Fun fact : If you understand Chinese, you will know that the characters to signify China is “Middle Kingdom”. Long ago, the ancient Chinese empires rightfully believed that they were the centre of the universe as they were the most advanced civilizations thousands of years ago. Hence they called themselves the “Middle” kingdom.
After many years of stagnation, China is finally coming round again to take the world leader pole position again. The central government is one of the only one in the world that plans in terms of generations, into the next 30 years.
A book I read talks about 100 years cycles, that the Chinese believe that their economy bottomed out in 1940, just before WWII and that it will peak in 2040. Hence Xi always talks about vision 2050 whenever he sets out his strategic plans. Nothing is planned for just a 4 years political term, but it is for the next 2 generations.
Look at the airport, rail and road network they have now. It did not exist 10 years ago! China has an ambitious master plan to create 6,000 new cities and develop enough internal consumerism demand to be self-sustaining without having to be overly reliant on the rest of the world. It has already bought and locked in long-term contracts with most of Africa for commodities supplies for the last 15 years, turbocharging the big commodities boom in the process.
China has learnt to adapt the Japan model into its own strategic ideology. The One Belt, One Road (OBOR) initiative is a perfect example. For many years, Japan has offered a country important infrastructure projects for a low cost via financing from ADB which they control. Once in, all projects will be awarded to Japanese companies. Left pocket, right pocket. Win-win for Japan. The country gets much-needed help to build roads and power plants. China is doing the same now in a bigger scale through the OBOR master plan and the newly created AIIB entity which they control.
Look at Malaysia. Once in, the Chinese companies take over totally. Complete vertical integration. The Malaysian companies cry foul but its too late as the government has already willingly sold its jewels to the attractive suitor. All excess China production capacity can then be re-channelled outwards while they continue to urbanize the rest of China. It’s a fantastic master plan worthy of Dr Evil Mwahahahaha…..
Look at the Chinese technology companies storming the world now. They have no western comparisons. Alibaba and Tencent (WeChat) have created ecosystems which are a one-stop centre for all the needs of the consumer. You can literally do everything within the app. Western standards of privacy and anti-competition rules have restricted the imagination of what the internet is capable of. These Chinese companies have no such limitations and can do whatever they want, as long as it is compliant with the communist party’s requirements and for the greater good of the country.
Face recognition technology implemented countrywide is already not science fiction anymore. Criminals can be identified and arrested – recent news of one being caught nationwide after being spotted when he happened to be attending a 50,000 people concert. George Orwell’s 1984 has arrived. Every citizen will soon have citizenship points that will be measured to ensure civil obedience, else privileges such as overseas trips are taken away.
I attended an Alibaba event this week. It was an eye-opener on how far they have gone. It was part of their launch of the TaoBao University program in collaboration with the Skillsfuture initiative. While it is in Mandarin (mine is quite rusty 🙁 , there were 2,500 attendees who paid at least $50 to join this full-day event. Some of the courses look interesting. Wifey and I may join an Alibaba business study trip in July – 90% subsidy!!!
Make no mistake, China is making a concerted planned strategy to be at the forefront of the world, slowly but surely. It has one of the most far-sighted central banks in the world. You cannot get a better opportunity now as Trump implodes and turn America into itself. The 21st century has arrived for the Middle Kingdom.
Side note : The Western powers just launched an attack on Syria an hour ago. Its showdown time with Putin. China will be laughing all the way to the bank as it scoops up the spoils of war.
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