Category: China

Canada vs China: Arrest, Detention and Trial Differences

There are marked differences on how people are arrested, go to trial and convicted in Canada and China. I have read so many first hand accounts of Chinese arrest and torture that they are too numerous to mention. There are many common methods used in China, and common through numerous different areas of China. The differences are stark: Canada adheres to the Rule of Law, human rights and transparency, while China is very uncertain, oblique, and treated on a case-by-case, “Rule-is-law”, basis.

China Punishes Canada for Huawei CFO US Extradition Request

Huawei, one of China’s large computer companies, has been accused of selling US computers to Iran. The US asked and planned with Canada to arrest Huawei CFO Meng Wanzhou, when she was on route from Hong Kong to Mexico. The arrest occurred on 2018 Dec 01. Shortly after this China arrested two Canadians in China fo “endangering national security”. They have not been heard from since. It is widely understood to be retribution against Canada by China for assisting the US for the arrest.

Abandon All Hope All Ye Canadians Who Enter Here. SCMP

Abandon All Hope All Ye Canadians Who Enter Here. SCMP

The first arrest was Canadian ex-diplomat Michael Kovrig, detained in China today for unknown reasons. The second Canadian was Michael Spavor, who runs an NGO specializing in tours to North Korea.

The Cleaving of International Trade: Western vs Totalitarian/China

It is probably not so clear cut, but what was once a unified World Trade Organization WTO, appears to want to split into two camps, based on their form of government. On one side is the democratic Western group, now countered by China and Russia in the totalitarian group. This cleaving seems to be necessary because of fundamental differences of the independence of companies from their governments.

China Air Quality Terrible for Xian, Beijing and Some Cities: 2018 Dec 02

Yet again, some of China’s air quality PM 2.5 readings are off the chart. Literally, and this is really terrible for people’s health. PM 2.5 measures air pollution particles smaller than 2.5 microns, which when inhaled are too small for the body to remove, so they stay there forever.

China needs to do much better to protect the health of citizens. Pollution report

Air Quality PM2.5 2018 Dec 02 10:00 Toronto time, readings for China: Xi'an 592, Beijing 268 vs Toronto at 17. Terrible for your health.

Air Quality PM2.5 2018 Dec 02 10:00 Toronto time, readings for China: Xi’an 592, Beijing 268 vs Toronto at 17. Terrible for your health.

China Restricts Foreign Exchange Capital Outflows

China’s increasingly strict foreign exchange controls is hurting not only Chinese individuals and companies, but also impacts international firms repatriating profits from China. This will make foreign firms think twice about Chinese investments.

Foreign Exchange Controls
Chinese nationals have a limits of $50k US/yr for foreign exchange. This has been the case for many years, though I cannot determine when it started. Before you could send more money overseas by declaring it, but as of 2017 January these rules have been tightened up and now exclude purchases of real estate or overseas securities.

Why the trade war will usher in a long, drawn-out bear market: Andy Xie Article

This article “Why the trade war will usher in a long, drawn-out bear market, with stocks, bonds, credit and property all at risk” by Andy Xie took some time to think about.

Shakeout of Speculators
Historically low interest rates have allowed people to take out debt cheaply. These funds have been sued to purchase risky assets. This has led to speculation. Now that interest rates are rising this will force speculators to use more expensive funds to service their debt. Over leveraged companies will not survive.

Google’s Return to China: Seeking Clarity

Information is power, and information, to most people of the world is the internet. For most, this starts with a Google Search. In 2010 Google exited China, due to a massive hack by the Chinese government into Google servers. Now, beckoned by the call for making money, Google is again rethinking China. Can Google stand by its ethics of “Do no Harm” while working with the Chinese Government? There will be some compromizes required.

The Internet as a Tool for Democracy: Perhaps not

In the recent 2018 Web Summit interview has Tim Berners-Lee, father of the Internet, lamenting the sorry state of the internet. TimBL has set up the World Wide Web Foundation, which espouses openness, freedom of speech and democracy. I just do not see the web this way. The internet is a communications tool that allows access to information, very much like a library. Who gets to enter the library and what information the library houses is controllable. I do not see TimBL’s lofty internet objectives coming to fruition. In China Xi jinping XJP has asked all its people for total loyalty to the Communist Party. As a communications tool the Internet can and does serve XJP’s purpose, and more. In the view of the CCP the Internet is also a tool to benefit society.

China vs West Trade War: Economic Iron Curtain and De-Integration

Former U.S. Treasury Secretary Hank Paulson spoke about China-US relations at the Bloomberg New Economy Forum, 2018 Nov 06. He had some very sage advice for both the Chinese and US governments. He hit all the key pain points, and warned of an impending “Economic Iron Curtain” and de-integration.

The two Bloomberg videos of the Paulson speech are very revealing. 2

Summary Points:

Xi Jinping Thought: Implications for Chinese Trade and Relations

Astounded I am. I would have never thought that I would be studying Xi Jinping Thought 习近平思想 but here we are. This document was released on 2017 Oct 18 at the 19th Communist Party Congress (CPC), and is the roadmap China will use going forward. I usually do not read much Chinese propaganda, but this one seems to be repeatedly referenced, forcing me to come back and review this in greater detail, from the Chinese source through to translation. The implication of the first point, “Ensuring Party leadership over all work”, has strong implications for international trade, espionage and foreign relations.