Top 5 China events of the decade (for me)

A week ago the Shanghaiist asked me if I’d prepare an end-of-year or end-of-decade list of what were for me the top 5 China-related event.

Now that the post has been up on their site a few days, I’m reprinting it here for posterity. These are not necessarily the most important things that happened. The Sichuan earthquake, for example, is more important than some of my other choices. There were too many to choose from, like Sun Zhigang, the tainted milk scandal and Hu’s tremendously important strides in bringing Africa closer to China. Instead, these are the items that touched me on a very personal level, inspiring me to feel joy or outrage, hope or gloom.

From Shanghaiist:

Richard Burger worked in Greater China (mostly the PRC) as a PR executive for more than six years, the last few months of which he spent as editor and columnist for the English-language Chinese daily newspaper The Global Times. He is also the author of one of the oldest and most respected China blogs, The Peking Duck

What a difference ten years has made for China, from the new kid on the block to one of the world’s most influential movers and shakers. Since 2000, China has turned the notion of “New World Order” on its head.

During those 10 years we’ve watched China experience some breathtaking highs and painful lows. I first started watching China early in 2001, when I moved from the US to Hong Kong, and still remember exactly where I was and how I felt when I heard the big news that made it to No.1 on my Personal Five Most Significant China Stories of the decade.

1. July 13, 2001: Beijing is named host city for 2008 Olympic Games

This announcement created a wave of euphoria that only intensified as the Opening Ceremony approached. From the moment it was reported until the Olympic Green was locked down at the end of August 2008 we’ve never seen so many people so motivated for so many years over a sports competition. Nothing since has ever topped this one.

2. April 20, 2003: Chinese government holds live on-air SARS press conference

I know, that sounds kind of dry. But if you were there watching it live you’ll know just how jaw-dropping it was. Some of the world’s most tight-lipped, rarely seen leaders took live questions from the international media pool in Beijing and revealed there were hundreds more known cases of SARS in Beijing than they’d admitted earlier. Afterwards, the minister of health and the mayor of Beijing were fired for negligence of duty and the May holiday was canceled to keep people from traveling. Live and in person, we watched China’s government realize that being a global power demands accountability.

3. April 7, 2008: A Chinese hero is born

It couldn’t have been better scripted by the propaganda department: A graceful young woman, an Olympic torchbearer confined to a wheelchair, is attacked in full public view in Paris by a pro-Tibet activist determined to grab the Olympic torch from her hands. She refuses to yield, using her body to protect the torch as if it were a child. The timing was incredible: China was reeling from criticism of its handling of ethnic tension in Tibet, and photos of the emotionally charged scene galvanized the global Chinese community and created a groundswell of national pride just when China needed it. This sense of commonality and closing rank was to be matched only by the volunteerism generated by the Sichuan earthquake the next month – a close runner-up for this list.

4. June 16, 2009: Chinese court frees Deng Yujiao

The release of Deng Yujiao, the 21-year-old Chinese karaoke waitress turned folk hero who stabbed to death a drunken party official who tried to force her to have sex, resonated with everyone in China. Originally found guilty of murder, her plight captured the imagination of Chinese activists and netizens and her release was historic, proving that with enough pressure from an energized and outraged public the Chinese government will respond to injustices that in the past were swept under the carpet. We’ll know in the year ahead if it truly marked a turning point.

5. June 2009 – present: Post-Olympic communication crackdown

After opening its Internet more than ever before for the 2008 Olympic Games, China took a sharp swerve in the opposite direction the next year. The ominous clouds of heightened censorship moved in prior to the 20th anniversary of the “Tiananamen Square Incident” with the banning of Chinese and English-language social media sites and it kept getting worse right through the October 1 festivities, with no end in sight to this day. Many had misread the April 20, 2003 press conference as a sign China was ready to open up. In some ways it has, but the Internet remains more censored than ever.

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I know we all have our different picks for a list like this. So feel free to suggest your own.

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The world’s largest shopping mall

Can you guess where it is?

You literally have to see it to believe it. This isn’t new; it came out four months ago, but I just saw it today. It drives home like nothing I’ve ever seen the difference between a ghost mall in the US (which is usually simply closed down and then leveled or left to deteriorate until it’s sold) and in China (where it can just keep on operating in what seems to be blissful disregard of reality).

Only one word keeps coming to mind as I watch it: sustainability. How long can places like this keep operating? How long can the charade continue? In most countries this wouldn’t go on past a few weeks or months. In China it could be years and years. But one thing seems certain: it can’t go on forever. Then again, this is China, and you just never know.

Watch the clip. It’s unforgettable.

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China’s asset bubble

Aside from a post on canings in Singapore, the most linked-to and visited post I ever wrote was about the inevitable collapse of China’s luxury malls. Some will do fine, like the Village in Sanlitun (the stores on the street level and the restaurants, at least). Others, like Solana and Gemdale and The Place and 3.3, well, I don’t think they stand a chance. Overbuilt is overbuilt.

Taking a much more thorough, well-researched and intelligent approach to the always controversial issue of China’s bubbling economy than I did, one of my favorite reporters in Beijing warns of a property bubble that could cripple China for many years to come. Please indulge a healthy clip:

As fast as China is growing and urbanizing, its cities are churning out more office towers and luxury malls than can be leased for years to come. Tianjin, a gritty metropolis not far from Beijing, will soon have more prime office space than will be filled in a quarter-century at the current absorption rate. Shunyi County, in the capital’s suburbs, sold a residential plot last month for $400 per square foot, a new national record. The bidders were mostly state-owned companies and the winner none other than a developer owned by Shunyi County. Where the developer came up with the money for the purchase is unclear, but the county will nevertheless book $740 million as revenue from the sale.

China’s mercantilist trade policy is another contributor to its asset bubble. By artificially depressing the value of its currency and making it difficult for locals to invest abroad, China has forced an artificially large amount of capital to chase after domestic investments, inflating property and stock prices. It’s the same scenario China pursued in late 2007, before its stock market lost two-thirds of its value, but that era was characterized by monetary restraint compared with today.

“It’s a pure debt game,” says Andy Xie, an economist who advises private investors and sees the current bubble as “much worse than previous ones.”

In late November China’s ruling Politburo declared that the nation’s monetary and fiscal promiscuity will continue into 2010. The markets, predictably, were overjoyed. Economists who see parallels to the Russian and Brazilian financial crises a dozen years ago are less sanguine.

“The more debt that’s on the balance sheets, whether you see it or not, the more vulnerable borrowing entities become to shocks,” warns Michael Pettis, a finance professor at Peking University and expert on China’s economy and sovereign debt.

China naysayers have been wrong before. Gordon Chang, author of the 2001 book The Coming Collapse of China, has warned–wrongly, so far–that doom lies around the corner. Cushioning China’s economy is its high growth rate, an estimated $260 billion (but declining) annual current account surplus and, at $2.3 trillion, the world’s biggest foreign exchange reserve.

Bubbles, it bears noting, tend to surprise many observers with their longevity. (A FORBES cover story warned six years too early that the U.S. housing bubble threatened to tank the economy.) But when bubbles do eventually blow, it’s usually with a bang.

Friends have been telling me about the deranged property prices in Beijing, and once again, as with the malls, it just strikes me as common sense that this is not sustainable. And you have to consider all the ripple effects a housing bust would foment – all those migrant workers on construction sites, all the construction machiney makers, the cement and lumber providers, all the ancillary businesses, door-knob makers and house painters….

What Epstein is describing mirrors to the letter what we saw in the US in five years ago, and is even more reckless: flipping properties and creating massive pools of debt and the same insane mass hypnosis: “Property values can only increase!” We all know how that goes.

I do not want to see this happen and hope Epstein is totally wrong. But again, my common sense tells me there’s no way he can be wrong. Any student of bubbles, from tulips to dot-coms, can see the gathering storm. I wouldn’t want to be owning any property in China when it meets land.

gathering20storm

Update: Damn, forgot the obligatory disclaimer: The US started this mess and has been just as speculative and as consumed by the property orgy as China. This is not unique to China. But in China, the crash could be more painful considering the massive dependency on construction. But no one deserves more criticism than the US, and I have said this many times.

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CCP makes the Xinjiang block airtight

Don’t miss the very interesting follow up post to the story I linked to directly below. Seems the Party was just one step behind the Far West blogger, ready to plug any annoying leaks.

I had it coming, I guess. Less than 48 hours after I published an article about the internet situation in Xinjiang (including a short sentence about the ability to circumvent the block), every single internet and phone loophole across the province suddenly stopped working. Obviously it is most likely a coincidence, but I’m beginning to feel guilty when I get concerned calls from other foreigners asking me if my ability to access the internet has been disabled as well.

As I sit here in a hotel room in Shanghai, soaking up what may be the last ounce of internet I see until February, I find myself struggling with what is happening back in Xinjiang. A lively discussion on the ethics of this internet block took place over at the Peking Duck and although I find it interesting I’m glad I didn’t get the chance to enter the debate. [From Richard: I’m glad as well, for your sake. Life’s too short.]

The fact is that I moved to Xinjiang knowing full-well that I was subjugating myself to China’s laws and leadership. I don’t feel that I have the right to complain (although I do reserve the right to remain frustrated!) and I definitely don’t feel like packing up and calling it quits. I refuse to let the internet dictate my life no matter how important

Best of all is the quote he includes at the very end. This wall is about as effective at “protecting” the Chinese people as that other, more famous wall. Great post, once again.

Any commenter who comes on here and argues the GFW is proof of the CCP’s genious because they’re just using it, successfully, to protect China’s citizens from computer viruses and malware does so at their own risk. Please, can’t you come up with something better than that?

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The blocking of Xinjiang’s Internet

Please go read this fascinating post about the government’s digital sequestration of Xinjiang, a phenomenon that stands as a kind of case study of just how deeply the weak-kneed CCP fears any spark that might ignite the tinderbox of public opinion.

One snip about when it might end:

Here is the million-dollar question. If you ask 10 different people in Urumqi when the internet should turn back on you’re likely to get 10 different answers. The list ranges from the 1st of the year to somewhere in the middle of next year but everybody readily admits they’re not for sure.

Until a couple of weeks ago I would have been hesitant to answer this question, but a friend I trust passed along some interesting information that has given me the boldness to make my own predictions. According to some memos sent between the capital and the head office of our city’s main telecom provider, service is expected to open up during the May holiday of 2010.

There you have it. I’ve bet my money and made my prediction. This is just the halfway point…we have another 5 months to go. Of course, being wrong won’t make me sad if it’s sooner rather than later.

A sad situation, and a vivid reminder of how some things haven’t changed all that much. For all its enlightenment and reform, the party remains prickly and paranoid. Imagine any other great power blocking out the Internet in areas where there is turmoil….

And yes, I know, America has done bad things, too, and killed Indians. But I’m talking now about China. And for China, this is a sad episode, a sign of an inherent weakness and lack of confidence, despite the party’s strength and staying power, which I’ve also written about at length recently.

Update: Looking at this a day later, I think this was a pretty mediocre post. Apologies. I don’t mean to beat a dead horse about the CCP’s prickliness, and I’ve tried to make amply clear that that’s not all the party is about. But this episode just bugged me and raised all sorts of memories of bad experiences I had with censorship in China back in 2003.

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Was Obama’s China visit a failure? (No.)

James Fallows, for years just about my favorite commentator on China (and any other topic he writes about), debunks the absurdly negative spin the US media gave to Obama’s visit here. Applying the kind of diligence that reminds us how important the paid media is, Fallows provides a series of five separate posts, each of which is required reading for those who want to see the sloppiness of the US media in action, and to fully understand all the work the Obama team did to make the trip a successful one. And it was a success.

H/t to commenter Stuart, who sums up some of the best of Fallows’ observations on his own blog. The inside scoop of the hell the Obama team went through to get the townhall televised live is particularly intense, if not all that surprising. (We know how uptight the leaders are about content that cannot be fed through the censorship funnel, edited and, if necessary, deleted altogether. Live TV is kryptonite to prickly censors.) The townhall was a triumph, and it is beyond comprehension why the media is determined to brand it – and all other aspects of the trip – a failure.

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The peculiar persistence of Chinese communism

China is not about to collapse, democracy is not arriving in the forseeable future, censorship will continue, the CCP isn’t going away and it may still be in power generations from now.

Read this detailed and relatively balanced picture of why this is so. This may baffle and/or displease some of us, but it is reality so we had better get used to it and adapt to it as best we can. That doesn’t mean to kowtow before it and accept all it does with resignation and a sense of inevitability. But we do have to keep a clear head about how Chinese people view their government, and about how the circumstances that actually could lead to an overthrow of some sort simply aren’t there, at least not yet. You can point to the thousands of demonstrations, the ethnic unrest, the massive problems it faces, the environment, and those are all valid issues. But we are nowhere near a tipping point, and may never be. If you are sitting back and waiting for the coming collapse of China, it may be a very long and lonely wait.

Update: See CN Review’s post on the same article. Kai identifies the story’s weakest link, the author’s incredibly misguided suggestion that the US might consider actively helping Chinese people subvert the GFW.

Also, be sure to see this piece on China’s censorship of domestic social media sites, and the West’s misconceptions about the prevalence of Twitter here. This is a good example of Americans seeing China only through the American prism, getting outraged about the blocking of Twitter, never realizing Twitter’s role in China’s social media scene is next to zero. Excellent commentary by Kaiser Kuo.

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1989, a ripple effect from Tiananmen to Checkpoint Charlie?

Foreign Policy offers an interesting if somewhat debatable book excerpt on the role the 1989 Tiananmen Square demonstrations played in influencing soon-to-follow demonstrations in Europe, where less than six months after the crackdown in Beijing the Berlin Wall would crack as well, realigning the world’s long-entrenched geo-political structures in ways that we still can’t completley comprehend even today. The dust of the ripped-down wall, like that of the World Trade Center, has yet to fully settle.

In the eyes of the author, Chen Jian, the Michael J. Zak Chair of history for U.S.-China relations at Cornell University, the fact that the world’s foreign correspondents had congregated at the Square in May 1989 for Gorbachev’s visit helped ensure the students’ story would spread to all corners of Europe.

The events of Tiananmen Square shocked the whole world. Ironically, it was the rapprochement between Beijing and Moscow that exposed the crackdown to a global audience, as hundreds of journalists and cameramen who reported on Gorbachev’s visit stayed to cover the students’ demonstrations….

The effects of the Tiananmen tragedy ricocheted throughout the entire communist bloc, especially in the Soviet Union and the Soviet bloc countries of Eastern Europe. In Moscow, Gorbachev, in spite of his disapproval of the CCP leadership’s behavior, tried to avoid criticizing Beijing directly (though the impact of the Tiananmen crackdown indirectly restricted his ability to influence and control developments in the Soviet Union, and he was even less willing and likely to resort to force in dealing with activities related to the disintegration of the Soviet Union).

In almost every East European country, the pro-democracy movements grew rapidly in the following summer and fall of 1989. These opposition movements took the opportunity of international Communism’s deepened legitimacy crisis to wage new offensives against the Communist authorities in their own countries. The Communist leaderships were all facing difficult dilemmas — they could neither afford to take a totally defensive attitude toward the pro-democracy movements nor dare resort to violent means.

During the following summer and fall, Eastern Europe experienced great unrest, eroding the political foundation and undermining legitimacy of every Communist regime there, culminating on Nov. 9 and 10, 1989. In Germany, the uprising masses brought down the Berlin Wall and with it the symbolic divide between the East and the West. By December — with the execution of Romania’s Communist dictator Nicolae Ceausescu — the communist bloc in East Europe had virtually collapsed.

Somehow, the Chinese Communist regime survived the shock waves of 1989. After a three-year period of stagnation, Deng used a dramatic tour of southern China in the spring of 1992 to regenerate the “reform and opening-up” project, initiated by Deng and the CCP leadership in the late 1970s. What has followed, as is well known today, is China’s rapid economic growth — despite continuous stagnation in the country’s political democratization — in the last decade of the 20th century and entering the 21st century.

The argument – that the TSM exacerbated the fissures that ultimately pushed the Soviet Bloc past the breaking point – isn’t easy to prove. Those fissures had been building for decades, and I believe that had their been no demonstrations in China in 1989, the Wall would still have fallen and the USSR would still have disintegrated. China’s political-economic fissures were worlds apart from Russia’s, and I’m afraid any effort to compare them has to be somewhat contrived.

Nothing could have stopped the fall of the USSR — except perhaps if there’d been a madman running the show and not Gorbachev, one of my personal heroes and the man who made the extraordinary decision – unbelievable, really – not to order the shooting of the demonstrators who stormed Checkpoint Charlie in 1989. Would that Deng had shown similar restraint (like, say, using tear gas and rubber bullets), maybe he, too, would enjoy Gorbachev-like status. His legacy is great; a pity about that one bright shining stain.

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Kaiser Kuo on China’s Internet

Last night I spent more than an hour listening to a speech Kaiser Kuo gave at the University of Nebraska – Lincoln on what the Internet has meant for China, and for US-Chinese relations. I was thinking about breaking the speech down, but then saw that a friend of mine had already done so, with greater patience and diligence than I would have mustered. I can’t recommend strongly enough that you listen to the speech and read my friend’s response and partial transcript.

Kaiser and I don’t always see eye to eye on China. But I thought this speech was practically perfect, elucidating how Chinese “netizens” perceive their American counterparts and visa versa, and giving the students in the audience more insight into today’s Chinese youth than they’d get from reading a hundred articles (or even blog posts). His love of China is always evident, but so is his clear-headedness and lack of prejudice, insisting that we see the situation from both Chinese and American eyes, and showing compassion for both sides. We need to remember, there is no black and white, that there are always two sides to the equation. What sometimes seems so obvious to us – raging nationalism, defense of a ruthless one-party system – cannot be understood without context and an understanding of the kind of world in which these people grew up and the extraordinary evolution of their country. And we need to understand how they see us, too, and why.

A beautiful job, and the best single discussion I’ve ever heard of the Internet in China.

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Report on the October 1 parade from Beijing

Got this email from a friend and thought it was good enough to share. He has lived in China for about 10 years and never wants to live anywhere else. You can love China and be critical at the same time. The two are not mutually exclusive, and in fact I’d argue they go hand in glove. His email:

Subject : The Party Here In Beijing Today

Hi,

“….Hey what a party, hey what a show…..” Miss Saigon =>

‘Thought I would share what happened today here in Beijing, it was a 1st for me & you won’t get this side of it from the news in Europe and the Americas.

This morning in Tiananmen Square there was a colossal military parade followed by a “normal” / civilian parade – Chinese style, which means big and over-the-top (100,000 performers.) Watch the news reports, I doubt in the US or Europe it will get more than 60 seconds of replay, certainly not the 2 1/2 hours we watched live here on TV.

Yes, me and absolutely everyone I know in Beijing, and everyone who knows anyone else living in Beijing could only watch it on TV. My office is right next to Tiananmen, perfect viewing location – except that every building within viewing sight of this was evacuated yesterday and searched with sniffing dogs. No one knows anyone who got the special invitation to watch it live. You will notice / see on the broadcast news there are no people lining the Chang An Boulevard parade route, and the VIP spectators were specially picked (and I assume trained) for this event. At most a few hundred people, you can see them all boxed in front of the Forbidden City. None of the foreign journalists I know here were even allowed to attend and cover this event. Which is a bit strange for China these days, and for an event of this magnitude.

The preparations for this have gone on for 1 year. Cost? No one will ever know. They completely re-did the entire square, boulevard and surrounding roads, neighborhood facades, etc. which were already (and alway have been) the best in the city, and which were just all redone for the Olympics last year. Going to the office each day I kept thinking, “Why don’t you use this money to build 100 hospitals or schools in the poor areas of this nation?” I said exactly that yesterday having lunch with my Chinese friends who are from Beijing, they said, “Agree, but we can’t say that.”

Now this is funny/interesting; there was a pre-parade talk show (local TV) I watched this morning during which 2 top military generals were interviewed and commented that this miltary parade was “planned in a frugal and environmentally friendly manner.” I don’t recall Gen. Swartzkof saying anything like that when I was in DC for the military parade to welcome home the US troupes from the Gulf War. I certainly didn’t see that when I was in Paris for the 200th anniversary of the F rench revolution – I think les Francais are a little more “green” concious than us Americans and certainly more than here – I know that to be true. The point is, it seems public opinion does play into the rhetoric of this administration. Their comment was definitely not ad hoc.

What struck me as absolutely the most bizarre was the president’s speech referring to the success of ….(get this) Marxism. Who’s Hu’s speech writer? If you could see behind him reviewing the troupes standing up through the roof of his (hong qi = red flag brand) limo, that’s Oriental Plaza – a luxury shopping center. Street level (hidden by the tanks) are Burberry, Gucci, Tiffany, and all the other top foreign (non-Marxist) luxury brand shops you have ever heard of. (NB: Each have at least 5 locations just in this one city! And, numerous others all around China.) Who’s Marx again??? Is he referring to Groucho? Barbara Marx (Frank Sinatra’s last wife?) I was just losing it to connect the dots at that point.

There was a heavy emphasis on the important role of the Chinese minorities and women in this society. The supersonic jets were flown by women training in their space program, their was reference to a Chinese woman being the 1st lady to walk on the moon. Great, admirable, totally support that. None of the officials are from the local minorities or are women. The most important woman formerly in the leadership, Madame Wu Yi, I could not see on the dais. (NB: Her old boss, Pres. Jiang was there – with brown hair, go figure? He’s from Shanghai, that explains everything.) I heard she refused to participate – FYI, she brought China into the WTO. At least in the US, we can say we have come beyond that. We Americans have women & minorities in power now, and they seem quite widely respected. When will La France have a Mssr. Mohamed, Le President?

It was a fascinating build-up during several weeks of SWAT police in tanks on Tiananmen Square going to work each day. Tiananmen Square with tanks doesn’t exactly excite me. Yes, you know why.

To put things globally in perspective, we had a very expensive innauguration for President Obama during which we (the people) are told is the “worst financial crisis in US history.” But, I heard…”the people” showed up unabated in masses to be there….

I do love living / working here in Beijing, when life here is normal. Nothing about this day (or time leadin up to this) was normal. The Olympics were a breeze compared to this. What’s next for Beijing???

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