CCP Internal Resilience – post 5 of 10

Organization Department - Vetting and Evaluation

 

The vetting process for moving up in the hierarchy is serious and it is constant.  At a certain level of middle management, the Central Organization Department (zhongzubu) controls promotions and lateral moves and arranges annual progress reviews.  The Central Organization Department controls the top 5000 or so positions within CCP, and provincial and local organization bureaus control thousands more.  Someone is always watching, and the watching is everywhere.

CCP Internal Resilience – post 4 of 10

Career path, messaging, and training

 

The exams to be accepted for a civil service position take place each spring.  These exams are difficult, and determine one’s career path.  In some years, only about 2% of the college students taking the exam are passed.  Those who pass enter an elite system with lifelong benefits and obligations.

CCP Internal Resilience – post 3 of 10  

A history lesson

One place to seek answers to CCP stability is within Chinese history. This might contain a key to understanding what forces shape relations between the imperial center and the bureaucracy.  In current form, what binds millions of cadres to the Central Committee, or the Politburo, or the General Secretary? Perhaps dynastic history can be a model.

CCP Internal Resilience – post 2 of 10

CCP intraparty authoritarian resilience - no more

In 2003, Andrew Nathan proposed four reasons for authoritarian resilience in CCP.  The four reasons speak to both forms of resilience – resilience against the people and resilience to disruption from inside CCP.  Nathan was reflecting on political developments during the term of Deng Xiaoping and the more or less orderly transitions since.    

Some Notes on CCP Internal Resilience

“Authoritarian resilience” was the explanation in the west for CCP stability post Tian’anmen.  We can distinguish two meanings of CCP resilience over time.  The first describes resilience with respect to the Chinese people. How does the single party authoritarian, if not autocratic, state maintain legitimacy over time? What keeps angry or dissatisfied people out of the streets?

There is another resilience, and that is resilience internal to CCP. What keeps cadres loyal to the system they joined years ago?

Brief Note on the Trade Shootout

It is no surprise to anyone familiar with Chinese thinking on foreign policy or negotiating practice that China is  balking at changing its laws to reflect what the American negotiators apparently thought had been previously agreed. From the Reuters article -

 In each of the seven chapters of the draft trade deal, China had deleted its commitments to change laws to resolve core complaints that caused the United States to launch a trade war: Theft of U.S. intellectual property and trade secrets; forced technology transfers; competition policy; access to financial services; and currency manipulation.

One can marvel at American stupidity, if that is what is involved; or simply invoke the negotiating principle that no items are agreed to until all items are agreed to. One can call it Chinese perfidy, but that would simply imply that the Americans are so uninformed about Chinese negotiating tactics that they should not be in the same room with their counterparties at all.  To paraphrase Harold Washington on politics, trade negotiations ain't beanbag.

So let's get past the propaganda and posturing. This below is what no negotiating is going to change.  It is at the heart of some American thinking on the trade battle.

Recent

  • News: IP theft - no more worries

    News: IP theft - no more worries

     

    Just a brief note -  the FBI has more than 1,100 China IP theft  cases pending against Chinese entities or individuals.  Not a typo - 1,100.

     For American companies not doing business in China - we should not say, no exposure to China - the FBI investigations may still be something of a bulwark against theft.  Although, one notes, most of the investigations and arrests are in arrears of the crime.

    And back nearly a year ago, Mr. Xi promulgated a new IP theft policy which threatened Chinese businesses that steal.  The policy was announced within hours of a Xi-Trump meeting last December, and comprised a coordinated efforts across 38 Chinese government agencies with 38 different punishments.  The insincerity of this announcement, coming immediately upon the leaders' meeting, was palpable.  If you want to believe, you may.  I wrote about this at the time in Everything new is old again

    But with a new Chinese government policy, IP theft in China is no more.

    Now comes the latest entry in China's bid to become the first panopticon state - the cybersecurity law that permits government access to all information, IP or otherwise, stored on any server available to any foreign business operating in China.  China Law Blog has details - China's New Cybersecurity System - There is NO Place to Hide.  From the blog post -

    This result then leads to the key issue. Confidential information housed on any server located in China is subject to being viewed and copied by China’s Ministry of Public Security and that information then becomes open to access by the entire PRC government system. But the PRC government is the shareholder of the State Owned Entities (SOEs) which are the key industries in China. The PRC government also essentially controls the key private companies in China such as Huawei and ZTE and more recently Alibaba and Tencent and many others. See China is sending government officials into companies like Alibaba and Geely and China to place government officials inside 100 private companies, including Alibaba. The PRC government also either owns or controls China’s entire arms industry.

    Simply put, the data the Ministry of Public Security obtains from foreign companies will be available to the key competitors of foreign businesses, to the Chinese government controlled and private R&D system, and to the Chinese arms industry and military.

    The takeaway on this is that the fear of IP theft in China is no more.  What used to be considered theft, done by stealth, is now a legal process.  As Steve Dickinson from China Law Blog says, welcome to the new normal.   And anyway, remember - information wants to be free.

     

     

     
  • Deer in the headlights

    Deer in the headlights

     

    Aggressive moves by the Xi Jinping government have sensitized the world to skullduggery, lying, theft, and threats to foreigners in their own country by Chinese organizations in business and government. Infiltration of politics and government in Australia and New Zealand has become a recurring story. 

    Unfortunately, such actions can bias some people against Chinese everywhere.  So - what to make of Gladys Liu?

    Read more ...  
  • China censorship by extortion in London

    Update at October 7, 2019 - The NBA self-censors for China

    The NBA is a business - we know that.  But the NBA has been the professional league in which players and coaches have had the most freedom to speak their minds about issues of rights and morality.  Now, apparently, that freedom of speech stops at the Chinese border.  The New York Times has the story - NBA executive's Hong Kong tweet starts firestorm in China.

    Daryl Morey, the general manager of the Houston Rockets, tweeted an expression of support for protesters in Hong Kong.  This upset the Chinese Basketball Association, and some Chinese fans, who see Hong Kongers as only hooligans and destroyers of Chinese harmony.  Morey's tweet suggested that he "stands with Hong Kong."  He has now apologized to the NBA's largest international market.  The NBA has disavowed his comment, although it did suggest weakly that he had a right to say what he said.  Of course, the Chinese league commented with the old trope, that Morey had hurt the feelings of all Chinese people (who are basketball fans). 

    Read more ...  

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