Trade Wars, Sanctions and Business Appeasement

Posted on June 3, 2019 by admin

Journal of Political Risk, Vol. 7, No. 6, June 2019

Chinese President Xi Jinping is photographed in the center, addresses a U.S.-China business roundtable, comprised of U.S. and Chinese CEOs on September 23, 2015, in Seattle, Washington.

Chinese President Xi Jinping, center, addresses a U.S.-China business roundtable, comprised of U.S. and Chinese CEOs on September 23, 2015, in Seattle, Washington. The Paulson Institute, in partnership with the China Council for the Promotion of International Trade, co-hosted the event. Source: Governor Jay & First Lady Trudi Inslee via Flickr.

William R. Hawkins
International Economics and National Security Consultant

In his book Appeasing Bankers, Jonathan Kirshner, the Stephen and Barbara Friedman Professor of International Political Economy at Cornell, argues that “Bankers dread war. More precisely, financial communities within states favor cautious national security strategies and are acutely averse to war and to policies that risk war.” He finds this to be a “universal” trait (at least within capitalist societies) evident throughout modern history. This should be kept in mind when watching the large swings in the stock market in response to reports about the progress, or lack of, in U.S.-China trade talks, Iranian threats and turmoil at the Mexican border. While Kirshner focuses on “stability” with an emphasis on inflation and debt accumulation, he notes the “breathtaking financial globalization” that took place in the post-Cold War period. This has made markets even more sensitive to the dynamics of a contentious international system. Fortunately, the stock market rapidly recovers from panics generated by headlines thanks to the fundamental strength of the U.S. economy.

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China’s Concentration Camps Are A Test For The International Community

Posted on May 31, 2019 by admin

Journal of Political Risk, Vol. 7, No. 5, May 2019

The photograph depicts barbed wire close-up in black and white.

Barbed wire sky. Source: Darigold Bokeh via Flickr.

Nijat Turghun
Stockholm University

It’s now no secret that in East Turkistan, the oppression has reached a the boiling point. Since China’s occupation in 1949, an entire people are going through an unimaginably cruel process, in which Uyghurs and other groups are being pared from their original identity. Their culture, language, values, tradition and religion have been regarded as a poisonous barrier for China’s new project: the Belt and Road Initiative (BRI). To fulfill the final mission China set up of concentration camps in East Turkistan, where people are being tortured, indoctrinated, abused and brainwashed again and again because they barely belong to what Beijing considers risky groups, including simple communities of faith or people with family abroad. People outside the camps are not free, and every 100 meters people must be checked by Chinese policemen. Video cameras on the street continuously report one’s movement and at home people are obliged to welcome Han Chinese guests who have been sent by the Chinese government for ‘’good intention’’. They impose themselves into Uyghur homes, where they eat and live together with Uyghur families. If any religious or other “risky” things or behaviors are discovered they will be placed in concentration camps.

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Block China With An Independent East Turkistan

Posted on May 28, 2019 by admin

Journal of Political Risk, Vol. 7, No. 5, May 2019

A Uyghur protest in Berlin. Protestors are photographed waving blue and white flags against the background of an old building.

Uyghur protest Berlin, July 2009. Source: Claudia Himmelreich via Wikimedia Commons.

Rukiye Turdush
Uyghur Research Institute

People of East Turkistan, called Xinjiang by the Chinese Communist Party, have endured the long and oppressive colonisation of China for many years. Although China did not round up people of East Turkistan and shoot them with machine guns in front of the world, they have locked them up and are eliminating them one by one in concentration camps. [1]

Every Uyghur living outside China is searching and asking for the location of their disappeared family members. Uyghur girls are forced to marry Han Chinese as a part of their gene washing policy. Uyghur children are forcibly removed from their families as Chinese officials with genocidal intention proclaim, “cut the lineage, cut the roots, cut the connection.” [2]

Around three million Uyghurs and other ethnic Muslims are currently locked up in concentration camps and are being subjected to torture and death.[3] The religion, culture and identity of Muslims in East Turkistan are now entirely banned. The world has remained silent in its moral obligation to do something about this tragedy.

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US-China Trade War: Time is on the Side of the US

Posted on May 20, 2019 by admin

Journal of Political Risk, Vol. 7, No. 5, May 2019

Ho-fung Hung
Johns Hopkins University

The US-China trade war has unfolded for nearly a year now. After some false hope of a quick deal, China’s backpedaling in May from earlier promises to stop requiring a technology transfer from US firms in China, and to do more to protect intellectual property, obliterated such hope. Trump’s reaction of raising new tariffs on Chinese goods, followed by China’s retaliation in kind, led to an escalation.

Bipartisan Support of Trade War with China

This escalation of the trade war, interestingly, has not unleashed criticism of President Trump in the US. Sources from the US negotiation team and those from its Chinese counterparts both verified China’s last-minute withdrawal of earlier commitments. There is little doubt that Beijing rather than Trump is to be blamed for this re-escalation. Trump’s strong response to the Chinese backpedaling instead got rare bipartisan support. Congress Democrats are on the same side with the President, judging by Senate Minority Leader Chuck Schumer tweet, “Hang tough on China, President @realDonaldTrump. Don’t back down. Strength is the only way to win with China.”[1]

A line graph shows three upward trends, labelled "Forex reserve", "Stock of external debt" and "FDI net inflow"

Figure 1. China’s External Financial Position. (Source: World Bank)

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Clash of Ancient Philosophy and Modern Politics in China

Posted on May 13, 2019 by admin

Journal of Political Risk, Vol. 7, No. 5, May 2019

A building of Yuyuan Garden in the foreground, and Shanghai Tower (and Jinmao Tower) in the background, juxtaposing old and new along China’s landscape. Source: Kenneth Lu via Flickr.

Victor Mair

University of Pennsylvania

A new round of censorship in China is sufficiently significant that it should be called to the attention of readers, because it has not been brought to the surface outside of China, and even inside China the censors have done their best to hush it up.

In a nutshell, there’s a well-known scholar of ancient Chinese thought, especially Lao Zi (the fictive author of the Tao Te Ching / Daode jing), who has recently and suddenly run afoul of the authorities.

The imbroglio of Yin Zhenhuan 尹振环 and Lao Zi 老子 are occasionally mentioned online. News of Professor Yin Zhenhuan’s troubles surfaced on WeChat about two weeks ago. It’s rather hard to figure out how research on an ancient thinker could arouse such a sensational reaction, even though from the contents of Yin’s book one may perceive slight, indirect indications of current politics.

Perhaps the best way to expose the complex nature of the current contretemps is by relaying the personal communications of three People’s Republic of China (PRC) scholars on the subject, which I reproduce below.

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