Huawei - Taking a Fall, Hoping for a Call

 

Pardon the soccer reference.  But to my mind, that is the Huawei move.  But Huawei has the support of the fans, at least in China, and they are vocal.

Don Clarke, professor of law at George Washington University, has penned this response to the declaration of the Zhong Lun law firm in Beijing, in support of Huawei as an innocent private company caught in a nasty trade spat.  According to the declaration, no company in China is ever required to comply with demands from the central government to install spyware or backdoors in any communication equipment.   Clarke points out that this is misleading and inaccurate.  Chinese law says nothing about what provincial and local governments might demand from a company, and in any case, law is not a constraint. 

“There’s a whole variety of pressures that the government can bring to bear on a company or individual, and they are not at all limited to criminal prosecution Clarke says.  “China is a Leninist state that does not recognize any limits to government power.”

This paper was published in the Journal of the Zhejiang Province School of Administration (otherwise known as Party School) in 2015.

So far as I know, it is the only original contribution by a foreign author to this Journal.  Since the Journal is from CCP in Zhejiang, one of the wealthiest and most sophisticated provinces in China, it is as well respected as a CCP journal can be.

The paper is way too long for a blog read.  I outline a way for CCP to provide meaningful voice to populations angry over land thefts, pollution problems, and corruption.  Among other suggestions, a ready-in-waiting conflict resolution organization, structured at the provincial level, could be brought to bear on incidents of mass protest.  A stand-still agreement is necessary to force parties to negotiate.  This is one way to provide voice to Chinese people in the absence of democracy. 

This is a theoretical paper, although no one in China would describe it that way.  A bit too clear and direct.  The paper was presented at a conference at Zhejiang Business and Financial University in 2015, although my presentation was kept apart from those of other presenters.  I gave a more or less private briefing to about 30 faculty and students - either to inoculate others from dangerous ideas or provide me with a rapt audience.  Probably both are true.  The presentation was in the school's Party conference room.  

 
What Chinese are talking about ... real fake news

You know that China is increasing pressure on every state it can bully.  The bullying is easiest when the victim state has a substantial share of its GDP connected to China, whether as exports or as Chinese FDI coming in.  Now come fake news stories published in China, quoting New Zealand politicians approving of Chinese policies on the Belt and Road initiative.  New Zealand is in a tough spot. 

A Note on the Middle Income Trap

In the last couple of years, a number of China political observers have commented on the dangers to China of the middle income trap.  The fear is that the Chinese economy will fall into the trap. Since economic growth is the remaining claim to legitimacy for CCP, a substantial slowdown from real growth rates of 6 to 15 per cent per year, which obtained in the last forty years, will be disturbing to the harmony that keeps CCP in power. 

In what follows I am not making direct claims for or against the middle income trap in China, only describing the concept. 

Huawei - Lie down with dogs, get up with fleas

You know the meme – when you work with bad guys, you should expect to be labeled a bad guy. I mean no disrespect to the thousands of Chinese companies doing business across the world that manage to be profitable without intimate Chinese government relations.  But in our globalized, internet era, it is impossible for a high tech company, particularly one as fundamentally important to internet networks, to not be tarnished with the specter of theft of intellectual property and CCP internet control and monitoring of Chinese businesspeople, students, even foreigners.

Probably no one outside a small group of analysts has the actual evidence of real dirt on Huawei.  But that is the risk of being a national champion in China.  If the government is promoting you, then there must be a government interest in promoting you, beyond just “go team.”  This is simply Chinese practical reasoning.

But it seems that lying down with dogs is more than just a saying here.  In his extraordinary Sinocism news blog, Bill Bishop continues the Huawei stories.  From the February 9 edition, with no repetition in the stories (all should be clickable) -

Another update at July 24, 2019 - Boris Johnson became Prime Minister today.  From the South China Morning Post -

Boris Johnson, Britain’s prime minister-designate, said his government would be very “pro-China”, in an interview with a Hong Kong-based Chinese-language broadcaster shortly before he was chosen to succeed Theresa May on Tuesday...

Speaking to Phoenix TV, Johnson backed Chinese President Xi Jinping’s infrastructure-based Belt and Road Initiative and said his government would maintain an open market for Chinese investors in Britain.

Crash out is now scheduled for October 31 - Halloween in the US, when goblins arrive. 

Recent

  • Once Upon a Time, America

    Once Upon a Time, America

     

    At the end of 2018, I wrote a series of posts on similarities between Xi and Trump, CCP and GOP.  See below.

    Now, about six weeks before the election, Barton Gellman at the Atlantic has an analysis of how Trump can disrupt the election and refuse to leave.   This is by no means the only story like this, and the idea seems more and more possible.  What if Trump Refuses to Concede?

    Read more ...  
  • A Quick Voting Guide

    A Quick Voting Guide

    We get plenty of advice about how to be a good or strong leader – ask others for input, don’t take all the credit, don’t micromanage … but these are modes of practice.  When we look around, there is surprisingly little advice on the sort of moral qualities a leader should possess.  Here is a quick review.

    Read more ...  
  • Everything old is new again – Inner Mongolia

    Everything old is new again – Inner Mongolia

    If you’ve gotten tired of depressing news from Tibet, Xinjiang, and Hong Kong, there is a new oppression to watch in Inner Mongolia. As in the other provinces comprising mostly non-Han people, the new policy requires forced language change and erasing of traditional culture.

    Read more ...  

Resources

Economics Blogs

Party News

Australian National University ANU and related

History, Language and Culture Basics

Contemporary Economics, Governance, and Law

Economics and Cultural History - Interpretation

Work on contemporary China, academics and journalists but in the popular media

Work on contemporary China, mostly in the popular media

Philosophy, Daoist and Confucian Studies

Political Reference Documents