Category: China

Chinese Industry Using Robots to Automate Routine Tasks

(p. B1) China’s appetite for European-made industrial robots is rapidly growing, as rising wages, a shrinking workforce and cultural changes drive more Chinese businesses to automation. The types of robots favored by Chinese manufacturers are also changing, as automation spreads from heavy industries such as auto manufacturing to those that require more precise, flexible robots capable of handling and assembling smaller products, including consumer electronics and apparel.
At stake is whether China can retain its dominance in manufacturing.
. . .
(p. B2) China, in 2013, became the world’s largest market for industrial robots, surpassing all of Western Europe, according to the International Federation of Robotics. In 2015, Chinese manufacturers bought roughly 67,000 robots, about a quarter of global sales, and demand is projected to more than double to 150,000 robots annually by 2018.

For the full story, see:
Robbie Whelan and Esther Fung. “China’s Factories Turn to Robots.” The Wall Street Journal (Weds., August 17, 2016): B1-B2.
(Note: ellipsis added.)
(Note: the online version of the story has the date August 16, 2016, and has the title “China’s Factories Count on Robots as Workforce Shrinks.”)

“Hong Kongers Will Not Bow Down to Brute Force”

(p. A1) HONG KONG — Blindfolded and handcuffed, the bookseller was abducted from Hong Kong’s border with mainland China and taken to a cell, where he would spend five months in solitary confinement, watched 24 hours a day by a battery of Chinese guards.
Even the simple act of brushing his teeth was monitored by minders, who tied a string to his toothbrush for fear he might try to use it to harm himself. They wanted him to identify anonymous authors and turn over data on customers.
“I couldn’t call my family,” the man, Lam Wing-kee, said on Thursday. “I could only look up to the sky, all alone.”
Months after he and four other booksellers disappeared from Hong Kong and Thailand, prompting international concern over what critics called a brazen act of extralegal abduction, Mr. Lam stood before a bank of television cameras in Hong Kong and revealed the harrowing details of his time in detention.
“It can happen to you, too,” said Mr. Lam, 61, who was the manager of Causeway Bay Books, a store that sold juicy potboilers about the mainland’s Communist Party leadership. “I want to tell the whole world: Hong Kongers will not bow down to brute force.”
. . .
(p. A14) In the months since Mr. Lam and his colleagues disappeared, the industry has fallen on hard times. Causeway Bay Books has closed, and many Hong Kong bookstores have pulled titles about Chinese politics from their shelves.
The disappearances shocked people in Hong Kong and reverberated internationally. Many saw the episode as an expansion of China’s authoritarian legal system beyond its borders, in clear violation of the “one country, two systems” framework that allows Hong Kong to maintain a high degree of autonomy from Beijing.
Thousands of people took to the streets of Hong Kong to demand the booksellers’ release. Diplomats from Britain, the European Union and the United States also registered concern.

For the full story, see:
ALAN WONG, MICHAEL FORSYTHE and ANDREW JACOBS. “Defying China, Hong Kong Bookseller Describes Detention.” The New York Times (Fri., JUNE 17, 2016): A1 & A14.
(Note: ellipsis added.)
(Note: the online version of the story has the date JUNE 16, 2016, and has the title “Defying China, Hong Kong Bookseller Describes Detention.”)

In Cultural Revolution, Chinese “Tried to Turn Their Homes into Fragile Islands of Freedom”

(p. C8) Mr. Dikötter’s greatest contribution with “The Cultural Revolution,” which is the third in a trilogy on China during the Mao era, is his undermining of the conventional view of the period following Mao’s death in 1976. The prevailing narrative, much encouraged by the Communist Party, is that the Chinese state began “lifting” hundreds of millions of people out of poverty through its sage adoption of capitalist-style policies officially called “reform and opening,” beginning with an end to systemwide economic planning and the restoration of markets.
Drawing on a growing body of existing research, Mr. Dikötter argues that China’s markets were not born of the official reforms of the late-1970s and early 1980s but rather got their start before the Cultural Revolution had ended in 1976. He writes of peasants and city dwellers who had completely lost faith in the system and began improvised acts of survival and resistance, like the private trading of goods and labor, which was banned, and even small-scale industrial output.
“Senseless and unpredictable purges were designed to cow the population and rip apart entire communities, producing docile, atomized individuals loyal to no one but the Chairman,” Mr. Dikötter writes. The outcome, as with so many extreme, top-down uses of power, was almost the exact opposite. As surreptitious markets began to flourish in response to scarcity, “people from all walks of life tried to turn their homes into fragile islands of freedom.”​

For the full review, see:
HOWARD W. FRENCH. “‘Bombard the Headquarters’; The twin pillars of Mao’s campaign were uprooting supposed reactionaries and the promotion of sycophancy.” The Wall Street Journal (Sat., May 28, 2016): C8.
(Note: the online version of the review has the date May 27, 2016.)

The book under review, is:
Dikötter, Frank. The Cultural Revolution: A People’s History, 1962-1976. New York: Bloomsbury Press, 2016.

All Land in China Owned by Communist Government

(p. B1) WENZHOU, China — Chen Furong and his wife bought their home 23 years ago for its proximity to the city center and for the tree-lined canal just outside. Their dream was to pass it on to their children and grandchildren, a piece of wealth giving their family a share of China’s economic miracle.
Then their neighbor tried to sell her place — and it was all thrown into doubt.
Like every other homeowner in China, Mr. Chen and his neighbor own their homes but not the land underneath them. All land in China is owned by the government, which parcels it out to developers and homeowners through 20- to 70-year leases.
When the neighbor — whose surname is Wang — tried to sell her apartment, local officials told her that her lease on the land had expired. To sell her apartment, they told her, she would have to pay them one-third of the sales value.
Ms. Wang protested in a move that drew national attention. Suddenly millions of Chinese who had socked away billions — and possibly trillions — of dollars were worried as well. If the local authorities in other parts of China did the same thing, they thought, a big chunk of their own wealth could end up with the government as well.
“What will happen after our land lease expires?” (p. B4) asked Mr. Chen, 69, who with his wife holds a 70-year lease. “I will be dead when the lease expires, but will I be able to give it to my son?”

For the full story, see:
STUART LEAVENWORTH and KIKI ZHAO. “Built on Shaky Ground.” The New York Times (Weds., June 1, 2016): B1 & B4.
(Note: the online version of the story has the date MAY 31, 2016, and has the title “In China, Homeowners Find Themselves in a Land of Doubt.”)

Government Elephant Ivory Bans Endanger Rare Helmeted Hornbills

Another unintended consequence of well-intentioned government policy.

(p. A3) BEIJING — Even as China, the world’s leading market for illegal ivory, promises to help safeguard elephants in Africa, a rare bird in Southeast Asia is in danger because its skull is being sold in China as an ivory alternative, conservationists say.
. . .
More than 2,000 helmeted hornbill skulls, or casques, were seized by the authorities in Indonesia and China in the past five years, according to a new report by the Environmental Investigation Agency, a nongovernmental organization based in London. In some cases, Chinese citizens were caught trying to leave Indonesia with casques in their luggage.
. . .
China has joined the world in taking a stand against the trade in elephant and rhinoceros products. In September, during his state visit to the United States, President Xi Jinping pledged to “enact nearly complete bans on ivory import and export.”
But some conservationists worry that less celebrated but also threatened animals, including the helmeted hornbill, are being overlooked, becoming easy picks to meet the demand.
“Shifting to hornbill ivory is like grabbing a low-hanging fruit,” Yokyok Hadiprakarsa, the director of the Indonesian Hornbill Conservation Society, wrote in an email.

For the full story, see:
SHAOJIE HUANG. “Chinese Demand for Ivory Alternative Threatens Rare Hornbill Bird.” The New York Times (Weds., MARCH 23, 2016): A3.
(Note: ellipses added.)
(Note: the online version of the story has the date MARCH 22, 2016, and has the title “Chinese Demand for Ivory Alternative Threatens Rare Bird.”)

Mao’s Cultural Revolution Murdered a Million Chinese

(p. A5) A fur coat that kept a family’s three children warm at night, seized and still in the home of their tormentors. A 5-year-old’s finger, broken while fleeing from the scene of a terrifying beating. A stone memorial in a village to a “good” family that was largely wiped out.
These are some of the things readers recalled when asked how their families were affected by the Cultural Revolution, a decade of political upheaval unleashed by Mao Zedong half a century ago that left a million or more in China dead and many more traumatized. In dozens of responses, the message was clear: People remember. Families talk. The imprint of old fears remains. Those who suffered teach their grandchildren that it is safer to work hard and keep quiet. “The Cultural Revolution is over,” wrote Huang Xin, a reader from Hohhot, Inner Mongolia. “But the Cultural Revolution is never far away.”
Here is a selection of the responses. Some have been condensed and edited for clarity, or translated from Chinese.
. . .
Jonathan Yang, 32, New York
As a first-generation Chinese American, I heard at great length about my mother’s struggles to survive her “bad upbringing” (wealthy) and how her family was decimated when she was 8 years old. Growing up in work camps, her adolescence was robbed and although she was lucky enough to escape China under political asylum under Nixon’s open-door policy, the trauma of the revolution lingers in her to this day.
Her stories captivated me. However, they did not seem real because we were never taught how horrendous China’s history was in school. We were taught relentlessly about atrocities such as slavery and the Holocaust, but somehow China’s dark past never seemed to be part of our education. To say this is a disservice is an understatement. Americans for the most part have no idea how heinous Mao’s regime really was. The sheer numbers as compared to slavery and the Holocaust are at least tenfold. Yet there is no memorial, no education. It is almost as if this history does not matter.

For the full story, see:
“After Half a Century, the Imprint of China’s Cultural Revolution Is Still Deep.” The New York Times (Tues., MAY 17, 2016): A5.
(Note: ellipsis added; bold and italics in original online version.)
(Note: the online version of the story has the date MAY 16, 2016, and has the title “Readers Respond: The Cultural Revolution’s Lasting Imprint.” Where there are differences in the versions, the passages quoted above follow the online version.)

Skepticism of Science Is Incompatible with Communist Dogma

(p. A11) On June 6, 1989, the physicist Fang Lizhi took refuge in the U.S. Embassy in Beijing at the invitation of President George H.W. Bush, who told Fang, then being hunted by the Communist Party, that he could stay as long as necessary. Two days earlier, troops from the People’s Liberation Army had crushed the democracy protests in central Beijing and other cities that had riveted China–and the world. Fang did not participate directly in the Tiananmen Square protests, but his campus talks and writings on democracy during the 1980s had made him a hero to the students and an archenemy of the authorities. He and his wife, Li Shuxian, also a physicist, were No.1 and No. 2 on an arrest list after the massacre.
Fang and his wife stayed at the embassy for 13 months. During that time he wrote “The Most Wanted Man in China,” a thoughtful, funny and still relevant memoir that recalls those tense days and the years leading up to them, during which Fang openly challenged China’s Communist Party in a battle of ideas.
. . .
Fang has been called the “Chinese Sakharov” and not only because of his brilliance. “For Fang as for [Andrei] Sakharov,” as Perry Link, a scholar of Chinese language and dissent, writes in the book’s foreword, “rights were implied by science.” Its axioms of “skepticism, freedom of inquiry, respect for evidence, the equality of inquiring minds, and the universality of truth . . . led Fang toward human rights and to reject dogma of every kind, including, eventually, the dogma of the Chinese communism that he had idealistically embraced.”

For the full review, see:
ELLEN BORK. “BOOKSHELF; He Made the Great Leap; Fang Lizhi’s name is banned in China. But everyone there who continues to push for democratic rights owes a debt to the dissident.” The Wall Street Journal (Weds., Feb. 17, 2016): A11.
(Note: ellipsis between paragraphs, added; ellipsis internal to paragraph, in original.)
(Note: the online version of the review has the date Feb. 16, 2016,)

The book discussed in the review, is:
Fang, Lizhi. The Most Wanted Man in China: My Journey from Scientist to Enemy of the State. New York: Henry Holt and Co., LLC, 2016.

“China Has Blindly Constructed So Many Homes and Wasted So Much Resources”

(p. C6) In November [2015], President Xi Jinping told a meeting of officials that China must resolve the housing inventory situation and ensure the health of the property sector.
Since then, Meishan, a city of 3.5 million people, has become a showcase for efforts to lure rural dwellers to cities to buy homes as part of so-called destocking efforts to reduce the glut.
. . .
. . ., some analysts and local government officials warn the rural strategy isn’t a cure-all. Banks typically hesitate to extend mortgages to rural migrants, whose homestead land doesn’t typically qualify as collateral.
“Now with bad loans growing in China, banks are reluctant to lend to farmers. Farmers don’t have assets and lending to them is risky,” said Wang Fei, an official at Hubei Province’s department of housing and urban-rural development.
. . .
Housing inventory in the city rose to 22.5 months last April, an alarmingly high level compared with a healthier rate of 12 months or lower. There were also cases where cash-strapped property firms defaulted on their loans, leaving behind unfinished apartments.
Buyers of Purple Cloud Golden World housing project are now stranded after Yang Jinhao, who controlled Sichuan Xinrui Property Development, got involved in a dispute with a shadow lender early last year.
“China has blindly constructed so many homes and wasted so much resources. I can’t stand it!” said Yu Jianmin, a 70-year-old caretaker of the stalled project who said the construction firm he works for is still awaiting payment from Mr. Yang. Mr. Yang couldn’t be reached.

For the full story, see:
ESTHER FUNG. “Discounts Help China Ease Home Glut.” The Wall Street Journal (Weds., March 2, 2016): C6.
(Note: ellipses, and bracketed year, added.)
(Note: the online version of the story has the date March 1, 2016, and has the title “China Sweetens Home-Ownership Deals for Rural Dwellers.”)

Proletariat Loses Money Investing in Ponzi Scheme Supported by Chinese Communists

(p. B1) HONG KONG — At every turn in his improbably rapid rise, Ding Ning, 34, went to great efforts to convey the image of strong government backing for his Internet financing business.
There was his company’s lavish annual meeting and banquet last year in Beijing’s Great Hall of the People, where China’s legislature meets and where top government leaders host official functions. Adding a splash of celebrity to the event were Zhou Tao, a nationally famous actress and host on the government’s main television broadcaster, and several mid-ranking officials, bureaucrats and lawmakers.
There were the positive profiles in state-controlled media, as well as the company’s advertising on official TV. There was the section of his company’s website devoted to building Communist Party spirit.
But it all came crashing down in dramatic fashion for Mr. Ding this week, when the police alleged that his financing business, Ezubao, was a $7.6 billion Ponzi scheme and announced 21 arrests, including of Mr. Ding. The company was shut down.
, , ,
(p. B7) In interviews, former staff and investors described the signals of strong state support as one of the keys to Ezubao’s rapid rise.
“Many people joined Ezubao because they saw the support from the government and from some government officials,” said Feng Zhe, 36, a Beijing resident who worked as a salesman at the company from June of last year until December.
Mr. Feng said a number of his friends and family members invested in Ezubao’s products and suffered losses. “Many people bought their products because the government has lent the company credibility,” he added.

For the full story, see:
NEIL GOUGH. “Feeling Twice Victimized.” The New York Times (Sat., Feb. 6, 2016): B1 & B7.
(Note: ellipsis added.)
(Note: the online version of the article has the date Feb. 5, 2016, and has the title “Ponzi Scheme in China Gained Credibility From State Media.”)

China “on a Treadmill to Hell”

(p. B1) DAVOS, Switzerland — At the World Economic Forum here, chief executives and investors are blaming China for a slump in global markets.
Fears about the country’s downshift, as its official growth slowed to a quarter-century low, have dominated high-level discussions, both during public debates and in smaller, private meetings.
The financier George Soros said at a dinner on Wednesday night [January 20, 2016] that a “hard landing is practically unavoidable,” adding that China is the root of the current financial crisis.
. . .
(p. B6) Kenneth Rogoff, a Harvard economist who has long warned of a potential financial crisis in China, remained skeptical [that the Chinese government will reform its policies]. “There is a big propaganda push to say everything is good, everything is fine.”
Earlier in the week he told attendees at the forum that China’s large accumulation of government debt would one day be a shock to a financial system that “amplifies shocks.”
Others with bearish views on China have kept their claws out. Jim S. Chanos, who once said China was “on a treadmill to hell,” said he remained deeply concerned. His hedge fund, Kynikos Associates, estimated that China’s nominal gross domestic growth in 2015 was 5 percent compared with 15 percent just five years earlier.
“China’s debt problems still lie ahead of it,” Mr. Chanos said on Thursday, referring to concerns about the extent to which China’s seeming economic growth is actually fueled by borrowing.
As for Mr. Soros, he told an audience at the Panorama Restaurant in the Seehof Hotel in Davos this year that the Chinese had waited too long to properly address the transition of its growth model. Asked by a Bloomberg reporter if there was a risk of repeating 2008, Mr. Soros said the market was in a similar time of financial crisis.
“But the source of the disequilibrium is different,” Mr. Soros said, adding that in 2008, the main cause was the United States subprime crisis. “Now,” he said, “the root cause is basically China.”

For the full story, see:
ALEXANDRA STEVENSON. “Fears About China’s Economy Fester at Davos.” The New York Times (Sat., JAN. 23, 2016): B1 & B6.
(Note: ellipsis, and bracketed date and phrase, added.)
(Note: the online version of the story has the date JAN. 22, 2016.)