China Will Be World High-tech Leader of Fourth Industrial Revolution


Illustration: Craig Stephens

Edward Tse, founder and CEO of Gao Feng Advisory Company, a global strategy and management consulting firm, says in his SCMP Column article “Trade war or not, from AI to blockchain and new energy vehicles, China is on the front row for the Fourth Industrial Revolution”, “China is rapidly turning a corner towards becoming an innovation hub in advanced technologies, and the trade war with the US will ultimately not prevent this”

Tse says in the article, “The Chinese are fully embracing new and emerging technologies like artificial intelligence, the internet of things and blockchain, as well as 5G, to further enable innovations. Governments at both central and local levels, as well as the private sector, are investing significantly in revolutionary fields. These technology breakthroughs will enable a higher level of automation, connectivity and intelligence, as well as more game-changing business models.”

China’s high-tech achievements are prominent. In 2017, its internet and technology sector grew at 18% much higher than its overall economic growth rate of 6.9%.

Twenty years ago China did not have any world’s largest publicly traded tech companies, but now China has nine of the top 20 and the US has 11.

US tariff hikes may make quite a few low-tech firms in difficulties and even bankrupt and lots of their employees unemployed, but cannot reduce China’s investment of funds and efforts in its switch to innovation- and creation-geared economic growth. That is why the US is desperate now as proved by US Vice President Pence’s recent wholesale criticisms of China.

Pence does not know that his speech is regarded by Chinese elite as insult of their talents and integrity. He is ignorant of the well-known Chinese saying “Shi (meaning talented Chinese elite) can be killed but not insulted.” It’s a well-known advice to Chinese emperors on avoiding insult of Shi. In my book “Tiananmen’s Tremendous Achievements” I tell the stories of Shi’s revenges about that saying on Wu Zixu’s whipping of the corpse of King Ping of Chu (one of the largest kingdoms in China’s Spring and Autumn Period (770 BC to 476 BC) and Lu Siniang’s assassination of Emperor Yongzheng of the Qing Dynasty (1644 to 1912).

I am afraid Pence has sowed the seed of hostility among Chinese elite. There may be long-term enmity between China and the US. Today China has no intention to replace the US as world leader but Pence’s insult will imbue Chinese elite with the ambition to surpass the US by far as revenge.

Pence’s attempt to place all-round pressure on China is a poor strategy to win the trade war. He will only get the contrary. He will make China firmer and more united in resisting US attacks.

Know yourself and know your enemy, you will never be in peril in war – Sun Tzu.

The US is repeating its error of not knowing its enemy in its current trade war just like it did in the Korean War.

Comment by Chan Kai Yee on SCMP’s column article, full text of which can be viewed at https://www.scmp.com/comment/insight-opinion/world/article/2167192/trade-war-or-not-ai-blockchain-and-new-energy-vehicles?aid=197778625&sc_src=email_2366189&sc_llid=59346&sc_lid=155764624&sc_uid=9s7j1BCrXN&utm_source=emarsys&utm_medium=email&utm_campaign=GME-O-TradeWar&utm_content=hkrow-181009.

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Pentagon chief not expecting ties with China to worsen even as tensions rise


Idrees Ali October 2, 2018

PARIS (Reuters) – U.S. Defence Secretary Jim Mattis said on Monday he did not see relations between the United States and China worsening, a day after his trip to China was canceled and tensions have started affecting military ties.

The United States and China are embroiled in a trade war, sparked by U.S. President Donald Trump’s accusations that China has long sought to steal U.S. intellectual property, limit access to its own market and unfairly subsidize state-owned companies.

Reuters reported on Sunday that China canceled a security meeting with Mattis that had been planned for October. A U.S. official, speaking on the condition of anonymity, said Mattis was no longer going to China.

“There’s tension points in the relationship, but based on discussions coming out of New York last week and other things that we have coming up, we do not see it getting worse,” Mattis told a small group of reporters traveling with him to Paris.

“We’re just going to have to learn how to manage this relationship … We’ll sort this out,” Mattis added.

Mattis said he would talk to his Chinese counterpart directly “when the time is right.”

Friction between the world’s two biggest economies is moving beyond trade, with Trump accusing Beijing of seeking to interfere in congressional elections.

On Sunday, a U.S. Navy destroyer sailed near islands claimed by China in the South China Sea. Just days before, the U.S. military flew B-52 bombers in vicinity of the South China Sea.

While such operations are common, they have led to angry reactions from China in the past. Beijing’s claims in the South China Sea, through which about $5 trillion in ship-borne trade passed each year, are contested by Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

China recently denied a request for a U.S. warship to visit Hong Kong and postponed other joint military talks in protest against a U.S. decision to impose sanctions on a Chinese military agency and its director.

China has been particularly angered by recent overtures by the United States toward Taiwan.

The United States last week approved the sale of spare parts for F-16 fighter planes and other military aircraft worth up to $330 million to Taiwan, which China considers a wayward province.

Washington has no formal ties with Taiwan but is bound by law to help it defend itself and is the island’s main source of arms. China regularly says Taiwan is the most sensitive issue in its ties with the United States.

“We’ve just got to sort out, as I’ve said before, when we step on each others toes, how we’re going to deal with it,” Mattis added.

Reporting by Idrees Ali; Editing by Toby Chopra

Source: Reuters “Pentagon chief not expecting ties with China to worsen even as tensions rise”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


Spreading Hostility against China among Americans Dangerous


Peter Marino’s commentary “Commentary: China’s next ideological front” published by Reuters the day before yesterday proves quite a few US elites have sunk deep in Thucydides Trap

Mr. Marino accused China of spreading its values in the world in order to spread hostility against China among world people, especially American people.

According to Mr. Marino, as both the US and China are products of revolution, both think now is the time to trumpet and spread their values. China’s Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era is indeed trumpeting the success of Chinese system but it by no means spreads Chinese values in the world.

Chinese President Xi Jinping has made it very clear that China does not want to export its model. In fact Xi is wise to have the insight that it is impossible to export a country’s model.

The US has strived and even fought wars for regime changes to export its system. It has succeeded in bringing regime changes in Egypt, Lybia, etc. peacefully and in Iraq and Afghanistan with wars, but has it succeeded in spreading there democracy, openness, civil liberties, and a boisterous public sphere that the US is committed to?

What Mr. Marino accuses China of in his article is all what China has been doing domestically such as censorship of foreign entities’ publication in China and disallowing regarding Taiwan and other parts of China as independent countries. China has never conduct such censorship abroad nor is it able to do so abroad.

Mr. Marino accused the Confucius Institutes China has set up in US colleges. Those are but institutes for cultural exchanges. US universities have also set up lots of American cultural centers in China. Such cultural exchanges aim at enhancing the friendly relationship between the two peoples.

Certainly each country’s cultural exchange institutes advocate its own values in the other’s country. If a country’s values are popular in another country, it will be accepted by the people there. Forcing one’s values on the others will never do.

Mr. Marino’s worry about China’s Confucius Institutes proves that he believes that US cultural centers are unable to make Chinese accept US values but China’s are able to. That is quite normal, Chinese culture has been well established for thousands of years. It is certainly not easy to use American values to convert Chinese people.

If one’s model is wonderful, it will attract lots of others. There is no need of hard sales. That was why Confucius gave the teaching: “If people afar do not obey, develop culture and morality to attract them.”

The US, instead, develops military power to scare others to obey. Does it work? No, even small and backward ISIS would not obey and is determined to fight to the bitter end.

Thucydides Trap has mostly given rise to war. Does Marino want to have a war between the US and China by spreading hostility against China among American people?

Beware of the danger please!

As a matter of fact in spite of the difference in values, China and the US can still be friends if neither of them wants to force its values on the other. They can be friend especially as they have lots of common interests. Even a trade war will hurt both countries severely let alone a disastrous military war.

Comment by Chan Kai Yee on Reuters’ article, full text of which can be viewed at https://www.reuters.com/article/us-marino-china-commentary/commentary-chinas-next-ideological-front-idUSKCN1G0233.


U.S. gets warm words from China’s Xi ahead of Trump visit


U.S. Secretary of State Rex Tillerson (L) shakes hands with Chinese President Xi Jinping (R) before their meeting at the Great Hall of the People on September 30, 2017 in Beijing, China. REUTERS/Lintao Zhang/Pool

Reuters Staff September 30, 2017 / 9:22 PM

BEIJING (Reuters) – Chinese President Xi Jinping offered warm words for U.S. President Donald Trump on Saturday, calling him a friend and saying he expected Trump’s visit to China in November would be “wonderful”.

China’s relationship with the United States has been strained by the Trump administration’s criticism of Chinese trade practices and by demands that Beijing do more to pressure North Korea to halt its nuclear weapons and missiles programs.

Xi and Trump met for the first time in person at Trump’s Mar-a-Lago estate in Florida in April. Trump has since played up his personal relationship with Xi, even when criticizing China over North Korea and trade.

Meeting U.S. Secretary of State Rex Tillerson at Beijing’s Great Hall of the People, Xi said he had enjoyed his meetings with Trump and that the two had made considerable efforts to push the development of China-US relations.

“The two of us have also maintained a good working relationship and personal friendship,” Xi said, in comments in front of reporters.

“I believe that President Trump’s upcoming visit to China means an important opportunity for the further development of China-U.S. relations,” Xi added. “And I believe his visit will be a special, wonderful and successful one.”

In comments later reported by China’s Foreign Ministry, Xi added that cooperation was the only correct choice for both countries, whose common interests far outweighed their differences.

Both countries must “on the basis of respecting each other’s core interests and important concerns appropriately handle, via dialogue and consultations, differences and sensitive issues”, the statement cited Xi as saying.

Trump will travel to Asia in November for the first time since becoming president, stopping in Japan, South Korea, China, Vietnam and the Philippines on a trip expected to be dominated by the North Korea nuclear threat.

Tillerson told Xi that Trump and his wife Melania were looking forward to going to Beijing.

“This is a relationship that continues to grow and mature on the strength of the relationship between yourself and President Trump. And we look forward to advancing that relationship at the upcoming summit,” he said.

There was no mention of North Korea in comments made in front of journalists at any of Tillerson’s meetings, which also included top diplomat State Councillor Yang Jiechi and Foreign Minister Wang Yi.

China’s Foreign Ministry, in separate statements on Tillerson’s meetings with Yang and WanWang, simply said they exchanged views on the situation on the Korean peninsula, without elaborating.

Reporting by Phil Stewart and Ben Blanchard; Editing by Andrew Bolton

Source: Reuters “U.S. gets warm words from China’s Xi ahead of Trump visit”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


Quiet success for China at G20 as Xi avoids drama and spotlight


FILE PHOTO – U.S. President Donald Trump and Chinese President Xi Jinping (R) shake hands prior to a meeting on the sidelines of the G20 Summit in Hamburg, Germany, July 8, 2017. REUTERS/Saul Loeb/ Pool/File Photo

By Ben Blanchard | BEIJING Mon Jul 10, 2017 | 9:23am EDT

From U.S. anger over inaction on North Korea to a festering border dispute with India and the ailing Chinese Nobel laureate Liu Xiaobo, last week’s G20 summit was strewn with minefields for China’s President Xi Jinping.

By chance or by strategy, Xi and his officials picked their way through unscathed.

Beijing is ultra-sensitive about Xi’s image and ensuring he gets the respect it sees as his due as leader of an emerging superpower, especially when traveling to Western countries where it cannot so tightly control the public narrative.

Diplomatic sources in Beijing, speaking ahead of Xi’s trip to the G20 gathering in the German city of Hamburg, said Chinese officials had in private expressed nervousness that he could be asked awkward questions about North Korea, or the cancer-struck Liu, jailed for 11 years in 2009 for “inciting subversion of state power”.

In the end it was U.S. President Donald Trump’s meeting with Russian President Vladimir Putin, amid accusations Russia interfered in the U.S. election, and Trump’s refusal to return to the Paris climate agreement that dominated the limelight.

Xi, by contrast, avoided controversy in his bilateral meetings and reaffirmed China’s commitment to the Paris deal and to an open global economy, in what the official China Daily called the “burnishing of (his) reputation”.

“Nobody talked about the South China Sea. No one talked about trade. Everyone was happy with Xi. I think he played this well,” said Ulrich Speck, senior fellow at the Elcano Royal Institute in Brussels.

“All eyes were on Trump and Putin. But the fact that there was no U.S.-China clash was at least as important. Xi stayed out of the alpha-male fight. China presented itself as a partner to Europe.”

Chinese Foreign Minister Wang Yi said Xi “made it clear that the G20 should adhere to taking the path of open development and mutual benefit leading to all-win results, support a multilateral trade mechanism, and promote international trade and investment”.

“China was in a good place at G20, with reasonable policies,” said Jin Canrong of the School of International Studies at the Renmin University of China, who has advised the government on diplomatic matters.

“So President Xi was comfortable and positive there.”

DON’T MENTION TAIWAN

Potentially the biggest test was Xi’s meeting with Trump, who in the run-up to Hamburg had voiced frustration over China’s inability to rein in its troublesome erstwhile ally, North Korea.

In the event, Trump returned to the conciliatory tone struck at their first meeting in April, telling the Chinese leader it was “an honor to have you as a friend” and he appreciated actions Xi had already taken to try to dissuade North Korea from pursuing nuclear weapons.

Influential Chinese state-run tabloid the Global Times said in an editorial on Monday that the Xi-Trump meeting had defied “the naysayers in the West”.

“Beijing and Washington saw friction on issues including Taiwan and the South China Sea ahead of the meeting, and there was speculation from Western public opinion that the China-U.S. ‘honeymoon’ had come to an end. But the Xi-Trump meeting repudiates such speculation,” the paper said.

Speaking to reporters later on Air Force One, U.S. Treasury Secretary Steven Mnuchin said the Trump-Xi meeting lasted more than an hour-and-a-half, and would have gone on longer had they not had to leave for other engagements.

Ruan Zongze, a former Chinese diplomat now with the China Institute of International Studies, a think-tank affiliated with the Foreign Ministry, said Xi was much more upbeat than when he spoke to Trump a few days ahead of G20 and mentioned certain unnamed “negative factors” in their relationship.

“Even on trade Trump underscored that he wants cooperation,” Ruan said.

China’s biggest concern had been U.S. policy toward self-ruled Taiwan, after the Trump administration approved a $1.42 billion arms package for Taiwan, claimed by China as its own.

Neither government mentioned Taiwan in their respective accounts of their G20 meeting.

Chinese officials were at pains to point out their good relations with the new administration in Washington.

Vice Finance Minister Zhu Guangyao told reporters in Hamburg that the Chinese and U.S. teams dealing the bilateral financial relationship clearly understood that both would be hurt by fighting with each other.

“Our strength is communicating every morning and every evening. This is unprecedented,” Zhu said.

NO DRAMA, FOR NOW…

On India, where China has over the past few weeks accused New Delhi of provocation by sending troops across the border in a disputed region, Xi avoided drama by not having a formal bilateral meeting with Indian Prime Minister Narendra Modi, though India’s foreign ministry said they did speak.

Even on Liu Xiaobo, Xi avoided being put on the spot, with China on Saturday allowing a U.S. and German doctor to meet him at his hospital in northeastern China.

Still, the faultlines remain in the tricky China-United States relationship.

China may respond more assertively if, for example, more Chinese entities are sanctioned by the United States over North Korea or Trump raises barriers to Chinese goods as he has frequently threatened, said a senior Beijing-based Western diplomat.

“China has been restrained so far in reacting to Trump, but that is unlikely to last,” said the diplomat, speaking on condition of anonymity. “Things are gearing up to be a summer of drama between China and the United States.”

(Additional reporting by Gao Liangping in Beijing, Roberta Rampton in Washington and Noah Barkin in Hamburg; Editing by Alex Richardson)

Source: Reuters “Quiet success for China at G20 as Xi avoids drama and spotlight”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


Trump keeps it friendly with Xi at G20 on North Korea threat


U.S. President Donald Trump and Chinese President Xi Jinping (R) meet on the sidelines of the G20 Summit in Hamburg, Germany, July 8, 2017. REUTERS/Saul Loeb, Pool

By Jeff Mason | HAMBURG Sun Jul 9, 2017 | 9:07am EDT

U.S. President Donald Trump took a conciliatory tone on Saturday at a meeting with Chinese President Xi Jinping where the leaders agreed to keep working on two pressing issues: the nuclear threat posed by North Korea and bilateral trade irritants.

Trump campaigned in last year’s presidential election on cracking down on China for its trade practices, but he softened his rhetoric after taking office, saying he wanted to work with China on the nuclear issue.

When the two leaders first met in April at Trump’s Florida resort, they appeared to hit it off. Trump called Xi a “good man” as he urged him to use Beijing’s economic clout to force North Korea to curb its nuclear weapons program.

Lately, Trump has expressed some impatience on China’s role in North Korea – particularly after Pyongyang launched an intercontinental ballistic missile that some experts believe could have the range to reach Alaska, and parts of the U.S. West Coast.

His administration made new arms sales to Taiwan, imposed sanctions on two Chinese citizens and a shipping company and put China on a global human trafficking list. It also accused a Chinese bank of laundering money for Pyongyang.

The White House is also debating trade actions against Beijing, including tariffs on its steel exports and a few days before the G20 talks, Trump complained that trade between China and North Korea had grown.

But he showed none of that impatience on Saturday, when the leaders met at the invitation of Xi at the tail end of the G20 in Germany.

“It’s an honor to have you as a friend,” Trump told Xi, telling him he appreciated actions he had already taken on North Korea.

“As far as North Korea is concerned, we will have, eventually, success. It may take longer than I’d like. It may take longer than you’d like. But there will be success in the end one way or the other,” Trump said.

Speaking to reporters later on Air Force One, U.S. Treasury Secretary Steven Mnuchin said the Trump-Xi meeting lasted over an hour-and-a-half, and they had “substantive discussions” about how to deal with North Korea together.

“In regards to China, we had very direct discussions about North Korea. We had very direct discussions about military and security cooperation,” Mnuchin said.

“I think that President Trump made very clear to President Xi that he is focused on this issue, and wants to move forward and make progress. And I think President Xi gave a very interesting perspective from their standpoint,” he added.

‘CONTROL THE SITUATION’

For his part, Xi told Trump that stronger China-U.S. ties were conducive to stability and prosperity amid global conflicts, and had made “new progress” in some areas “despite some sensitive issues”, Xi said, according to state news agency Xinhua.

Xi stressed the importance of talks with North Korea, and said China’s navy will join next year’s U.S.-led Pacific Rim military exercises.

Xinhua said Xi stressed to Trump China’s position that it adheres to the denuclearization of the Korean peninsula and maintaining peace and stability there.

While China has been angered by North Korea’s repeated nuclear and missile tests, it also blames the United States and South Korea for worsening tension with their military exercises.

“China has many times talked about its principled position, namely that at the same time as the international community making necessary responses to North Korean acts that go against U.N. Security Council resolutions, they must step up efforts to promote talks and manage and control the situation,” Xinhua said, citing Xi.

Xi also reiterated China’s opposition to the U.S. deployment of the Terminal High Altitude Area Defense (THAAD) anti-missile system in South Korea, Xinhua said. China says THAAD threatens its security, despite U.S. and South Korean assurances it is aimed only at defending against North Korea.

Both leaders agreed to maintain close communication and coordination on the Korean peninsula nuclear issue, Xinhua said.

In a statement released on Sunday, Chinese Foreign Minister Wang Yi said Xi and Trump had “enhanced mutual understanding” about the North Korea issue and “confirmed the broad direction of using peaceful means to resolve this issue”.

Trump also mentioned trade imbalances in his meeting with Xi, calling it a “very, very big issue” that he would address.

“I know that China in particular, which is a great trading partner, we will be able to do something that will be equitable and reciprocal,” Trump said.

Senior officials from both countries will meet in Washington on July 19 to discuss economic and trade issues.

(Additional reporting by Ben Blanchard in Beijing, Writing by Roberta Rampton; Editing by Robin Pomeroy, Alistair Bell and Himani Sarkar)

Source: Reuters “Trump keeps it friendly with Xi at G20 on North Korea threat”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.


China builds new military facilities on South China Sea islands: think tank


Construction is shown on Mischief Reef, in the Spratly Islands, the disputed South China Sea in this June 19, 2017 satellite image released by CSIS Asia Maritime Transparency Initiative at the Center for Strategic and International Studies (CSIS) to Reuters on June 29, 2017. MANDATORY CREDIT CSIS/AMTI DigitalGlobe/Handout via REUTERS

Construction is shown on Mischief Reef, in the Spratly Islands, the disputed South China Sea in this June 19, 2017 satellite image released by CSIS Asia Maritime Transparency Initiative at the Center for Strategic and International Studies (CSIS) to Reuters on June 29, 2017. MANDATORY CREDIT CSIS/AMTI DigitalGlobe/Handout via REUTERS

Construction is shown on Mischief Reef, in the Spratly Islands, the disputed South China Sea in this June 19, 2017 satellite image released by CSIS Asia Maritime Transparency Initiative at the Center for Strategic and International Studies (CSIS) to Reuters on June 29, 2017. MANDATORY CREDIT CSIS/AMTI DigitalGlobe/Handout via REUTERS

Construction is shown on Mischief Reef, in the Spratly Islands, the disputed South China Sea in this June 19, 2017 satellite image released by CSIS Asia Maritime Transparency Initiative at the Center for Strategic and International Studies (CSIS) to Reuters on June 29, 2017. MANDATORY CREDIT CSIS/AMTI DigitalGlobe/Handout via REUTERS

Construction is shown on Mischief Reef, in the Spratly Islands, the disputed South China Sea in this June 19, 2017 satellite image released by CSIS Asia Maritime Transparency Initiative at the Center for Strategic and International Studies (CSIS) to Reuters on June 29, 2017. MANDATORY CREDIT CSIS/AMTI DigitalGlobe/Handout via REUTERS

China has built new military facilities on islands in the South China Sea, a U.S. think tank reported on Thursday, a move that could raise tensions with Washington, which has accused Beijing of militarizing the vital waterway.

The Asia Maritime Transparency Initiative (AMTI), part of Washington’s Center for Strategic and International Studies, said new satellite images show missile shelters and radar and communications facilities being built on the Fiery Cross, Mischief and Subi Reefs in the Spratly Islands.

The United States has criticized China’s build-up of military facilities on the artificial islands and is concerned they could be used to restrict free movement through the South China Sea, an important trade route.

Last month, a U.S. Navy warship sailed within 12 nautical miles of Mischief Reef in a so-called freedom of navigation operation, the first such challenge to Beijing’s claim to most of the waterway since U.S. President Donald Trump took office.

China has denied U.S. charges that it is militarizing the sea, which also is claimed by Brunei, Malaysia, the Philippines, Taiwan and Vietnam.

Trump has sought China’s help in reining in North Korea’s nuclear and missile programs, and tension between Washington and Beijing over military installations in the South China Sea could complicate those efforts.

China has built four new missile shelters on Fiery Cross Reef to go with the eight already on the artificial island, AMTI said. Mischief and Subi each have eight shelters, the think tank said in a previous report.

In February, Reuters reported that China had nearly finished building structures to house long-range surface-to-air missiles on the three islands.

On Mischief Reef, a very large antennae array is being installed that presumably boosts Beijing’s ability to monitor the surroundings, the think tank said, adding that the installation should be of concern to the Philippines due to its proximity to an area claimed by Manila.

A large dome recently was installed on Fiery Cross and another is under construction, indicating a sizeable communications or radar system, AMTI said. Two more domes are being built at Mischief Reef, it said.

A smaller dome has been installed near the missile shelters on Mischief, “indicating that it could be connected to radars for any missile systems that might be housed there,” AMTI said.

“Beijing can now deploy military assets, including combat aircraft and mobile missile launchers, to the Spratly Islands at any time,” it said.

(Reporting by Eric Beech; Editing by Bill Trott)

Source: Reuters “China builds new military facilities on South China Sea islands: think tank”

Note: This is Reuters’ report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.