Libertarian Peter Thiel Predicts Communist China’s Tech Success (What?)

(p. B1) The Trump administration gave ZTE, which employs 75,000 people and is the world’s No. 4 maker of telecom gear, a stay of execution on Thursday. ZTE, which had violated American sanctions, agreed to pay a $1 billion fine and to allow monitors to set up shop in its headquarters. In return, the company — once a symbol of China’s progress and engineering know-how — will be allowed to buy the American-made microchips, software and other tools it needs to survive.
China’s technology boom, it turns out, has been largely built on top of Western technology.
The ZTE incident, as it is called in China, may be the country’s Sputnik moment. Like the United States in 1957, watching helplessly as the Soviet Union launched the first human-made satellite, many people in China now see how far the country still has to go.
“We realized,” said Dong Jielin, an adjunct professor at the Research Center for Technological Innovation at Tsinghua University in Beijing, “that China’s prosperity was built on sand.”
. . .
(p. B3) . . . many in China — and many cheerleaders of the Chinese tech scene — . . . found themselves in a feedback loop of their own making. The powerful propaganda machine flooded out rational voices, said Ms. Dong of Tsinghua University. The tech boom fits perfectly into Beijing’s grand narrative of a national rejuvenation. Innovation and entrepreneurship are top national policies, with enormous financial backing from the government. Even now, some articles critical of China’s lagging semiconductor industry have disappeared from the internet there.
And it wasn’t just Chinese people. Michael Moritz, the American venture capital investor, warned that China “is leaving Donald Trump’s America behind.” Peter Thiel, a PayPal co-founder, wondered how long it would take for China to overtake the United States. Three to four years, he concluded.
The boom kept many from asking hard questions. They promoted China’s surge in patent filings without looking at whether the patents were any good. They didn’t ask why China still imports 90 percent of its semiconductor components even though the industry became a national priority in 2000.

For the full commentary, see:
Li Yuan. “China’s Sputnik Moment.” The New York Times (Monday, June 11, 2018): B1 & B3.
(Note: ellipses added.)
(Note: the online version of the commentary has the date June 10, 2018, and has the title “THE NEW NEW WORLD; ZTE’s Near-Collapse May Be China’s Sputnik Moment.”)

Chinese Communists Subsidize Ghost Town Construction

(p. C3) In China’s Inner Mongolia province, in the middle of the Gobi desert, row upon row of largely vacant apartment towers line the streets of Kangbashi, a new district of the city of Ordos. Earlier this month, Xu Yongfen and his family moved into one 28-story building. In the hallways there are a few signs of life–tricycles, slippers and pink children’s shoes in front of some doors. But most apartments remain unoccupied, their doors still covered in plastic wrap, and at street level, barren storefronts are visible in all directions. “This area is nearly totally empty,” Mr. Xu says, tapping a cigarette into a bowl of ashes at his dining room table.
The city has spent 14 years planning, erecting and maintaining Kangbashi, which has the distinction of being one of China’s best-known “ghost towns”–gleaming but sparsely populated new urban centers adjacent to older metropolises. Built by the dozen across the country, the new areas reflect–and were meant to accelerate–China’s economic boom. As the country’s growth has slowed, many of them have become serious liabilities, deep in debt, with little prospect of full occupancy anytime soon.
. . .
Many of China’s other ghost towns have yet to figure out how to jumpstart their economies without slipping back into the old pattern of borrowing and building. To become economically viable, some may take 20 or 30 years, or “maybe even forever,” said Zhou Jiangping, a professor of urban planning at the University of Hong Kong. In some cases, Mr. Zhou said, local officials encouraged ambitious plans to advance their own careers: “You see all these empty towns, these areas at the edge of cities. They may symbolize the power of some officials.” Because many of them then move on to other jobs, he said, they didn’t think about ensuring long-term growth.
. . .
Ordos City Investment Real Estate Development Co. recently resumed work on two housing projects that it had set aside five years ago, including Mr. Xu’s complex. “Kangbashi’s real-estate sales improved, so our company decided to restart construction,” said Wang Tianyong, a branch manager, noting that the government’s subsidy program favors new projects.

For the full story, see:
Dominique Fong. “China’s Ghost Towns Haunt Its Economy.” The Wall Street Journal (Saturday, June 16, 2018): C3.
(Note: ellipses added.)
(Note: the online version of the story has the date June 15, 2018.)

Lenin “Sought to Destroy” Russian Peasants

(p. B14) A forceful, stylish writer with a sweeping view of history, Professor Pipes covered nearly 600 years of the Russian past in “Russia Under the Old Regime,” abandoning chronology and treating his subject by themes, such as the peasantry, the church, the machinery of state and the intelligentsia.
One of his most original contributions was to locate many of Russia’s woes in its failure to evolve beyond its status as a patrimonial state, a term he borrowed from the German sociologist Max Weber to characterize Russian absolutism, in which the czar not only ruled but also owned his domain and its inhabitants, nullifying the concepts of private property and individual freedom.
With “The Russian Revolution” (1990), Professor Pipes mounted a frontal assault on many of the premises and long-held convictions of mainstream Western specialists on the Bolshevik seizure of power. That book, which began with the simple Russian epigraph “To the victims,” took a prosecutorial stance toward the Bolsheviks and their leader, Vladimir Lenin, who still commanded a certain respect and sympathy among Western historians.
Professor Pipes, a moralist shaped by his experiences as a Jew who had fled the Nazi occupation of Poland, would have none of it. He presented the Bolshevik Party as a conspiratorial, deeply unpopular clique rather than the spearhead of a mass movement. He shed new and harsh light on the Bolshevik campaign against the peasantry, which, he argued, Lenin had sought to destroy as a reactionary class. He also accused Lenin of laying the foundation of the terrorist state that his successor, Joseph Stalin, perfected.
“I felt and feel to this day that I have been spared not to waste my life on self-indulgence and self-aggrandizement but to spread a moral message by showing, using examples from history, how evil ideas lead to evil consequences,” Professor Pipes wrote in a memoir. “Since scholars have written enough on the Holocaust, I thought it my mission to demonstrate this truth using the example of communism.”
. . .
In “The Russian Revolution,” he wrote:
“The Russian Revolution was made neither by the forces of nature nor by anonymous masses but by identifiable men pursuing their own advantages. Although it has spontaneous aspects, in the main it was the result of deliberate action. As such it is very properly subject to value judgment.”

For the full obituary, see:
William Grimes. “Richard Pipes, Historian Of Russia and Adviser To Reagan, Dies at 94.” The New York Times (Friday, May 18, 2018): B14.
(Note: ellipsis added.)
(Note: the online version of the obituary has the date May 17, 2018, and has the title “Richard Pipes, Historian of Russia and Reagan Aide, Dies at 94.”)

The early Pipes book, mentioned above, is:
Pipes, Richard. Russia under the Old Regime. revised 2nd ed. London, England: Penguin Books, 1997 [1st ed. 1974].

The later Pipes book, mentioned above, is:
Pipes, Richard. The Russian Revolution. revised 2nd ed. New York: Knopf, 1990.

China’s “Double Whammy for Prospective Entrepreneurs”

(p. B12) China’s past attempts to stoke indigenous innovation have a checkered history. A flood of cheap capital and high, state-set solar power rates in the mid-2000s secured China’s place as the world’s number one solar cell manufacturer. But it also led to enormous overcapacity, which sank prices and pushed debt burdens higher, making investment in real R&D more difficult. For investors, China’s solar champions have been a losing proposition–American depositary receipts of top firms such as JinkoSolar are worth less than half of their peak in 2010. Robotics, a key element of Beijing’s “Made in China 2025” plan to dominate high-tech manufacturing, is exhibiting similar tendencies.
The state-centric nature of China’s financial system–and its weak intellectual property protection–represents a double whammy for prospective entrepreneurs. Small private-sector firms often only have access to capital through expensive shadow banking channels, and face the risk that some better connected, state-backed firm will make off with their designs–with very little recourse.

For the full story, see:
Nour Malas and Paul Overberg. “‘Chinese Innovation Won’t Come Easily Without U.S. Tech.” The Wall Street Journal (Tuesday, March 23, 2018): B12.
(Note: the online version of the story has the date March 22, 2018, and has the title “Can China’s Red Capital Really Innovate?”)

Blockchain May Bring Property Rights to the Poor

(p. A15) The great economic divide in the world today is between the 2.5 billion people who can register property rights and the five billion who are impoverished, in part because they can’t. Consider what happens without a formal system of property rights: Values are reduced for privately owned assets; wages are devalued for workers using these assets; owners are denied the ability to use their assets as collateral to obtain credit or as a credential to claim public services; and society loses the benefits that accrue when assets are employed for their highest and best purpose.
. . .
Fortunately there is a new technology that could make a global property-rights registration system feasible. Patrick Byrne, an e-commerce pioneer and the CEO of Overstock.com, has committed a professional staff and significant resources to modernizing the collection and maintenance of property-rights records on a global scale. Blockchain is an especially promising technology because of its record-keeping capacity, its ability to provide access to millions of users, and the fact that it can be constantly updated as property ownership changes hands.
If Blockchain technology can empower public and private efforts to register property rights on a single computer platform, we can share the blessings of private-property registration with the whole world. Instead of destroying private property to promote a Marxist equality in poverty, perhaps we can bring property rights to all mankind. Where property rights are ensured, so are the prosperity, freedom and ownership of wealth that brings real stability and peace.

For the full commentary, see:
Phil Gramm and Hernando de Soto. “How Blockchain Can End Poverty; Two-thirds of the world’s population lacks access to a formal system of property rights.” The Wall Street Journal (Friday, Jan. 26, 2018): A15.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date Jan. 25, 2018.)

Russian Movie Director Bravely Criticizes Putin

(p. A8) MOSCOW — While shooting “Loveless,” an Oscar nominee this year for best foreign film, Andrey Zvyagintsev repeated virtually every scene again and again — 12 takes on average, according to his cinematographer, sometimes as many as 28.
The differences between takes often proved undetectable to others, said the cinematographer, Mikhail Krichman — even to the core crew that has worked on all five of his films. But the director sought some fleeting “magic.”
It might be several leaves fluttering off a tree in the background, Mr. Krichman said, or the angle at which snowflakes struck a window. “These kinds of things deliver the magic of the scene, and he uses them to decide to take it or not for the movie,” Mr. Krichman said of Mr. Zvyagintsev. “That makes him very different from other directors.”
. . .
His role as social critic, . . . , is another reason the art-house crowd tends to respect Mr. Zvyagintsev. He is one of the few high-profile artists still brave enough to openly criticize the Russian government.
He has disparaged the recent crackdown on the arts, including the house arrest of a prominent theater director and the use of censorship for the first time in years to ban a foreign movie, “The Death of Stalin.”
“We believed that in 1991 that we were present for the burial of the C.P.S.U.,” he said referring to the one-party state of the Soviet Union. “The burial did not take place. Instead, the corpse rose from the coffin and is walking around and frightening us once again.”

For the full story, see:
NEIL MacFARQUHAR. “A Master of Depicting Russia’s Underbelly on Film.” The New York Times (Saturday, Feb. 24, 2018): A8.
(Note: ellipses added.)
(Note: the online version of the story has a date of Feb. 23, 2018, and has the title “A Russian Master of the ‘Dark Side’ in Film.”)

Marx Liked Bourgeois Modernity Better than Feudal Despotism

(p. 24) In his early writings and well through the 1860s, Marx propounded a theory of history that extolled the heroic achievements of the bourgeoisie as the collective agent of global change. Before the proletariat could develop into a mature class and become truly conscious of its revolutionary task, he reasoned, it was first necessary for capitalism thoroughly to modernize the world. All remnants of feudalism would dissolve; local custom and tradition would be swept aside, and industrial production would surge, condensing the two remaining classes into radically opposed groups in anticipation of capitalism’s final crisis.
This theory implied a certain inevitability to the gathering processes of historical change. It also left little room for the possibility of independent revolution in less developed regions around the globe, in the east or in the outer reaches of Europe’s empires. Marx’s universalism found its classic expression in “The Communist Manifesto,” which declared that all nations must submit “on pain of extinction” to the forces of bourgeois modernity. Elsewhere, Marx celebrated the introduction of steam power into India and the consequent dissolution of the archaic “village system.” And in the first volume of “Capital,” completed in 1867, he still reserved special disdain for what he called “ancient Asiatic” forms of production, condemning them as symptoms of a despotism that must be swept aside on the way to revolution.

For the full review, see:
PETER E. GORDON. “Call Him Karl.” The New York Times Book Review (Sunday, October 23, 2016): 24.
(Note: the online version of the review has the date OCT. 21, 2016, and has the title “A New Biography Focuses on Karl Instead of Marxism.”)

The book under review, is:
Jones, Gareth Stedman. Karl Marx: Greatness and Illusion. Cambridge, MA: Harvard University Press, 2016.

How Communism Hurt

(p. 8) In an episode near the end of her thoughtful and eloquent memoir, “Among the Living and the Dead,” Inara Verzemnieks accompanies a cousin on her mail route in rural Latvia. They stop at a crude mailbox nailed to a tree. The mailbox belongs to an old woman who has elected to live alone, deep in the forest. Verzemnieks is drawn to the mystery of this woman and imagines seeking her out to pose the question that infuses her book: “How to live with this hurt?”
. . .
. . . the hurt Verzemnieks refers to is not directly her own; rather it is something she has imbibed and inherited from the paternal grandparents who raised her, ethnic Latvians who settled in America after World War II. It is the pain of their exile, the yearning for family left behind and the burden of memories from the war itself — her grandmother’s long, perilous flight across Europe from the Soviet forces, and her grandfather’s service as a conscript for the German Army, about which he does not speak.
. . .
Her family’s true home was in the region of Gulbene, in the northeast of Latvia, not far from the Russian border. More specifically, it was at her grandmother’s ancestral homestead, called Lembi. When the Soviet Union collapsed, her grandparents succeeded in returning once. After they died, Verzemnieks went as well, spending parts of five consecutive years living with her grandmother’s younger sister, Ausma, one of the last surviving members of her grandparents’ generation. The book interleaves stories from her grandparents’ past and from Ausma’s, along with Verzemnieks’s impressions of life in present-day rural Latvia, governed by its traditional rhythms, intricately and spiritually fused with the natural world. She is there to experience this life, to connect with her family, but also to gain Ausma’s trust so as to elicit her story. That story is the complement to her grandparents’, the two together constituting the Latvian national wartime narrative: those who suffered the pain of leaving and those subjected to the pain of staying — which meant life under the Soviet yoke, collectivization and, often, expulsion to Siberia. Ausma shared this fate. In 1949, she, her mother and her invalid brother were stripped of their beloved farm and sent into the taiga. They survived largely because Ausma withstood grueling physical labor and dreadful privation. For her great-niece’s sake, she recounts this past, even though it often brings her to tears.

For the full review, see:
DAVID BEZMOZGIS. “Homeland.” The New York Times Book Review (Sunday, September 17, 2017): 8.
(Note: ellipses added.)
(Note: the online version of the review has the date SEPT. 15, 2017, and has the title “A Writer Visits Latvia in Search of Her Roots.”)

The book under review, is:
Verzemnieks, Inara. Among the Living and the Dead: A Tale of Exile and Homecoming on the War Roads of Europe. New York: W. W. Norton & Company, Inc., 2017.

Soviets Expelled Math Innovator from High School, When He Denied That Dostoyevsky Was Pro-Communist

(p. A12) Vladimir Voevodsky, formerly a gifted but restless student who flunked out of college out of boredom before emerging as one of the most brilliant and revolutionary mathematicians of his generation, died on Sept. 30 [2017] at his home in Princeton, N.J. He was 51.
. . .
Vladimir was kicked out of high school three times, once for disagreeing with his teacher’s assertion that Dostoyevsky, who died in 1881, was pro-Communist. He was also kicked out of Moscow University after failing academically, having stopped attending classes that he considered a waste of time.
. . .
How do mathematicians know that something they prove is actually true?
This question became urgent for him as mathematicians were discovering — sometimes decades after publication — that proof after proof, including one of his own, had critical flaws.
Mathematical arguments had gotten so complicated, he realized, that other mathematicians rarely checked them in detail. And his stellar reputation only made the problem worse: Everyone assumed that his proofs must be right.
Dr. Voevodsky realized that human brains could not keep up with the ever-increasing complexity of mathematics. Computers were the only solution. So he embarked on an enormous project to create proof-checking software so powerful and convenient that mathematicians could someday use it as part of their ordinary work and create a library of rock-solid mathematical knowledge that anyone in the world could access.
Computer scientists had worked on the problem for decades, but it was territory only a few mathematicians had ever ventured into. “Among mathematicians, computer proof verification was almost a forbidden subject,” Dr. Voevodsky wrote.
The problem was that these systems were extraordinarily cumbersome. Checking a single theorem could require a decade of work, because the computer essentially had to be taught all of the mathematics a proof was built on, in agonizing, inhuman detail. Ordinary mathematicians intent on expanding the borders of the field could not possibly devote that kind of effort to checking their proofs.
Somehow, computers and humans needed to be taught to think alike.
Dr. Voevodsky developed a stunningly bold plan for how to do so: He reformulated mathematics from its very foundation, giving it a new “constitution,” as Dr. Hales put it. Mathematics so reformulated would be far friendlier to computers and allow mathematicians to talk to computers in a language that was much closer to how mathematicians ordinarily think.
Today, Dr. Voevodsky declared in 2014, “computer verification of proofs, and of mathematical reasoning in general, looks completely practical.”

For the full obituary, see:
JULIE REHMEYER. “Vladimir Voevodsky, Dropout Turned Revolutionary Mathematician, Dies at 51.” The New York Times (Sat., OCT. 7, 2017): A12.
(Note: ellipses, and bracketed year, added.)
(Note: the online version of the obituary has the date OCT. 6, 2017, and has the title “Vladimir Voevodsky, Revolutionary Mathematician, Dies at 51.”)

“There Comes a Time When You Get Tired of Being a Slave”

(p. A1) RIO DE JANEIRO — In a rare act of collective defiance, scores of Cuban doctors working overseas to make money for their families and their country are suing to break ranks with the Cuban government, demanding to be released from what one judge called a “form of slave labor.”
Thousands of Cuban doctors work abroad under contracts with the Cuban authorities. Countries like Brazil pay the island’s Communist government millions of dollars every month to provide the medical services, effectively making the doctors Cuba’s most valuable export.
But the doctors get a small cut of that money, and a growing number of them in Brazil have begun to rebel. In the last year, at least 150 Cuban doctors have filed lawsuits in Brazilian courts to challenge the arrangement, demanding to be treated as independent contractors who earn full salaries, not agents of the Cuban state.
“When you leave Cuba for the first time, you discover many things that you had been blind to,” said Yaili Jiménez Gutierrez, one of the doctors who filed suit. “There comes a time when you get tired of being a slave.”
. . .
(p. A10) . . . , Dr. Jiménez, 34, found the work rewarding, but also began to harbor feelings of resentment.
“You are trained in Cuba and our education is free, health care is free, but at what price?” she said. “You wind up paying for it your whole life.”
. . .
“We keep one another strong,” said Dr. Jiménez, who says she has been unemployed since being fired in June and is now barred from re-entering Cuba for eight years.
Dr. Álvarez and her husband were among the lucky ones to keep their jobs and get what amounted to a huge pay raise. They also managed to bring their children to Brazil.
“It’s sad to leave your family and friends and your homeland,” she said. “But here we’re in a country where you’re free, where no one asks you where you’re going, or tells you what you have to do. In Cuba, your life is dictated by the government.”

For the full story, see:
ERNESTO LONDOÑO. “‘Slave Labor'”: Cuban Doctors Rebel in Brazil.” The New York Times (Fri., SEPT. 29, 2017): A1 & A10.
(Note: ellipses added.)
(Note: the online version of the story has the title “Cuban Doctors Revolt: ‘You Get Tired of Being a Slave’.”)

Venezuelan Communist Economy Continues to Collapse

EmptyShelvesVenezuela2017-09-11.jpg“Empty cases and shelves in a grocery store in Cumaná, Venezuela, last year.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. 6) CARACAS, Venezuela — Food shortages were already common in Venezuela, so Tabata Soler knew painfully well how to navigate the country’s black market stalls to get basics like eggs and sugar.

But then came a shortage she couldn’t fix: Suddenly, there was no propane gas for sale to do the cooking.
And so for several nights this summer, Ms. Soler prepared dinner above a makeshift fire of broken wooden crates set ablaze with kerosene to feed her extended family of 12.
“There was no other option,” said Ms. Soler, a 37-year-old nurse, while scouting again for gas for her stove. “We went back to the past where we cooked soup with firewood.”
Five months of political turmoil in Venezuela have brought waves of protesters into the streets, left more than 120 people dead and a set off a wide crackdown against dissent by the government, which many nations now consider a dictatorship.
An all-powerful assembly of loyalists of President Nicolás Maduro rules the country with few limits on its authority, vowing to pursue political opponents as traitors while it rewrites the Constitution in the government’s favor.
But as the government tries to stifle the opposition and regain a firm grip on the nation, the country’s economic collapse, nearing its fourth year, continues to gain steam, leaving the president, his loyalists and the country in an increasingly precarious position.
. . .
In one nine-day stretch in late July and early August, the price of the bolívar, the national currency, fell by half against the dollar on the black market, cutting earnings for people who make the minimum wage to the equivalent of just $5 per month.
. . .
“Bolívars are like ice cubes now,” said Daniel Lansberg-Rodriguez, who leads the Latin America practice at Greenmantle, a macroeconomic advising firm, and teaches at Northwestern’s Kellogg School of Management. “If you’re going to go to the fridge and take one, it’s something you have to use right now, because soon it’s going to be gone.”

For the full story, see:
ANA VANESSA HERRERO and NICHOLAS CASEY. “In Venezuela, That Empty Feeling.” The New York Times, First Section (Sun., SEPT. 3, 2017): 6.
(Note: ellipses added.)
(Note: the online version of the story has the date SEPT. 2, 2017, and has the title “In Venezuela, Cooking With Firewood as Currency Collapses.”)