‘The top U.S. priority in Asia is limiting Beijing’s ability to control independent states like Burma, which is strategically situated in the Indo-Pacific. The U.S. response needs to take into account China’s regional designs.’
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February 3, 2021
'Myanmar, Burma and why the different names matter'
‘Unlike most of the world, the U.S. government still officially uses "Burma." '
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February 3, 2021
'Coup a further complication for tricky Myanmar-China ties'
‘Even if China played no role at all in ousting Suu Kyi, Beijing is likely to gain still greater sway over the country.’
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February 3, 2021
‘Beijing Won’t Let America “Compartmentalize” Climate Change'
‘‘You want China to take action on climate change?" asks Xi Jinping. "Let’s talk about what you’re going to give to get it.’’
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February 3, 2021
Burma: At the Center of the U.S.-China Competition
In today’s issue: 1. China Lays Out Its Position / 2. The U.S. Lays Out Its Position / 3. Burma: At the Center of the U.S.-China Competition / 4. Burma or Myanmar?
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February 3, 2021
'A Conversation with Politburo Member Yang Jiechi'
‘History and reality have shown time and again that these issues concern China's core interests, national dignity, as well as the sentiments of its 1.4 billion people. They constitute a red line that must not be crossed.’
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February 3, 2021
'National Security Advisor Jake Sullivan on U.S. Policy Toward China'
‘Being prepared to act as well to impose costs for what China is doing in Xinjiang, what it’s doing in Hong Kong, for the bellicosity of threats that it is projecting towards Taiwan.’
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February 3, 2021
'Coup Puts Myanmar at the Center of the U.S.-China Clash'
‘Chinese oil and gas pipelines snake across Myanmar from China’s landlocked Yunnan province to the Bay of Bengal—a route that Beijing wants to transform into a broader economic corridor with road and rail connections.’
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February 3, 2021
'Biden's whole-of-National Security Council China strategy'
'National security adviser Jake Sullivan is personally focused on China as a priority, building capacity across departments and agencies and running processes that break down old silos between foreign and domestic policy.'
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January 31, 2021
'Biden’s Nightmare May Be China'
‘The coming years represent the greatest risks since I began covering U.S.-China relations in the 1980s, partly because Xi is an overconfident, risk-taking bully who believes that the United States is in decline.’
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January 31, 2021
Opinion | Marco Rubio: 'China is exploiting U.S. capital markets and workers. Here's what Biden should do.'
‘China can finance its industrial ambitions with the deepest, most liquid capital markets in the world — our own.’
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January 31, 2021
The UK Stands Up, the U.S. Not So Much
“We have honored our profound ties of history and friendship with the people of Hong Kong, and we have stood up for freedom and autonomy—values both the U.K. and Hong Kong hold dear.” British Prime Minister Boris Johnson
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January 31, 2021
'U.S.-China Capital Flows Vastly Underestimated'
‘And yet, debates around US-China passive securities investment suffer from shortcomings similar to those inherent in the early debates about US-China bilateral FDI and VC: official data do not provide a clear picture for policymakers to understand the scope and patterns of two-way investment flows and stocks.’
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January 31, 2021
'Why U.S. Securities Investment in China is Vastly Underestimated'
‘The conduits of US securities investment in China that are obscured or ignored in the US Treasury International Capital (TIC) dataset constitute a majority of all holdings, so these figures vastly underestimate the true scope at the end of 2020.’
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January 31, 2021
'Ted Cruz, Chinese Communist Party Agree: Keep Hongkongers Trapped in China'
‘The bill Cruz blocked, the Hong Kong People's Freedom and Choice Act of 2020, would grant political asylum to any resident of Hong Kong who arrives in the United States, allowing them to remain in the country legally after the expiration of any other visa.'
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January 31, 2021
Analysis: China tests Biden on Taiwan, with eye on another island
‘And it is at Pratas Island where a behind-the-scenes tug-of-war is being played out between the U.S. and China.’
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January 31, 2021
'Top Conflicts to Watch in 2021: The Danger of U.S.-China Confrontation Over Taiwan'
‘While people appear to believe that the Biden administration will strive to avoid acute crisis with China over Taiwan, U.S. policy toward Taiwan only reflects half of the story. The other, and more important half is from China.’
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January 31, 2021
China Tests Biden
In today’s issue: 1. China Tests Biden Over Taiwan / 2. The UK Stands Up, the U.S. Not So Much / 3. Why Impeding U.S.-China Capital Flows Isn't Easy
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January 27, 2021
Xi Jinping: 'Why We All Just Get Along?'
In today’s issue:1. Biden Shows his Hand on China / 2. Xi Shows his Hand on the U.S./ 3. Multi-Lateralism, Chinese-Style / 4. Cooperation or 'Strategic Competition'?
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January 27, 2021
'Xi Jinping Wows Them at Davos'
‘The test for the Biden team is whether it will be tripped up by the feints toward international norms and comity that punctuate Mr. Xi’s pattern of regional aggression.’
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January 27, 2021
Part One | 'Biden’s Opening Salvo on Beijing'
‘The Biden administration is less than a week old, but its most consequential foreign-policy decisions may already be behind it.’
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January 27, 2021
'China’s Xi Champions Multilateralism at Davos, Again'
‘While Xi’s speech may have echoed similar themes from his 2017 address, today’s circumstances are markedly different.’
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January 27, 2021
'China’s Xi Warns Against Confrontation in Veiled Message to Biden'
‘Chinese President Xi Jinping issued a veiled warning against the new Biden administration’s preparations to rally allies to challenge Beijing on a range of issues.’
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January 27, 2021
'China rejects 'strategic competition' and calls on US to cooperate'
‘China wants cooperation, not strategic competition, the Foreign Ministry said Tuesday, a day after the White House said it was looking to form a "new approach" toward China.’
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January 27, 2021
'Xi Jinping at the Virtual Davos: Multilateralism with Chinese characteristics'
‘At the virtual Davos this week, Xi essentially proposed a multilateralism with Chinese characteristics—designed to ensure that international interactions be conducted in accordance with China’s perspectives.’
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January 27, 2021
Part Two | 'Biden’s Opening Salvo on Beijing'
‘China will think carefully before making its next moves, but it’s unlikely to submit tamely to American pressure.’
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January 23, 2021
‘Reasons for Increases In Cross-Border Capital Flows into China’
'Cross-border portfolio capital flows into China have been rising since 2014.'
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January 23, 2021
'Rethinking 2020: What’s Overlooked and What’s Overhyped'
‘If a single word were chosen to define US-China in 2020, “decoupling” would be a good candidate. What has been overlookedis just how little meaningful decoupling actually happened.’
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January 23, 2021
'A Complex Inheritance: Transitioning to a New Approach on China'
‘For the Biden administration to successfully transition to a new and more effective China strategy, the various existing Trump measures should not be treated in the same way.’
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January 23, 2021
‘China’s Easing of Regulations Restricting Foreign Ownership of Financial Firms’
'Foreign firms have only a tiny slice of most segments of this market; they control less than 2 percent of banking assets, for example, and less than 6 percent of the insurance market.'
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January 23, 2021
'Does Xi Jinping Face a Coup Threat?'
In today’s issue: 1. Rest easy. Xi is Safe / 2. China a Career Killer? /3. Rethinking 2020: What’s Overlooked and What’s Overhyped / 4. China’s Financial Opening Accelerates
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January 23, 2021
The struggle over chips enters a new phase
In the 20th century the world’s biggest economic choke-point involved oil being shipped through the Strait of Hormuz. Soon it will be silicon etched in a few technology parks in South Korea and Taiwan.’
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January 23, 2021
'Why Chinese Companies are Having a Tough Time Recruiting in the U.S.'
‘I have seen senior executives who take on very public roles within some of these Chinese companies find that their life after those companies has been more limited. It even has a bit of a taint. A bit like working for tobacco.’
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January 23, 2021
H.R. McMaster: 'Biden would do the world a favor by keeping Trump’s China policy'
‘No doubt the Biden administration will see ways to improve the strategic framework we devised, but continuity with the approach is essential.’
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January 23, 2021
'Does Xi Jinping Face a Coup Threat?'
‘So if you're an autocrat, you really have to be nervous about what's the military doing and is the military coming after me?’
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January 23, 2021
‘China’s Financial Opening Accelerates’
‘Despite predictions by some observers that the United States and China are headed for a “decoupling,” China’s integration into global financial markets is accelerating.’
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January 22, 2021
Confronting the Challenge of Chinese State Capitalism
‘When a U.S. or European firms compete against, say, COSCO Shipping or Huawei, it is the entirety of the Chinese government’s balance sheet that it must contend with, not just an individual firm.’
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January 20, 2021
'When it comes to China, Team Biden sounds a lot like Team Trump'
‘As Biden has announced his picks for cabinet positions and senior policy advisers, it has been almost impossible to distinguish his new team's China rhetoric from that of the departing Trump officials.’
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January 20, 2021
'When it comes to China, Team Biden sounds a lot like Team Trump'
In today’s issue: 1. Biden's China Hawks / 2. Keep Trump's China Policy [?] / 3. Breaking Down Biden's China Challenges
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January 16, 2021
'Jack Ma Misreads Xi Jinping'
"The reason why Jack Ma and others could build enormous Internet companies is because the Party had no idea what they were doing. They became famous globally and made China look very good, but then the Party had to figure out how to get their arms around them."
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January 16, 2021
'China: Taming the Overshoot'
‘We expect GDP growth to improve to 7.1% in 2021 from 2.2% in 2020.Realized growth will likely overshoot potential growth in 2021, but from a policy perspective, we expect that the authorities would prefer to avoid an aggressive overshoot in one particular year in exchange for a smoother and more sustainable growth profile over the next five years.’
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January 16, 2021
'Financial Technology Is China’s Trojan Horse'
‘Chinese fintech firms function like a geoeconomic Trojan horse.’
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January 16, 2021
'Where in the World is Jack Ma?'
In today’s issue: 1. Where in the World is Jack Ma?'The CCP's Ambivalence about the Private Sector’‘Jack Ma Misreads Xi Jinping’ / 2. China’s Fintech Threat‘Financial Technology Is China’s Trojan Horse’ / 3. 2021 Economic Outlook: Sunrise in a Fractured World’ | CHINA
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January 13, 2021
'Kurt Campbell, Biden’s pick for a new NSC Asia position, should reassure nervous allies'
‘Asia watchers in Washington and America’s Asian allies should be reassured that Biden is planning to elevate the importance of the Indo-Pacific region by creating this coordinator role and staffing it with someone so senior.'
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January 13, 2021
1. 'Restoring Balance'
‘China’s growing material power has indeed destabilized the region’s delicate balance and emboldened Beijing’s territorial adventurism. Left unchecked, Chinese behavior could end the region’s long peace.’
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January 13, 2021
3. 'Forging Coalitions'
‘The principal challenge facing the United States is to bridge European and regional approaches to Chinese challenges.’
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January 13, 2021
'How America Can Shore Up Asian Order'
‘This combination of Chinese assertiveness and U.S. ambivalence has left the Indo-Pacific region in flux.'
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January 13, 2021
2. 'Restoring Legitimacy'
‘Negotiating Beijing’s role in this order is the most complex element of the overall endeavor.’
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January 13, 2021
Kurt Campbell & Biden Asia Policy
In today’s issue: 1. Kurt Campbell: Biden's 'Indo-Pacific Coordinator' / 2. 'How America Can Shore Up Asian Order' by Kurt Campbell
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January 9, 2021
'Matt Pottinger resigns, but his China strategy is here to stay'
‘Even though Pottinger’s name was largely unknown to the public, his influence on U.S. foreign policy will be felt for years to come.’
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January 9, 2021
'The Relevant Organs' Pro Tip: 'You Definitely Need a Show Trial'
Spitballing here, GOP friends, but Josh Hawley, Ted Cruz, Ron Johnson and Marjorie Taylor-Greene would make an excellent Gang of Four, if you need a show trial.
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January 9, 2021
How the Chinese reacted to the incident at the Capitol
In this issue: 1. China Reacts / ‘On Double Standards’ - 'Chinese netizens jeer riot in US Capitol as "Karma," say bubbles of "democracy and freedom" have burst' - 'A Few Tweets from Hu Xijin 胡锡进, Editor of The Global Times' / 2. ‘Architect of Trump China Policy Resigns’ - 'Matt Pottinger resigns, but his China strategy is here to stay' / 3. A Pro Tip from 'The Relevant Organs' - 'Dealing with Insurrectionist Leaders the Chinese Way'
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January 9, 2021
'On Double Standards'
‘Besides, facts are there, beyond anyone's denial, regardless of whether they came up in the Chinese media reports or not.’
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January 6, 2021
'Mo money, Ma problems - Chinese trustbusters’ pursuit of Alibaba is only the start'
'Chinese trustbusters long resisted hobbling an industry seen as world-beating, and backed in Beijing. Now, as in the West, they fret that a few giants control indispensable services—e-commerce, logistics, payments, ride-hailing, food delivery, social media, messaging.’
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January 6, 2021
'Mo Money, Ma Problems'
In today’s issue: 1. Eurasia Group| ‘Top Risks of 2021’ / 2. Biden & the EU-China Investment Agreement / 3. The EU-China Investment Agreement: Pro & Con / 4. China's Antitrust Investigation into AliBaba
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January 6, 2021
PRO | 'The Importance of the EU, China Investment Deal'
‘But we should not have waited for the Biden administration to sort things out. Wait for what? We don't know if China will be more responsive if the three parties sit together. We don't have a timeline. Shall we wait another two or three years?’
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January 6, 2021
'China and E.U. Leaders Strike Investment Deal, but Political Hurdles Await'
‘China appeared eager to reach an agreement before Mr. Biden takes office in January, calculating that closer economic ties with the Europeans could forestall efforts by the new administration to come up with an allied strategy for challenging China’s trade practices and other policies.’
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January 6, 2021
'China’s Pro-Monopoly Antitrust Crusade'
‘But Chinese regulators are unlikely to stop at Alibaba; China’s entire private sector has a target on its back.’
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January 6, 2021
‘Top Risks of 2021’: CHINA
'Overall, this year will experience an expansion of a high level of US-China tensions.'
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January 6, 2021
CON | 'Europe has handed China a strategic victory'
“We’ve allowed China to drive a huge wedge between the US and Europe.”
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January 6, 2021
'With Concessions and Deals, China’s Leader Tries to Box Out Biden'
‘Mr. Biden has pledged to galvanize a coalition to confront the economic, diplomatic and military challenges that China poses. China clearly foresaw the potential threat.’
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January 5, 2021
'Sansha City in China's South China Sea Strategy: Building a System of Administrative Control'
‘Sansha City, headquartered on Woody Island in the Paracel Islands, has created a system of party-state institutions that have normalized administrative control in the South China Sea. This system ultimately allows China to govern contested areas of the South China Sea as if they were Chinese territory.’
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January 1, 2021
Competition With China Could Be Short and Sharp
‘The bad news is that over the next five to ten years, the pace of Sino-American rivalry will be torrid, and the prospect of war frighteningly real, as Beijing becomes tempted to lunge for geopolitical gain.’ / ‘Historically, the most desperate dashes have come from powers that had been on the ascent but grew worried that their time was running short.’
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October 7, 2020
'Rivers of Iron': Changing the Face of Asia
‘But what's happened now is that Southeast Asia is rich enough to contemplate such infrastructure and that the Chinese have the technology, money, and high-speed rail industry so that they can both finance or help finance and build it.’
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August 27, 2020
Why China's Economy is Growing Faster than Others
‘First is China's relatively aggressive and decisive measures on the COVID public health crisis itself that managed to get the pandemic under control much faster than the other large economies.’ ‘The relative success in controlling the pandemic translates into how much people are willing to go back to their normal lives, to their jobs, and the like.’
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May 20, 2020
The Chinese Communist Party Fears Ending Up Like the Soviet Union
‘The propaganda ministry - within four to six weeks - managed to turn China into a problem for Europeans. China’s standing in Europe is eroding by the day.'
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May 13, 2020
The Party is Infallible
'The Hong Kong demonstrations can never be because of policy mistakes by the Communist Party itself.’ During our interview, Tony Saich of the Harvard Kennedy School told me: ‘Hong Kong, with its responses to the demonstrations, and the Coronavirus are both illustrative examples of how the culture of the Communist Party and the traditions it's built up over almost a hundred years reflect the way it behaves when it's confronted by certain crises.’
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May 6, 2020
The Phase One Trade Deal
‘The good news is that 80% of our members said they thought the Phase One agreement was a good thing.' 'But only 19% said it was worth it.' 'What the 80% said they are happy about was that there no more new tariffs were coming immediately.’
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May 2, 2020
South China Sea & Taiwan
'It would not be accurate to say China claims the entire South China Sea as its sovereign territory because the Chinese are unclear about what exactly their claim is and what it is based on.'
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April 29, 2020
Why Inflation Should Not Be A Problem
‘This is a crisis where the first chair is held by the public health officials, and the second chair is held by the fiscal authorities. We at the Fed have the freedom to be able to move relatively quickly, but we're the third chair here, trying to help out where we can.’
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April 25, 2020
China, America, & the 'Jaws Syndrome'
‘Both Trump and Xi have a fundamental political divide problem that the COVID-19 epidemic has exposed and made more apparent – and made substantially worse.’
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April 22, 2020
Why We Need Stronger Global Institutions
‘The trade war was actually about the dissemination of knowledge, knowledge transfer, technological transfer.’ ‘A great irony. We need global institutions or arrangements to deal with trade, technology, and health because individuals, corporations, and national governments cannot.’
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‘Is Xi Coup-proof?’ (after the march on Moscow, I have to ask)

What about the guys without guns? So if Mr. Xi doesn’t face a rogue army or a military coup… How about a coup by Party elites?
by

Malcolm Riddell

|

CHINADebate

July 10, 2023
‘Is Xi Coup-proof?’ (after the march on Moscow, I have to ask)

On Saturday morning, June 24, a friend called and asked: ‘Have you seen the news?’

  • I said no, and he said, ‘Well, get on the TV.’

What I saw there was of course the Wagner Group marching on Moscow.

  • Then, the fizzle.

Can’t imagine that when Xi Jinping first heard of the Wagner Group’s march, he didn’t think:

  • Do I have any Prigozhins around me?

And no doubt just as fast as the question came into his head, so did the answer:

  • No.

Unlike Mr. Putin, Mr. Xi has absorbed the first principle for successful autocrats:

  • Don’t set up an independent army outside your control.
  • (That’s also a lesson from China’s Warlord Era a century ago that I cover in the last section - don't miss it, really interesting.)

Still, the march on Moscow was a surprise.

  • And this led me to look again at how likely such a surprise against Mr. Xi might be.

I had to ask:

  • Is Mr. Xi coup-proof?

1 | False alarm

The Wagner march reminded me that about a year ago, rumors abounded that Xi Jinping had fallen from a military coup. As Newsweek reported:

  • ‘Chinese President Xi Jinping became one of the top trending topics on Twitter amid unsubstantiated reports he is under house arrest and that China is in the midst of a military coup.’ 
  • ‘Xi and the phrase #ChinaCoup trended on social media after tens of thousands of users spread unconfirmed rumors that the president was detained and overthrown by the China's People's Liberation Army.’

Being without basis, this fizzled faster than the march on Moscow.

  • But the march also reminded me that Mr. Xi and other senior cadre have themselves reported concerns about ‘plots’ and ‘traitors.’

2 | Sic semper tyrannis

‘Plots to overthrow Xi and his administration are not the product of fevered imaginations but rather have been widely spoken of by senior Chinese officials, including Xi Jinping himself,’ wrote Richard McGregor and Jude Blanchette in 2021.

  • ‘Many date back to the early months of 2012, underlining Xi’s belief that rivals wanted to prevent him from taking over leadership of the CCP later that year.’
  • ‘Others are vague and amorphous accusations of unnamed “plots” by anonymous “traitors” that are likely levelled to justify Xi’s shakeup of the party bureaucracy and his wide-reaching intra-party discipline campaigns.’

Real or justifications, an autocrat always has to watch his back.

  • As an expert, when commenting on President Biden’s calling Mr. Xi a dictator, wrote on a China forum:

‘Dictators for life probably have a hard time buying life insurance.’

  • ‘If they do not cultivate a successor and make it clear they’ll relinquish power gracefully, they’ll end up “eliminated with extreme prejudice” as the mob used to say.’
  • ‘I’m talking to you, PUTINHEAD, Emperor Xi, and fat guy in North Korea.’

Sic semper tyrannis.

3 | What keeps an autocrat up at night?

‘If you are an autocrat, who do you have to fear? Like, what keeps you up at night?'

‘In the popular imagination, what an autocrat has to fear is unrest.’

  • ‘He has to fear protestors in the street, storming the gates and taking him down.’

‘Generally though, what has led to the unconstitutional exit of authoritarian leaders from office isn't mass protest, isn't mass uprising.’

  • ‘Instead, it's coups; it's other elites taking down the leader. And that's really what autocrats have to worry about.’

'And who launches coups that are successful nine out of 10 times?’

  • ‘The military.’

‘So if you're an autocrat, what you really have to be nervous about is:’

  • ‘What's the military doing, and is the military coming after me?’

4 | Xi’s military-coup-proofing

‘You can't completely rule out a military coup against Xi,’ says Dr. Mattingly,

  • ‘with this caveat:’

‘I do think that Xi's done enough to make it really hard to launch a successful military coup against him,'

  • ‘Between promoting people who are loyal to him and promoting left-behind officers who aren't well connected to other civilian elites and other military elites, he's done enough on the military side to make it hard to get military buy-in for a coup to occur.'

‘And there are a number of other factors that push against it.'

  • ‘Number one is a real sense of unity and national force that Xi Jinping has effectively stoked by first painting the United States as a threat to China.'
  • ‘Number two is the rhetoric about the role of the Party as an important force in China's very revival.'
  • ‘Number three is Xi's laser focus on making sure the military is loyal.'

5 | ‘The guys with the guns’

Until a few years ago, I would have said that, like Xi’s regime, the American presidency was immune from a coup.

  • Now we know it can be touch & go.

In the ‘60s, I encountered ‘Seven Days in May,’ both as a novel and a movie.

  • The plot: The Chairman of the Joint Chiefs of Staff is thwarted from staging a coup to overthrow the President and take power.

In 2020, this played out, but sort of in reverse.

  • The plot: The Chairman of the Joint Chiefs of Staff vowed to thwart a defeated American president from using the U.S. military to stay in power.

Re 2020, Carol Leonnig and Philip Rucker report in ‘I Alone Can Fix It: Donald J. Trump’s Catastrophic Final Year’:

  • ‘As Trump ceaselessly pushed false claims about the 2020 presidential election, Gen. Mark A. Milley, chairman of the Joint Chiefs of Staff, grew more and more nervous, telling aides he feared that the president and his acolytes might attempt to use the military to stay in office.’
  • ‘They're not going to F'ing succeed,’ Milley said. ‘You can't do this without the military. You can't do this without the CIA and the FBI.’
  • ‘We're the guys with the guns.’

That you can’t do it without the guys with the guns is something both Mao and Mr. Xi get:

  • Mao: ‘Our principle is that the Party commands the gun, and the gun must never be allowed to command the Party.’ Mao Zedong, Problems of War and Strategy, November 1938
  • Xi: ‘The party must command the gun…. We [will] enhance the political loyalty of the armed forces [and] strengthen them through the training of competent personnel.’ Xi Jinping, Speech on the CCP’s 100th Anniversary, July 2022

But there is one big difference here:

  • In the U.S., the guys with the guns swear allegiance to the American Constitution (thank you, General Milley).
  • In China, to the Chinese Communist Party.

6 | ‘The Party commands the gun.’

But it’s more than the Party controlling the PLA.

  • The PLA is charged with guaranteeing the continued rule of the Chinese Communist Party (CCP).

The CCP oversees the PLA through its Central Military Commission.

  • To ensure Party control, the General Secretary of the CCP concurrently serves as the Chairman of the Central Military Commission.

‘Soon after coming to power, President Xi Jinping made sure that the PLA was firmly under the Party’s control by purging numerous generals,’ notes Oxford's Rana Mitter.

  • ‘As they follow coverage of Putin having to admit that a major Russian city was occupied by a rival army, the Chinese Politburo will have no doubts that their ruthlessness in military matters has paid off.’

7 | 'Proficiency in battle ranks fourth'

In ‘China’s military set-up is designed to foil any would-be Prigozhin,’ Charles Parton notes:

  • ‘The People’s Liberation Army is an explicitly political force — and the ultimate guarantor of the party’s hold on power.

‘The People’s Liberation Army is the Chinese Communist party’s army and not a national army.’

  • ‘ “Our principle is that the party commands the gun, and the gun must never be allowed to command the party,” said Mao Zedong.’

‘Whatever Yevgeny Prigozhin was plotting in Russia last week — mutiny, insurrection, civil war — this level of military insurrection would never have been possible in China.’

  • ‘The idea that anyone outside the PLA and the People’s Armed Police might have the right to bear arms is anathema.’ 

‘Xi’s military reforms, listed in order of priority, consisted of:’

  1. ‘reinforcing ideological commitment to the party, ‘
  2. ‘recruiting and promoting the right people,’
  3. ‘the fight against corruption,’
  4. ‘proficiency in battle and political innovation.’

‘It is striking that the ability to fight wars ranked only in fourth place.’

  • ‘But this is no surprise, given that the PLA is the ultimate guarantor of the party’s hold on power (in Russia, by contrast, it has traditionally been Putin’s security services, rather than the army, who fulfil this role).’

‘Even at times of chaos, such as during the Cultural Revolution, the PLA, while restoring order, has never acted against the party.’

  • ‘It acquiesced as Mao removed its leader Lin Biao, just as it did when Deng Xiaoping and Xi removed top generals.’

‘If there were to be a severe leadership split which led to economic meltdown, the PLA might align with one or other political faction.’

  • ‘But at present there is only one faction in China and it is Xi’s.’

8 | What about the guys without guns?

So if Mr. Xi doesn’t face a rogue army or a military coup…

  • How about a coup by Party elites?

In ‘After Xi: Future Scenarios for Leadership Succession in Post-Xi Jinping Era,’ Richard McGregor and Jude Blanchette point out:

  • ‘It is true that Xi has a host of enemies in the party.’
  • But ‘the chances of a coup being mounted against Xi at the moment, absent a systemic crisis, are exceedingly small.’

‘It is equally true that the barriers to organising against him are near insurmountable.’

  • ‘Successfully organising a coup against an incumbent leader — especially one in a Leninist one-party state — is a daunting challenge.’

‘Given the technological capabilities of the CCP security services, which Xi controls, such an endeavour is fraught with the risk of detection and the possible defection from early plotters who change their mind.’

  • ‘Despite their enormous power, senior members of the CCP and the PLA lack the basic ability to move about and communicate unnoticed by Xi’s all-seeing security apparatus.’
  • ‘Xi’s increasing grip over domestic security services means that the communication between would-be challengers necessary for arranging logistical details would be next to impossible.’

9 | Afterword: ‘The Return of the Warlords’

If he didn’t get that lesson not to permit independent armies from the handbook for autocrats, Mr. Xi would have learned the lesson from Chinese history. As Oxford’s Rana Mitter notes in ‘The Return of the Warlords’:

  • ‘A hundred years ago, it was China, not Russia, that was split by “warlords” and weakened by chronic conflict between their private armies.'

In 1911, a revolution overthrew China’s last dynasty, the Ching.

  • And a republic was formed but didn’t last long.

‘China’s brief republican experiment was quickly overcome by a contest between military groups.’

  • ‘China was divided into regions ruled by local armies.
  • ‘The term “warlord” (junfa) was used pejoratively to describe their commanders.’

‘The effects of divided authority were obvious and grim.’

  • ‘No one ruler could lay claim to all of China, and military leaders were constantly forming alliances that fell apart amid internecine fighting.

This map gives an idea of the regions and the changes in territory during China’s Warlord Era. (Sorry for the poor quality, but it makes the point in general.)


‘Patriotic activists lamented that the danger confronting China had become twofold:

  • ‘imperialism from outside, warlordism from inside.’

‘In 1928, Nationalist leader Chiang Kai-shek established a government that nominally unified China.’

  • ‘Yet he spent much of the next ten years fighting rival military leaders as well as the Communists (forcing the latter on the famous Long March in 1934).’

‘In 1937, war broke out with Japan, and in some cases, warlords cut their own deals with the invaders, seeking to preserve their regional power.’ 

‘Once the Communists had won the Civil War in 1949, Mao moved to crush all possible alternative sources of power in China.’

  • ‘The People’s Liberation Army (PLA) was established as the Party’s army, not the national army. That is still its status today.

‘The collective memory of the warlord period is one reason why China’s leaders are determined to keep military force firmly under the ruling Communist Party’s control.’

Hence, Mr. Xi isn’t in danger of a rogue army marching on Beijing.

  • Because there are no rogue armies in China.

And unlike the Russian army, the PLA stands loyally poised to fight any threat to Mr. Xi and the Party.