How China’s political clans might determine its future
China’s Young People Are Giving Up on Saving for Retirement; Two former CNOOC executives fall amid anti-graft storm; China, Japan and South Korea looking to hold summit in May
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How China’s political clans might determine its future
The Economist
This article explores the significant role that "princelings" — descendants of the most senior revolutionaries who fought alongside Mao Zedong, as well as the offspring and spouses of senior officials post-1949 — play in China's political landscape, focusing on their potential influence on the country's future leadership decisions. Xi Jinping, China's current leader, is highlighted as a prime example of a princeling, leveraging his lineage to Xi Zhongxun, a comrade of Mao, to solidify his political legitimacy. Despite Xi's rise to power signaling the ascendance of princelings within the Communist Party, he has since ensured he remains the sole princeling within the Politburo Standing Committee, indicating a reluctance to share power with potential rivals of similar pedigree.
Princelings continue to hold sway in various sectors, including state-owned enterprises and the military, suggesting their potential as kingmakers once Xi exits the political scene. The article delves into the historical context of princelings transitioning into business following market reforms initiated by Deng Xiaoping, and how certain offspring were groomed for leadership, including Xi himself. It contrasts Xi's consolidation of power, including his actions against rivals such as Bo Xilai, with the broader network of princelings who still manage to exert influence through their economic activities and connections, despite Xi's anti-corruption campaign targeting official corruption but often sparing those within his perceived kinship network.
The piece further discusses the challenges of tracing the business dealings of princelings due to tightened access to company records, alongside Xi's promotion of the Communist Party's revolutionary spirit and his control over princeling dissent. Despite Xi's efforts to minimize their political influence, the princelings' deep-rooted familial connections and wealth make them enduring figures within China's political and economic spheres. The article concludes by suggesting that the princelings' historical significance, collective influence, and sheer numbers position them as key players in shaping China's political future, especially in potential succession scenarios.
China, Japan and South Korea looking to hold summit in May, reports say
Japan Times
South Korea is in talks with China and Japan to host a three-way summit in May, according to reports. The summit, which has been on hold since 2019 due to the pandemic and political tensions, would focus on economic cooperation and regional issues. South Korea has been pressing for months to resume the summit, and the foreign ministers from the three countries agreed in November to push for a meeting.
China’s Young People Are Giving Up on Saving for Retirement
NY Times
China is facing a challenge as young people are questioning whether or not to save for retirement. The country has shifted from a young society to an aging one in less than three decades, with plummeting birth rates contributing to a future where there will be fewer people working than retirees. This puts strain on China's underfunded pension system, which already has an average retirement age of 54, one of the lowest in the world. The economic slowdown in China is also leaving many people without jobs or with little money to save.
Two former CNOOC executives fall amid anti-graft storm
Nikkei Asia
Two senior executives at China National Offshore Oil Corp (CNOOC) are being investigated for possible corruption. Fang Zhi, a former vice president of CNOOC, and Chen Ming, a former manager of the company's Tianjin operation, are being investigated on suspicion of serious violations of law and discipline. This comes as part of an anti-corruption crackdown on the oil and gas industries in China.
US Treasury Secretary Yellen meets foreign business leaders in China ahead of trade talks
Associated Press
U.S. Treasury Secretary Janet Yellen has arrived in China for a meeting with American, European, and Japanese business representatives. Yellen is expected to address concerns about unfair Chinese trade practices, particularly in new technology sectors such as green energy and electric vehicles. China has defended its actions, claiming that its exports are conducive to global green development and accusing the U.S. of interfering with free trade.
Targeting Chinese chips, U.S. to push Dutch on ASML service contracts
Japan Times
The US Biden administration plans to urge the Netherlands to stop chipmaking equipment firm ASML from servicing some tools in China. The move is part of the US government's efforts to limit Beijing's tech sector. Alan Estevez, the US export policy chief, is set to meet Dutch officials and ASML to discuss the servicing contracts. Additionally, Washington may propose adding Chinese chipmaking factories to the list of those banned from receiving Dutch equipment.
Chinese subsidies endanger world economy, says US' Yellen
Deutsche Welle
US Treasury Secretary Janet Yellen has warned that China's subsidies for its industry could potentially harm the global economy. Speaking to the American Chamber of Commerce in Guangzhou, Yellen accused China of disadvantaging foreign firms in favor of its own. She said that the US has observed China pursuing unfair economic practices that include imposing barriers to access for foreign firms and taking coercive actions against American companies. Yellen also highlighted China's subsidies as a concern, stating that they risk undermining global economic resilience. During her visit to China, Yellen plans to hold talks with Chinese officials including Premier Li Qiang and central bank governor Pan Gongsheng.
US’s Yellen warns China it cannot export its way to rapid growth
Al Jazeera
US Treasury Secretary Janet Yellen has warned that China needs to reduce excess industrial capacity and avoid trying to export its way to rapid growth. Yellen noted that China’s state subsidies have led to production capacity that exceeds its domestic demand and the global market. She highlighted that the excess capacity is causing problems for other economies and could increase trade tensions. Yellen’s comments were made during a visit to China and ahead of talks with Chinese Vice Premier He Lifeng.
Taiwan shaken but unbowed as biggest quake in 25 years spotlights preparedness — and lessons learned
CNN
Taiwan’s push to make the island more resilient to earthquakes has paid off, with far fewer casualties than might be expected after a 7.4 magnitude quake on 7 February. The government has conducted comprehensive reviews of building codes, resulting in all new buildings being required to use new technologies that make them more resistant. In 1999, after a 7.7 magnitude earthquake hit Taiwan, killing 2,400 people, the government strengthened disaster management laws, improved coordination for rescue and relief, and enforced stricter building codes for earthquake resistance. It has also launched a campaign to evaluate, retrofit or rebuild public buildings to enhance their ability to withstand stronger quakes. Schools have been a priority. Private buildings are also included in the campaign. The government has also introduced a designated day for disaster drills, and mock alert messages are sent to mobile phones across the island.
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