REFLECTIONS ON wHITE IMPERIALIST REACTION TO CHINESE LEADERSHIP CHANGE

President Hu Jintao at Communist Party Congress 2012

How will China confront next ten years of white imperialist onslaught?

Sukant Chandan
Sons of Malcolm
14 Nov 2012

Here below we can see an overview of the Chinese Communist and State leadership handover by one of the more thinking but right-wing media outlets of the british white power structure.

The west in general on the one hand is not happy at all with outgoing President Hu Jintao leaving the leadership with a clear left-ward rhetoric and strategy:

In a valedictory state of the nation address after a decade in power - called "Firmly march on the path of Socialism" and delivered beneath a huge hammer and sickle - he insisted that "public ownership is the mainstay of the economic system" and warned that the party must "resolutely not follow Western political systems".

The language was peppered with anti-reform code words and pointed references to "Mao Zedong Thought", as well as a warning not to fall into "wicked ways".

And speculates as to the 'reformers' - meaning those who seek to take China in a direction of liberal and western style capitalist reforms (let's call it 'white capitalism', which is very different from East Asian capitalist countries mainly in the role of the state towards the economy) - are being sidelined:


Mr Hu’s speech reflects a complex power-struggle behind the scenes as hardliners - some linked to former leader Jiang Zemin - reassert control, forcing the outgoing leader to change his message.

The ideological manouvering have profound implications as 70pc of top cadres in the party and the Chinese military retire, the most sweeping hand-over of power since the revolution in 1949.

Reformers have been left in deep confusion. The incoming premier Li Keqiang - a Hu protegee - was a key sponsor of the World Bank/DRC report. He offered his "unwavering support" for the findings at the time. It is unclear where he now stands.

As delegates scrutinised the seating arrangements, they spotted at once that leading reformer Wang Yang had been banished to the margins.



President Hu Jintao at the Congress address makes it clear that western-style reforms will create fundamental dangers to anti-imperialist and socialist China. These are quite clear and forthright words from Hu on this issue, which is interesting, however it is far from decided which way the party and state leadership will take China, as the white capitalist oriented leaders have been getting a lot of space in the leadership with the world bank/China development research council, which called for further white capitalist reforms, getting air time in the leadership.

However, to a large extent whatever happens internally to China is not the business of anyone apart from the people of China. From an anti-imperialist internationalist point of view however, China turning towards white capitalism will and does endanger the very nature of he Chinese anti-imperialist state, and China falling in a Arab spring type white imperialist operation would be a major blow to the world struggle for independence against imperialism on a massive historic level.

This again is reported in this article and quotes President Hu on this regard:

Mr Hu - a self-effacing, austere figure known for his theme of "social harmony" - said the growing gap between rich and poor is leading to social contraditions" and warned than unchecked corruption had become a mortal threat.


"If we fail to handle this issue well, it could prove fatal to the party, and even cause the collapse of the party and the fall of the state. We must thus make unremitting efforts to combat corruption."


Plain words there.

President Hu has also stated previously and correctly that the offensive of white imperialist cultural attack on China is a major and fundamental arena of defending Chinese socialism and anti-imperialism:

"We should deeply understand the seriousness and complexity of the ideological struggle, always sound the alarms and remain vigilant and take forceful measures to be on guard and respond,"

China and allied countries who are under the same onslaught, an onslaught which is probably the most important issue for our peoples to confront, resist and defeat, could easily launch an international campaign and smash this genocidal cultural offensive of white imperialism. But there is no sign whatsoever of this, and one can only but be confused as to why the Chinese leadership would state such a correct thing as Hu has, but seems to do nothing and its own Chinese independence is whittled away every hour and every second by white imperialist cultural offensives.

Interestingly there is very little in terms of China's internationalist strategy apart from importantly quoting Hu in developing China's maritime capability to face white imperialism's "pivot to Asia" which is a military containment police against China:


For geo-strategists, the bombshell was his call to "build China into a maritime power" to match its economic clout. Even clearer was Wu Xiaoguang, a delegate at the congress and the chief designer of China’s first aricraft carrier the Liaoning.

"The number of aircraft carriers a country has is linked with the pursuit of its national interests. What I can tell you is that the Liaoning is only just the beginning," he said.


Hardly a "bomb shell", just a very basic and simple approach to national self defence against the most vicious and violent white imperialist world presence, especially with the usa armed bases developing around the world, nato, etc.

While China is gradually building up its defences, anti-imperialist internationalism is not raised much in the reporting on the Congress, and although China has finally taken elemental steps of anti-imperialism by blocking white imperialism at the united nations on Zimbabwe and now Syria, China along with the rest of the GlobalSouth seems to lack the political will to lead a en effective and victory oriented anti--imperialist approach. The nato operation on Libya and the subsequent brits, yanks, and french recolonisation drive on Africa, as as such the whole GlobalSouth, in indicative of the absence of anti-imperialist political leadership in China and in the general GlobalSouth.

But all in all, China remains perhaps the most important anti-imperialist as well as socialist country for internationalists to support, as not only is it an example of a former colonised country 'standing up' and a marvel to the whole world, but is also the most important, despite its limitations, anti-imperialist country and bulwark in the world.

All in all I would agree with the summation of this Congress and President Hu's leadership of the last ten years with the world of an old brother of mine:

Farewell to Hu Jintao. His decade as premier has seen the People's Republic grow beyond expectations, lives transformed, millions lifted from poverty and a rate of growth and modernisation that has astounded the world and confounded critics. But also many old problems persisted, some deepened, and new ones have developed.

The next generation of leaders have much to live up to, and many deep problems and contradictions of development still to resolve. But China continues of its forward march and Hu will be remembered in balance as a good leader who did good things and helped not only keep Chairman Mao's declaration on the founding of the PRC, that "The Chinese people have stood up" but overseen the Chinese people charging forward with confidence and pride.

And finally, of President Hu himself who said on thurs 08 Nov 2012:

"The Scientific Outlook on Development was proposed by the 16th CPC Central Committee in 2003, against the backdrop of rapid economic growth and a series of problems including excessive consumption of resources, serious environmental pollution and a widening gap between the rich and poor.

The concept has championed people's interests and advocated comprehensive, coordinated and sustainable development. At the Party' s 17th National Congress, the concept was written into the CPC Constitution.

Over the past ten years, China's economy has risen from the sixth to the second place in the world. Its economic, scientific and technological strength have increased considerably. Its overall national strength and international competitiveness and influence have also been enhanced substantially.

Hu said these historic successes are attributable to the correct guidance of the Party's basic theory, line, program and experience.

The Scientific Outlook on Development was created by integrating Marxism with the reality of contemporary China and with the underlying features of our times, and it fully embodies the Marxist worldview on and methodology for development, he said."


Long live socialist and anti-imperialist China.

For China to play a more assertive socialist and anti-imperialist internationalist role in our world struggle.


related links:
Huey Newton on China
Malcolm X on China
Friends of China

WHILE THE WEST INCREASES UNEMPLOYMENT, CHINA HAS TOO MANY JOBS

Help wanted – China struggles to fill jobs

[source]

At the Tiger Lane Bridge recruitment centre in Beijing, a handful of men scan a board plastered with job ads. Waiters, cooks, teachers, security guards, welders, telephone operators and drivers are all in demand.

But the job seekers, – who are outnumbered roughly ten-to-one by the positions advertised – are in no great rush.

“Actually, I’ve got a job already. I just come here every now and again to see if I can find a job that pays better,” says Mr Liu, 40, a migrant from nearby Hebei province.

Mr Liu, who earns Rmb2000 ($314) a month, was upset when he did not get a 15 per cent pay raise this year – an annual increase that has become the norm for blue-collar workers in China.

The Chinese economy has been slowing – data due this weekend are expected to reveal that exports, investment and industrial production were all weak in May – but the labour market remains very tight.

From Beijing in north China to the southern manufacturing province of Guangdong, the main concern of workers is not finding jobs, but securing higher pay. In fact, companies say they are struggling to find and retain staff.

For the government, this is a significant argument against launching large-scale economic stimulus, as there is no need for a major spending boost to create jobs.

The central bank’s move to cut interest rates this week shows that Beijing is worried about slowing growth. But officials stress that there will no repeat of the massive stimulus package unveiled in late 2008 during the global financial crisis.

While Europe and the US struggle with rising unemployment, China’s labour problem is the opposite: it experienced a record shortfall of workers in the first quarter. The human resources ministry says that for every 108 employees sought by companies, only 100 people were looking for jobs – equating to a nationwide deficit of nearly 1m workers.

The reason China’s job market is tightening when the economy is slowing is simple: demographics.

The government introduced its one-child policy just over three decades ago to limit explosive population growth. Since then birth rates have declined steadily, with the proportion of the working-age population expanding at a slower rate in recent years. UBS estimates that China’s workforce will peak in about 2015, and then start to shrink.

At Polaris Jewellery in Guangzhou, Guangdong’s capital, the factory manager worries that China’s tight labour market will destroy the company’s apprentice programme, as young workers are no longer willing to commit to the two years of training.

Lee Hin-shing, who manages the factory of 440 workers, says the floor that used to house trainees is empty. Polaris has just one trainee, down from a couple of hundred more than a decade ago. “No one wants to join the industry,” he says ruefully. “In 2004 and 2005, we had more than 800 workers.”

This demographic landscape is likely to get worse. China’s ratio of workers to retirees is likely to “drop precipitously” from roughly 5:1 today to 2:1 in 2030, according to Wang Feng, director of the Brookings-Tsinghua Center in Beijing.

But while demographics are extremely powerful, if economic growth were to collapse, for example, unemployment in China would inevitably rise – and potentially quite sharply.

When the global financial crisis savaged the Chinese export sector in late 2008, more than 20m blue-collar workers lost their jobs virtually overnight. Concerns about social instability prompted the government to roll out a Rmb4tn mega-stimulus package, which helped propel the country back to double-digit growth.

Unemployment is considered to be a “lagging indicator”, meaning, an economic slowdown today may only lead to job losses a few months down the road.

There are, in fact, a couple of warning signs. Almost 8 per cent of respondents to a HSBC survey of the Chinese manufacturing sector said they cut jobs last month. The overall decline was modest, but it was also the steepest fall in 38 months, stemming from a decline in new orders. Moreover, the export sector is once again suffering sluggish growth, a bad omen for the employment situation.

But for the time being, job seekers are still spoiled for choice. At a leather factory in Dongguan, a manufacturing hub in Guangdong province, the owner David Liu says workers used to queue outside the factory and ask their friends for contacts.

“Now the factory owners are asking acquaintances for help recruiting workers,” says Mr Liu.

CHINESE CHEAP GOODS GOING TO AFRICA?

Sino-African trade develops, 'west losing out'

Sukant Chandan,
Friends of China

It has been a long standing complain of some that China is dumping its cheap consumer goods into other nations of the Global South, including Africa, and in so doing it is negatively impacting those economies. What perhaps those who make these criticisms may not understand is that China is itself a young modern nation, only since 1949 has it become independent from colonialism and feudalism, and only really since the late 1970s has it had a stable internal economic situation so as to be able to focus on developing the country.

However much the west especially want to treat China like a 'developed country' so as to push it into situations where the west think then they can trip up and slap China down. China resists this pressure, and likes to remind people that it remains a country that is still at least three decades away from achieving a standard of living approaching anything to western levels.

If China was importing cheap goods and there was a massive problem with that, then it is primarily the duty of those recipient governments and consumers to decide otherwise. China has not broken any laws in exporting its cheap goods, and any country in a similar position would do the same. The days of cheap Chinese goods is developing into something else gradually, and China's trade relationship with Africa is also changing as the article from the paper of the British financial elites makes clear below, and changing in a win-win direction for both China and Africa.

Some western media is trying to educate some of its people that China is not at all only a producer of cheap counterfeited consumer goods, although this aspect is still there. China is fast becoming a exporter of affordable electronic goods, vehicles and machinery. The improving and developing trade between China and Africa is also in tandem with improving political relations: "Low prices undoubtedly help, but improvements in product quality and better co-operation between Chinese and African companies in tandem with political ties have also been crucial."

The west of course are the big losers. While the monpolised much of the economic relations with Africa for over a century in this period it ensured that Africa was the most exploited region in the world, and the west's continued policy to Africa is to do all that it can to ensure the continent cannot stand on its own two feet economically and militarily. Keeping Africa weak and divided was one of the main aims of nato's war on Libya, knocking out one of the pioneering nations in Africa that was contributing more than any other to a Pan-African economic political, economic and military strategy. The war saw China's investments and 130,000 Chinese workers flee Libya from nato attack. Ever since, China and Russia have said many a time that they were tricked over Libya, and that they wont fall for it again. For the sake of the whole Global South, one really hopes this is the case.

The article below states that it is countries like Britain, Spain, Germany and Italy who are the losers from China's improving trade and political ties to Africa. The west has tried to ensure that Africa remains without a industrial base, without basic national and continental infrastructure. Sino-Africa relations is revolutionising this situation and Africa can see a future where it will achieve a basic level of industry and growth to enable it to stand up for itself.

Africa's development is in mortal danger from the west who have stepped up their destabilisation strategies such as those in central Africa and in the Sahel, recolonisation (as in the case of Libya and sending troops to Uganda) and continued white supremacist media campaign, most infamously recently with the Kony2012 campaign.

South Africa, DRC, Zimbabwe, Algeria are some of the states which are priorities for the west to conduct regime change on, and all of these countries know it very well. Will Africa manage to accomplish a minimum level of development for its people and defend itself from western sabotage in the process? This depends in the final analysis of the level of unity and political will of Africa and its allies in Asia and Latin America. In the meantime, China is providing the pole of attraction if Africa wants to be treated with mutual respect; unlike the west, China provided a incomparable relationship of respect, China will not destabilise African nations, will not put sanctions on Africa, will not got to war with Africa, rather China is the facilitator to Africa standing up.






China moves up value chain in Africa

Financial Times

28 March 2012

When cheap Chinese goods started flowing in big numbers to Africa a decade ago, consumers benefited from lower prices, but local producers such as textile mills saw their businesses suffer.

Now, with Chinese companies moving up the value chain, that trade-off is changing. African consumers are still lapping up Chinese products, but these are more sophisticated. From smartphones to farm threshers, they are elbowing aside foreign, not local, competitors.

Chinese exporters have more than tripled their market share in Africa since 2002, supplying 16.8 per cent of the continent’s total imports last year, according to a report published this month by Standard Bank. Over the past four years Chinese companies recorded their biggest gains in selling machinery, vehicles and electronics.

European and Japanese companies have been the losers. African imports from Italy, Spain, Germany, Britain and Japan were all lower last year than they were in 2008. Meanwhile, imports from China surged 38 per cent over that same period.

This data “confirm some of the mature economy fears” that they are losing ground to Chinese exporters in Africa, Standard Bank economists Simon Freemantle and Jeremy Stevens say.

The success of Chinese companies is about more than being cheap. Low prices undoubtedly help, but improvements in product quality and better co-operation between Chinese and African companies in tandem with political ties have also been crucial.

The Ideos phone from Chinese electronics group Huawei is a prime example. Already billed as the world’s most affordable smartphone running Google’s Android system, it is subsidised in Kenya by Safaricom, a mobile network operator, to improve internet penetration.

At 8,000 Kenyan shillings – less than $100 – it is seven times cheaper than other similar smartphones.
“The features sell the phone,” says Martin Muraya, who owns a mobile phone stand in a chemist and has sold all his Ideos stock.

The Ideos was launched in 2010 and had a 45 per cent share of Kenya’s smartphone market less than a year later.

Shipments of Chinese goods to Africa have followed a path ploughed by Chinese money. Chinese companies have invested about $13bn in Africa, most since 2000, according to Standard Bank.
“It complements the competitiveness of Chinese firms in Africa,” the report says.

Zhenjiang Shenglong Machinery Manufacturing, a medium-sized maker of farming equipment in China’s Jiangsu province, gained exposure to Africa by contributing to aid missions.

“We were doing well in the Chinese market, but we realised that our products would die out domestically eventually. We had to break into other under-developed countries,” Luo Min, chairman of Zhenjiang Shenglong, says.

His company made about $3m in sales to Africa last year. For big purchases, Zhenjiang Shenglong sends trainers to teach farmers how to use and maintain the machines.

“Our competitors, some of which make better equipment, offer no training. No matter how good the machine is, without farmers knowing how to use it, it’s nothing but a waste,” Mr Luo says.

But even as Chinese companies fight to move up the value chain, the old guard of the country’s exporters – those making cheap and often shoddy goods – still cast a long shadow.

In Nairobi, Chinese-made goods fill market stands and shop shelves, but many are counterfeits, such as “Nokla” and “Sumsang” phones. So prolific are the imported fakes, locals give them the catch-all tag, “China phones”.

In One World Networks, an electronics shop in central Nairobi, staff say customers regularly return Chinese-made laptops and printers. Yet sales assistant Eunice says they have no choice but to keep buying them.

“The African market is Chinese. They help us because it’s the only one we can afford,” she says. “But they fail more. It works two days and fails the third.”

MORE ON THE INTERNAL CHALLENGES FOR CHINESE SOCIALISM

The struggle in China: Capitalist crisis versus planning


[source]


The following is Part 2 of a series on the leadership struggle in China.

As contradictions mount in the global capitalist economy, they are reflected in China. The factional struggle in the Chinese leadership can only be understood as a struggle over which way to go forward and how to contain and resolve the mounting economic and social contradictions arising out of capitalist development.

The Chinese economy has been growing on a dual basis. First, it is based on centrally planned guidance designed to develop the productive forces and the material foundations for a society encompassing 1.3 billion people. However, since the victory of Deng Xiaoping and the “capitalist road” faction in 1978, planning has been increasingly based on the central government fostering and attempting to manage capitalism and the capitalist market as the means for national development.

The central government, through control of interest rates, credit, taxation and vast state-owned enterprises, both guides the economy toward broad economic and social goals and fosters capitalist development. The latter means class exploitation, inequality and corruption. The present political struggle is over which side of this contradiction to strengthen.

This complex subject will be discussed at length in subsequent articles. But suffice it to say that the so-called “reform” groupings in China — with the enthusiastic support of world imperialism and global finance capital — want to move away from state intervention, planning and central guidance and go further toward turning the fate of China over to the capitalist market, both internally and externally.

In our last article we covered the fact that Bo Xilai was summarily ousted from his post as Chinese Communist Party Secretary of Chongqing. This was a blow against the growing forces in the CCP and throughout China who want to combine the use of the capitalist market with social and economic planning and state intervention in order to deal with growing inequality and who emphasize the needs of the masses. In Bo’s case, this economic orientation was combined with a popular attempt to revive Maoist culture and socialist values.

In China today, the concept of planned guidance of the broad direction of the economy and its various sectors is a drastic modification from the direct economic planning initiated after the triumph of the great Chinese Revolution in 1949. At the same time, it is an attempt to retain the planning principle as the fundamental framework guiding the overall development of the Chinese economy.

Consider just some of the goals and objectives outlined by the 12th Five Year Plan for 2011-2015, and the antagonism between planning and the anarchy of the capitalist market becomes utterly transparent. This plan was developed beginning in October 2010 and was approved by the National People’s Congress in March 2011.

The government is planning to devote 4 trillion renminbi ($158.7 billion) to the development of seven Strategic Emerging Industries: biotechnology, new energy, high-end manufacturing equipment, energy conservation and environmental protection, clean-energy vehicles and next-generation internet technology. (APCO worldwide, Dec. 10, 2010)

An article in the March 4, 2011, New York Times detailed the plan’s goals, including:

* A 19.1 percent cut in the amount of energy used per unit of economic growth and a rapid expansion of the service economy.

* Building a national nanotechnology research center, 50 engineering centers, 32 national engineering laboratories and 56 other labs focusing on technologies like digital television and high-speed internet.

* Laying 621,000 miles of new fiber-optic cable and adding 35 million new broadband ports for a total of 223 million.

* A cap on total energy use, especially limiting the burning of coal.

* The development of well-equipped statistical and monitoring systems to gauge greenhouse gas emissions.

* Accelerated construction of sewage treatment plants, the retrofitting of coal-fired power plants with pollution controls, and the continuation of a pilot project to develop low-carbon cities.

In the previous period the state had opened 3,100 miles of new railroads and 74,600 miles of highways, completed 230,000 sports and fitness projects for rural residents, and built or renovated 891 hospitals and 1,228 health clinics.

In the realm of social welfare, the broad goals are to increase consumption from 35 percent of the gross domestic product to between 50 percent and 55 percent by increasing minimum wages, health care services and social welfare payments of various kinds.

Of course, it goes without saying that under a genuinely socialist government, workers would have their fundamental economic rights guaranteed as political rights. But those rights were largely overturned by the reforms that developed in China after 1978. Instead, in the environment of the capitalist market — with its mountains of corruption of government and party officials — the welfare of the workers and peasants has to be built up slowly and painfully through an uphill battle, which happens only through the intervention of the state. (More on this in future articles.)

Whether or not the government achieves the precise goals set out is not the issue. The point is that such sweeping social and economic goals could not possibly be handed over to profit-driven capitalists and the anarchy of the commodity market. The bosses would seek the highest rate of profit. They would never voluntarily raise wages, improve working conditions, build hospitals, clinics, rural fitness centers or anything that did not bring a profit.

China’s response to 2008-09 world capitalist crisis

To grasp the seriousness of the proposals to further limit planning and intervention by the state, it is only necessary to consider what happened during the world capitalist financial and economic crisis of 2008 and 2009, when the global crisis of capitalist overproduction and the financial collapse invaded China.

More than 20 million workers lost their jobs, mainly in manufacturing and predominantly in coastal provinces such as Guangdong, where special economic zones had been set up so imperialist corporations, companies from Taiwan, Hong Kong and South Korea, and other exploiters could take advantage of low-wage migrant labor flooding in from the rural interior.

During this period production of world capitalism dropped more than it had in 70 years. Tens of millions of workers worldwide were thrown onto unemployment lines. Most of them are still there. Bankruptcy followed bankruptcy, and the capitalist system has still not recovered.

What happened in China? When the crisis hit, China’s central planners went into motion. Plans drafted as far back as 2003 to go into effect in future years were pushed forward and implemented.

Nicholas Lardy, a bourgeois China expert from the prestigious Peterson Institute for International Economics, describes how consumption in China actually grew during the crisis of 2008-09, wages went up, and the government created enough jobs to compensate for the layoffs caused by the global crisis:

“In a year in which GDP expansion [in China] was the slowest in almost a decade, how could consumption growth in 2009 have been so strong in relative terms? How could this happen at a time when employment in export-oriented industries was collapsing, with a survey conducted by the Ministry of Agriculture reporting the loss of 20 million jobs in export manufacturing centers along the southeast coast, notably in Guangdong Province? The relatively strong growth of consumption in 2009 is explained by several factors. First, the boom in investment, particularly in construction activities, appears to have generated additional employment sufficient to offset a very large portion of the job losses in the export sector. For the year as a whole the Chinese economy created 11.02 million jobs in urban areas, very nearly matching the 11.13 million urban jobs created in 2008.

“Second, while the growth of employment slowed slightly, wages continued to rise. In nominal terms wages in the formal sector rose 12 percent, a few percentage points below the average of the previous five years (National Bureau of Statistics of China 2010f, 131). In real terms the increase was almost 13 percent. Third, the government continued its programs of increasing payments to those drawing pensions and raising transfer payments to China's lowest-income residents. Monthly pension payments for enterprise retirees increased by RMB120, or 10 percent, in January 2009, substantially more than the 5.9 percent increase in consumer prices in 2008. This raised the total payments to retirees by about RMB75 billion. The Ministry of Civil Affairs raised transfer payments to about 70 million of China's lowest-income citizens by a third, for an increase of RMB20 billion in 2009 (Ministry of Civil Affairs 2010).” (“Sustaining China's Economic Growth after the Global Financial Crisis,” Kindle Locations 664-666, Peterson Institute for International Economics)

The Ministry of Railroads introduced eight specific plans, to be completed in 2020, to be implemented in the crisis. The World Bank called it “perhaps the biggest single planned program of passenger rail investment there has ever been in one country.” In addition, ultra-high-voltage grid projects were undertaken, among other advances.

The lesson is that while the anarchy of production of world capitalism invaded China, the rational and meticulously developed plans drawn up for social use overcame the anarchy of the capitalist market. This not only protected the masses from a protracted, massive unemployment crisis, but it actually continued the process of raising the standard of living during a time when hundreds of millions of workers throughout the entire capitalist world were left helpless and traumatized by the crisis of capitalist overproduction.

In Marxist terms the principle of planning, established by the Chinese socialist revolution of 1949 — even though it has been watered down to the practice of “guidance” — overcame what Marx called the law of labor value, the very law that governs the operation of capitalism itself. The Chinese leaders were compelled, and had the capability, to use rational planning based on satisfying human need to overcome the disaster brought about by their own policy of relying on the world capitalist market.

To be continued.

Goldstein is the author of “Low-Wage Capitalism” (2008) and “Capitalism at a Dead End” (2012) published by World View Forum. Both books as well as his articles and speeches can be found at lowwagecapitalism.com.

bRIT NEWSPAPER RELUCTANTLY ADMITS CHINA MAJOR FACTOR IN MOZABIQUE (AFRICAN) RENAISSANCE

'Chinese loans are funding many of the infrastructure projects changing the face of the continent'

This is an article from the left-liberal Guardian newspaper in Britain. It is an article about the economic developments in Mozambique, and is quite lengthy, I have produced just a clip of it below. For some reason the word 'basket-case' is often used by the west when they are talking about African states.

It's just a shame that writers like this don't also admit that the negative aspects of African states are in overwhelming large part to do with how the west has ensured that Africa does not unite, and does not develop itself for its people, and the most violent and obvious example of this attitude is their destruction through last year of the African state which has the highest human development index - Libya.

The writer sees rather reluctant to state in the article that it is thanks to the nature of relations with China that has resulted in Mozambique seeing some positive indicators to its economic development. What the article doesn't explore is the issue that if it is relations with China that is giving Africa a massive boost, why hasn't the same been the case with Africa's relations with the west? Going into that just wouldn't wash with the white man's burden types who run the newspaper.

A uniting and economically rising Africa is what the west fears, and the west will and is doing all it can to ensure this does not happen, and it is definitely alarmed that this is developing with a increasingly close partnership with China.

Nation of Islam leader Louis Farrkhan said in his latest speech that the usa is planning a war with China, but is already involved in a war on China, and cited the case of nato's war on Libya being also a war on China with the resultant departure of Chinese involvement in Libya and the 130,000 Chinese workers there.

Sukant Chandan, Friends of China



Boom time for Mozambique, once the basket case of Africa

The shells of stylish colonial-era buildings, like shipwrecks on the ocean floor, still give Maputo a distinct character. But the capital of Mozambique no longer feels like an urban museum. Amid the crumbling grandeur rumble cranes and mechanical diggers, carving out a different skyline.

A construction boom is under way here, concrete proof of the economic revolution in Mozambique. Growth hit 7.1% last year, accelerating to 8.1% in the final quarter. The country, riven by civil war for 15 years, is poised to become the world's biggest coal exporter within the next decade, while the recent discovery of two massive gas fields in its waters has turned the region into an energy hotspot, promising a £250bn bonanza.

The national currency was the best performing in the world against the dollar. Investment is pouring in on an unprecedented scale; as if to prove that history has a sense of irony, Portuguese feeling Europe's economic pain are flocking back to the former colony, scenting better prospects than at home. Increasingly this is the rule, not the exception in Africa, which has boasted six of the world's 10 fastest-growing economies in the past decade. The first oil discovery in Kenya was confirmed on Monday, while the British firm BG Group announced that one of its gas fields off the Tanzanian coast was bigger than expected and could lead to billions of pounds of investment. Bankers, analysts and politicians have never been so bullish about the continent, which barely 10 years ago was regarded as a basket case.

From Cape Town to Cairo, there are signs of a continent on the move: giant infrastructure projects, an expanding middle class, foreign equity scrambling for opportunities in telecoms, financial services and products aimed at a billion consumers. Growth is no magic bullet for reducing inequality or fostering democracy, but the stubborn truth that it is still the world's poorest continent has done little to dull the confidence and hype about the African renaissance.

Africa has 16 billionaires, topped by Nigerian cement tycoon Aliko Dangote with an estimated fortune of $10.1bn (£6.5bn), according to Forbes magazine. Economic growth across the continent will be 5.3% this year and 5.6% in 2013, the World Bank predicts, with some countries hitting double digits. "Africa could be on the brink of an economic take-off, much like China was 30 years ago and India 20 years ago," the bank says. Many of the African lions are already outpacing the Asian tigers.

Africa exports its natural resources with the price and demand for them determined by growth in China, whose bilateral trade with Africa has grown tenfold in a decade, eclipsing that of the United States.

In return, Chinese loans are funding many of the infrastructure projects changing the face of the continent.

There are an estimated 1 million Chinese in Africa: trading, investing, building, labouring, running micro-businesses and, critics say, exploiting its wealth of natural resources.

On a recent afternoon at the Southern Sun hotel in Maputo, overlooking the Indian Ocean, the arrival of a delegation of Chinese businessmen in smart suits surprised no one. Mozambique is now an immensely attractive prospect as it emerges from a traumatic past of colonialism and civil war.

[...]

CHINA'S INTERNAL CONTRADICTIONS, & HOW THE WORLD BANK/IMF ARE PUSHING FOR AN END TO SOCIALISM IN CHINA

The ouster of Bo
A critical moment in China


[source]

It is now world news that Bo Xilai, a high-ranking member of the 25-member Politburo of the Chinese Communist Party, has been removed from his key post as Party Secretary of the important Chongqing branch of the CCP.

This move comes as the CCP is preparing to choose a new leadership this fall. Bo had been widely regarded as a clear candidate for the nine-member standing committee of the Politburo. That is now out. This is the first open breach in the Chinese CCP leadership in two decades.

Bo was known for trying to revive the culture of Mao Zedong through many public programs. He emphasized state intervention in the economy and advocated planning for massive low-income housing projects for migrant workers and others, as well as fighting to reduce inequality in general.

Bo has also been known for a fierce anti-corruption campaign in which the masses were encouraged to point out corrupt officials and gangsters. Several thousand people were arrested, among them business people, and many were sent to jail. The highest police official in Chongqing was executed during the anti-corruption campaign.

Bo was removed after an incident in which the subsequent police chief of Chongqing, Wang Lijun, who worked with Bo in a widely celebrated anti-corruption campaign, fled Chongqing on Feb. 6 to the U.S. Consulate in the nearby city of Chengdu and asked for political asylum.

According to Chinese government and party sources, Wang claimed to have documents incriminating Bo. Wang was taken from the consulate, and is now being held in Beijing.

There has been much speculation about Bo and Wang and what happened. Much has been alleged about Bo’s flamboyant personal style, his ambition, a factional struggle within the leadership for position and so on. Perhaps all these factors played some role in his ouster.

But one thing is clear. The imperialists have all taken a position against Bo, and are overjoyed to see his downfall.

To be sure, there is no evidence that Bo was trying to abandon the reliance on capitalism in China’s development that followed the death of Mao. On the contrary, his outlook is fully within the general framework of using capitalism and foreign investment to grow the economy in Chongqing. But within that framework, he emphasized the so-called “third hand,” the need for the state to play a significant role in the economy, to ensure the well-being of the masses and to reduce inequality as a matter of priority.

Effect of global capitalist crisis

It is important to put this struggle in the broader context of the global capitalist crisis and its effect on the Chinese economy and on the political and factional struggle inside China.

The economic crisis in the capitalist world has undermined in a very fundamental way the argument that China should bank its fate and future on capitalist development and the capitalist world market as a foundational strategy.

The collapse in 2007-2009 of the world capitalist financial system and the global market, the ensuing mass unemployment, the wild speculation, the overproduction, the economic dislocation, the flood of bankruptcies, the gyrations of the stock markets and the continuing threats on the horizon must haunt all of China’s leaders and give ammunition to all those who oppose the further unleashing of capitalism in China.

The imperialists and the more pro-capitalist forces in the CCP and the state know this. So they have rushed to fortify their position in the face of the monumental evidence of the failure of capitalism and its dangerous effects in China during 2008 and 2009.

They made their moves just as China’s legislative body was preparing to consider and approve various plans and when the subject of future leadership was under private discussion.

It is significant that the World Bank presented a 448-page document just in time for the 18th National People’s Congress last month, entitled “China 2030.” What makes the public presentation of this document so ominous is that it was co-authored by the Development Research Center of the State Council, the top executive body in China. Liu He, who worked on the document and who meets regularly with U.S. officials, is an adviser to the standing committee of the Politburo who has argued publicly that foreign pressure should be used to push capitalist reforms in China.

To underscore the collaborative nature of the document, the subtitle is “Building a Modern, Harmonious, and Creative High-Income Society.” The term “Harmonious Society” is the slogan of China’s present leaders, President Hu Jintao and Premier Wen Jiabao.

The world was treated to a video circulated online in February that showed Du Jianguo, editor of an environmental magazine in China, disrupting a press conference by World Bank President Robert Zoellick as Zoellick was unveiling his document. In front of the world press, Du stood up and denounced the document as “unconstitutional,” saying it would “subvert the basic economic system of socialism.” Before he was pushed off the platform by security, Du called the bankers’ document “poison” aimed at capturing China’s markets for international capitalists. (Wall Street Journal, Feb. 23)

World Bank’s attempt to promote counterrevolution

This document is part of the background to the factional struggle in China. It represents a firmer and more dangerous nexus between imperialism and the so-called “reform” faction, the more aggressive pro-capitalist faction, in China.

The Executive Summary of the document reads:

“First, implement structural reforms to strengthen the foundations for a market based economy by redefining the role of government, reforming and restructuring state enterprises and banks, developing the private sector, promoting competition, and deepening reforms in the land, labor, and financial markets. As an economy approaches the technology frontier and exhausts the potential for acquiring and applying technology from abroad, the role of government and its relationship to markets and the private sector needs to change fundamentally. While providing relatively fewer ‘tangible’ public goods and services directly, the government will need to provide more intangible public goods and services like systems, rules, and policies, which increase production efficiency, promote competition, facilitate specialization, enhance the efficiency of resource allocation, protect the environment, and reduce risks and uncertainties.

“In the enterprise sector, the focus will need to be further reforms of state enterprises (including measures to recalibrate the role of public resources, introduce modern corporate governance practices including separating ownership from management, and implement gradual ownership diversification where necessary), private sector development and fewer barriers to entry and exit, and increased competition in all sectors, including in strategic and pillar industries. In the financial sector, it would require commercializing the banking system, gradually allowing interest rates to be set by market forces, deepening the capital market, and developing the legal and supervisory infrastructure to ensure financial stability and build the credible foundations for the internationalization of China’s financial sector.”

In other words, the World Bank, with the collaboration of the Development Research Center of the State Council, is recommending that state enterprises be reduced to dispensers of state services and advice, withdraw from the production of infrastructure, steel, energy and other “tangible goods,” and leave that to private capitalists. They further recommend that the banking system be integrated with world imperialist finance capital and that state planning be reduced to a nullity.

In short, they advocate the destruction of the very socialist structures that hold Chinese society together and that have enabled it to withstand the most severe capitalist crisis since World War II.

For a representative of the highest state body to help draft such a counterrevolutionary document, publicly associate his name with it and urge its adoption shows the degeneration of key sections of the highest leadership and, within the broader state apparatus, highlights the pernicious influence of unleashed capitalism in China.

This explains the urgent disruption of Zoellick’s press conference and the push-back that is coming from various quarters in China. This is not to say that the viewpoint represented by the World Bank document will be victorious. There are many forces in China, including the workers and peasants, who would strongly resist any attempt to fully implement this program.

Christine LaGarde, head of the International Monetary Fund, also chose the moment of the National People’s Congress to issue a statement in high praise of China’s economy. This was undoubtedly coordinated with the World Bank presentation of “China 2030.”

The severity of the struggle over the future of China also broke out in the open at the World Economic Forum in Davos, Switzerland, in January.

“A group of Chinese speakers warned in stringent tones on Friday morning [Jan. 27] in Davos that the country’s free-market reform is stalled, and China is sliding backwards towards greater state control of the economy.

“Hu Shuli, editor of Caixin Magazine and widely recognized leader of China’s ‘reform’ faction, launched a breakfast forum by identifying delayed economic reform as one of the two key risks for the Chinese economy going forward, alongside the weakening exports in the wake of the euro-zone crisis.” (Wall Street Journal, Jan. 27) Other Chinese participants agreed.

The world capitalist crisis has brought this struggle on at a crucial time of change in the Chinese leadership. The ouster and public humiliation of Bo, which brought this struggle to light, can best be understood in terms of a struggle over dangerously deepening capitalist reforms. With or without Bo, this serious struggle will continue.

For those who believe that there has been a complete restoration of capitalism in China, this whole matter may seem to be of little importance. But to the workers and peasants of China and to the rest of the world, the question of stopping the further advance of the counterrevolution is of supreme importance.

To be continued.

CHINA's UNPRECEDENTED HISTORIC ACHIEVEMENTS OF PEOPLE CENTRED DEVELOPMENT

China's achievement is literally the greatest in world economic history


[source]


Economic development’s purpose is to improve the conditions of human beings. Robert Lucas put it eloquently, in frequently quoted words, examining the consequences of different rates of economic growth: ‘I do not see how one can look at these figures without seeing them as possibilities. Is there some action a government of India could take that would lead the Indian economy to grow… If so, what, exactly?… The consequences for human welfare involved in questions like these are simply staggering: Once one starts to think about them, it is hard to think about anything else.’


In this framework it should be stated, soberly and with due consideration, that China’s economy since 1978 is the greatest economic achievement in world history. This article shows this in the prosaic language of statistics. But of course that is not the real issue. What really counts is the consequences of this for human beings – escape from poverty, improvement in life expectancy, improved health, expanded potential for education, improvement in the position of women, and many other dimensions. Economic statistics, such as GDP per capita, simply underpin this improvement in human conditions.


The scale of China’s economic achievement


A problem in assessing the true scale of China’s economic achievement is that partial statistics are frequently used to state it. Some of these, for example that China has become the world’s second largest economy, or that it has raised 620 million people out of internationally defined poverty, are extremely striking (Quah, 2010). But nevertheless, because they are partial, they do not capture the full scope of what has occurred. Only when systematic data is used does the full magnitude of China’s achievement become clear.


Again, even when systematic comparisons are attempted, the scale of China’s economic achievement is frequently underestimated because inappropriate measures are used. For example when comparing rates of economic growth, in calculating contributions to economic welfare, it is misleading to take individual countries as the unit of comparison, rather than the proportion of world population affected – rapid economic growth in a small country evidently contributes  less to human well being than rapid growth in a large country.


In order to give an initial systematic comparison, therefore, Table 1 shows the percentage of world population affected at the point when sustained rapid growth commenced in major economies. For example the first country to experience sustained rapid economic growth was the UK in the industrial revolution - which was in a country with 2.0 per cent of the world’s population. The sustained rapid US economic growth after the Civil War was in a country with 3.3 per cent of the world’s population.


There are, of course, arguments about some additional individual countries that might be included in the comparison – for example Italy from 1950 (1.9 per cent of the world’s population) or Spain from 1960 (1.0 per cent of the world’s population). But it is evident from the data that introducing such extra countries makes no difference to the essential situation.


No other economy starting sustained rapid economic growth even approaches the 22.3 per cent of the world’s population in China in 1978 at the beginning of its new economic policies. For comparison Japan’s rapid post-World War II growth was in a country with 3.3 per cent of the world’s population, and the growth of the four Asian ‘Tigers’ (Hong Kong, Singapore, South Korea, and Taiwan) was in economies with only 1.4 per cent of the world’s population.


Only India’s sustained economic growth after the late 1980s, in a country with 16 per cent of the world’s population, even begins to approach China’s achievement in scale, but the percentage of the world population affected is still lower than China’s, as is India’s growth rate.


Table 1

Introducing the necessary correction of population size also makes clear that the method sometimes utilised of ranking by country size is misleading. To see why it need only be noted that, if current exchange rates are used, on the World Bank tables for 2010, the latest year for which comprehensive statistics are available, 87 of the countries for which data was available have a higher GDP per capita than China and 83 had a lower. This appears to place China about half way up the list of world rankings. As when the People’s Republic of China was created in 1949, or economic reform was launched in 1978, China was one of the world’s most economically underdeveloped countries this might appear a quite good performance, but it wholly understates China’s achievement.


The reason is that ranking by country takes no account of relative population. For example among the countries above China are the Seychelles, Palau, St Kitts and Nevis, Dominica, and Antigua and Barbuda – all with a population of less than 100,000. If the real international position of China is to be assessed then, again, size of population must be taken into account. Figure 1 below, therefore, shows the percentages of world population living in countries with GDP per capita above and below China and shows the real proportions of China’s economic achievement.


In 1978 countries containing only 0.5 per cent of the world’s population had a GDP per capita below China’s, while 73.5 per cent had a higher one – China itself accounted for 25.9 per cent of the world’s population for which data was available. By 2010, using the same measure, the percentage of the world’s population living in countries with a higher GDP per capita than China was 31.3 per cent - given the speed of increase, it is clear that when 2011’s data is published it will show that less than 30 per cent of the world’s population lives in countries with a higher GDP per capita than China.


Figure 1

Therefore in only slightly over thirty years China, containing more than twenty per cent of the world’s population, has moved from being one of the world’s least economically developed countries, to a position where less than one third of the world’s population lives in countries with a higher GDP per capita, and where China’s position is rising rapidly.


Checking these current price statistics against international parity purchasing powers (PPPs), which takes into account different price levels in different countries, confirms the same result. Measured by PPPs in 1980, the first year for which World Bank data is available, only 1.3 per cent of the world’s population lived in countries with lower GDP per capita than China and 73.0 per cent in countries with a higher one. By 2010 only 31.5 per cent of the world’s population lived in countries with a higher GDP per capita than China.


Another way of measuring is to compare China to the rest of the world’s population. To do this, the best measure is not the average as, for well known statistical reasons, averages covering wide ranges are excessively affected by small numbers of extreme values. This is confirmed very clearly by world data. Only 25 per cent of the world’s population has a GDP per capita above the global average and 75 per cent have one below it. A better, and the standard, measure of incomes is to make a comparison to the median – the exact mid-point.


In 1978 China’s GDP per capita was only 42 per cent of the median for the rest of the world’s population. By 2010 China’s GDP per capita was 289 per cent of the median.


That since 1978 China, with more than one fifth of the world’s population, has moved from being one of the poorest countries in the world to a situation where less than one third of the world’s population has a higher GDP per capita is without historical precedent. Never before in human history has such a large proportion of the world’s population advanced so rapidly.


A number of conclusions clearly follow from the above data – in addition to the obvious one of simply recognising this as a fact of economic history. But for now it need simply be noted, soberly and with due measure, that China’s is quite literally the greatest economic achievement in world history.


*   *   *


An earlier and shorter version of this article appeared, in English and Chinese, in Global Times.


Notes


Quah, D. (2010, May). 'The Shifting Distribution of Global Economic Activity'. Retrieved January 2, 2012, from London School of Economics: econ.lse.ac.uk/~dquah/p/2010.05-Shifting_Distribution_GEA-DQ.pdf

SCOTLAND's INDEPENDENCE MOVEMENT BUILDS CLOSER LINKS TO CHINA

Vice-Premier Li Keqiang meets visiting Scottish First Minister Alex Salmond in Beijing on Dec 5

Scottish Nationalists growing close relationship to Communist China is unsurprising for a political movement in Scotland which has control of the Scottish national Assembly, and one which seeks independence from the oldest colonial entity on the planet - the 'United Kingdom'. 


For any progressive nationalist movement in the world, developing good relations with the powerful nations of the Global South, especially China, is a necessity in a post-western-hegemonic world, as the west sees its finance-capitalist system descend into growing crises in the coming period. 


The Nepalese Maoists, who are now politically leading Nepal, are another example of a small nation that cannot do without good relations with China, this is especially interesting as the Nepalese Maoists had until in recent years a hostile and dogmatic attitude to China. 


Due to China's socialist state, China will continue to see development for its nation and people in a smoother trajectory than many other countries in the world, although there are definitely challenges that confront it, but like the recent Wukan case, China is able to traverse these challenges in the interest of people-centred development.


China will continue to be the most important component part of the rising Global South economically, politically and gradually militarily, and as a developing anti-imperialist country China is a sure partner for other nations wanting mutually beneficial relationship in economic development in a growing multi-polar world. 


Sons of Malcolm wishes the Scottish people the very best in their struggle for independence from English colonialism, and for developing South-South relations in the world, Scottish moves for closer ties with China again shows that the national struggles of the Scots, Welsh and Irish are part of the struggle of the Global South for independence and social justice.


Sukant Chanda - Sons of Malcolm/Friends of China






Leader sees China links key to Scotland's future



[source]

"My third visit to China as first minister was an important one," says Salmond, Scotland's first minister since 2007.

Salmond's Scottish National Party's landslide victory at the Scottish elections in May has made the prospect of a referendum on full independence a very real possibility. It is of little surprise that he should be looking to strengthen Scottish ties elsewhere at this time.

"While our relations with China have strengthened in recent years I realize that, like any friendship, we must show continuing commitment," Salmond says.

Salmond also spoke at the Party School of the CPC Central Committee in Beijing, a rare privilege for foreign politicians.

By laying the groundwork now, Salmond is ensuring that should Scotland split from the UK, the country will have established independent relations with global superpowers such as China upon which to build.


These benefits were just one of several areas Salmond discussed with Vice-Premier Li Keqiang, in hope that Scotland and China can forge closer ties. It is hoped that the meeting will pave the way not only for major Chinese investment in Scotland, but also for an expansion of Scottish technical expertise into China.

"I was very pleased to meet Vice-Premier Li Keqiang again, to discuss areas for further Sino-Scot collaboration in areas such as healthcare and infrastructure. I also had a very positive discussion about major infrastructure projects in Scotland with the China Investment Corporation, which we will welcome to Scotland next year."

Infrastructure was central to the discussions, with hopes of developing a direct air link between Scotland and China in the coming years as a way of increasing bilateral exchanges.

"I am looking forward to the arrival of a senior Chinese aviation industry delegation in 2012 to explore a direct air link," Salmond says. "Our entire delegation - 'Team Scotland' - was warmly welcomed by all of our hosts and I can promise our visitors from China a very warm Scottish welcome in the coming months and years."

Of course it is not inconceivable that Salmond might be welcoming these Chinese visitors not only as head of the Scottish government, but as head of an independent Scotland a few years down the line.

By laying the groundwork now, Salmond is ensuring that should Scotland split from the UK, the country will have established independent relations with global superpowers such as China upon which to build.

"As Vice-Premier Li Keqiang remarked when I welcomed him to Edinburgh Castle in January, Scotland is a land of invention. Of course, so too is the great nation of China and it is by working together in areas of common advantage, experience and innovation that our two nations can most effectively provide solutions to wider global challenges.

"Of course, with such challenges, come opportunities and I am determined that Scotland, working with China, seizes those opportunities."




[source]

Edinburgh's engagement with Beijing, spanning educational and economic links, pays off.

Back in 2006, the Scottish government released a paper setting out a plan of action to ensure that Scotland responded to China's emergence on the global stage by strengthening ties to the mutual benefit of both nations.

Entitled "Scotland's strategy for stronger engagement with China", the blueprint highlighted key areas, including educational, economic and cultural links, to build bilateral relationships.

"The rise of China is changing the world," wrote Tom McCabe, then a member of the Scottish parliament, in the foreword to the document. "How we, in Scotland, respond to the opportunities and challenges that flow from this will be critical for our country's future."

COMMUNIST CHINA SAYS VILLAGERS WERE RIGHT TO REBEL

How many times has one heard that there is no democracy in China, and the Chinese authorities clamp down on their people? These types of comments show that those making them either know nothing about China, or have a pro-empire regime-change agenda. Fact is that the Chinese masses are a very confident people, who are militant and ready to protest for their rights, but these protests, of which there are many in China, are not anti-Communist Party or anti-state, rather these protests contain people who are loyal to their ruling party and system, are in support of the Chinese revolution of 1948 which continues today, but are against localised corruption as in the case of this Wukan situation. Full respect goes to the Chinese authorities who have essentially endorsed the protests of the people of Wukan. China has many social contradictions as a result of the economic reforms of recent decades, reforms which have been historic in many achievements such as lifting over 300 million out of abject poverty, nevertheless the Chinese nation will continue to meet the challenges of socialist construction in the typically wise and successful Chinese way.

Finally, if the Chinese state and ruling party has essentially said the villagers of Wukan were right to rebel in this instance, one can imagine that this has given many millions of others in China the empowered status that they too can develop movements and protests against other corrupt officials and seek the support of the leadership of the Communist Party in so doing.


- Sukant Chandan, Sons of Malcolm/Friends of China


[source]

Residents of a south China village who tested the ruling Communist Party's control with more than a week of protests had "legitimate complaints" over a land grab that sparked the rebellion, state news agency Xinhua has said.

Ten days of protests over confiscated farmland and the death of a protest organizer in Wukan in booming Guangdong province earlier this month drew widespread attention as a rebuff to the stability-obsessed government.

The standoff ended after authorities offered concessions in a rare example of the government backing down to mobilised citizens.

The residents had "legitimate complaints against officials over wrongdoing concerning land use and financial management," Xinhua said in a report released late on Friday, citing a provincial investigation team.

"In terms of land use, the provincial investigators ... found that Lufeng Fengtian livestock company used more land than was officially approved," it cited investigator Yang Junbo, deputy head of Guangdong's Land and Resources Department, as saying.

Another company, Guangdong Yidazhou Group, "was in arrears with its land compensation to village residents," Yang added.

The village's former Communist Party boss, Xue Chang, also "embezzled money to buy a vehicle for personal use," Xinhua said.

The investigation continues, the report added, without providing further details.

This week, the government also annulled the result of an election for Wukan village head held in February "after finding several violations," and another vote would be organised soon, Xinhua said.

Villagers had denounced local officials as corrupt and heartless throughout their months-long wrangle, which erupted in rioting in September, but they ended up welcoming provincial party officials as brokers who finally stepped in to compromise.

Protests in China have become relatively common over corruption, pollution, wages, and land grabs that local-level officials justify in the name of development.

Chinese experts put the number of "mass incidents," as such protests are known, at about 90,000 a year in recent years.

The grip of Communist Party rule is not directly threatened by such bursts of unrest, but officials fear they could coalesce into broader, more organised challenges to their power.

CHINA AND LATIN AMERICA - PARTNERSHIP FOR A NEW WORLD

Brazil's huge new port highlights China's

drive into South America

Investments guarantee Chinese access to soy, oil and other badly

needed resources

The Guardian

Wednesday 15 September 2010

The 'super port' in Sao Joao da Barra is the largest port

investment in Brazil and will have capacity for the largest

ships in the world. Photograph: Douglas Engle/Australfoto

Blades slicing through the morning heat, the helicopter

rose from the tarmac and swept into a cobalt sky, high

above Rio's Guanabara Bay.

It powered north-east over deserted beaches, dense Atlantic

rainforest and fishing boats that bobbed lazily in the

ocean below. Then finally, 80 minutes on, the destination

came into view: a gigantic concrete pier that juts nearly

two miles out into the South Atlantic and boasts an unusual

nickname: the Highway to China.

Dotted with orange-clad construction workers and propped up

by dozens of 38-tonne pillars, this vast concrete structure

is part of the Superporto do Acu, a £1.6bn port and

industrial complex that is being erected on the Rio

coastline, on an area equivalent to 12,000 football

pitches.

Reputedly the largest industrial port complex of its type

in the world, Açu is also one of the most visible symbols

of China's rapidly accelerating drive into Brazil and South

America as it looks to guarantee access to much-needed

natural resources and bolster its support base in the

developing world.

When Acu opens for business in 2012, its 10-berth pier will

play host to a globetrotting armada of cargo ships, among

them the 380-metre wide ChinaMax – the largest vessel of

its type, capable of ferrying 400,000 tonnes of cargo.

Millions of tonnes of iron ore, grain, soy and millions of

barrels of oil are expected to pass along the "Highway"

each year on their way east, where they will alleviate

China's seemingly unquenchable thirst for natural

resources.

"This project marks a new phase in relations between Brazil

and China," Rio's economic development secretary, Julio

Bueno, said during the recent visit of about 100 Chinese

businessmen to the port complex, which is being built by

the Brazilian logistics company LLX and should receive

billions of dollars of Chinese investment.

This new phase of engagement with Brazil and South America,

is part of China's "going out strategy" – an economic and,

some say, diplomatic push for Chinese companies, many of

them state-run, to invest abroad, snapping up access to

minerals, energy and food by pouring the country's colossal

foreign reserves into overseas companies and projects.

China is expected to overtake Japan as the world's second

largest economy this year and may already be the world's

greatest energy consumer. Now it is set to become Brazil's

top foreign investor, with its companies plowing $20bn into

the country in the first six months of 2010, compared with

$83m in 2009. A recent study by Deloitte predicted that

Chinese investments in Brazil could hit an average of about

$40bn a year between now and 2014, with companies throwing

money at sectors ranging from telecommunications,

infrastructure and farming, to oil, biofuels, natural gas,

mining and steel manufacturing.

"Relations with Brazil in all areas have entered a new

era," Qiu Xiaoqi, China's ambassador in Brazil, recently

told the state news agency Xinhua.

The surge in China's South American spending is not just a

Brazilian phenomenon. Ecuador has already signed around

$5bn of bilateral deals with China this year, including

$1.7bn to help build a hydro-electric dam and $1bn

investments for oil exploration and infrastructure

projects. That compared with Chinese investment of just

$56m in 2009.

Chinese companies have sunk $1.4bn into mining operations

in Peru this year, while in April Hugo Chávez announced

that the Chinese, already major sponsors of Venezuelan oil

exploration, had agreed to open a $20bn credit-line for the

"Bolivarian revolution".

Michael Klare, author of Rising Powers, Shrinking Planet, a

book about the growing tussle for global resources,

described today's China as "the shopaholic of planet

Earth".

"The Chinese authorities understand that to sustain the

country's continued growth, they will have to ensure that

its industries are provided with adequate supplies of

energy, minerals, and other basic raw materials," he said.

But the "going out" strategy went far beyond business

transactions, he added.

"They seek to fashion a multipolar world in which no single

power – read the United States – plays an overwhelmingly

dominant role. To this end, they seek to bolster ties with

rising regional powers like Brazil and South Africa."

In Sao Joao da Barra, the city nearest to Acu and one of

Rio state's poorest regions, the Chinese presence is being

felt even before Brazil's Highway to China is complete.

Keen to impress, LLX staff at the Açu port lay on hot water

and Mandarin interpreters for visiting Chinese dignitaries.

Sao Joao da Barra's town hall, meanwhile, has started

offering free Mandarin lessons to locals interested in

working with the wave of Chinese guests that is

anticipated.

"You should see a 10-year-old boy saying, 'I understand …

the Chinese are coming and when the Chinese industries come

I want to work for them and if I speak Mandarin I'll have a

competitive advantage on the others'," beamed Eike Batista,

the billionaire entrepreneur behind the superport and one

of the most vocal cheerleaders for Chinese advances into

Brazil. "[It is] wonderful."

Leonardo Gadelha, LLX's CFO, said during a recent tour of

the port: "This is part of a Chinese strategy of going to

the market more and more. They are already a very

considerable presence in Africa and we are now going

through this moment in Brazil."

The Highway to China lay "in the middle" of this blossoming

relationship with China, he said, adding: "We are betting

that … this will continue growing."

Not all Brazilians, or indeed western governments, share

such enthusiasm.

"There are many in Washington who worry about China's

growing presence in Africa and Latin America and claim that

this poses a threat to America's long-term strategic

interests," said Klare, noting, however, that the US'

"fixation" with Afghanistan and the war on terror meant

there had been virtually no reaction.

In Brazil meanwhile China's arrival has prompted cries of

neo-colonialism. "The Chinese have bought Africa and now

they are trying to buy Brazil," the prominent economist

Antônio Delfim Netto complained in a recent interview with

the Estado de Sao Paulo newspaper, warning that it was a

"grave mistake" to allow a foreign state to buy "land,

minerals [and] natural resources" from another sovereign

power.

Batista, Brazil's richest man, rejected such criticism,

saying: "The association between Brazil and China is a

two-way highway." Chinese companies such as Wuhan Iron and

Steel had committed to helping build a $5bn steel mill at

the port complex, rather than always shipping out primary

resources to process at home, he pointed out. "You want to

get three tonnes of raw iron ore, [so] produce one tonne of

steel in Brazil," he said. "That philosophy is sinking in

and is great for both sides."

Neither would Chinese companies be allowed to flood the

complex with hordes of foreign workers as had happened in

Africa, said Gadelha, the CFO.

"If it was up to them they would bring lots of Chinese

workers as they are used to doing," he admitted. "[But]

Brazil's legislation is very strict in this sense."

Batista suggested that rather than complaining about

China's courtship of Brazil, western powers should urge

their own companies to pay more attention to the region

themselves.

"In the last 15 years or so the [American and European]

CEOs have stopped coming here and that is why they are a

little bit behind," he said. "We are pushing European

companies and saying: 'You're not really understanding what

is happening in Brazil'."

"Don't put Brazil in the same bag as our neighbours," he

added. "We are not Central America. We are not Venezuela.

We are not Argentina."

============================

Beijing's deals

Brazil In November 2009 Brazilian energy giant Petrobras

signed a $10bn loan deal with China's Development Bank. As

part of the deal Petrobras will guarantee the supply of

200,000 barrels of oil per day to China over the next 10

years. Chinese companies and state banks pumped around

$20bn into Brazil in the first half of this year

Venezuela Hugo Chávez, pictured, unveiled a $20bn credit

line from China's Development Bank to fund the "Bolivarian

revolution" in April

Ecuador The country has already signed around $5bn of

bilateral deals with China this year, including $1.7bn to

help build a hydro-electric dam and $1bn investments for

oil exploration and infrastructure projects. In 2009 direct

Chinese investment in the country was just $56m

Peru Chinese companies invested $1.4bn in mining operations

in Peru during the first four months of this year, making

China the country's second largest trade partner

CHINA AND LATIN AMERICA - PARTNERSHIP FOR A NEW WORLD

Brazil's huge new port highlights China's drive

into South America

Investments guarantee Chinese access to soy, oil and other badly

needed resources

The Guardian

Wednesday 15 September 2010

The 'super port' in Sao Joao da Barra is the largest port investment

in Brazil and will have capacity for the largest ships in the world.

Photograph: Douglas Engle/Australfoto Blades slicing through the

morning heat, the helicopter rose from the tarmac and swept into a

cobalt sky, high above Rio's Guanabara Bay.

It powered north-east over deserted beaches, dense Atlantic

rainforest and fishing boats that bobbed lazily in the ocean below.

Then finally, 80 minutes on, the destination came into view: a

gigantic concrete pier that juts nearly two miles out into the South

Atlantic and boasts an unusual nickname: the Highway to China.

Dotted with orange-clad construction workers and propped up by dozens

of 38-tonne pillars, this vast concrete structure is part of the

Superporto do Acu, a £1.6bn port and industrial complex that is being

erected on the Rio coastline, on an area equivalent to 12,000

football pitches.

Reputedly the largest industrial port complex of its type in the

world, Açu is also one of the most visible symbols of China's rapidly

accelerating drive into Brazil and South America as it looks to

guarantee access to much-needed natural resources and bolster its

support base in the developing world.

When Acu opens for business in 2012, its 10-berth pier will play host

to a globetrotting armada of cargo ships, among them the 380-metre

wide ChinaMax – the largest vessel of its type, capable of ferrying

400,000 tonnes of cargo.

Millions of tonnes of iron ore, grain, soy and millions of barrels of

oil are expected to pass along the "Highway" each year on their way

east, where they will alleviate China's seemingly unquenchable thirst

for natural resources.

"This project marks a new phase in relations between Brazil and

China," Rio's economic development secretary, Julio Bueno, said

during the recent visit of about 100 Chinese businessmen to the port

complex, which is being built by the Brazilian logistics company LLX

and should receive billions of dollars of Chinese investment.

This new phase of engagement with Brazil and South America, is part

of China's "going out strategy" – an economic and, some say,

diplomatic push for Chinese companies, many of them state-run, to

invest abroad, snapping up access to minerals, energy and food by

pouring the country's colossal foreign reserves into overseas

companies and projects.

China is expected to overtake Japan as the world's second largest

economy this year and may already be the world's greatest energy

consumer. Now it is set to become Brazil's top foreign investor, with

its companies plowing $20bn into the country in the first six months

of 2010, compared with $83m in 2009. A recent study by Deloitte

predicted that Chinese investments in Brazil could hit an average of

about $40bn a year between now and 2014, with companies throwing

money at sectors ranging from telecommunications, infrastructure and

farming, to oil, biofuels, natural gas, mining and steel

manufacturing.

"Relations with Brazil in all areas have entered a new era," Qiu

Xiaoqi, China's ambassador in Brazil, recently told the state news

agency Xinhua.

The surge in China's South American spending is not just a Brazilian

phenomenon. Ecuador has already signed around $5bn of bilateral deals

with China this year, including $1.7bn to help build a hydro-electric

dam and $1bn investments for oil exploration and infrastructure

projects. That compared with Chinese investment of just $56m in 2009.

Chinese companies have sunk $1.4bn into mining operations in Peru

this year, while in April Hugo Chávez announced that the Chinese,

already major sponsors of Venezuelan oil exploration, had agreed to

open a $20bn credit-line for the "Bolivarian revolution".

Michael Klare, author of Rising Powers, Shrinking Planet, a book

about the growing tussle for global resources, described today's

China as "the shopaholic of planet Earth".

"The Chinese authorities understand that to sustain the country's

continued growth, they will have to ensure that its industries are

provided with adequate supplies of energy, minerals, and other basic

raw materials," he said. But the "going out" strategy went far beyond

business transactions, he added.

"They seek to fashion a multipolar world in which no single power –

read the United States – plays an overwhelmingly dominant role. To

this end, they seek to bolster ties with rising regional powers like

Brazil and South Africa."

In Sao Joao da Barra, the city nearest to Acu and one of Rio state's

poorest regions, the Chinese presence is being felt even before

Brazil's Highway to China is complete.

Keen to impress, LLX staff at the Açu port lay on hot water and

Mandarin interpreters for visiting Chinese dignitaries. Sao Joao da

Barra's town hall, meanwhile, has started offering free Mandarin

lessons to locals interested in working with the wave of Chinese

guests that is anticipated.

"You should see a 10-year-old boy saying, 'I understand … the Chinese

are coming and when the Chinese industries come I want to work for

them and if I speak Mandarin I'll have a competitive advantage on the

others'," beamed Eike Batista, the billionaire entrepreneur behind

the superport and one of the most vocal cheerleaders for Chinese

advances into Brazil. "[It is] wonderful."

Leonardo Gadelha, LLX's CFO, said during a recent tour of the port:

"This is part of a Chinese strategy of going to the market more and

more. They are already a very considerable presence in Africa and we

are now going through this moment in Brazil."

The Highway to China lay "in the middle" of this blossoming

relationship with China, he said, adding: "We are betting that … this

will continue growing."

Not all Brazilians, or indeed western governments, share such

enthusiasm.

"There are many in Washington who worry about China's growing

presence in Africa and Latin America and claim that this poses a

threat to America's long-term strategic interests," said Klare,

noting, however, that the US' "fixation" with Afghanistan and the war

on terror meant there had been virtually no reaction.

In Brazil meanwhile China's arrival has prompted cries of

neo-colonialism. "The Chinese have bought Africa and now they are

trying to buy Brazil," the prominent economist Antônio Delfim Netto

complained in a recent interview with the Estado de Sao Paulo

newspaper, warning that it was a "grave mistake" to allow a foreign

state to buy "land, minerals [and] natural resources" from another

sovereign power.

Batista, Brazil's richest man, rejected such criticism, saying: "The

association between Brazil and China is a two-way highway." Chinese

companies such as Wuhan Iron and Steel had committed to helping build

a $5bn steel mill at the port complex, rather than always shipping

out primary resources to process at home, he pointed out. "You want

to get three tonnes of raw iron ore, [so] produce one tonne of steel

in Brazil," he said. "That philosophy is sinking in and is great for

both sides."

Neither would Chinese companies be allowed to flood the complex with

hordes of foreign workers as had happened in Africa, said Gadelha,

the CFO.

"If it was up to them they would bring lots of Chinese workers as

they are used to doing," he admitted. "[But] Brazil's legislation is

very strict in this sense."

Batista suggested that rather than complaining about China's

courtship of Brazil, western powers should urge their own companies

to pay more attention to the region themselves.

"In the last 15 years or so the [American and European] CEOs have

stopped coming here and that is why they are a little bit behind," he

said. "We are pushing European companies and saying: 'You're not

really understanding what is happening in Brazil'."

"Don't put Brazil in the same bag as our neighbours," he added. "We

are not Central America. We are not Venezuela. We are not Argentina."

============================

Beijing's deals

Brazil In November 2009 Brazilian energy giant Petrobras signed a

$10bn loan deal with China's Development Bank. As part of the deal

Petrobras will guarantee the supply of 200,000 barrels of oil per day

to China over the next 10 years. Chinese companies and state banks

pumped around $20bn into Brazil in the first half of this year

Venezuela Hugo Chávez, pictured, unveiled a $20bn credit line from

China's Development Bank to fund the "Bolivarian revolution" in April

Ecuador The country has already signed around $5bn of bilateral deals

with China this year, including $1.7bn to help build a hydro-electric

dam and $1bn investments for oil exploration and infrastructure

projects. In 2009 direct Chinese investment in the country was just

$56m

Peru Chinese companies invested $1.4bn in mining operations in Peru

during the first four months of this year, making China the country's

second largest trade partner