China Academy https://thechinaacademy.org an intellectual content network dedicated to illustrating how key dynamics shape China's view on the world Wed, 25 Dec 2024 09:21:34 +0000 en-US hourly 1 https://wordpress.org/?v=6.2 https://thechinaacademy.org/wp-content/uploads/2023/03/cropped-WechatIMG843-32x32.png China Academy https://thechinaacademy.org 32 32 213115683 China Crushed America’s Drone Hellscape Plan in Its Infancy https://thechinaacademy.org/china-crushed-americas-drone-hellscape-plan-in-its-infancy/ https://thechinaacademy.org/china-crushed-americas-drone-hellscape-plan-in-its-infancy/#respond Tue, 24 Dec 2024 18:00:00 +0000 https://thechinaacademy.org/?p=100033921 Sanctioned by China, BRINC Drones, American largest drone maker will soon meet its doom without China's supply chain.

The post China Crushed America’s Drone Hellscape Plan in Its Infancy first appeared on China Academy.

]]>
On December 5, China’s Ministry of Foreign Affairs announced countermeasures against U.S. arms sales to Taiwan, freezing the movable and immovable assets, as well as other properties, of 13 companies and 6 individuals within China. The measures also prohibit domestic organizations and individuals from conducting any transactions or collaborations with these entities.

The Chinese Ministry of Foreign Affairs’ latest decision taking countermeasures against the U.S. arms sales to Taiwan

BRINC Drones: A Symbol of US-China Tech War

In this latest countermeasure list, BRINC Drones stands out prominently. Not only is the company ranked second on the list, but its founder and CEO, Blake Resnick, is also named. Such “recognition” is entirely due to BRINC’s “expertise” in meddling in various conflict zones.

On one hand, BRINC Drones has been aggressively pursuing the military drone market, actively vying for the U.S. Department of Defense’s “Replicator Initiative” contract. This program aims to deploy thousands of low-cost drones to create a so-called “hellscape” in the Taiwan Strait. Earlier, at the onset of the Russia-Ukraine conflict, the company moved swiftly—not only donating large numbers of drones but also dispatching a team to a “secret location” in Poland to train Ukrainian drone operators.

On the other hand, BRINC Drones plays a key role in demonizing Chinese drone technology and manufacturers by funding lobbying groups such as AUVSI. The company eagerly feeds alarming narratives about China’s drone industry to U.S. policymakers and the public. David Benowitz, BRINC’s Vice President of Strategy and Marketing Communications, once claimed: “It’s extremely difficult to consistently assess DJI’s product releases. There could be backdoor chips installed separately from standard production. We’ve seen this before—during conflicts, rogue states do embed backdoor chips in consumer products for espionage.”

As the founder of this company, Blake Resnick is a figure wrapped in accolades: a genius hardware geek, a garage-built nuclear fusion reactor creator, a protégé of Peter Thiel, a Thiel Foundation fellow, a Forbes “30 Under 30” honoree, and a recipient of his company’s first funding from OpenAI’s Sam Altman. With such credentials, Resnick epitomizes the archetype of a Gen Z “deep tech” or “hard tech” entrepreneur—Silicon Valley’s embodiment of the right-wing ideal of American capitalist innovation.

Blake Resnick, CEO of BRINC Drones

However, beneath this shiny stack of labels lies the true image of Blake Resnick: a high school dropout who once built DIY physics kits, briefly attended a low-tier state university before dropping out again, and worked as an apprentice at McLaren and Tesla. While he shows a modest knack for marketing and self-branding, his credentials are far less dazzling. As for the Forbes “30 Under 30” endorsement, curious readers can check the going rates from resellers on popular second-hand platforms.

Resnick’s ability to tap into Peter Thiel and Sam Altman’s resource networks, riding the wave of their influence, can largely be attributed to one key factor: His stint as a former DJI drone intern.

It was during his brief internship at DJI that Resnick seemingly experienced a “eureka moment,” leading to the creation of BRINC Drones. He soon unveiled his meticulously crafted concept of a “drone border wall,” envisioning hundreds of fully autonomous drone stations along the U.S.-Mexico border. These quadcopters would patrol continuously between stations and, upon detecting illegal immigrants, fire non-lethal bullets to apprehend them.

This dystopian vision of a mechanized army driving out illegal immigrants clearly struck a chord with Silicon Valley’s right-wing elites.

A drone patrolling along the US-Mexico border wall

By the way, David Benowitz mentioned before, who made the ridiculous claims mentioned earlier, is also a former DJI employee who spent years working in Shenzhen.

After being featured on China’s countermeasure list, Resnick’s BRINC is bound to lose access to Shenzhen’s drone supply network—a blow that may very well put the company on a countdown to survival.

Regardless of the future fate of this flashy, vain, and opportunistic BRINC, or rather Resnick’s personal story, it serves as a striking symbol of our times.

The small multi-rotor drone has undoubtedly become one of the most geopolitically significant symbols among the emerging electronics of the 21st century. As the industry continues to grow and technological capabilities improve, the form of multi-rotor drone products is undergoing a profound evolution. A typical example is EHang, once a player in the quadcopter market and now a global eVTOL unicorn, demonstrating how new paradigms and systems are increasingly impacting the traditional aviation industry.

Today, mainland China is undeniably the global hub of the drone industry. Even a shrewd entrepreneur like Resnick has to admit, “The entire global electronics industry, or more specifically, the global drone industry, is based in one city: Shenzhen.”

However, when Resnick was born in 2000, the landscape of the multi-rotor drone industry was entirely different.

The Story of DJI: How China Surpassed the US in Drone Innovation

After Japan’s Kenko introduced the GyroSaucer in the late 1980s, the small quadcopter configuration quickly captured the attention of both the global academic community and RC model enthusiasts. In Minnesota, USA, an engineer and remote-controlled helicopter enthusiast named Mike Dammar began experimenting with building quadcopters.

The Kenko GyroSaucer (Left);  Dammar’s Prototype No. 3 from 1991 (Right)

Starting with the successful flight of “Prototype No. 3” in 1991, Dammar’s design underwent several iterations, continually incorporating research advancements from American universities, such as HoverBot and Mesicopter, in quadcopter configurations. By the late 1990s, a series of new technologies from academia and industry—covering low Reynolds number aerodynamics, micro DC motors, lightweight structures and materials, flight control algorithms, and navigation and communication systems—came together in Dammar’s work, culminating in the historically significant “Roswell Flyer” in 1999.

One of the prototypes from Stanford University’s Mesicopter project in the 1990s (Left); The Roswell Flyer from 1999 (Right)

Focused solely on invention and indifferent to wealth, Dammar quickly sold his design to the independent RC brand Draganfly. He then turned his attention back to developing his ideal “boomerang drone.” Draganfly, on the other hand, rebranded the Roswell Flyer as the Draganflyer, and from 1999 to 2005, approximately 8,000 units were sold. It not only became the “standard” kit for research on multi-rotor technology in global academic institutions but also defined the practical form of quadcopters.

It’s worth mentioning that during the period when Draganfly dominated the global market, its founder became increasingly reliant on the Chinese supply chain: “At the time, remote-controlled helicopters were all the rage, and I bought tens of thousands of replacement blades and rotors from China, which people then bought from us.” At the same time, these small Chinese workshops, often overlooked by big brands, quickly absorbed and applied new knowledge and technology, setting off a “chain reaction” within the ecosystem.

In 2004, Hong Kong’s well-established toy manufacturer Silverlit launched its quadcopter remote-controlled drone, the X-UFO, which became the world’s first product targeting the mass market rather than the professional market. The release of this drone caused a sensation in the industry.

The X-UFO was launched by Silverlit as a kind of toy.

Of course, looking back, the most significant mark left on the history of China’s drone industry in 2004 was likely the meeting between Hong Kong University of Science and Technology(HKUST) student Wang Tao and Professor Li Zexiang. During a coaching session for the ROBOCON robotics competition, Wang Tao’s innate technical talent and “obsession” left a deep impression on Li Zexiang, much like Mike Dammar’s passion for technology.

Wang Tao, the founder of DJI, Chinese Drone Giant

After graduating in 2006, Wang Tao founded his own brand, DJI Innovations, in Shenzhen, focusing on remote-controlled helicopter flight control systems. Like many other RC hobbyist workshops, it relied on word-of-mouth from enthusiasts, and the satisfaction of being recognized by peers was far more important to him than growing the business.

During this period, DJI was more like an external experimental lab for Li Zexiang’s research team. Wang Tao, who was pursuing his master’s degree, traveled across the country with Li Zexiang, from the 2008 Wenchuan earthquake and 2009 Everest expedition to the 2010 unmanned helicopter crossing the Yarlung Tsangpo Grand Canyon. This “dream team” from the HKUST constantly pushed the boundaries of remote-controlled helicopter applications, accumulating numerous innovations in flight control systems. Li Zexiang and his partner Zhu Xiaorui were also deeply involved in DJI’s financing and operations, sending graduate students to intern at DJI, many of whom later became core employees of the company.

Professor Li Zexiang (far right) guides Wang Tao (second from right) and Song Jianyu (third from right) in completing the unmanned helicopter flight experiment over the Yarlung Zangbo Grand Canyon.

In 2011, Wang Tao officially completed his master’s thesis and fully embraced the role of an entrepreneur. It was also in this year that, sensing the emerging market for multirotor drones, DJI launched the “Fenghuolun” (Firewheel), a multirotor flight platform aimed at the professional market. This marked the company’s transition from being a subsystem supplier to a more commercially-driven player in the end-user market.

From the “Fenghuolun” kit and the six-axis “Jindouyun” to the groundbreaking “Phantom” quadcopter, DJI quickly achieved a “triple jump” across the professional, commercial, and consumer markets, building on its deep expertise in key subsystems. This rapid growth helped the company create the “iPhone moment” for consumer drones.

As the “Phantom” dominated the market like a bulldozer, DJI’s U.S. division erupted in a dispute over how to divide the spoils. Colin Guinn, the head of the U.S. market, claimed to be the key contributor to the phenomenal success and demanded more equity from the Chinese founding team.

The dispute quickly ended with Colin Guinn and his North American team leaving DJI to join American competitor 3D Robotics.

At the time, 3D Robotics seemed to have all the conditions to easily “end” DJI:

one of its co-founders was a typical American “garage geek,” while the other was the editor-in-chief of Wired magazine, a well-known thought leader in the digital era; the marketing head, Colin Guinn, claimed to have key insights into DJI’s “Phantom” supply chain and was determined for “revenge”; it had backing from giants like Qualcomm; and it strongly emphasized its open-source software approach, positioning 3DR as the “Android” of the drone market.

Colin Guinn, 3D Robotics’ marketing head

This may have been a clever and profound market positioning, but unfortunately, 3DR had all the elements needed for American-style innovation, except for control over large-scale production.
In the end, the showdown between 3DR and DJI was decided with a dramatic speed, determining their respective fates.

In 2015, 3DR bet the company’s future on its all-in-one aerial camera, the Solo. Positioning it as the flagship competitor to the “Android” of drones, DJI responded quietly by pricing its latest model, the Phantom 3, much lower, akin to an “iPhone” priced at a fraction of the cost. The outcome was inevitable: when you can buy the latest iPhone for $2,000, how many would be willing to pay a higher price for the “Android”?

This reliance on large-scale manufacturing capabilities and the straightforward, yet monotonous, business warfare of economies of scale ultimately broke Chris Anderson, the founder of 3DR and a new-generation lean startup mentor: “I have never seen such price slashing in any market.” At the CES exhibition in January the following year, dozens of Chinese drone brands with even more aggressive pricing than DJI made their debut, leading the 3DR team to cancel their future hardware plans and switch to the company’s liquidation plan, PLAN B.

The demise of 3DR and the prolonged funeral of GoPro’s Karma forced many Americans to confront an uncomfortable, cold reality: creating desirable, cutting-edge high-tech products is no longer the exclusive domain of the United States or Western civilization as a whole.

Faced with DJI’s overwhelming competitiveness, Americans, after being defeated in direct competition, almost instinctively resorted to their last resort.

In 2018, after GoPro officially announced its exit from the drone market, the U.S. Department of Defense swiftly issued a ban on DJI purchases, marking the military-industrial complex’s call to demonize DJI, with a series of performance arts unfolding one after another.

The US is Losing to China On Multiple Hard-tech Fronts

From a global industry leader to relying on “dirty tricks” to barely resist, the dramatic shift in the U.S. drone industry over just a decade or so is not an isolated phenomenon:

Segway, which pioneered the electric scooter category, is now part of Ninebot; iRobot, once a leader in the robotic vacuum space, is struggling in the face of competition from Roborock; Boston Dynamics, which led the innovation in quadruped and biped robots, is now being overshadowed by YuTree Technology; GoPro, once a tech icon on par with the iPhone, is now under pressure from Insta360…
The world of hardware innovation is no longer what Americans are familiar with.

In the “original” timeline, millennial and Gen Z American entrepreneurs were supposed to replicate the legendary business templates of their predecessors: garage startups fueled by genius sparks, efficient funding systems, and the empowerment of seasoned professional managers. They were meant to become category leaders, enjoy a decade or more of market dominance and windfall profits, build robust brand and technological barriers, and eventually step into the mentor’s role, handpicking the next generation of business prodigies.

However, the cost structure and innovation speed reshaped by Chinese manufacturing have almost permanently dismantled the ecological cycle that had thrived since the birth of the HP and Silicon Valley startup mythos. The relentless “involution” of large-scale production is one thing; even in the realm of “garage innovation” from 0 to 1, young Chinese geeks like Wang Tao are emerging in droves. As Wang himself once remarked about a group of aspiring students: “You could load these people into three cars, put them somewhere, and in a few years, you’d probably see ten excellent companies emerge.”

Once ridiculed for counterfeits and poor-quality goods, even earning the derogatory label “KIFR” (Keepin’ It Real Fake), Chinese manufacturing has undergone breathtaking evolution under intense competition. Not only has it mastered the art of winning the race from 1 to 100 with consistent quality, ultra-low costs, and unmatched supply chain capabilities, but companies like DJI and other rising stars have also seized the global frontier in original innovation, excelling in the journey from 0 to 1.

Today, beyond the hysteria and emotional outbursts, mid-generation American political and tech elites with growing resources have begun to reassess and reflect on large-scale manufacturing. From Bill Gates to Peter Thiel, Silicon Valley’s billionaires have launched numerous generous seed funding initiatives, aiming to break free from the MBA-style corporate management mold and nurture disruptive ideas and talent from the grassroots.

However, it is far easier said than done for the elites filtered through the American capitalist machine to fundamentally reform it. The meteoric rise of Blake Resnick and his company BRINC exemplifies the barren state of grassroots innovation in American tech. So much so that the tens of thousands of digital nomads in the Bay Area, dreaming of overnight wealth, have merely swapped the suit-and-tie MBA archetype for the plaid-shirt, wild-haired geek template of opportunism. What sloshes inside this seemingly fresh bottle is nothing more than the old wine of Silicon Valley’s “success gospel.”

The small multi-rotor drones of China has already flown past the good old days of American ‘hard-tech’ innovation.

The post China Crushed America’s Drone Hellscape Plan in Its Infancy first appeared on China Academy.

]]>
https://thechinaacademy.org/china-crushed-americas-drone-hellscape-plan-in-its-infancy/feed/ 0 100033921
Americans Are So Easy to Deceive https://thechinaacademy.org/americans-are-so-easy-to-deceive/ https://thechinaacademy.org/americans-are-so-easy-to-deceive/#respond Tue, 24 Dec 2024 18:00:00 +0000 https://thechinaacademy.org/when-luigi-mangione-is-deified-witch-hunts-loom/ Western rulers will go all out to deify and praise Luigi to pacify the masses, but they will not make any changes to the true issue.

The post Americans Are So Easy to Deceive first appeared on China Academy.

]]>
On December 19th, the gunman Luigi Mangione, who shot the CEO of UnitedHealthcare, has been formally extradited from the arrested Pennsylvania prison to New York for trial. The focus wasn’t on the extradition or the trial but on the few photos captured by the media. Americans sure know how to mythologize, at least the photographers are truly professional; just look at the composition, the tones – Mangione is practically an image of “Jesus” martyred for the American people.

Luigi Mangione is escorted by police in New York on December 19, 2024

Americans don’t care about heroes from other nations, nor do they care about heroes dying for other nations, but for the “martyrs” imprisoned for resisting their own capitalist tyranny, they praise generously and deify fiercely. Look at this group of expressionless imperial lapdogs, capitalist lackeys looking as if they’re facing a formidable enemy, while he stands in the middle, even the orange prison uniform exudes a saintly aura, almost like the “sole light.”

Luigi’s photos are going viral online

Even within the Western narrative framework, Mangione fits the superhero archetype perfectly; an Italian-American rich kid, handsome, a scholar, an algorithm engineer, an indie game developer… with his ghost gun deed, he took down the CEO of UnitedHealthcare, the capitalist preying on the masses.

This is what defying the class looks like! Killing Brian Thompson wasn’t for personal vendetta, but to settle the score with the unscrupulous capitalists sucking the blood of the American people.

While volunteering at his own nursing home, Luigi Mangione witnessed the dire situation of patients denied insurance coverage by insurance companies, fueling his anger. He then plotted the shooting of Brian Thompson, CEO of UnitedHealthcare. The average insurance denial rate in the U.S. is 16%, but UnitedHealthcare’s denial rate is 32%, with “denying coverage” becoming their profit model, and UnitedHealthcare executives earning millions annually. The slain CEO, Brian Thompson, once boasted during his tenure about further increasing the company’s denial rate… these parasites take pride in this!

The bullets found at the crime scene were inscribed with “Deny, Defend, Depose,” common phrases used by insurance companies to deny coverage and evade claims.

Luigi Mangione left a manifesto – “These parasites had it coming” Mangione’s arrest was also due to a tip-off from a McDonald’s employee; see, in one case, two defiers of the class emerged.

This case is played out extremely beautifully, from the perpetrator to the victim, to America’s judicial machinery, media coverage, public reactions… everything coordinated to perfection, almost like a Hollywood movie script, reminiscent of The Big Short.

Currently, Hollywood is indeed stirring, planning to shoot a movie or documentary about him. Firstly, documentary director Alex Gibney, who previously filmed the documentary The Inventor: Out for Blood in Silicon Valley about Elizabeth Holmes, the “female Steve Jobs” of Silicon Valley. Gibney stated that the documentary will focus on “From the crime’s seemingly meticulous execution to the alleged killer’s manifesto and his Ivy League background to the public’s unapologetic apathy towards the victim, the investigative deep dive will ask how killers are created, what this killing says about our society and the values we place on who lives and who dies.”

Another documentary director, Stephen Morse, known for the highly popular Netflix documentary “Amanda Knox,” is set to create a documentary based on Luigi Mangione’s life. He intends to explore different viewpoints related to the murder and its consequences, involving the victims, their families, Mangione, and the ethical dilemmas arising from Thompson’s murder. In addition to delving into the case, the documentary will offer a historical background on a contentious issue in America, the privatization of health insurance.

In fact, in response to Mangione’s admirers, the U.S. has started a new wave of White Terror.

The aftermath of the shooting of UnitedHealthcare CEO Thompson has sent shivers down the spines of the American political and business elites. Not only have they removed executive photos from company websites, but they have also begun to demand that employees publicly denounce, report, and firmly oppose the glamorization of criminals.

This wave of panic has not only engulfed the corporate world but has also spread to society. These capitalists, politicians, and financial elites are even beginning to doubt if their own children have been bewitched by Mangione.

All mourning for Thompson, all condemnation of the assassin, has utterly failed. Young people are now fervently cursing and mocking the billionaire insurance company owners, condemning their greed and evil that suck the blood of Americans and harm society.

Mangione has become a symbol of anti-capitalism online, with young people even getting his image tattooed, transcribing his manifesto everywhere, and some even circulating Mangione coins online… This is one of the most feared things for the ruling class in America; they are now in a difficult position.

Watch out, the so-called free world is about to see a witch hunt, families, schools, and companies will surely start examining children, students, and workers for “ideological issues,” monitoring their social platforms, everyday conversations, and books they read… just like they have done in history.

Fox News launches a new round of “witch hunt”

Therefore, I still don’t hold much hope for Mangione or the awakening of the American people because they are just too easily deceived. Don’t be fooled by the hype of young Americans printing his face on T-shirts, tattooing him – the stories of Malcolm X and the Black Panther Party are not that far in the past.

The Western ruling class is too adept at this kind of thing. “After their death, attempts are made to convert them into harmless icons, to canonize them, so to say, and to hallow their names to a certain extent for the “consolation” of the oppressed classes and with the object of duping the latter, while at the same time robbing the revolutionary theory of its substance, blunting its revolutionary edge and vulgarizing it.” Even the real Jesus was crucified; what use is a “modern Jesus”?

The post Americans Are So Easy to Deceive first appeared on China Academy.

]]>
https://thechinaacademy.org/americans-are-so-easy-to-deceive/feed/ 0 100033973
“We are Criminal Police” Breaks The Stereotype Made Up by Western Media https://thechinaacademy.org/we-are-criminal-police-breaks-the-stereotype-made-up-by-western-media/ https://thechinaacademy.org/we-are-criminal-police-breaks-the-stereotype-made-up-by-western-media/#respond Tue, 24 Dec 2024 18:00:00 +0000 https://thechinaacademy.org/?p=100033875 Realistically portraying three generations of Chinese criminal police, the series topped viewership charts for 9 days with over 10,000 ratings.

The post “We are Criminal Police” Breaks The Stereotype Made Up by Western Media first appeared on China Academy.

]]>
Have you often seen the dim image of Chinese police on the covers of international media like BBC, CNN, NYT, The Washington Post, The Economist, Voice of America……Even the pictures are unrelated to the news content, subtly implying that there’s heavy-handed surveillance by the police over the Chinese people.

Factually, China is one of the countries with the lowest murder rate, the fewest gun-related crimes, and the lowest criminal offense rate in the world. In 2023, China ranked 3rd in the global security index, with 90% of respondents feeling safe walking alone at night in China.

More importantly, contrary to the stereotype of “ubiquitous police” created by some Western media, China has only 12 police officers for every 10,000 people, far behind the average of 25 police officers per 10,000 people.

What a truly pivotal question is, how does China achieve a crime rate just one-twentieth of the West’s, with about six times the U.S. population and half the police density?

A popular detective series “We Are Criminal Police” which is currently captivating audiences in China might be a referable answer. Co-produced by the Media Center of the Ministry of Public Security and China Media Group(CMG), the authenticity of this drama is guaranteed. It represents fifteen major cases in China over the past few decades, with detailed depictions of the case-solving process by front-line criminal police, receiving wide acclaim from Chinese audiences for its realistic plot.

Chinese famous film critic Mao Jian praised this drama as “a detective series featuring Chinese characteristics” and a fine documentary work on the development of Chinese police. Let’s follow this series to get a glimpse of the real Chinese criminal police.

How Chinese Criminal Police Crack Cases

All the fifteen prototype cases are major cases that occurred in China during the 1990s, linked together by the protagonist Qin Chuan who does not possess superhuman intelligence; nor does he always successfully solve cases or capture criminals single-handedly in the series. His physical strength and background are within the range of ordinary criminal police. However, it is precisely these qualities of the Chinese police and their distinct Chinese approach to solving cases that the series aims to highlight—this is the “secret” behind their exceptional performance in duty.

(1)

In one episode involving a 200-ton grain theft case, the professionalism of the criminal gang increased the difficulty of solving the case. They were not only able to successfully dig tunnels to steal soybeans but also had a sophisticated transportation and “beans laundry” network. Qin, along with his two colleagues, went to a restaurant for investigation based on clues. On the rooftop, they witnessed more than a dozen criminals conducting a worship ceremony.

Audiences accustomed to Hollywood blockbusters or American detective TV series might expect them to jump off the rooftop and apprehend the suspects with excessive violence. However, Qin remained calm and composed, devising a careful plan and then notifying the local police to bring a team to the scene before taking further moves. This might not cater to the need for intense dramatic conflict, but it reflects the everyday reality of how Chinese criminal police handle cases.

Mao Jian commented that Qin’s performance shows the organizational discipline and work style that Chinese police should have, embodying a steady and pragmatic collective combat style, with a clear sense of hierarchy and basic policing knowledge.

(2)

In another episode, Qin deduced that the criminal suspect had appeared on a bus. Consequently, he made it a priority to focus the video investigation on this lead. He insisted that all surveillance footage along the bus route be reviewed. Additionally, he instructed Liang to mobilize 200 personnel to collectively watch the videos, starting at 9 am the next morning.

The next day, when Qin arrived to check on the progress, he was infuriated to find only a handful of officers in the video review team. Liang appeared distressed and eventually admitted that he could only gather a maximum of 80 people. Understanding the difficulties of grassroots work, Qin consented to the compromise.

Eventually, the large meeting room was filled with a full 80 police officers. Although they were faced with the monotonous task of reviewing footage, they worked as a cohesive and efficient team. Their collective efforts ultimately led to the resolution of the case.

This episode exemplifies the organized and disciplined nature of Chinese police, who adhere to the approach of relying on collective strength to solve problems. It also showcases the adaptable and resourceful image of outstanding Chinese police officers, who are adept at making the best of a situation.

(3)

To solve an 18-year-old case, Qin was determined to complete the evidence chain and find a missing gun at all costs. Colleague Yang was also determined and mobilized hundreds of people from the municipal armed forces, militia, and reserves to search the riverbed in rubber suits for a week, but the gun was not found. With continuous heavy rain, hundreds of people searched the river in raincoats. Qin sought help from the provincial department leaders, and with the approval, soldiers with metal detectors were sent to search the river. In the heavy rain, the soldiers, wearing raincoats, systematically searched the river, and a detector finally beeped, leading to the discovery of the gun. The gun number was revealed after rubbing it against a stone, leading to cheers from the hundreds of people present, marking the successful conclusion of the 18-year-old case.

Mao Jian praised this workflow. When the complexity and scope of a case exceed the handling capacity of the local criminal investigation team, Qin immediately activated the reporting mechanism. The process unfolds step by step: first, the county police report the situation to the city police department, which evaluates the case and escalates it to the provincial police bureau. The provincial police then send in experts to assist with the investigation, who, once on-site, conduct a thorough inquiry based on the specifics of the case.

This model of reporting upwards, expert intervention, and coordinated multi-site operations reflect the emphasis on organizational discipline and collective collaboration in Chinese policing, ensuring the rapid and effective mobilization of resources in the face of major cases. Once a target is identified, differences are set aside, a combined effort is formed, and resources are concentrated to solve the problem.

These cases collectively highlight the Chinese police’s approach to law enforcement, reflecting their guiding principles: dedication, integrity, discipline, compliance, and strict enforcement.

What Chinese Criminal Police Look Like

However, the collectivist style did not cover the distinct personalities of the Chinese police. Qin describes himself as “blunt, low EQ, and short-tempered.” This slightly humorous description contrasts with the stern image of criminal investigators we often encounter in reality. Like Qin, all the criminal police in the series have their own emotions. But when it comes to handling cases, they transform into an altogether different personality, with this ‘personality’ embodying the collective image of ‘Chinese Criminal Police.’

(1)

Many characters in the series are based on real prototypes, such as the first batch of invited criminal investigation experts by the Ministry of Public Security of China in 1994, including the leading figure in criminal investigation technology, Wu Guoqing, and the ballistics expert, Cui Daozhi.

The plot of the first episode is based on a major robbery and murder case that occurred in the Hegang mining area of Heilongjiang Province in 1995. The cruel methods and professional crime layout of the perpetrators left almost no evidence at the scene except for a single strand of artificial silk hair.

In the actual case, Cui showed great bravery by identifying that all the remaining shell casings were fired from the same gun and accurately determining the actual shooting position, which ultimately helped the police capture the suspect.

Mao Jian notes that Cui’s performance in the actual case was even more remarkable, and the TV series actually downplayed his heroism. To make the image of the criminal police in the series more closely aligned with the reality of the vast majority of ordinary criminal investigation experts in China, the series adopted a narrative technique that transforms “special individuals” into “common figures,” making Cui’s portrayal in the series less brave and sharp than in reality but covering a broader spectrum of ordinary criminal police.

(2)

When the criminal Song Xiaojun, who has taken multiple lives, speaks nonchalantly about his bloody deeds, all criminals have their social contexts and excuses for their crimes. On the other hand, as contemporary criminals become more adept at empathizing with the discourse of the lower classes under the guise of modernism, Qin’s criticism as a criminal police is powerful and to the point: deserved punishment is the greatest principle of law.

When Police Zhao Fei’s best friend is shot dead by a criminal who escapes the death penalty with the defense of a lawyer, the friend’s wife is extremely dissatisfied. Zhao is also filled with grief and anger but still advises her: “They want to use the weaknesses of human nature to drag you into a filthy, evil abyss, but we cannot do that.”a

As the upholders of the rule of law, the police cannot violate the law in the name of peace; this is their unassailable bottom line. When Qin firmly states, “ I want to be the leader, so what?” the audience feels an unprecedented purity because these words come from a person who is both dedicated to and represents the collective.

(3)

The character Tao Weizhi, the deputy team leader of the criminal police squad, almost condenses the sweet and bitter experiences of front-line officers: stuck in a murder case with no leads, yet persistently refusing to give up, each DNA test result turns out to be a false hope, leading him to joke about being “obsessed with the case.” After six years of tirelessly pursuing truth and justice, Tao finally finds the breakthrough in the case, and at the moment of identifying the suspect, he can’t help but cry out loud, waving his hand and turning his head to shed tears in a heart-wrenching scene, embedding the image of an ordinary yet great police officer in the hearts of the audience.

Even a police character with limited screen time is often given a rich storyline and emotional depth. The old criminal police Fan Shouliang, who was almost torn apart from his family while investigating the series of rapes, murders, and mutilations of women in Liangcheng (based on the highly publicized Baiyin case), still has a spark in his eyes when he hears about the case, even in his later years suffering from Alzheimer’s disease. When the case was finally solved after 28 years, the scene of the apprentice informing him at his grave evoked a sense of pathos that moved many viewers to tears.

At the same time, Mao Jian comments that the relay of police honor education, including the TV series picking up the mission of national education, suddenly commands great respect. Mao Jian also notes that the portrayal of Qin Chuan by the actor Yu Hewei, blending in with ordinary officers rather than standing out like a crane among chickens, marks the beginning of his journey to becoming a great actor. Thus, “We Are Criminal Police” is a tribute to all Chinese criminal police, not just a personal hero’s tale.

Conclusion

From the criminal police going door-to-door to investigate and identify target individuals, to the technical support provided by criminal investigation experts in search of a breakthrough for the case, to piecing together scattered clues into a coherent picture, to the arduous uncovering of the truth, and finally to the pinpointing and arrest of the suspect……

To capture the true essence of the work and lives of front-line criminal investigators, the production team immersed themselves within public security agencies, engaging closely with officers in the field. They conducted thorough on-site studies, and in-depth interviews, and meticulously gathered and organized a wealth of professional resources and documentation. The resultant narrative is rich in detail, offering a palpable depiction of the investigative process. This attention to realism breathes life into the characters, creating a stir of conversation across the Internet.

One Chinese netizen remarked that in the past few decades, as tech has advanced, criminal investigation has been stepping it up bit by bit too. It’s a compact historical drama that really shows what it means to be a “people’s police for the people.” Not any countries’ police can prefix their name with “people.”

The recent killing of health insurance CEO has once again thrust American law enforcement into the public eye. As they detain a figure deemed America’s “People’s Hero” with a grand display of force and an extensive police mobilization, one might wonder why the Western media doesn’t laud this display of “collective effort.”

If you start to question the Western police system, how about considering watching the series “We Are Criminal Police”? It offers an authentic glimpse into the lives of Chinese criminal police—perhaps a perspective you’ve never fully appreciated—and it just might spark some insight.

The post “We are Criminal Police” Breaks The Stereotype Made Up by Western Media first appeared on China Academy.

]]>
https://thechinaacademy.org/we-are-criminal-police-breaks-the-stereotype-made-up-by-western-media/feed/ 0 100033875
New Low for US Conspiracies: Chinese Garlic as a Security Threat? https://thechinaacademy.org/new-low-for-us-conspiracies-chinese-garlic-as-a-security-threat/ https://thechinaacademy.org/new-low-for-us-conspiracies-chinese-garlic-as-a-security-threat/#respond Tue, 24 Dec 2024 18:00:00 +0000 https://thechinaacademy.org/new-low-for-us-conspiracies-chinese-garlic-as-a-security-threat/ The US, running out of ways to slander China, now absurdly claims Chinese garlic threatens US security.

The post New Low for US Conspiracies: Chinese Garlic as a Security Threat? first appeared on China Academy.

]]>
The US, running out of ways to slander China, now absurdly claims Chinese garlic threatens US security.

The post New Low for US Conspiracies: Chinese Garlic as a Security Threat? first appeared on China Academy.

]]>
https://thechinaacademy.org/new-low-for-us-conspiracies-chinese-garlic-as-a-security-threat/feed/ 0 100033829
China is Saving EU’s Christmas from Red Sea Crisis https://thechinaacademy.org/china-is-saving-eus-christmas-from-red-sea-crisis/ https://thechinaacademy.org/china-is-saving-eus-christmas-from-red-sea-crisis/#comments Mon, 23 Dec 2024 18:00:00 +0000 https://thechinaacademy.org/china-is-saving-eus-christmas-from-red-sea-crisis/ I don't want a lot for Christmas, there is just one thing this world need—Made in China.

The post China is Saving EU’s Christmas from Red Sea Crisis first appeared on China Academy.

]]>

Over 2 billion people in more than 160 countries celebrate Christmas, and a small Chinese city called Yiwu, with a population of under 2 million, produces 80% of the world’s Christmas decorations, providing around $70 billion worth of goods globally each year.  

That’s an amazing lever, isn’t it? However, this year, due to the Red Sea Crisis, Yiwu’s market share could rise to 100% in the EU.  

Yiwu, located in Zhejiang, a coastal province near Shanghai, is the heart of Christmas decoration production. Typically, orders are placed in February or March, shipped by July, sold by wholesalers to retailers between August and October, and finally stocked on shelves before Christmas.  

According to the World Bank,Yiwu International Trade City is the world’s largest small commodities market.

But this year, to avoid the conflicts in the Red Sea, many ships are now being rerouted around the Cape of Good Hope, with some even using Arctic routes. These detours add over 4,000 miles to shipping journeys. According to Reuters, average transit times have increased by about 50%, making it likely that Yiwu’s Christmas decorations will miss the holiday season.  

Fortunately, Yiwu is one of the starting points for the China-Europe freight trains, a 13,000-kilometer railway network that delivers goods directly to Germany, France, and Spain in just 21 days. This rail line has become a crucial alternative to traditional shipping, with more European retailers turning to Chinese products. According to Yiwu Customs data released on December 19, the city’s trade volume reached over $70 billion in the first 11 months of 2024, a 17.6% year-on-year increase.  

Most of the transportation needs of these new orders are met by rail. China Railway Group reports that between January and July, the China-Europe freight trains ran 11,403 trips, transporting 1.226 million TEUs, with year-on-year increases of 12% and 11%, respectively. While the railway company has raised 20% prices to manage demand, many Chinese businesses are still desiring to secure more space.  

Ironically, just two years ago, Bloomberg called this rail project a waste of money, as it was twice as expensive as sea shipping. But now, safety and speed have proven priceless. By December 2024, the China-Europe freight trains have reached 227 cities in 25 European countries and more than 100 cities in 11 Asian countries, covering the entire Eurasian continent and ensuring that trade between Asia and Europe can continue regardless of disruptions in the shipping industry.  

Meanwhile, U.S. retailers are nearing the edge. Despite Yiwu-made Christmas decorations being cheaper than domestic ones in the U.S., newly imposed tariffs against China have significantly increased costs for American retailers.  

A December 21st Bloomberg report revealed that Party City, which sells costumes and party goods, filed for bankruptcy, planning to close approximately 700 stores. This could trigger a vicious cycle in the retail industry, as competitors are forced to offload inventory. If several retailers do this at once, it floods the market with discounted products, forcing others to lower their prices, ultimately weakening profits.  

The situation is already unfolding. U.S. furniture retailer Conn’s was among the first to start dumping inventory after filing for bankruptcy in July. The trend accelerated in September with Big Lots, followed by Eastern Mountain Sports and Bob’s Stores the following month, all holding going-out-of-business sales.  

No matter what, we hope everyone enjoys a perfect Christmas, and that every child, regardless of color or belief, can enjoy the decorations with reasonable prices, and the priceless gift of safety.

The post China is Saving EU’s Christmas from Red Sea Crisis first appeared on China Academy.

]]>
https://thechinaacademy.org/china-is-saving-eus-christmas-from-red-sea-crisis/feed/ 1 100033926
To Survive the Upcoming Recession, the U.S. Should Copy China https://thechinaacademy.org/to-survive-the-upcoming-recession-the-u-s-should-copy-china/ https://thechinaacademy.org/to-survive-the-upcoming-recession-the-u-s-should-copy-china/#respond Mon, 23 Dec 2024 18:00:00 +0000 https://thechinaacademy.org/to-survive-the-upcoming-recession-the-u-s-should-copy-china/ The Fed's policy may potentially push the U.S. economy into recession

The post To Survive the Upcoming Recession, the U.S. Should Copy China first appeared on China Academy.

]]>
Two weeks ago, the China Academy hosted a conversation with Professor Steve Hanke, which we produced as a three-part video series. In this episode, Professor Hanke discusses how the Federal Reserve’s monetary policies have influenced U.S. election outcomes and may potentially push the U.S. economy into recession. He expresses concern about the current money supply in China, noting that it is below Hanke’s golden growth rate. However, he acknowledges that China managed its monetary supply effectively during the 2008 financial crisis.

The post To Survive the Upcoming Recession, the U.S. Should Copy China first appeared on China Academy.

]]>
https://thechinaacademy.org/to-survive-the-upcoming-recession-the-u-s-should-copy-china/feed/ 0 100033914
Hostages of Trump’s Tariffs, US Allies Try Their Luck With China https://thechinaacademy.org/hostages-of-trumps-tariffs-us-allies-try-their-luck-with-china/ https://thechinaacademy.org/hostages-of-trumps-tariffs-us-allies-try-their-luck-with-china/#respond Mon, 23 Dec 2024 18:00:00 +0000 https://thechinaacademy.org/hostages-of-trumps-tariffs-us-allies-try-their-luck-with-china/ Vowing to impose 100% tariffs on BRICS nations, Trump will be the first president to weaponize trade

The post Hostages of Trump’s Tariffs, US Allies Try Their Luck With China first appeared on China Academy.

]]>
Is President-elect Donald Trump about to use tariffs as a weapon? In this exclusive interview with Professor Robert Atkinson, founder of the Information Technology and Innovation Foundation, we break down the Trump Risk Index—a tool assessing which countries are most likely to face tariffs under a second Trump presidency. From trade wars with China to threatening NATO allies to take sides, Atkinson explains the potential impact of Trump’s ‘America First’ strategy.

The post Hostages of Trump’s Tariffs, US Allies Try Their Luck With China first appeared on China Academy.

]]>
https://thechinaacademy.org/hostages-of-trumps-tariffs-us-allies-try-their-luck-with-china/feed/ 0 100033937
Yoon Suk-yeol Shattered the Beacon of Democracy of South Korea https://thechinaacademy.org/yoon-suk-yeol-shattered-the-beacon-of-democracy-of-south-korea/ https://thechinaacademy.org/yoon-suk-yeol-shattered-the-beacon-of-democracy-of-south-korea/#respond Sun, 22 Dec 2024 18:00:00 +0000 https://thechinaacademy.org/yoon-suk-yeol-shattered-the-beacon-of-democracy-of-south-korea/ “Yoon is an enemy of liberal democracy,” says a special advisor to Former South-Korean President Moon Jae-in.

The post Yoon Suk-yeol Shattered the Beacon of Democracy of South Korea first appeared on China Academy.

]]>
The dizzying and chaotic actions of the current president have left me not only feeling disoriented but also enraged. On December 3rd, he declared a state of emergency martial law, only to lift it shortly after and apologize to the public. Then, on December 12th, he claimed that the martial law was a “highly strategic governance act” and declared that he would “fight until the end.” This “tragicomic” circus ultimately ended with the passing of the impeachment motion in the National Assembly. Reflecting on his actions during his suspension from office, it seems that justice has prevailed.

First and foremost, he was an ‘undisciplined’ president. By ‘undisciplined,’ I mean behavior that goes against principles, ethics, and values. He had long touted liberal democracy and international solidarity as his trademarks, but in reality, he became an enemy of liberal democracy. Under the pretext of “defending liberal democracy from the threat of anti-state forces trying to overthrow the South Korean system,” he declared martial law and attempted to destroy the democratic constitutional order.

Under liberal democracy, the state is merely a neutral vessel reflecting the interests and preferences of its citizens, who are individuals. Moreover, the president is a representative and servant of the people. However, Yoon Suk-yeol rushed to make himself the master, identifying himself with the state and labeling those who opposed him as anti-state forces. This is the height of lawlessness. The impeachment of the president by the large opposition party, legislative overreach, and budget manipulation, which Yoon condemns, are common occurrences in advanced democracies. To declare a state of emergency and suppress opposing forces under these circumstances is an act that abandons the fundamental principles of liberal democracy.

The Biden administration was caught off guard by Yoon’s declaration of martial law.

Secondly, Yoon Suk-yeol was a ‘lawless’ president. Even though the conditions for declaring martial law — war or rebellion — were not met, he went ahead with the declaration. Furthermore, he deployed the military to neutralize the constitutional authority of the National Assembly and attempted to seize information from the constitutional body, the National Election Commission, by infiltrating its offices and servers. These were clear illegal and unconstitutional acts. Including the Speaker of the National Assembly, leaders of both ruling and opposition parties, critical politicians, journalists, former Supreme Court justices, and sitting judges who had acquitted opposition leaders among those to be arrested alongside the martial law declaration constitutes a severe violation of the rule of law and the constitutional principle of the separation of powers. His actions, as a former prosecutor general and legal professional, are truly inexplicable.

Under liberal democracy, the state is merely a neutral vessel reflecting the interests and preferences of its citizens, who are individuals. Moreover, the president is a representative and servant of the people. However, Yoon Suk-yeol rushed to make himself the master, identifying himself with the state and labeling those who opposed him as anti-state forces. This is the height of lawlessness. The impeachment of the president by the large opposition party, legislative overreach, and budget manipulation, which Yoon condemns, are common occurrences in advanced democracies. To declare a state of emergency and suppress opposing forces under these circumstances is an act that abandons the fundamental principles of liberal democracy.

Secondly, Yoon Suk-yeol was a ‘lawless’ president. Even though the conditions for declaring martial law — war or rebellion — were not met, he went ahead with the declaration. Furthermore, he deployed the military to neutralize the constitutional authority of the National Assembly and attempted to seize information from the constitutional body, the National Election Commission, by infiltrating its offices and servers. These were clear illegal and unconstitutional acts. Including the Speaker of the National Assembly, leaders of both ruling and opposition parties, critical politicians, journalists, former Supreme Court justices, and sitting judges who had acquitted opposition leaders among those to be arrested alongside the martial law declaration constitutes a severe violation of the rule of law and the constitutional principle of the separation of powers. His actions, as a former prosecutor general and legal professional, are truly inexplicable.

Third, he was an ‘ignorant’ president. He lacked objective facts on policy issues and was accustomed to believing and spreading fake news. This was most clearly revealed in his fourth speech. His claim that the military mobilized to the National Assembly was small turned out to be false. He also made the erroneous claim that the special budget for the National Assembly had increased, despite it having been reduced for years, and he falsely asserted that the budget for supporting the export of Czech nuclear plants had been cut by 90%. His statement that the reduction in reserve funds made disaster response difficult was also untrue, as was his claim that child care allowances had been unilaterally cut.

Yoon Suk-yeol defended the declaration of martial law by claiming it was a “warning martial law” meant to alert the public about the anti-state misdeeds of the large opposition party and to stop them. However, the evidence contradicting this claim is overwhelming. In his fourth address, he insisted, “I told them not to block the National Assembly,” but after declaring martial law, he called the police commissioner six times and directly ordered, “Arrest them all. They are violating martial law, so arrest them.” His claim that “the national administration was paralyzed and social order disrupted due to the tyranny and violence of the opposition’s legislative dictatorship, making it impossible to carry out normal administrative and judicial functions,” along with his warning that South Korea would turn into a “paradise for spies, a drug den, and a gangster nation,” were nothing more than baseless, provocative fake news.
Finally, he was an ‘incompetent’ president. This means he had zero political skill and execution ability. Politics is the art of turning the impossible into the possible, but he has practiced a subtractive politics, making even possible things impossible. Accustomed to the hierarchical order and top-down command structure of the prosecution, he had no appreciation for the virtues of listening, nor any ability to mediate or resolve conflicts. He seemed more comfortable with authoritarianism than democracy. His execution capabilities were also severely lacking. In this martial law crisis, didn’t he demonstrate a clear failure in command and control? He turned competent personnel in the military and police into accomplices in treason, leading them down a path of ruin. How dangerous is it to entrust a country to such a leader?

In 2016, during the impeachment of President Park Geun-hye, the term hon-yong-mu-do (昏庸無道) became popular. It describes a foolish and weak ruler whose misrule causes chaos in the world, making proper governance impossible. However, with Yoon Suk-yeol, we seem to have a combination of both a foolish ruler (hon-gun) and a tyrannical ruler (pok-gun). The passing of the impeachment motion in the National Assembly is a fortunate event. Now, let us watch closely as the Constitutional Court determines the fate of the treasonous leader.

The post Yoon Suk-yeol Shattered the Beacon of Democracy of South Korea first appeared on China Academy.

]]>
https://thechinaacademy.org/yoon-suk-yeol-shattered-the-beacon-of-democracy-of-south-korea/feed/ 0 100033866
China is Gearing Away From the U.S. https://thechinaacademy.org/china-is-gearing-away-from-the-u-s/ https://thechinaacademy.org/china-is-gearing-away-from-the-u-s/#respond Sun, 22 Dec 2024 18:00:00 +0000 https://thechinaacademy.org/?p=100033780 A Chinese political blogger with millions of followers remarked, "Trump's tariffs are not worth paying attention to; engaging with developing countries is the only way."

The post China is Gearing Away From the U.S. first appeared on China Academy.

]]>
Since Trump announced a 60% tariff on China and later added another 10%, along with a 25% tariff on Canada and Mexico, the most vulnerable A-shares seem largely unaffected. Today, A-shares have risen significantly, completely unlike the past when tariffs led to a sharp decline. Life goes on as usual.

Everyone knows that Trump is once again using tariffs as a pretext to pressure other issues, and these so-called “other issues” are often impossible for other countries to fulfill.

For example, demanding that China control fentanyl is an issue that China cannot address; it fundamentally pertains to U.S. domestic problems. Should China send drug enforcement officers to the U.S. to enforce laws? Trump would certainly not allow that.

Similarly, asking Mexico and Canada to manage their borders and stop illegal immigration is ironic, especially since illegal immigrants are already in Canada but still want to enter the U.S. As for Mexico, it’s unfortunate—if it could control the drug lords, it wouldn’t be in its current situation. Trump’s threat to send troops into Mexico to eradicate drug lords is reminiscent of actions taken in the 1980s, which had negligible results.

Other countries cannot manage U.S. affairs, and if Trump cannot handle his own country’s issues, how can he expect others to solve them? It’s laughable.

It’s clear that these actions are merely a performance for his base.

That said, since this situation has arisen, we must look at the long term, regardless of the immediate impact on China.

Goal: Developing Countries

President of Brazil Luiz Inacio Lula da Silva, President of China Xi Jinping and South African President Cyril Ramaphosa gesture during the 2023 BRICS Summit at the Sandton Convention Centre in Johannesburg on August 23, 2023.

China is currently in a phase of industrial upgrading. When Americans and Europeans claim that China has overcapacity, is it true? Yes, but it’s not Chinese overcapacity; it’s American and European overcapacity.

According to the law of comparative advantage, Americans and Europeans have higher production costs for industrial goods, so they should shift towards services or agriculture. Meanwhile, China has a lower cost of production for industrial goods, which means China should exchange these for products from the service sectors or agricultural products from Europe and America.

Of course, neither Europeans nor Americans are willing to do this.

China is in a phase of industrial transformation. During the first tariff war in 2017, China’s new energy industry was not yet established, and the auto industry was still in its infancy. From 2014 to 2019, domestic criticism of new energy vehicles was rampant, but eventually, this sector yielded significant results.

Additionally, there has been diversification in foreign trade and settlement methods. Since the last trade war, China has undertaken considerable reforms, gradually shifting its trade from the U.S. and Europe to developing countries, ultimately leading to developing countries exporting goods to the U.S. and Europe.

From 2017 to now, measuring China’s export dependence on various countries/regions as a proportion of total exports, by October 2024, China’s export dependence on the U.S. has decreased to 14.6%, down 4.4% from 2017. Exports to the EU and Japan have also dropped to 14.6% and 4.3%, respectively, both down 1.8% from 2017.

Export dependence on countries and regions along the Belt and Road has risen to 45.6%, a significant increase of 17.6% since 2017, with dependence on ASEAN rising to 16.1%, up 3.8% from 2017.

In terms of payment for goods trade, in 2023, the total amount of cross-border RMB transactions for goods trade reached 10.7 trillion yuan, a year-on-year increase of 34.9%. This accounted for 24.8% of the total cross-border payment amount in both foreign and domestic currencies, up 6.6 percentage points from 2022.

Among these, the total RMB cross-border payment amount for general trade was 6.8 trillion yuan, up 34.8% year-on-year; for processing trade, it was 1.6 trillion yuan, up 8.9%. From January to August 2024, the total RMB cross-border payment for goods trade reached 7.9 trillion yuan, a year-on-year increase of 16.8%, accounting for 26.5% of the total cross-border payment amount, up 1.7 percentage points from the entire year of 2023.

At the same time, China has increased its efforts to replace the dollar in international trade.

Looking at the trade balance compared to the first trade war in 2017, China’s trade surplus has not only not diminished but has actually expanded. China now has plenty of dollars and significantly improved its adjustment capacity compared to 2017, with overall export amounts also much higher than in 2017.

Currently, there are two directions: one is debt replacement for developing countries, and the other is developing trade with developing countries.

Debt Substitution for Developing Countries

Currently, although China has ample foreign exchange reserves, most developing countries face ongoing deficits and significant dollar debts. While some in China joke that the dollar is just green paper, for these countries, it represents real debt. They are burdened by dollar liabilities, especially as U.S. treasury rates rise, compounded by the tidal effects of the dollar, which creates a heavy burden for many nations.

China holds a significant amount of dollars but retaining them poses strong risks: one never knows when the U.S. might impose sudden sanctions, turning those dollars into worthless paper, as seen with Russia.

To alleviate the debt burden of developing countries, we could consider substituting their dollar debts. For example, if Country A owes dollar debt, we could lend them dollars to pay off their debts, converting those debts into yuan-denominated liabilities. This alleviates Country A’s debt burden and prevents some countries from being driven to sell domestic assets to pay off creditors.

At the same time, it reduces the dollar risks for China.

Moreover, with plenty of dollars on hand, we can issue dollar-denominated bonds. The U.S. loves dollars, so let’s give them what they want, thereby weakening their financial influence.

Of course, the U.S. cannot remain indifferent. However, there are three points to consider: first, this is a transitional period between Trump and Biden, during which the situation is quite chaotic—better to act first.

Second, with Trump’s personality, he might mistakenly view the return of dollars to the U.S. as a positive outcome.

Third, and most importantly, any measure that weakens dollar liquidity damages U.S. dollar hegemony itself. Whether it’s threatening other nations to avoid using Chinese dollars or restricting China’s ability to settle dollar transactions, these actions can ultimately threaten the dollar’s liquidity and undermine its hegemony.

Trade Substitution for Developing Countries

I have repeatedly emphasized that the future of foreign trade development will be in developing countries, not in developed ones.

I first realized this when I saw a chart from the World Inequality Lab’s 2022 report, which showed that since the Reagan era, global inequality has shifted from between countries to within countries. Developing nations are progressing more rapidly, while issues within developed countries are increasing, with the turning point occurring in 1980.

The transition from “inequality between countries” to “inequality within countries” is partly due to Reagan’s neoliberal policies. However, fundamentally, Reagan merely accelerated this phenomenon; the root issue lies in the diffusion of information and wealth.

The first steam locomotive railway was the Stockton and Darlington Railway in 1825, while China’s first railway, the Tangxu Railway, was constructed in 1881—56 years later. The first modern automobile was invented by Karl Benz in 1886, while China produced its first car in 1931—45 years later. Now, however, all new technologies are spreading globally within a decade, such as mobile communication technology, smartphones, and mobile payments.
For instance, in many African countries, people may not have bank accounts but do have mobile payment accounts, like Kenya’s M-Pesa and South Africa’s SnapScan and Zapper.

In Kenya, for example, 75% of the population uses digital payments, while South Africa has 70.5%, Ghana 63.7%, Gabon 62.3%, and Namibia 58.5%. The rapid spread of such technologies greatly benefits commerce.

Similarly, renewable energy is advancing in Africa faster than many expect. Despite some regions lacking basic roads and power grids, and experiencing frequent outages and severe fuel shortages, they can still import second-hand solar panels from China, set up charging devices, and buy renewable energy rickshaws to be self-sufficient. If they lack funds, they can use charging stations as collateral for loans or rentals, effectively establishing a financial system.

This was once unimaginable.

Since then, the diffusion of productivity has accelerated, influenced by two key events: the post-World War II decolonization and the collapse of the Bretton Woods system, as well as the rise of neoliberalism in the 1980s.

Decolonization allowed countries to truly control their destinies, enabling some formerly colonized nations to manage their internal politics instead of merely serving as sources of raw materials and markets for other countries. For instance, the Tata Group in India began producing commercial vehicles in partnership with Mercedes in 1954, while China produced the Liberation truck through cooperation with the Soviet Union.

At this point, there was information diffusion, but developing countries still lacked a crucial element: capital.

As shown in the chart, China’s foreign exchange reserves peaked at $483 million in 1969. Throughout the late 1970s, they remained below $1 billion.

Many wonder why South Korea developed so quickly. During the Vietnam War, South Korea accumulated substantial foreign exchange reserves, with U.S. aid totaling $928 million from 1965 to 1970—of which nearly $546 million directly benefited South Koreans. This doesn’t include the significant number of South Koreans sent abroad for labor during Park Chung-hee’s era.

South Korea’s population was only 1/28th that of China, meaning the blood of Vietnamese people helped forge South Korea’s economic rise, similar to how the Korean War contributed to Japan’s rise.

Under the Bretton Woods system, the direct peg of the dollar to gold made it difficult for dollars to circulate, as gold’s value was paramount.

After the collapse of this system, especially during the neoliberal era, the dollar, decoupled from gold, lost its previous value. To achieve higher returns, American capital was forced to invest heavily abroad; these investments allowed American capital to enjoy the benefits of developing countries while also helping those countries establish modern industrial systems.

We can observe the resilience of current developing countries: after the real estate crisis in Vietnam, Saigon Commercial Bank faced significant bad debts, leading Vietnam to use a quarter of its foreign exchange reserves to fill the gap. This situation marked a stark turnaround from earlier optimistic views of Vietnam.

However, the reality is that the economic growth rate for the first nine months of 2024 is expected to reach 6.82%, despite the U.S. significantly raising interest rates.

Similarly, despite persistent pessimism about India, the reality is that Modi’s projections of surpassing Japan by 2025 are genuinely feasible. In the first half of this year, India’s GDP was $1.8696 trillion, compared to Japan’s $1.9612 trillion—a close margin, making India’s rise to the third-largest economy no longer just a dream.

The truly struggling nations are the likes of Germany, the UK, and France—U.S. allies. Despite some Chinese economists, such as Fu Peng, previously boasting about Japan’s economy, recent data from Japan’s Cabinet Office indicates that its 2024 GDP growth rate is projected to drop to 0.9%.

“This is far from the ‘takeoff of the Japanese economy.’ Moreover, Japan’s key industries, such as automobiles, are currently under siege. With a bunch of financial jargon like ‘Japanese stocks are rising’ and ‘short-term interest rates are lower than long-term rates,’ it seems unlikely to boost the Japanese economy. However, Japan is experiencing significant inflation, especially in asset prices.

By the way, regarding the current situation in India, since the last agreement between China and India, I made a prediction on October 22: guess what? On November 21, Modi’s most important ally, Indian billionaire Adani, encountered problems.”

It’s clear that any slight movement reveals what the Americans intend to do. Unfortunately, it’s too late; Biden is on his way out, and the Democrats’ tricks are reaching their limits.

I’d like to remind everyone: the overarching trend favors developing countries. Whether you’re involved in imports, exports, investments, studying abroad, or anything else, it’s wise to use this as a reference point.

The post China is Gearing Away From the U.S. first appeared on China Academy.

]]>
https://thechinaacademy.org/china-is-gearing-away-from-the-u-s/feed/ 0 100033780
American and Indian Scholars’ Plan for India Made Chinese Scholars Laugh https://thechinaacademy.org/american-and-indian-scholars-plan-for-india-made-chinese-scholars-laugh/ https://thechinaacademy.org/american-and-indian-scholars-plan-for-india-made-chinese-scholars-laugh/#comments Thu, 19 Dec 2024 18:00:00 +0000 https://thechinaacademy.org/american-and-indian-economists-team-up-to-advise-india-chinese-scholars-laugh/ Thanks to the Chinese government's strong strategic focus; otherwise, China would have become another India.

The post American and Indian Scholars’ Plan for India Made Chinese Scholars Laugh first appeared on China Academy.

]]>
Recently, I spent four days reading the book Breaking the Mould co-authored by Raghuram Rajan, former Governor of the Reserve Bank of India, and Rohit Lamba, a professor at Pennsylvania State University. The book delves into a core question about India’s future: Should India rely on manufacturing or the service industry for its development?

Breaking the Mould, co-authored by Raghuram Rajan and Rohit Lamba

In the book, the two authors argue that India following the path of manufacturing development is a dead end and must instead pursue the path of a service-led economy, particularly focusing on high-end services. They provide three main reasons:

Firstly, manufacturing has low value addition. The authors cite the smile curve theory to argue that the front-end design and back-end sales have higher value addition than the manufacturing process itself. Therefore, India does not need to engage in low-profit manufacturing and should directly aim for high-value services at both ends of the smile curve.
Secondly, the manufacturing competition is too strong. With China dominating global labor-intensive manufacturing, and countries like Vietnam and Bangladesh claiming the remaining space, it would be a strenuous effort for India to compete. Even if India manages to secure a position, there is no guarantee of a smooth transition to future industrial upgrades. Therefore, India might be better off abandoning manufacturing for the service industry track.

Lastly, manufacturing demands high labor requirements. The majority of Indian workers lack the physical ability and educational qualifications needed for manufacturing, making them ineligible even for being exploited at a large scale by capital. Therefore, India should focus on a small elite group capable of participating in high-end international division of labor and then disseminate the dividends to ordinary citizens through a trickle-down effect.

Frankly speaking, Rajan and Lamba are considered top experts in India with broad knowledge and a global perspective. However, their prescription for India seems flawed and lacks practicality. Ironically, while the book is titled Breaking the Mould, the authors have not yet broken free from their Western model, exhibiting a typical Brahminical sense of superiority and detachment.

Can high-end services truly exist independently of high-value manufacturing? Without the substantial profits from industries like energy, defense, pharmaceuticals, and aviation, how long can sectors like consultancy, finance, education, and law sustain prosperity? When the U.S., Europe, and Japan dominate the global industrial hierarchy, India could benefit from service outsourcing. However, if these developed countries face shortages, what entitles India to a share of the top-tier resources? Is it just because of its democratic system?

Regarding the smile curve theory mentioned in the book, even in Western business consulting, this theory would face criticism for prioritizing capitalist self-interest over national strategy, leading to industrial hollowing-out in the West. It’s surprising that Indian economists of this caliber would use such a theory as evidence and intend to guide policy implementation with it.

Smile curve theory

The examples cited by Rajan in the book are even more amusing: Apple’s market value is 50 times that of Foxconn. So why doesn’t India follow Apple’s model of focusing on research, design, consultancy, and sales instead of imitating Foxconn’s manufacturing model? It’s evident that these Indian economic gurus are detached from reality.

After reading this book, one thing is clear: the ruling Bharatiya Janata Party (BJP), with Modi at the helm, despite their populist and unrefined approach, is strategically correct in prioritizing manufacturing for India’s survival, growth, and strength as a billion-dollar economy.

However, at the tactical level, the Modi government’s reliance on cronyism, engaging in shady dealings with corporate conglomerates, and doling out subsidies might not yield the desired outcomes. There’s a high probability of retracing the old path of import substitution strategies. Simultaneously, the much-needed land, labor, and environmental reforms in India involve politically sensitive issues, making any attempts at change equivalent to political suicide. Scholars nurtured on Western ideas dare not speak up, while power-hungry politicians won’t propose reforms that could jeopardize their authority, leading the country towards decay.

Lastly, it’s a relief to see that the Chinese government possesses strong strategic focus, not fixated on pursuing glamorous industries but rather starting from the grassroots and gradually advancing to the forefront of industries. It is a testament to the diligence and perseverance of the Chinese people, enduring the inequality of global industrial division to secure a dominant position after going through the hardships of basic industrialization.

The post American and Indian Scholars’ Plan for India Made Chinese Scholars Laugh first appeared on China Academy.

]]>
https://thechinaacademy.org/american-and-indian-scholars-plan-for-india-made-chinese-scholars-laugh/feed/ 5 100033799