Category: China

Firms Nimbly Shift Shipping Away from Unionized and Bottlenecked California Ports

(p. B1) Sharpie maker Newell Brands Inc. is opening distribution centers in Pennsylvania and North Carolina to lessen dependence on seaports in California. Abercrombie & Fitch Co. is moving more merchandise through New York and New Jersey to avoid West Coast bottlenecks. Air-conditioning manufacturer Trane Technologies PLC is sending most of its cargo this year through ports in the South, instead of the Los Angeles area.

The hierarchy of U.S. ports is getting shaken up. Companies across many industries are rethinking how and where they ship goods after years of relying heavily on the western U.S. as an entry point, betting that ports in the East and the South can save them time and money while reducing risk.

Their reasons range from fears of a dockworkers strike along the West Coast and a repeat of the bottlenecks that roiled supply chains early in the pandemic to a reduced dependence on Chinese production and the need to get products to all parts of the country faster.

In August [2022], Los Angeles lost its title as busiest port in the nation to the Port of (p. B6) New York and New Jersey as measured by the number of imported containers. It trailed its East Coast rival again in that measure during September and October, according to the Pacific Merchant Shipping Association and ports data.

The share of all U.S. containerized cargo handled by Los Angeles and a neighboring port in Long Beach fell through the first 10 months of the year to a combined 25% as measured by weight, according to census data analyzed by Jason Miller, interim chair of Michigan State University’s supply chain management department. That was their lowest level in nearly two decades, down from a height of 33%.

Other ports benefiting from this shift include Savannah, Ga., Houston and Charleston, S.C.

For the full story, see:

Paul Berger. “New Routes for Big Business.” The Wall Street Journal (Saturday, Dec. 10, 2022): B1 & B6.

(Note: bracketed year added.)

(Note: the online version of the story was updated Dec. 14, 2022, and has the title “California Long Ruled Shipping in U.S. Importers Look to East.”)

Due to Xi’s Communists, China’s “Depressed” Tech Entrepreneurs Spend “Their Time Hiking, Golfing and Drinking”

(p. B1) For decades, China’s business class had an unspoken contract with the Communist Party: Let us make money and we’ll turn a blind eye to how you use your power.

Like most Chinese people, they bought into the party’s argument that its one-party rule provides more efficient governance.

Now, the tacit agreement that entrepreneurs had come to count on is dissolving in front of their eyes.

. . .

(p. B5) “Under the leadership of this dictator, our great country is falling into an abyss,” said a hardware tech executive in Shenzhen. “But you can’t do anything about it. It pains and depresses me.”

Despite many conversations over the years, we never talked about politics. I was surprised when he called after the party congress to talk about his “political depression.” He said he used to be very nationalistic, believing that the Chinese were among the smartest and hardest-working people in the world. Now, he and many of his friends spend most of their time hiking, golfing and drinking. “We’re too depressed to work,” he said.

Until a year ago, his start-up was doing so well that he was planning to take it public. Then he lost a big chunk of his revenues, and his new hires sat idly with nothing to do when cities were locked down under the “zero-Covid” rules. He said now he had no choice but to lay off more than 100 people, sell his business and move his family to North America.

“Since the dark night has descended,” he said, “I’ll deal with it the dark night way.”

The tech entrepreneur from Beijing who texted me after the party congress recounted a chilling experience. In May, when there were rumors that Beijing could be locked down, he felt he could not tell his employees to leave work early and stock up on groceries. He was worried that he could be reported for spreading rumors — something that had gotten people detained by the police. He told them only that they should feel free to leave early if they had things to take care of.

This successful businessman is now applying to emigrate to a European country and the United States.

Just like many ordinary Chinese people, the executives I spoke to said they were horrified by the video of Hu Jintao, Mr. Xi’s predecessor as China’s top leader, being abruptly led out of the closing ceremony of the party congress. They did not accept the official government explanation that Mr. Hu had to leave early because of health issues.

If Mr. Xi could remove his predecessor like that, several of them said, he could do anything to anyone.

A well-connected investor in Beijing said his friends who were entrepreneurs now realized they could no longer remain indifferent to politics. At social gatherings, they have started discussing which countries to seek passports from, and how to move their assets offshore. At social gatherings, hosts are asking friends to surrender their phones to be kept in a separate place for fear of surveillance.

For the full commentary, see:

Li Yuan. “Xi Is Scaring Away China’s Business Elite.” The New York Times (Tuesday, November 8, 2022): B1 & B5.

(Note: ellipsis added.)

(Note: the online version of the commentary has the date November 7, 2022, and has the title “China’s Business Elite See the Country That Let Them Thrive Slipping Away.”)

U.S. Elites Win Short-Term Profits from Pleasing the Chinese Communist Party

(p. C9) “Red-Handed: How American Elites Get Rich Helping China Win,” by Peter Schweizer, is an eye-opening book that highlights a legacy of entanglement that senior U.S. government officials have had with the Chinese Communist Party, or CCP, over the last couple of decades.  . . .  . . .–the entanglement between our officials and those of China’s ruling party has led to the trading of our collective security for the short-term high of profit.

For the full review, see:

Mike Garcia. “12 Months of Reading; Mike Garcia.” The Wall Street Journal (Saturday, Dec. 10, 2021): C9.

(Note: ellipses added.)

(Note: the online version of the review has the date December 8, 2022, and has the title “Who Read What in 2022: Political and Business Leaders.”)

The book praised by Mike Garcia is:

Schweizer, Peter. Red-Handed: How American Elites Get Rich Helping China Win. New York: Harper, 2022.

Across Communist China a Sheet of Blank White Paper “Is a Symbol of Tacit Defiance”

(p. A7) In Shanghai, a vigil grew into a street protest where many held blank sheets of white paper in a symbol of tacit defiance.

. . .

. . . in a country where the authorities have very little tolerance for open dissent, many communicated through subtler methods, and among the most prominent were the blank sheets of white paper used in Shanghai, Beijing and other cities.

. . .

Demonstrators used the white sheets to mourn those lost — white is a common funeral color in China — and to express an anger understood implicitly by millions who have suffered under pandemic restrictions.

The display of wordless papers “means ‘we are the voiceless, but we are also powerful,’” said Hazel Liu, a 29-year-old film producer who attended the vigil along the Liangma River in Beijing on Sunday [Nov. 27, 2022].

. . .

“People have a common message,” said Xiao Qiang, a researcher on internet freedom at the University of California, Berkeley. “They know what they want to express, and authorities know too, so people don’t need to say anything. If you hold a blank sheet, then everyone knows what you mean.”

Some protesters told The New York Times that the white papers took inspiration from a Soviet-era joke, in which a dissident accosted by the police for distributing leaflets in a public square reveals the fliers to be blank. When asked, the dissident replies that there is no need for words because “everyone knows.”

. . .

Some have pushed the protests in other creative directions. A statement that appeared to have been sent by one of China’s largest stationery companies circulated online, saying that the company would suspend sales of A4 paper to “safeguard national security and stability.” The company was forced to announce on its social media account that the message was fabricated and that all operations remained normal.

The muted defiance of the protests — often innocuous on the surface — has handed the police the nebulous task of deciding what crosses the line.

For the full story, see:

Chang Che and Amy Chang Chien. “With Sly Memes and Wordless Protests, Fed-Up Chinese Test the Authorities.” The New York Times (Tuesday, November 29, 2022): A7.

(Note: ellipses, and bracketed date, added.)

(Note: the online version of the story has the date Nov. 28, 2022, and has the title “Memes, Puns and Blank Sheets of Paper: China’s Creative Acts of Protest.”)

Chinese Communist Party Archives Reveal Contradictions, Confusion, and Corruption in “Reform” Policies

(p. C3) Up until the Covid pandemic, I spent years traversing the country to explore the Chinese Communist Party archives from the reform period. Access was at times surprisingly easy, and my findings were eye-opening.

. . .

The archives suggest that officials were aware of reform’s contradictions from its earliest days. Remnants of the command economy combined with what one economist called “selected, pasteurized, partial, truncated, restricted and disjointed pieces of market and private property policy.” The outcome, said Liu Guoguang, a professor of economics and alternate member of the party’s Central Committee, was “a confused economic system.”

Private ownership of intellectual property had no place in this system, and its theft was actively encouraged throughout the party hierarchy. Two government ministries jointly circulated a directive on counterfeiting in 1983, noting that due to the country’s legal obligations, it was necessary with such goods to “change the name of the product.” As one report noted, “We need a unified approach towards copying” so that “the quality of the copied equipment can be guaranteed.”

The counterfeiting of computer technology assumed particular importance after Zhao Ziyang, the country’s premier from 1980 to 1987, read “The Third Wave,” by the American futurist Alvin Toffler. The book predicted that, in the wake of the agricultural and industrial revolutions, a third revolution would be based on the computer. In October 1983, Zhao proposed skipping the second wave altogether: “Time and tide wait for no one, opportunity knocks but once,” he pronounced. To leap into the digital era, China would need to imitate and reverse engineer foreign products.

But the copying wasn’t limited to computer technology. By 2001, China was awash in fake pharmaceutical products and pirated Hollywood movies on DVD. China’s accession to the WTO that year led to a bonanza of copying, for which few consumers paid more than ordinary Chinese: Electric kettles blew up, brake pads failed. Spices contained paraffin wax, noodles used a red dye that caused cancer, and rice wine was made with cheap industrial-grade alcohol. In 2007, the government estimated that one-fifth of the food and consumer goods it checked were substandard or tainted.

China’s financial system rested on similarly shaky foundations. By the summer of 1988, the pace of growth led to double-digit inflation, and state banks were unable to pay villagers for their contractual deliveries of grain, cotton and other essential products. Protests in 1989, in Tiananmen Square and elsewhere across the country, were as much about economic as political discontent. About a fifth of the files in the party archives deal with debt—lending to solve the debt, further debt due to the lending, more lending to solve an even larger debt.

. . .

The image that emerges from the archives is very different from the impression that many have of today’s China. From a distance, the country’s gleaming cities may resemble an impressively shipshape tanker, with the captain and his lieutenants standing proudly on the bridge, but below deck, sailors are desperately pumping water and plugging holes to keep the vessel afloat.

For the full essay, see:

Frank Dikötter. “China’s Economic Miracle That Wasn’t.” The Wall Street Journal (Saturday, November 19, 2022): C3.

(Note: ellipses added.)

(Note: the online version of the review has the date November 17, 2022, and has the same title as the print version.)

The essay quoted above is adapted from Dikötter’s book:

Dikötter, Frank. China after Mao: The Rise of a Superpower. New York: Bloomsbury Press, 2022.

Chinese Protestors Seek “Freedom” and “Rule of Law”

(p. A1) BEIJING—Protests are erupting in major cities in China over President Xi Jinping’s zero-tolerance approach to Covid-19, an unusual show of defiance in the country as the economic and social costs from snap lockdowns and other strict restrictions escalate.

. . .

(p. A8) The protests followed demonstrations on Friday [Nov. 25, 2022] in Urumqi, capital of the remote region of Xinjiang, where a deadly fire enraged residents who had struggled with lockdowns of more than 100 days. Residents flooded social media with comments suggesting that Covid restrictions contributed to a delay in putting out the fire, in which officials said 10 people died.

In Beijing, hundreds of protesters marched on Sunday night. A large police presence pinned protesters near the Liangmahe river, a popular spot for family picnics by day that is close to many foreign embassies. “Freedom,” the protesters shouted in unison.

. . .

Signs that unrest after the deadly fire in Urumqi was spreading beyond Xinjiang became apparent on Saturday [Nov. 26, 2022], when videos circulating on social media showed crowds gathering on a street in central Shanghai calling for a lifting of lockdowns. The videos were verified by Storyful, a social-media research company owned by News Corp, parent company of The Wall Street Journal.

. . .

One middle-aged Shanghai resident said he stopped by on his way home and joined the crowd in singing “Do You Hear the People Sing?” from the musical “Les Misérables” and the Chinese national anthem. A friend who grew up in Xinjiang began to cry, he said.

“[We in] Shanghai can relate to that, because we had gone through such a long lockdown,” he said, referring to more than two months of iron-fisted Covid controls imposed on the city earlier this year.

The mood intensified. Using expletives and call-and-response chanting, some protesters began to denounce both Mr. Xi and his Covid-control strategy. Another clip from the scene showed demonstrators standing across from lines of police.

The clip showed one man chanting, “The Communist Party.” Others responded, “Step down.”

“Xi Jinping,” the man shouted. “Step down,” others responded.

. . .

On Chinese social-media, users raced against censors to spread images and news of the protests, along with expressions of solidarity. “Long live the people, may the dead rest in peace,” said a message that spread widely. Others posted an image of a blank white sheet of paper—a nod to censorship—with the words “I love you, China. I love you, young people.”

The protests continued Sunday [Nov. 27, 2022], with students gathering around noon on the campus of Tsinghua University, another elite school in Beijing. Some in the crowd carried sheets of paper that were either blank or had an exclamation mark inside a red circle—the symbol that indicates an online post has been deleted—according to witness video footage shared with the Journal. The students sang songs and chanted “Democracy and rule of law!”

For the full story, see:

Lingling Wei, Brian Spegele and Wenxin Fan. “Protests Spread in Challenge To Xi’s Regime.” The Wall Street Journal (Monday, Nov. 28, 2022): A1 & A8.

(Note: ellipses, and bracketed dates, added.)

(Note: the online version of the story was updated Nov. 28, 2022, and has the title “Chinese Protests Spread Over Government’s Covid Restrictions.” Where the versions differ, the quotes above follow the more detailed online version.)

Chinese Citizens Tune Out Randomly Linked Nonsense Propaganda Phrases

(p. B1) China is now one of the last places on earth trying to eliminate Covid-19, and the Communist Party has relied heavily on propaganda to justify increasingly long lockdowns and burdensome testing requirements that can sometimes lead to three tests a week.

The barrage of messages — online and on television, loudspeakers and social platforms — has become so overbearing that some citizens say it has drowned out their frustrations, downplayed the reality of the country’s tough coronavirus rules and, occasionally, bordered on the absurd.

. . .

(p. B4) Yang Xiao, a 33-year-old cinematographer in Shanghai who was confined to his apartment for two months during a lockdown this year, had grown tired of them all.

“With the Covid control, propaganda and state power expanded and occupied all aspects of our life,” he said in a phone interview. Day after day, Mr. Yang heard loudspeakers in his neighborhood repeatedly broadcasting a notice for P.C.R. testing. He said the announcements had disturbed his sleep at night and woke him up at dawn.

“Our life was dictated and disciplined by propaganda and state power,” he said.

To communicate his frustrations, Mr. Yang selected 600 common Chinese propaganda phrases, such as “core awareness,” “obey the overall situation” and “the supremacy of nationhood.” He gave each phrase a number and then put the numbers into Google’s Random Generator, a program that scrambles data.

He ended up with senseless phrases such as “detect citizens’ life and death line,” “strictly implement functions” and “specialize overall plans without slack.” Then he used a voice program to read the phrases aloud and played the audio on a loudspeaker in his neighborhood.

No one seemed to notice the five minutes of computer-generated nonsense.

When Mr. Yang uploaded a video of the scene online, however, more than 1.3 million people viewed it. Many praised the way he used government language as satire. Chinese propaganda was “too absurd to be criticized using logic,” Mr. Yang said. “I simulated the discourse like a mirror, reflecting its own absurdity.”

His video was taken down by censors.

. . .

In June [2022], dozens of residents protested against the police and Covid control workers who installed chain-link fences around neighborhood apartments. When a protester was shoved into a police car and taken away, one man shouted: “Freedom! Equality! Justice! Rule of law!” Those words would be familiar to most Chinese citizens: They are commonly cited by state media as core socialist values under Mr. Xi.

For the full story, see:

Zixu Wang. “China’s Covid Propaganda, Often Seen as Absurd, Stirs Rebellion.” The New York Times (Friday, September 30, 2022): B1 & B4.

[Note: ellipses, and bracketed year, added.]

(Note: the online version of the story has the date Sept. 29, 2022, and has the title “China’s ‘Absurd’ Covid Propaganda Stirs Rebellion.”)

Weary and Angry with Lockdowns in China, “Everyone Is Scared”

(p. A12) In the hours before the southern Chinese city of Chengdu entered a coronavirus lockdown, Matthew Chen visited four vegetable markets in an attempt to stock up on fresh food. But seemingly the entire city had the same idea, and by the time he got to each place, most of the shelves had been stripped bare, except for hot peppers and fruit, he said.

Mr. Chen, a white-collar worker in his 30s, managed to scavenge enough cherry tomatoes, meat and greens for about one day, and since then has been ordering grocery deliveries to tide him through the lockdown, which began on Friday. But he worries about whether that supply will remain stable, and how much longer he will have to rely on it.

“The longer a lockdown goes, the more problems emerge, and the harder it is to tolerate it,” he said, noting that the Chengdu government had not given a timeline for reopening.

. . .

The challenges in enforcing such extensive controls are daunting, perhaps more so now than at any other point in the pandemic. Nearly three years of on-and-off lockdowns have lashed the economy, sending unemployment soaring, especially among young people. The country is increasingly isolated, as the rest of the world largely abandons Covid restrictions. New subvariants are ever more transmissible. And the seemingly endless restrictions leave more ordinary Chinese people wearier by the day.

. . .

Chengdu officials themselves have already tested residents’ trust, after the authorities last week ordered a man detained for 15 days, accusing him of spreading false rumors on social media about a looming lockdown. Two days later, when the city did actually lock down, social media erupted with support for the man and anger at the government.

“Everyone is scared, scared that the situation will become like Shanghai,” said Mr. Chen, the office worker, who had traveled to Chengdu on business before becoming trapped there by the restrictions.

Still, he saw little alternative but to bear with the situation. “Personally, I’m extremely fed up with and not supportive of these policies. But there’s nothing I can do,” he said. “I can only wait.”

For the full story, see:

Vivian Wang. “As Beijing Imposes More Covid Lockdowns Across China, ‘Everyone Is Scared’.” The New York Times (Tuesday, September 6, 2022): A12.

(Note: ellipses added.)

(Note: the online version has the date Sept. 5, 2022, and has the title “As China Imposes More Covid Lockdowns, ‘Everyone Is Scared’.”)

“In the Face of the Sickles, What Can the Wheat Do?”

A low-budget movie depicting a poor couple’s struggle in rural China surprised many with a run at the Chinese box office that dwarfed some blockbusters. Now, many are wondering why they can’t watch it.

“Return to Dust” depicts two outcasts, a woman with a physical disability and a farmer too poor to marry, who get together in a marriage arranged by their families. With a realistic style, Li Ruijun, the director, tells the story of the hardships they face.

The movie, which features mostly locals in China’s western Gansu province rather than professional actors, premiered at the Berlin International Film Festival earlier this year and started screening in China in July. It quickly gained a following on social media. By early September, daily ticket revenue topped 10 million yuan ($1.4 million), surpassing big-budget movies such as “Minions: The Rise of Gru.”

. . .

The movie’s disappearance came just ahead of a twice-a-decade Communist Party Congress in mid-October, at which President Xi Jinping is expected to secure a third term in power.

Hashtags about the movie and its removal on social-media platform Weibo became unclickable, a sign that the discussion was considered sensitive. Some blog posts on China’s do-everything app, WeChat, that asked why the movie was removed online also disappeared.

Weibo didn’t respond to a request for comment. iQIYI and Huawei Technologies Co., which operate major streaming platforms, didn’t reply to requests for comment. Tencent Holdings Ltd., which owns Tencent Video and WeChat, also didn’t respond to requests for comment.

China’s National Radio and Television Administration, the country’s broadcasting authority, didn’t respond to a faxed request for comment.

. . .

Many social-media discussions centered on how the lives of the couple in the movie were exploited by those in power. For example, in one scene, a wealthy man in the village pressures the husband to donate blood for his sick father.

In a line from the movie widely cited by social media users, the husband says, “In the face of the sickles, what can the wheat do?”

For the full story, see:

Liyan Qi. “?Chinese Fans of Popular Movie ‘Return to Dust’ Wonder What Happened to It.” wsj.com Posted Sunday, October 2, 2022), URL: https://www.wsj.com/articles/chinese-fans-of-popular-movie-return-to-dust-wonder-what-happened-to-it-11664721604?mod=Searchresults_pos1&page=1

(Note: ellipses added.)

(Note: As of 10/6/22, the article had not appeared in the print version of the WSJ.)

Wittgenstein Center’s Scenario Has Global Population Peak in 2050 at 8.7 Billion

(p. A2) Since the 1960s, when the global number of people first hit three billion, it has taken a bit over a decade to cross each new billion-person milestone, and so it might seem natural to assume that nine billion humans and then 10 billion are, inexorably, just around the corner. That is exactly what the latest population projections from the U.N. and the U.S. Census Bureau have calculated.

. . .

The U.N.’s projections are the best known. But an alternate set of projections has been gaining attention in recent years, spearheaded by the demographer Wolfgang Lutz, under the auspices of the Wittgenstein Centre for Demography and Global Human Capital at the University of Vienna, of which Mr. Lutz is founding director.

. . .

“There’s two big questions,” Mr. Lutz explains, that determine whether his forecasts or the U.N.’s end up closer to the mark. “First, how rapidly fertility will decline in Africa…. The other question is China, and countries with very low fertility, if they will recover and how fast they will recover.”

. . .

The Wittgenstein forecasts, by contrast, look not only at historical patterns, but attempt to ask why birthrates rise and fall. A big factor, not formally included in the U.N.’s models, is education levels. Put simply: As people, especially women, have greater opportunities to pursue education, they have smaller families.

. . .

The U.N. projects Africa’s population will grow from 1.3 billion today to 3.9 billion by century’s end.

Once education is accounted for, Wittgenstein’s baseline scenario projects Africa’s population will rise to 2.9 billion during that time period. In another scenario from Wittgenstein, which it calls the “rapid development” scenario, the population of Africa will only reach 1.7 billion by century’s end.

Wittgenstein’s phrase “rapid development” is revealing: This isn’t a forecast of doom and decline, but rather one in which health and education simply improve, a world with better human well-being, lower mortality, and medium levels of immigration.

. . .

Wittgenstein’s rapid-development scenario has the global population topping out at 8.7 billion in 2050.

For the full commentary see:

Josh Zumbrun. “THE NUMBERS; As Population Nears 8 Billion, Some See Peak.” The Wall Street Journal (Tuesday, Aug. 13, 2022): A2.

(Note: ellipses added.)

(Note: the online version of the commentary has the date August 12, 2022, and has the title “THE NUMBERS; Global Population Is About to Hit 8 Billion—and Some Argue It Is Near Its Peak.”)

Those Who Survived Dictatorship Know We Need “More Freedom, More Speech, Not Less”

(p. A19) The left’s reaction to Mr. Trump’s rhetoric was instructive. Anyone who mentioned the lab-leak theory was assailed as pro-Trump. Social-media companies removed posts mentioning it. By January 2021, it was obvious that shutting down debate was the true antiscience position. Invaluable months were lost, time the Chinese Communist Party used to destroy data and spread disinformation about the virus’s origins. We may never know the truth, but we do know there was a coverup.

Increasing numbers of Americans believe their freedom is under attack, and I agree. . . .

Schools are being pressured to remove books and cancel professors for spreading the “wrong” ideas. These sentiments are all too familiar to me, and to anyone who has survived life in a dictatorship. The only answer is more freedom, more speech, not less.

For the full commentary see:

Garry Kasparov. “‘Woke’ Is a Bad Word for a Real Threat to American Democracy.” The Wall Street Journal (Thursday, Nov. 18, 2021): A19.

(Note: ellipsis added.)

(Note: the online version of the commentary has the date November 17, 2021, and has the same title as the print version.