Africa: Padding Bank Accounts Of A Few, Freedom Will Be Lost For A Couple Billion?

(THIS ARTICLE IS COURTESY OF THE SAUDI NEWS AGENCY ASHARQ AL-AWSAT)

 

Djibouti on the Rise as Hub for Foreign Military Bases in Africa

Monday, 10 September, 2018 – 10:15
Chinese President Xi Jinping and Djibouti’s President Ismail Omar Guelleh meet at the Great Hall of the People in Beijing, China November 23, 2017. (Reuters)
Djibouti – Sahwqi al-Rayyes
Last year, China launched its first overseas military base in Djibouti, positioning its base only 10 kilometers away from a sophisticated US base with a crew of over 6,000 marines. France, Italy and Japan also boast bases in the neighborhood.

Situated on the northwestern edge of the Indian Ocean, at the southern entrance to the Red Sea, Djibouti controls access to the Suez Canal and the Indian Ocean, home to some of the world’s busiest shipping lanes.

In short, Djiboutian ports overlook waters that account for 25 percent of the world’s exports that flow into Asian and Mediterranean markets.

Since launching its military base, Beijing has not stopped displaying military ambitions on the African continent.

In late June, it hosted the first forum on security and defense cooperation between China and African countries. It lasted over three weeks and highlighted a growing Chinese presence in the continent.

The Chinese military role on the international arena has also been on the rise.

The forum, which will be held once every three years, aims to deepen China’s strategic partnership with Africa, meet mutual security and defense requirements and bolster the preparedness of its armed forces.

Beijing says Djibouti is ideally placed for China to resupply peacekeeping and humanitarian missions and combat piracy off the coasts of Yemen and Somalia.

Joining the scores of military bases, Saudi Arabia is about to complete its first-ever foreign military base in Djibouti.

A base off the shores of Djibouti will reduce war costs spent by the Saudi-led Arab Coalition in Yemen. The base will able to detect and intercept Iranian supplies to the Houthi militias passing through the Somali coast.

A Djiboutian defense official welcomed Saudi Arabia’s military presence in his country, saying that “brotherly relations exist between the two countries, and the military cooperation agreement is overseen by a joint committee.”

Getting approval for opening military bases is not an easy task, however.

The official told Asharq Al-Awsat that his country had previously rejected a Russian request to establish a military base “so that is not used in the conflict in Syria.”

In addition to hosting many Western military bases, Djibouti has also become a focal point for counter-terrorism activities on the African continent and the training of special forces in neighboring countries.

China Trying To Start WW III By Actions Against England In South China Sea?

(THIS ARTICLE IS COURTESY OF THE ‘EXPRESS NEWS’ OF ENGLAND)

 

WW3 WARNING: China UNLEASHES helicopters and warship at British Navy in South China Sea

THE Royal Navy was confronted by China’s military might after a British warship passed close by Beijing-claimed Paracel Islands, in a move the Asian superpower has dubbed “provocation”, with tensions escalating in the region.

HMS Albion out at sea patrolling Asia Pacific Region

Play

Unmute

0:28
/
0:39

Loaded: 0%

Progress: 0%

FullscreenFacebookTwitterShare

HMS Albion sailed passed Paracel Islands in a bid to assert the “freedom of navigation rights” and challenge China’s “excessive claims” over the South China Sea.

Upon reaching the Islands, the warship was met by two Chinese helicopters and a frigate, but both sides reportedly remained calm during the stand off.

China’s navy warned the British vessel to leave Chinese territorial waters.

China’s Foreign Ministry added: “The relevant actions by the British ship violated Chinese law and relevant international law, and infringed on China’s sovereignty.

China strongly opposes this and has lodged stern representations with the British side to express strong dissatisfaction.

“China strongly urges the British side to immediately stop such provocative actions, to avoid harming the broader picture of bilateral relations and regional peace and stability.

“China will continue to take all necessary measures to defend its sovereignty and security.”

The 22,000 ton warship was packed with Royal Marines as it made its route to Hanoi where it docked on Monday after a deployment in and around Japan.

british navy warship passes china claimed island

A British navy vessel was confronted by Chinese military after it sailed near Paracel Islands (Image: GETTY)

However, the Royal Navy insisted they did not enter the territorial disputed region but travelled twelve nautical miles away from the area, in accordance to the internationally recognised territorial limit.

In a statement, a Royal Navy spokesperson said: “HMS Albion exercised her rights of freedom of navigation in full compliance with international law and norms.”

The Paracel Islands are also claimed by Vietnam and Taiwan, as countries in the region compete over territorial claims within the South China Sea.

Dr Euan Graham, a Senior Fellow at the Lowy Institute in Australia, told the Daily Telegraph: “The UK has impressively deployed three Royal Navy surface ships to Asian waters this year, after a long gap between ship visits, to this part of the world.”

British navy warship passes China's claimed paracel islands

The HMS Albion, a Royal Navy assault ship sailed close to the Paracel Islands last week (Image: GETTY)

Chinese military warn US Navy not to fly over SECRET ISLAND

Play Video

He added: “Also, the fact that Albion was coming from Japan and on her way to Vietnam gives the signal a sharper edge to China.”

In June, UK Defence Secretary Gavin Williamson announced plans to send three warship to the South China Sea “to send the strongest of signals” to countries that “don’t play by the rules”.

This follows US Secretary of Defence, James Mattis warning to China, declaring the country would suffer “consequences” if it continued to militarise the South China Sea.

The US has previously announced hopes for more international initiative towards challenging Chinese claimed territories in the South China Sea, after Beijing claimed reefs, islands and built missile systems in the disputed region.

China: People trafficker given 8 years 

(THIS ARTICLE IS COURTESY OF THE SHANGHAI CHINA NEWS AGENCY ‘SHINE’)

 

People trafficker given 8 years

A woman who trafficked 24 Filipino maids into China has been sentenced to eight years behind bars at Shanghai No.1 Intermediate People’s Court.

Liu ran a domestic helper agency and found it was lucrative to import Filipino maids, hailed as the best in the industry, to China, where the need for qualified domestic helpers is increasing.

She contacted two people in the Philippines and formed a people-smuggling network.

Between February and September 2017, they trafficked 24 maids from the Philippines to coastal cities such as Shanghai, Guangzhou and Qingdao, on tourist visas.

 

When they arrived China, Liu picked them up and took them to in inland cities such as Beijing, Chengdu and Xi’an.

Employers said they contacted Liu via friends or ads posted on the Internet. Liu had a catalogue for them to choose from and she brought the maids right to the doorstep. They paid her a commission equal to several months of the maid’s salary.

According to the maids, their monthly income was 6,000 yuan (US$870), but for the first six or seven months, they made 2,000 yuan per month with the rest going into Liu’s pocket.

By charging commissions from both sides, Liu was able to earned 1.2 million yuan in only seven months.

According to the court, Liu cooperated with others to violate immigration rules. As she admitted her guilt, she was granted a lighter sentence. Besides eight years in prison, she was fined 200,000 yuan.

The court said it is risky to recruit illegal maids.

Employers can be fined up to 100,000 yuan and if they have disputes with foreign workers they will find it hard to defend their rights.

According to a report by Labor Daily, Filipino maids are highly-prized for their professionalism and there are about 7 million working around the world. In China, due to lack of standards and training, local domestic helpers cannot provide consistent, qualified service.

The newspaper said there are an estimated 200,000 illegal Filipino maids in China’s mainland where the pay is almost twice that they receive in Hong Kong.

Foreign domestic helpers were entirely banned in Shanghai until July 2015, when high-level foreign professionals living and working in the city were allowed to hire them, but such cases are few so far, according to Shanghai police.

China to continue opening up: Chinese Ambassador to US

(THIS ARTICLE IS COURTESY OF THE SHANGHAI CHINA NEWS SERVICE ‘SHINE’)

 

China to continue opening up: Chinese ambassador to US

Xinhua

Chinese Ambassador to the United States Cui Tiankai has said here that China will continue to open its doors to the global community.

“We cannot develop ourselves behind closed doors… We have to open our door even wider and seek cooperation with others, particularly with countries like the United States,” Cui said at the welcome banquet held by Kentucky Governor Matt Bevin on Monday.

Cui said China-US relations are not zero sum game, but rather will continue to be mutually beneficial. He said Beijing and Washington should deal with trade issues in an effective way.

Addressing Kentucky officials and businesses, Cui said he has full confidence in bilateral cooperation at the provincial, municipal and county levels, adding that the Chinese people came to know the state after the first Kentucky Fried Chicken restaurant opened in Beijing over three decades ago.

Over the past decades, the Chinese people have learned that the state has much more to offer, including Bourbon, race horses, farm products and manufactured goods, prompting the Chinese public and business leaders to develop strong relations with Kentucky, Cui said.

For his part, Bevin said his administration is working to cut red tape for businesses who wish to invest here, highlighting the elaborate transportation web his state boasts.

Bevin admitted that certain trade policies Washington has pursued created uncertainties for bilateral business ties, but pledged to work at a state level to assure foreign investors.

The Great Wall Of China’s Repair Work Is Called “Brutal And Ugly” By Locals

(This article is courtesy of the Shanghai Daily News)

Chinese outrage over ‘ugly’ restoration of Great Wall

中国”最美野长城”被抹平引发众怒

CHINESE social media users were in an uproar Friday over restoration of a 700-year-old section of the Great Wall that has been covered in concrete, turning it into a smooth, flat-topped path.
Known as one of the most beautiful portions of the “wild”, restored wall, the eight-kilometer (five-mile) Xiaohekou stretch in northeast Liaoning province was built-in 1381 during the Ming Dynasty.
Photos posted online showed that its uneven, crumbling steps and plant growth had been replaced as far as the eye could see with a white, concrete-like cap.
“This looks like the work of a group of people who didn’t even graduate from elementary school,” said one user of China’s Twitter-like Weibo platform. “If this is the result, you might as well have just blown it up.”
“Such brutal treatment of the monuments left behind by our ancestors! How is it that people with low levels of cultural awareness can take on leadership positions?” asked another. “Why don’t we just raise the Forbidden City in Beijing, too?”
Even the deputy director of Liaoning’s department of culture Ding Hui admitted: “The repairs really are quite ugly,” according to state broadcaster CCTV.
The Great Wall is not a single unbroken structure but stretches for thousands of kilometres in sections from China’s east coast to the edge of the Gobi desert.
In places it is so dilapidated that estimates of its total length vary from 9,000 to 21,000 kilometers, depending on whether missing sections are included. Despite its length it is not, as is sometimes claimed, visible from space.
Emergency maintenance was ordered for Xiaohekou in 2012 to “avoid further damage and dissolution” caused by “serious structural problems and issues due to flooding” and was completed in 2014, the State Administration of Cultural Heritage said in a statement on its website in response to public and media outcry.
The government body has begun an investigation into the approval, implementation and outcome of the maintenance work, stating that it would deal with work units and personnel found to be at fault severely, “without justifying their mistakes”.
Around 30 percent of China’s Ming-era Great Wall has disappeared over time as adverse natural conditions and reckless human activities — including stealing the bricks to build houses — erode the UNESCO World Heritage site, state media reports said last summer.
Under Chinese regulations people who take bricks from the Great Wall can be fined up to 5,000 yuan ($750), but plant growth on the wall continues to accelerate decay, and tourism, especially to undeveloped sections, continues to severely damage the world’s longest human construction.

Kuwait, Philippines Move to Defuse Domestic Worker Row

(THIS ARTICLE IS COURTESY OF THE SAUDI NEWS AGENCY ASHARQ AL-AWSAT)

 

Kuwait, Philippines Move to Defuse Domestic Worker Row

Tuesday, 1 May, 2018 – 09:00
Overseas Filipino Workers from Kuwait gather upon arrival at the Ninoy Aquino International Airport in Pasay city, Metro Manila, Philippines in February. (Reuters)
Asharq Al-Awsat
Kuwait announced on Monday that it will set up a special commission to address the employment of housemaids in the Gulf state, in what was interpreted as an olive branch extended to the Philippines over the migrant labor row.

Manila announced on Monday that it was prepared to dispatch a delegation to Kuwait to contain the escalating dispute over domestic foreign workers in Kuwait.

The development stood in stark contrast to President Rodrigo Duterte’s announcement over the weekend that Manila’s ban on sending domestic workers to Kuwait was permanent.

Duterte in February prohibited workers heading to Kuwait following the murder of a Filipina maid whose body was found stuffed in her employer’s freezer.

The resulting row deepened last week after Kuwaiti authorities ordered Manila’s envoy to leave the country over videos of Philippine embassy staff helping workers in Kuwait flee their employers.

During its weekly meeting, the Kuwaiti government on Monday said it was opposed to any move “aimed at undermining its sovereignty and its laws”, the official KUNA news agency reported.

The government added however that it will set up a special commission chaired by the minister of social affairs and labor to follow up “on cooperation with friendly states” on the employment of housemaids in Kuwait.

“This is largely a misunderstanding and exaggeration of some minor or one-off cases,” Deputy Foreign Minister Nasser al-Subaih told reporters in Kuwait City.

“We have taken a serious stance … but we do not believe in escalation and want to remain in direct communication to resolve the problem,” Subaih added.

Kuwait and the Philippines had been negotiating a labor deal that could have resulted in the lifting of the ban on Filipinos working in the Gulf state.

The Philippines on Tuesday welcomed Kuwait’s olive branch in the migrant labor row.

Foreign Secretary Alan Peter Cayetano said: “This gesture on the part of Kuwait, a country with which we have a shared history and strong people-to-people ties, will allow us to move forward.”

“We affirm our friendship with the government of Kuwait and its people. The strength of that friendship will withstand this misunderstanding,” he added.

Around 262,000 Filipinos work in Kuwait, nearly 60 percent of them domestic workers, according to the Philippines’ foreign ministry.

Duterte said workers returning from Kuwait could find employment as English teachers in China, citing improved ties with Beijing.

The Philippines has sent millions of its people to work abroad, seeking salaries they cannot get in their relatively impoverished nation.

The money they send back home accounts for about 10 percent of the Philippine economy.

China Continues To Buy Up More Western Technology This Time In Israel

China Continues To Buy Up More Western Technology This Time In Israel

(SHOULD IT BE CONSIDERED TREASON FOR A COMPANY OR PERSON TO SELL MILITARY GRADE TECHNOLOGY TO A COMMUNIST GOVERNMENT?)

Chinese co buys Israel’s Spacecom for $285m

Shaul Elovitch Photo: Eli Yizhar

 (This article is from the courtesy of Globes Publisher Itonut of ISRAEL)

 

Shaul Elovitch has sold Spacecom, which operates the AMOS communications satellites, to Beijing Xinwei Technology.

Spacecom Satellite Communications Ltd. (TASE:SCC) notified the Tel Aviv Stock Exchange (TASE) that it is to be fully acquired by Luxembourg Space Telecommunications for $285 million. Luxembourg Space Telecommunications is owned by Chinese communications company Beijing Xinwei Technology.Spacecom, which operates the AMOS series of communications satellites, is owned by Eurocom Group, which is controlled by Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) controlling shareholder Shaul Elovitch.

The price being paid was a 30% premium on the share’s market price yesterday morning when Spacecom first reported it was in talks to be sold for $285 million.

After the acquisition is completed, Spacecom will be delisted from the TASE but its bonds will continue to be traded on the Tel Aviv Stock Exchange.

Published by Globes [online], Israel business news – www.globes-online.com – on August 24, 2016

© Copyright of Globes Publisher Itonut (1983)

Nine schoolchildren stabbed to death in northern China

(THIS ARTICLE IS COURTESY OF THE GUARDIAN NEWS AGENCY)

 

Nine schoolchildren stabbed to death in northern China

Suspect arrested in Shaanxi province after attack in which 10 others were wounded

Xi’an, the capital of Shaanxi province
 Xi’an, the capital of Shaanxi province. Seven girls and two boys were killed in the attack. Photograph: Xinhua/Barcroft Images

Nine children have been stabbed to death and 10 others injured on their way home from school in northern China, in one of the deadliest such attacks in the country in recent years.

The 28-year-old suspect, named only as Zhao from Zhaojiashan village, was arrested and the injured children were taken to hospital, Mizhi County’s public security bureau in Shaanxi province said.

Seven girls and two boys were killed, the official Xinhua news agency said, citing local police. The children’s ages were not disclosed, but middle schoolers in China are usually aged between 12 and 15.

The suspect told the authorities he had been bullied when he was a pupil at the school, had hated his classmates and decided to use a dagger to kill people on Friday, the bureau said.

Footage posted by the Paper, a daily publication, on the video-sharing website Miaopai shows two or three bodies lying in a narrow lane. A person is heard shouting: “Hurry, call the police” before officers are seen running and later marching a man down the street.

Agence France-Presse could not immediately verify the authenticity of the video.

Mass stabbings are not uncommon in China. In February, a man killed a woman and injured 12 others in a busy Beijing shopping centre.

In May last year, a man with mental health problems killed two people and injured 18 in south-west Guizhou province.

Attackers have also increasingly targeted schoolchildren. In January 2017, a man armed with a kitchen knife wounded 11 children in a kindergarten in the Guangxi Zhuang autonomous region.

In February 2016, an assailant wounded 10 children in Haikou, in the southern island province of Hainan, before killing himself.

Chinese authorities have increased security around schools and campaigners have called for more research into the causes of such acts.

Violent crime has risen in recent decades as the country’s economy has boomed and the wealth equality gap has increased.

Studies have also pointed to a rise in mental health problems, with some linked to stress as the pace of life becomes faster and support systems decline.

Since you’re here …

… we have a small favour to ask. More people are reading the Guardian than ever but advertising revenues across the media are falling fast. And unlike many news organisations, we haven’t put up a paywall – we want to keep our journalism as open as we can. So you can see why we need to ask for your help. The Guardian’s independent, investigative journalism takes a lot of time, money and hard work to produce. But we do it because we believe our perspective matters – because it might well be your perspective, too.

I appreciate there not being a paywall: it is more democratic for the media to be available for all and not a commodity to be purchased by a few. I’m happy to make a contribution so others with less means still have access to information.Thomasine, Sweden

If everyone who reads our reporting, who likes it, helps fund it, our future would be much more secure. For as little as $1, you can support the Guardian – and it only takes a minute. Thank you.

US AND CHINA HEADED FOR WAR OVER TAIWAN?

(THIS ARTICLE IS COURTESY OF THE SOUTH CHINA MORNING POST AND FROM ANDY TAI’s GOOGLE+ ACCOUNT)

 

ARE THE US AND CHINA HEADED FOR WAR OVER TAIWAN?

As Beijing and Washington position themselves for a trade war, Trump should beware playing the Taiwan card – or he may find his actions lead to a real war

BY WANG XIANGWEI

Are the Chinese mainland and Taiwan headed down an inevitable path to war – one that is likely to see the United States join the fray?

This slow-burning question came to the fore again last week when the mainland launched live-fire drills in the Taiwan Strait on Wednesday amid fiery rhetoric from Chinese state media. On Thursday morning, Chinese state media started to post online videos of helicopters and warships firing at targets at sea but Taiwandismissed the exercises as “routine”.

This came after President Xi Jinping had presided over a massive naval parade off Hainan island a week earlier, one that involved 48 warships including China’s sole operating aircraft carrier and more than 10,000 servicemen – the largest such exercise since the founding of the People’s Republic in 1949.

PLA submarines, naval vessels and fighter jets accompany China’s aircraft carrier Liaoning on exercises in the South China Sea. Photo: Xinhua

The state media said Beijing was sending a loud and clear warning to Taipei and Washington amid heightened tensions caused by Taiwanese leaders’ open advocacy for independence and increased American support for the Taiwanese government.

Over the past few weeks, Chinese officials and state media have ratcheted up the rhetoric against Taipei and Washington, the largest supplier of arms to the island.

Trump’s trade war with China is just his opening gambit

Referring to Thursday’s live-fire drills, Cui Tiankai, the Chinese ambassador to US, warned in a lecture at Harvard University that China would try every possible means to defend its sovereignty and territorial integrity.

Taiwanese President Tsai Ing-wen speaks on the telephone to Donald Trump. Photo: EPA

Earlier this month, a spokesman for the Taiwan Affairs Office, said any outside forces that attempted to “play the Taiwan card” would find their efforts “futile” and would hurt themselves if they went “over the line”, according to the official China Daily.

The remark was clearly aimed at US President Donald Trump and his administration which in recent months has taken a number of significant steps to warm ties with Taipei. As Beijing and Washington are currently positioning themselves for a possible trade war, Trump’s intention to play the Taiwan card again is even more dangerous because this would further destabilise bilateral ties or even worse, could lead to a real war.

A nasty US-China fight is inevitable. But it needn’t be terminal

True to Trump’s unconventional and unpredictable presidency, he first started to play the Taiwan card in the transition to the White House when he took a congratulatory call from the Taiwanese president Tsai Ing-wen, breaking a nearly 40-year-old diplomatic protocol governing China-US ties.

At that time, Trump made it clear his intention was to use Taiwan as a play to force more concessions on trade from China. His suggestion then was overwhelmingly met with criticism and cynicism almost everywhere, even in Taiwan where it raised concerns that the island could be used as a pawn and discarded easily.

China sees Taiwan as a province and usually reacts strongly to any foreign country having official contacts with the Taiwanese government or sale of arms to the island, particularly from the United States.

Now one year later, Trump’s intention to play the Taiwan card again signals a much broader agenda targeting China. Almost all the moderating voices in his administration have been forced out and replaced by more hawkish officials including the soon-to-be secretary of state Mike Pompeo and the National Security Adviser John Bolton – both of whom are known for tough stances against China and pro-Taiwan views.

Tough on China: US national security adviser John Bolton. Photo: Reuters

In recent months, his administration has approved licences for American firms to sell Taiwan technology to build submarines and signed the Taiwan Travel Act to encourage visits between American and Taiwanese officials. All these have invited protests from China.

A major test will come in June when the American Institute in Taiwan, the US de facto embassy, is slated to move into a new building. There has been growing speculation that Bolton or some other senior US official will attend the ceremony. If that happens, Beijing will regard it as a major provocation.

It is interesting to note that amid the war of words with Washington over trade, some elements in Beijing’s propaganda machine have been using warlike language to give the impression that China will not back down from the trade spat and will fight the US to the very end. That could well be a negotiation tactic, as trade issues are negotiable after all. But from the Chinese perspective, the Taiwan issue is absolutely non-negotiable. It is a clearly marked red line.

The Taiwanese leaders, encouraged by the latest warming signs from Washington, have started to openly advocate independence, which is a major taboo for Beijing and seen as breaking the status quo.

Over the past 40 years, Beijing and Taipei have tried to maintain the status quo in which both sides recognise the island as part of China, even while neither government recognises the legitimacy of the other. Taiwan agrees not to broach independence, in return mainland China does not use force to take over the island. Washington recognises this one-China principle but maintains close unofficial ties with Taiwan and provides the island with arms under the Taiwan Relations Act – a constant source of friction with Beijing.

Taiwanese Premier William Lai. Photo: EPA

This month, the Taiwanese premier William Lai publicly described himself as “a political worker for Taiwanese independence”. Although this was not the first time he has said this, Lai’s latest declaration caused serious worries in Beijing in the context of Washington’s warming ties with Taipei.

The heightened tensions over the Taiwan Strait have come as Xi embarks on his second term as China’s most powerful leader since Mao Zedong. Last month the national legislature repealed the term limits on the presidency, enabling Xi to rule as long as he likes.

With Xi trying to assert China’s power on the international stage, flexing China’s military muscle in the Taiwan Strait in the name of pushing back against the independence movement is likely to bolster Xi’s support on the mainland.

Chinese President Xi Jinping has been trying to assert China’s power on the international stage. Photo: AFP

China’s official line has always been that it will seek peaceful reunification with Taiwan but not rule out using force to take it over. In the past, officials and state media have tended to emphasise the peaceful reunification part – more recently they have highlighted the bit about using force. Moreover, China has never publicly stated a timetable for reunification with Taiwan but some mainland analysts have started to preach the idea that reunification could take place by 2035 or 2050.

As China beats its war drum, who should hear its call?

These assumptions stemmed from Xi’s landmark report at the Communist Party’s 19th congress in October when he outlined a clearly defined timetable to realise what he called the Chinese dream of national rejuvenation – China would basically become a modern country by 2035 and a world power by 2050.

For an ambitious leader like Xi, reunification with Taiwan has to be an integral part of the dream.

So will the US join the fray if push comes to shove? Many people have mistakenly assumed the Taiwan Relations Act requires the US to come to Taiwan’s defence. In fact, the law contains no explicit guarantee.

Besides, there is a big question over whether the US would risk waging a full-blown war with China over Taiwan. In the short term, if the current trend continues with the US determined to play the Taiwan card – which in turn helps embolden the pro-independence movement in Taiwan – China will probably feel compelled to accelerate its military preparations and increase the frequency of military shows of strength like the one last week. All this means that tensions over the Taiwan Strait will get much worse unless Trump rethinks his plan to play the Taiwan card.

Wang Xiangwei is the former editor-in-chief of the South China Morning Post. He is now based in Beijing as editorial adviser to the paper

How Does Centrally Planned China Raise Capital?-Answer, Hong Kong

(THIS ARTICLE IS COURTESY OF FORBES INVESTING MARKET MOVES)

 

Investing #MarketMoves

How Does Centrally Planned China Raise Capital?

I write financial newsletters for investors on how to profit in Asia.  Opinions expressed by Forbes Contributors are their own.

A general view from Victoria Peak shows Victoria Harbour and the skylines of the Kowloon district (background) and Hong Kong island (foreground) on July 3, 2017. (ANTHONY WALLACE/AFP/Getty Images)

Through careful planning and strategic economic policy reforms, mainland China has evolved from a country struck by poverty to the world’s second largest economy. But don’t think this was solely the Chinese bureaucrats’ doing.  The U.K.’s special “present” to China proved to be essential to the story of China’s miraculous development.

In 1997, Tony Blair, who was U.K.’s prime minister at the time, went to Hong Kong to give the city back to Beijing. 156 years of colonial rule had completely transformed the city.

What was once a backwards fishing village, was now one of the worlds’ most important financial hubs.

Hong Kong currently has the highest concentration of international banks in the world. The 71 largest international banks and almost 300 international fund management companies are housed in Hong Kong. The island also has most beneficial legal regulations for both residents and companies.

China basically saw Hong Kong attending a 150 yearlong financial course. The financial powerhouse now belongs back to the Middle Kingdom that uses it to funnel foreign capital into its centrally planned economy. Something the mainland wasn’t able to do by itself.

Never before has a centrally planned economy ever received such a precious gift as Hong Kong.

How Hong Kong feeds China

Companies in planned economies – like China’s – typically have a hard time raising capital. That makes Hong Kong a key factor in China’s economic development.

With its leading financial institutions in place, Hong Kong is able to raise capital unhindered by political or economic instability. A problem free market economies like in the U.S. generally have to deal with.

Four years before Hong Kong was given back to China, it was responsible for 27% of China’s GDP. Let’s put this in perspective. At the time, only 6.5 million people lived in Hong Kong while mainland China had a population of 1 billion people. It’s easy to see that Hong Kong’s impact on China’s economic growth was tremendous.

The mainland did catch up over time as the graph below clearly illustrates. By 2017, Hong Kong accounted for merely 3% of the GDP.

One Road Research

Hong Kong’s Share of China’s GDP

Hong Kong’s return in 1997 coincided with the dramatic rise of China’s GDP.

One Road Research

China’s GDP in Current US$

China’s economic growth was partially due to twenty years of export-oriented policies from Beijing. But without Hong Kong’s well-established financial markets, necessary funds couldn’t have been raised.

Ruby Rose Creations

Tips and Tricks on Growing Beautiful Red Roses

You💝Me

💫YOU. Dancing in my heart. Running in my mind. Stop in front of me and smiling with me. O! ME. Who are YOU?💫

Almost Geoscientist

Explore The World

The Silent Imprint

Contemplating Life.

Fikenbladet

humor bøker quiz krim vitser religion

Kolkata ki Duniya

Kolkata ki Khabar

%d bloggers like this: