Category: Socialism

Communists Imprisoned Lu Yuyu for Four Years for Posting Online Data on Protests in China

(p. A1) On a summer day in 2016, a posse of men surrounded Lu Yuyu on a street in China’s southwestern city of Dali. He said they wrestled him into a black sedan and slid a shroud over his head. His girlfriend was pushed into a second car, screaming his name.

Mr. Lu had for years posted a running online tally of protests and demonstrations in China that was closely read by activists and academics around the world, as well as by government censors. That made him a target.

While China’s Communist Party has long punished people seen as threats to its rule, government authorities under Chinese leader Xi Jinping have engaged in the most relentless pursuit of dissenters since the crackdown on the 1989 Tiananmen Square pro-democracy protests, according to academics and activists.

“Over the past eight years under Xi, authorities have become hypersensitive to the publicizing of protests, social movements and mass resistance,” said Wu Qiang, a former politics lecturer at Beijing’s Tsinghua University.

“Lu’s data provided a window into social trends in China,” Mr. Wu said, and that made him a threat to the party. China Labour Bulletin, a Hong Kong-based group that promotes worker rights, used Mr. Lu’s posts as the primary source for its “Strike Map,” an interactive online graphic tallying worker unrest.

Mr. Xi’s crackdown has snared women planning protests against sexual harassment, human-rights lawyers once given leeway and Marxist students advocating workers’ rights. Many have endured lengthy detentions and various forms of psychological pressure.

“Their goal is to make you feel helpless, hopeless, devoid of any support, and break you down so you begin to see activism as something foolish that doesn’t benefit anyone, and gives pain to everyone around you,” said Yaxue Cao, a Washington-based activist who runs China Change, a news and commentary website advocating for human rights. “In so many cases, they are successful.”

After Mr. Lu was snatched off the street, he spent four years in custody, his girlfriend left him, and, since his release in June [2020], he said he has been kept under close watch by police. He struggles to find steady work, he said, and suffers from depression. His landlord recently asked him to move, he said, citing pressure from authorities.

The experience keeps him far from his past documentation work. “If you’re lucky, they’d detain you within a month, or if you’re unlucky, within a week,” said Mr. Lu, 43 years old. “There’s no point.”

For the full story, see:

Chun Han Wong. “In Xi’s China, There Is Little Room Left for Dissent.” The Wall Street Journal (Saturday, Nov. 28, 2020): A1 & A10.

(Note: bracketed year added.)

(Note: the online version of the story has the date May 24, 2021, and has the title “‘Their Goal Is to Make You Feel Helpless’: In Xi’s China, Little Room for Dissent.” The online version says that the print version had the title “Xi’s China Ramps Up Drive to Squelch Dissent.” My Central Edition of the print version had the title “In Xi’s China, There Is Little Room Left for Dissent.”)

Warburg Focused on Cancer’s “Ravenous” Metabolizing of Sugars

(p. A15) Hours before Nazi Germany invaded the Soviet Union in 1941, SS leader Heinrich Himmler convened a perplexing meeting. He and his minions put aside preparations for the offensive to chitchat about a gay biochemist of Jewish descent in Berlin. Not to rage about the man, or plot his downfall—to the contrary, the Nazis believed this scientist could save the Reich, by ridding it of a threat they feared every bit as much as Jews, homosexuals and communists—the scourge of cancer.

That scientist, Otto Warburg, is the subject of “Ravenous: Otto Warburg, the Nazis, and the Search for the Cancer–Diet Connection,” an eye-opening work by journalist Sam Apple.

. . .

There’s no doubt Warburg was brilliant—the greatest biochemist of his day—and in the 1930s he focused on cancer, a major concern of the Nazis. Cancer deaths skyrocketed 287% in Germany between 1876 and 1910, “making a quiet mockery of the extraordinary march of German science,” Mr. Apple notes. From the Führer down, Nazi leaders trembled at the disease, and they enacted surprisingly modern measures to fight cancer. They railed against cigarettes, encouraged women to examine their breasts for lumps and worked to eliminate pesticides and artificial preservatives in food.

In his lab, Warburg made seemingly fundamental discoveries about how cancer worked.

. . .

The second half of “Ravenous” shifts into the (somewhat tenuous) links between Warburg’s research and our modern understanding of cancer. The biochemical complexities get a bit gnarly—there’s a dizzying amount of detail, making it hard to follow the main thread on occasion. Among other things, Warburg discovered that cancer cells gobble up far more glucose (a sugar) than their nonmalignant neighbors—“eating like shipwrecked sailors,” Mr. Apple writes. Oddly, cancer cells also metabolize sugars through fermentation, in a manner analogous to yeast cells. Biochemically, fermentation is normally a backup power generator for human cells, used only when oxygen runs low. Warburg found that cancer cells were running the backup generator all the time.

. . .

. . ., it’s not clear how much credit Warburg deserves. I walked away from “Ravenous” thinking of Otto Warburg as a sort of Sigmund Freud of cancer research. Freud got One Big Thing right—that the unconscious drives much of human behavior. But he was wrong on nearly every detail. Similarly, Warburg explicitly rejected good evidence for the insulin-cancer link during his lifetime, among other blunders, making it tricky to uphold him as a pioneer of modern cancer research.

Nevertheless, history will show that Otto Warburg always insisted that cancer was intimately tied to metabolism. As one latter-day biologist noted, marveling over Warburg’s rehabilitation, “We found out that son of a bitch was right.”

For the full review, see:

Sam Kean. “BOOKSHELF; Untangling a Disease.” The Wall Street Journal (Wednesday, June 16, 2021): A15.

(Note: ellipses added.)

(Note: the online version of the review has the date June 15, 2021, and has the title “BOOKSHELF; ‘Ravenous’ Review: Untangling a Disease.”)

The book under review is:

Apple, Sam. Ravenous: Otto Warburg, the Nazis, and the Search for the Cancer-Diet Connection. New York: Liveright Publishing Corp., 2021.

To Extort U.S. Firms, Xi Passes Laws that Firms Cannot Obey

(p. B1) Doug Guthrie spent 1994 riding a single-speed bicycle between factories in Shanghai for a dissertation on Chinese industry. Within years, he was one of America’s leading experts on China’s turn toward capitalism and was helping companies venture East.

Two decades later, in 2014, Apple hired him to help navigate perhaps its most important market. By then, he was worried about China’s new direction.

China’s new leader, Xi Jinping, was leaning on Western companies to strengthen his grip on the country. Mr. Guthrie realized that few companies were bigger targets, or more vulnerable, than Apple. It assembled nearly every Apple device in China and had made the region its No. 2 sales market.

So Mr. Guthrie began touring the company with a slide show and lecture to ring the alarm. Apple, he said, had no Plan B.

“I was going around to business leaders, and I’m like: ‘Do you guys understand who Xi Jinping is? Are you listening to what’s going on here?’” Mr. Guthrie said in an interview. “That was my big calling card.”

His warnings were prescient. China has taken a nationalist, au-(p. B3)thoritarian turn under Mr. Xi, and American companies like Apple, Nike and the National Basketball Association are facing a dilemma. While doing business in China often remains lucrative, it also increasingly requires uncomfortable compromises.

That trend raises the question of whether, instead of empowering the Chinese people, American investment in the country has empowered the Chinese Communist Party.

. . .

Mr. Guthrie’s career arc and evolving view of China tell the story of Western industry’s complicated dance with the country over the past three decades. Mr. Guthrie and many executives, politicians and academics had bet that Western investment in China would lead the country to liberalize. It is now clear that they miscalculated.

“We were wrong,” said Mr. Guthrie, who left Apple in 2019. “The wild card was Xi Jinping.”

In recent years, China shut down Marriott’s website after it listed Tibet and Taiwan as separate countries in a customer survey. It suspended sign-ups to LinkedIn after the site failed to censor enough political content. And the Communist Party urged a boycott of Western apparel companies that criticized forced-labor practices in Xinjiang, a Chinese region where the government is repressing Uyghurs, the country’s Muslim ethnic minority.

. . .

In 2014, China’s so-called dispatch labor law went into effect, limiting the share of temporary workers in a company’s work force to 10 percent. From Day 1, Apple and its suppliers were in violation.

At a Foxconn plant in Zhengzhou, China, the world’s biggest iPhone factory, temporary workers made up as much as half of the work force, according to a report by China Labor Watch, an advocacy group. After the report, Apple confirmed that the factory broke the law.

Apple executives were concerned and confused, Mr. Guthrie said. They knew the company couldn’t comply because it needed the extra workers to meet periods of intense demand, such as the holidays.

. . .

“‘This is the point. You are supposed to be out of compliance,’” he said he had told them. “‘Not so they can shut you down, but so you’ll figure out what they want you to do and figure out how to do it.’”

Mr. Guthrie, who is often tucking his long, graying hair behind his ears, began giving his lecture on Apple’s risk in China around that time. Its extreme reliance on the country left it with little leverage to resist.

Apple continued to grapple with demands from the government.

. . .

To measure the success of their lobbying, Apple executives looked to the government’s annual corporate social responsibility scores, a proxy for the Communist Party’s view of a company.

. . .

Apple’s score steadily improved. From 2016 to 2020, its ranking among all companies in China rose from No. 141 to No. 30.

Apple didn’t always successfully resist the government’s demands. Over that period, Mr. Cook had agreed to store his Chinese customers’ private data — and the digital keys to unlock that data — on computer servers owned and run by the Chinese government.

For the full story, see:

Jack Nicas. “A Warning On China Is Prescient For Apple.” The New York Times (Friday, June 18, 2021): B1 & B3.

(Note: ellipses added.)

(Note: the online version of the story has the date June 17, 2021, and has the title “He Warned Apple About the Risks in China. Then They Became Reality.”)

Labrador Noses May Be Cheaper and More Accurate Than Rapid Antigen Test at Detecting Covid-19

(p. A1) . . . three Labradors, operating out of a university clinic in Bangkok, are part of a global corps of dogs being trained to sniff out Covid-19 in people. Preliminary studies, conducted in multiple countries, suggest that their detection rate may surpass that of the rapid antigen testing often used in airports and other public places.

. . .

(p. A6) . . . as a group, the dogs being trained in Thailand — Angel, Bobby, Bravo and three others, Apollo, Tiger and Nasa — accurately detected the virus 96.2 percent of the time in controlled settings, according to university researchers. Studies in Germany and the United Arab Emirates had lower but still impressive results.

Sniffer dogs work faster and far more cheaply than polymerase chain reaction, or P.C.R., testing, their proponents say. An intake of air through their sensitive snouts is enough to identify within a second the volatile organic compound or cocktail of compounds that are produced when a person with Covid-19 sheds damaged cells, researchers say.

“P.C.R. tests are not immediate, and there are false negative results, while we know that dogs can detect Covid in its incubation phase,” said Dr. Anne-Lise Chaber, an interdisciplinary health expert at the School of Animal and Veterinary Sciences at the University of Adelaide in Australia who has been working for six months with 15 Covid-sniffing dogs.

Some methods of detection, like temperature screening, can’t identify infected people who have no symptoms. But dogs can, because the infected lungs and trachea produce a trademark scent. And dogs need fewer molecules to nose out Covid than are required for P.C.R. testing, Thai researchers said.

The Thai Labradors are part of a research project run jointly by Chulalongkorn University and Chevron. The oil company had previously used dogs to test its offshore employees for illegal drug use, and a Thai manager wondered whether the animals could do the same with the coronavirus.

. . .

Dogs, whose wet snouts have up to 300 million olfactory receptors compared with roughly six million for humans, can be trained to memorize about 10 smell patterns for a specific compound, Dr. Kaywalee said. Dogs can also smell through another organ nestled between their noses and mouths.

Some research has suggested that dogs of various breeds may be able to detect diabetes, Parkinson’s disease, malaria and certain cancers — that is, the volatile organic compounds or bodily fluids associated with them.

Labradors are among the smartest breeds, said Lertchai Chaumrattanakul, who leads Chevron’s part of the dog project. They are affable, too, making them the ideal doggy detector: engaged and eager.

Mr. Lertchai noted that Labradors are expensive, about $2,000 each in Thailand. But the cotton swabs and other basic equipment for canine testing work out to about 75 cents per sample. That is much cheaper than what’s needed for other types of rapid screening.

For the full commentary, see:

Hannah Beech. “The Best Rapid Covid-19 Test Adores Treats and Belly Rubs.” The New York Times (Tuesday, June 1, 2021): A1 & A6.

(Note: ellipses added.)

(Note: the online version of the commentary has the date May 31, 2021, and has the title “On the Covid Front Lines, When Not Getting Belly Rubs.”)

“We Demand the Right to Have Rights”

(p. A9) An alliance of hip-hop musicians, writers, internationally known artists and Black activists has emerged as a driving force against censorship and government repression in Cuba, prompting a rare Communist government action: to hold talks about freedom of expression.

Hundreds of Cubans, many of them young artists from elite schools, protested in front of the country’s stately neoclassical Ministry of Culture in Havana’s upscale Vedado district, overnight on Friday. Protests of any sort are very rare in Cuba.

“We demand the right to have rights…. The right of free expression, of free creation, the right to dissent,” said Katherine Bisquet, a young poet, reading the activists’ manifesto by the light of cellphones outside of the ministry where streetlights were turned off. Videos posted on social media showed Ms. Bisquet saying that she spoke for all Cuban citizens.

. . .

Jake Sullivan, President-elect Joe Biden’s national security adviser-designate, in a tweet Sunday said that Mr. Biden supported the Cuban people in their struggle for liberty, called for the government to release peaceful protesters and said Cubans must be allowed to exercise “the universal right to freedom of expression.”

For the full story, see:

José de Córdoba and Santiago Pérez. “Cuba’s Creative Class Crafts United Protest Against Censorship.” The Wall Street Journal (Tuesday, December 1, 2020): A9.

(Note: ellipsis internal to third quoted paragraph, in original; ellipsis between paragraphs, added.)

(Note: the online version of the story was updated Nov. 30, 2020, and has the title “Cuban Leadership Confronts a Rare Dissident Movement.” Where the wording in the last quoted paragraph is slightly different between the online and print versions, the passage quoted above follows the online version.)

Chinese Local Governments Run Up $6 Trillion in Debt, Partly to Build Giant Statues and a Full-Size Replica of Titanic

(p. B1) To officials in her corner of China, the statue of Yang Asha, a goddess of beauty, serves as a tribute to the rich culture of the local people and, they hope, a big draw for sightseers and their money. To many others in China, she is another white elephant in a country full of expensive monuments, gaudy tourist traps and wasteful vanity projects that draw money away from real problems.

Those critics point to the statue of Guan Yu, a general from antiquity, in the city of Jingzhou, where he also towers higher than the Statue of Liberty and wields an enormous polearm called the Green Dragon Crescent Blade.

They point to the Jingxingu Hotel, a 24-story wooden building with lots of empty balconies and open spaces but few actual rooms — and it has not accepted guests beyond a few tourists who come to gawk.

They point to the construction of a full-size, $150 million replica of the Titanic in a reservoir deep in China’s interior, 1,200 miles from (p. B5) the ocean.

. . .

Singling out the $38 million Jingxingu Hotel and the $224 million Guan Yu project, which also included an elaborate base and surrounding park, the Ministry of Housing and Urban-Rural Development ordered on Sept. 29 [2020] that communities may not “blindly build large-scale sculptures that are divorced from reality and the masses.”

Chinese government officials have long prized big projects. China now has four-fifths of the world’s 100 tallest bridges, more miles of ultramodern expressways than the American interstate highway system and a bullet-train network long enough to span the continental United States seven times. Those projects have employed millions of people and helped fuel the country’s breakneck growth.

But local officials borrowed heavily to fund those projects. Estimates put the amount of local debt as high as $6 trillion, raising fears of financial bombs lurking in the ledgers of far corners of the country.

Beijing has doubled down on further investment spending this year in an initially successful bid to shake off an economic hangover from the outbreak of coronavirus in China last winter.

Yet with each passing year, as projects are built in ever-more-remote places, the economic kick from each project becomes less and less. China is on track this year to add debt equal to four months’ economic output while its economy grows by an amount equal to less than two weeks’ output.

Local government borrowing “is still out of control,” said Gary Liu, an independent economist in Shanghai.

For the full story, see:

Keith Bradsher. “As China Battles Poverty, Colossal Projects Draw Ire.” The New York Times (Fri., Nov. 27, 2020): B1 & B5.

(Note: ellipsis, and bracketed year, added.)

(Note: the online version of the story has the date Nov. 26, 2020, and has the title “A Soaring Monument to Beauty in China Is Stirring Passions. Mostly Anger.”)

Li Wenliang Was Not an Outlier: Chinese Communists Punished at Least 587 for Speaking Out on Covid-19

(p. A6) At least seven people over the past week have been threatened, detained or arrested after casting doubt over the government’s account of the deaths of Chinese soldiers during a clash last year with Indian troops. Three of them are being detained for between seven and 15 days. The other four face criminal charges, including one man who lives outside China.

“The internet is not a lawless place,” said the police notices issued in their cases. “Blasphemies of heroes and martyrs will not be tolerated.”

Their punishment might have gone unnoticed if it weren’t for an online database of speech crimes in China. A simple Google spreadsheet open for all to see, it lists nearly 2,000 times when the government punished people for what they said online and offline.

The list — which links directly to publicly issued verdicts, police notices and official news reports over the past eight years — is far from complete. Most punishment takes place behind closed doors.

Still, the list paints a bleak picture of a government that punishes its citizens for the slightest hint of criticism. It shows how random and merciless China’s legal system can be when it punishes its citizens for what they say, even though freedom of speech is written into China’s Constitution.

. . .

(p. B3) Perhaps the most depressing items are those about people who were punished for what they said about the Covid-19 pandemic. On top of the list is Dr. Li Wenliang, who was reprimanded on Jan. 1, 2020, along with seven others for trying to warn the country about the coronavirus. He died of the virus in early February last year and is now remembered as the whistle-blower who tried to warn the world about the outbreak. But the spreadsheet lists 587 other cases.

For the full story, see:

Li Yuan. “Spreadsheet on Censorship Shows China’s Human Toll.” The New York Times (Saturday, February 27, 2021): B1 & B3.

(Note: ellipses added.)

(Note: the online version of the story has the date Feb. 26, 2021, and has the title “China Persecutes Those Who Question ‘Heroes.’ A Sleuth Keeps Track.”)

Xi Jinping Only Pays “Mere Lip Service” to “Private Enterprise and Innovation”

(p. A23) Ant Group, China’s biggest fintech conglomerate, was preparing last November for its initial public offering. Analysts projected it would raise $34 billion, the largest sale of shares in history. The company, founded by Jack Ma, had become synonymous with financial innovations, which are often risky.

In the run-up to the I.P.O., Chinese regulators trying to assess financial risks on Ant’s books had been brushed off by Mr. Ma. In an audacious speech, he criticized regulators as too cautious and pilloried state-owned banks for their “pawnshop” mentality of providing loans only to borrowers who could post collateral.

Even oblique attacks on China’s government rarely go unpunished. This was a direct provocation. Yet such was Mr. Ma’s aura, and his apparent imperviousness to government strictures, that domestic and foreign investors were unconcerned.

. . .

Then it all fell apart. Two days before Ant’s shares were to begin trading on the Hong Kong and Shanghai exchanges, the government blocked the I.P.O.

. . .

It seemed that, in bringing the hammer down on the company, the government aimed to limit its growing economic and political power.

But in so doing, the government spooked investors. Suddenly, President Xi Jinping’s pledges to encourage private enterprise and innovation looked like mere lip service.

For the full commentary, see:

Eswar Prasad. “Jack Ma Paid for Taunting China.” The New York Times (Friday, April 30, 2021): A23.

(Note: ellipses added.)

(Note: the online version of the commentary has the date April 28, 2021, and has the title “Jack Ma Taunted China. Then Came His Fall.”)

Virologist “Dismayed” That Wuhan Lab Conducted Two Coronavirus Studies “With Only a Modest Level of Safety Measures”

(p. A6) On the heels of President Biden’s abrupt order to U.S. intelligence agencies to investigate the origins of the coronavirus, many scientists reacted positively, reflecting their push in recent weeks for more information about the work of a virus lab in Wuhan, China. But they cautioned against expecting an answer in the three-month time frame of the president’s request.

After long steering clear of the debate, some influential scientists have lately become more open to expressing uncertainties about the origins of the virus. If the two most vocal poles of the argument are natural spillover vs. laboratory leak, these new voices have added a third point of view: a resounding undecided.

“In the beginning, there was a lot of pressure against speaking up, because it was tied to conspiracies and Trump supporters,” said Akiko Iwasaki, an immunologist at Yale University. “There was very little rational discussion going on in the beginning.”

. . .

While researchers generally welcome a sustained search for answers, some warn that those answers may not arrive any time soon — if ever.

“At the end of this process, I would not be surprised if we did not know much more than we know now,” said W. Ian Lipkin, a virologist at the Mailman School of Public Health at Columbia University who was one of the first U.S. scientists to visit China in early 2020 and consult with public health authorities there.

China’s lack of cooperation with the W.H.O. has long fueled suspicions about how the coronavirus, known as SARS-CoV-2, had emerged seemingly from nowhere to seize the world.

. . .

Speaking recently to the former New York Times journalist Donald McNeil Jr., Dr. Lipkin said he was dismayed to learn of two coronavirus studies from the Wuhan Institute of Virology that had been carried out with only a modest level of safety measures, known as BSL-2.

In an interview with The Times, Dr. Lipkin said this fact wasn’t proof in itself that SARS-CoV-2 spread from the lab. “But it certainly does raise the possibility that must be considered,” he said.

A BSL-2 level of research would also add to the difficulty researchers will face trying to pin down clear evidence that a coronavirus infected the staff. At higher levels of security, staff regularly give blood samples that can be studied later for genetic material from viruses and antibodies against them. There may be no such record for SARS-CoV-2.

For the full story, see:

Carl Zimmer, James Gorman, and Benjamin Mueller. “Scientists Welcome a Search That Might Never Bear Fruit.” The New York Times (Friday, May 28, 2021): A6.

(Note: ellipses added.)

(Note: the online version of the story has the date May 27, 2021, and has the title “Scientists Don’t Want to Ignore the ‘Lab Leak’ Theory, Despite No New Evidence.”)

French Central Planners Say Crepe Makers Are “Essential” but Desk Lamps Are Not

(p. A11) PARIS — Three French lockdowns, and counting, over the past 13 months have been many things, among them a rare opportunity for the formidable national bureaucracy of about 5.6 million public servants to display their gift for the complication of lives.

With the announcement of the third Paris lockdown last month to try to control the spread of the coronavirus, an apotheosis of the absurd was reached.

. . .

How to get your head around hairdressers, vendors of electronic cigarettes, video game outlets and chocolatiers being deemed essential stores, and so allowed to open, but shoe shops, beauty salons, clothing boutiques and department stores being forced to close?

Familiarity with the labyrinthine thought processes of the French functionary was clearly needed. France, as one former prime minister, Georges Clemenceau, observed, “is an extremely fertile country: You plant functionaries and taxes grow.”

. . .

Despite the reforming ambition of successive presidents — Jacques Chirac spoke of the “obesity of the state” in 1986 — the number of functionaries has grown by over one million in the last 30 years and now represents 22 percent of the entire work force. They are resilient.

. . .

I recently rented an apartment and needed to furnish it.

. . .

This was how I learned more about essential vs. nonessential items under the lockdown. I could buy electric cheese-heating raclette makers in a dozen different models. I could buy toasters galore, pans in all shapes, any form of home stereo equipment — but not a desk lamp.

At Boulanger, an electronics store, smoothie makers and vacuum cleaners were available for sale, but not refrigerators, stoves or other large appliances that had been roped off.

How this comported with controlling the coronavirus — over 100,000 people in France have died from it, and more than five million have been infected — was not immediately clear.

The sheer intricacy of the bureaucratic obtuseness overwhelmed me. I could not help wondering whether some fraction of the many hours devoted to coming up with such regulations might have been better used speeding the vaccines to more people. France has up to now underwhelmed in getting its population vaccinated.

. . .

France, . . ., still has a commissioner general for planning, as if the Soviet Union had never disappeared. The country proceeds with methodical purpose based on the analysis and forecasts of highly trained public servants, formed in elite schools.

Still, an overwhelming question grips my entire being: Why these apparently arbitrary rules?

I asked a Castorama store assistant to explain why, for example, the lamps I coveted were off limits while I could buy a crepe maker.

“I don’t really know,” she said. “But, of course, you can always use a candle.”

For the full commentary, see:

Roger Cohen. “France Is Locked Down, but Its Bureaucracy Is Thriving.” The New York Times (Tuesday, April 27, 2021): A11.

(Note: ellipses added.)

(Note: the online version of the commentary has the date April 26, 2021, and has the title “The Entangling, Ever-Extending Labyrinth of French Lockdowns.”)

Bipartisan Central Planners Support $50 Billion Subsidy to Semiconductor Industry

“Industrial policy” is a misleadingly soothing phrase meaning “central planning.” Just because China is making the mistake of pursuing industrial policy, doesn’t imply that U.S. worries about China should lead us to make the same mistake. In fact, their following industrial policy should lead us to worry less.

(p. A4) Lurking just behind the domestic debate breaking out over President Biden’s $2.3 trillion infrastructure plans is a powerful foreign force: China.

. . .

. . . elements of the plan are clearly constructed with an eye toward better competing with China, and in ways generally supported in both parties:

—Providing $50 billion for semiconductor manufacturing and research. This proposal would put oomph and dollars behind a bipartisan initiative Congress pushed into a defense bill late last year, called the CHIPS Act, authorizing research and subsidies to increase domestic manufacturing of semiconductors and lessen dependence on China for the computer chips now essential to all manner of products.

The leaders of the congressional push to help the semiconductor industry include Sen. Tom Cotton of Arkansas, a conservative who agrees with the Biden administration on very little. The current shortage of chips plaguing the American auto industry underscores the arguments for this piece of the package. This is one of several areas where traditional conservative arguments against federal “industrial policy,” in which the government picks specific industries to boost with support from Washington, have fallen by the wayside in the face of Chinese advances.

For the full commentary, see:

Gerald F. Seib. “CAPITAL JOURNAL; China Looms Over Infrastructure Plan.” The Wall Street Journal (Tuesday, April 6, 2021): A4.

(Note: ellipses added.)

(Note: the online version of the commentary has the date April 5, 2021, and has the title “CAPITAL JOURNAL; China Looms Large in Biden Infrastructure Plan.”)