<table cellpadding="0" cellspacing="0" width="100%" style="background-color:#f5f5f5; text-align:center; overflow:hidden"><tbody><tr><td style="max-width:600px"><div><link href="https://fonts.googleapis.com/css2?family=Merriweather:wght@900&amp;display=swap" rel="stylesheet"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; background-color:#fff;"><tbody><tr><td style="padding:3.5%; text-align:left; font-weight:700; font-style: normal; font-variant: normal; line-height: 20px;"><span style="font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 17px; color: #c80000;">CHINA</span><span style="font-family: 'Merriweather', serif; font-size: 15.5px; color: #001544;">Debate</span></td><td style="padding:3.5%; text-align:right; font-weight:normal; font-size: 14px; font-style: normal; font-variant: normal;color: #001544; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif;"></td></tr></tbody></table><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; background:#fff"><tbody><tr><td style="padding:3.5%; text-align:center;"><a style="border-bottom:none; text-decoration:none;" href="https://www.chinadebate.com/china-macro-reporter/archive" target="_blank"><img style="width:70px; border-radius:3%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19);" src="https://assets-global.website-files.com/5a3e922cf6b9a40001bc2d6b/5e3dbbf161e6c357b022bea5_China%20Macro%20Reporter%20.png" alt="China_Macro_Reporter"></a></td></tr><tr><td style="text-align:center; font-size: 27px; font-family: gorditamedium, sans-serif; color:#001544; font-weight:bold; letter-spacing: -0.5px; line-height: 1;">China Macro Reporter</td></tr><tr><td style="text-align:center; line-height:1.5; padding-bottom:35px; padding-top:10px; font-size: 13px; color:#001544; font-family:'gordita', sans-serif;">By Malcolm Riddell<span style="margin:0 6px">·</span>July 11, 2020</td></tr><tr><td style="text-align:center; line-height:1.5; display:block; max-width:480px; margin:0 auto; padding:7px 0; font-size: 1.175em; font-family: Georgia, serif; color:#c80000; font-weight:normal; letter-spacing: -0.5px; border-bottom:2px solid #c80000;">Opening Statement</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/5O1M6i?track_p_id=bbKTIjUiSwkR6U8FRe_xB%40G" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/4x73lYAycA6tlG4fEtV_j0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/5O1M6i?track_p_id=7t3q5CUF6U8FRe_5EHeGzYd" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">Hong Kong: Crossroads of Asia and the U.S.-China Tech War</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/5O1M6i?track_p_id=1C6U8FRe_JgqbJbQ%40FNfLNh" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/4fU93yk3JTPjl8GKxIiDo0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/5O1M6i?track_p_id=dCz5vDp3SlXKVU6U8FRe_gJ" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">China Macro Reporter Archive</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h1 style="display: inline-block;font-size: 1.35em;margin-top: 0em;margin-bottom: 0em;margin-left: 0;margin-right: 0;line-height: 1.35em;font-weight: normal;font-family: gorditamedium, sans-serif;color: #001544;letter-spacing: -0.1px;"><strong style="font-weight: bold">Greetings!</strong></h1><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Not a lot </strong>of China news this week. But there was a bumper crop of analyses that take a look at the bigger picture of:</p><ol style="margin-top: 0px;margin-bottom: 0px;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Why the U.S.’s position</strong> in Asia has been eroding.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">The U.S.-China tech cold war</strong> – and how the split is more complicated than reporting on individual events makes it seem.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">How the tech cold</strong> has arrived in Hong Kong with National Security Law, putting U.S. tech giants, like Facebook and Google in the middle with not good options.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">China’s industrial policy</strong> as it applies to the medical supplies industry – masks, ventilators, and the like - and why that application of policy will make it difficult for foreign firms to compete, ever.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Why China’s industrial policy </strong>regime is not a bad thing so long as it’s not predatory, and why the aims of the current push in the U.S. for its own industrial policy are misguided – but not the push itself.</li></ol><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Because these are explainers, </strong>I’ve excerpted a lot more than usual – there’s a lot to cover in each one, so a lot to read.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">But all</strong><strong style="font-weight: bold">the posts</strong> are worth the time.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Even better:</strong> click on the title of each post and read the whole essay.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Here’s a summary</strong> what’s to follow:</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">1. 'How Trump is losing Asia.’</strong></span><strong style="font-weight: bold">&nbsp;</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Robert Kaplan</strong> has produced an excellent summary of how U.S. missteps have eroded the U.S. position in Asia.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘For Asian nations to align with the United States</strong> in the face of China’s immovable presence has always required faith in the word and commitment of the United States to this vast region.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘But for the first time since World War II,</strong> a U.S. president&nbsp;has shaken that faith to its core.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">He puts the blame</strong> on President Trump – and he is certainly culpable.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">But the problem </strong>precedes him.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">S. focus</strong> on the Middle East, and the war on terror, and the wars in Iraq and Afganistan took America’s eye off Asia.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">China took advantage of this </strong>(see the South China Sea, for example).</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">And now the U.S</strong>. has a lot of work ahead to repair our status and alliances in Asia – if it has the wisdom and the will.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">That there is still room </strong>to make those repairs:</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘While the United States</strong> is half a world distant from Asia, China is Asia’s geographical, demographic, economic and military organizing principle.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Asians simply</strong> cannot escape the Chinese.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘What is now tethering </strong>the United States’ Asian allies to Washington is less confidence in the United States than outright fear of China.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Well,</strong> it’s a start.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">&nbsp;&nbsp;</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">2. 'The tech cold war is hotting up: the Sino-American tech split.’</strong></span>&nbsp;</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Of the many analyses</strong> of the tech conflict between the U.S. and China, this from The Economist packs the most in a small space.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Over the&nbsp;past few years</strong> countless predictions have been made that the global technology industry will suffer a painful rupture because of tensions between America and China.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Real damage</strong> has been surprisingly hard to spot.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Yet if you examine the events</strong> of the past two weeks you can sense the split that is about to come.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The split</strong> is happening at two velocities.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The American and Chinese</strong> software and internet universes are heading at light-speed towards total separation.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Hardware</strong> is moving much more slowly. That is because it is more globally integrated and involves $1trn of physical plant and $400bn of inventories.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The tech split is under way.</strong> Do not assume it will happen safely.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Developing story</strong> – stay tuned.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">&nbsp;<strong style="font-weight: bold">&nbsp;</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">3. 'Hong Kong Security Law Sets Stage for Global Internet Fight.</strong></span><span style="color: #d0021b">’&nbsp;</span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">An example</strong> of the U.S.-China tech war - now erupting in Hong Kong.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘As Hong Kong grapples</strong> with a draconian&nbsp;new security law, the tiny territory is emerging as the front line in a global fight between the United States and China over censorship, surveillance and the future of the internet,’ writes Dan Mozur of The New York Times.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Caught in the middle</strong> are the city’s seven million residents, online records of rollicking political debate — some of which may now be illegal — and the world’s largest internet companies, which host, and by extension guard, that data.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘A standoff</strong> is already brewing.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Many big tech companies,</strong> including Facebook, Google, Twitter,&nbsp;Zoom&nbsp;and&nbsp;LinkedIn, have said in the past two days that they would temporarily stop complying with requests for user data from the Hong Kong authorities.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The Hong Kong government,</strong> in turn, has made it clear that the penalty for noncompliance with the law could include jail time for company employees.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The new law</strong> could also punish the company with fines, equipment seizures and arrests if it again declines such requests.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Though U.S. internet companies</strong> still earn billions of dollars in Chinese ad revenue, a decision to go along with the Hong Kong rules would risk the ire of Washington, where there has been bipartisan condemnation of the security law.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Either way,</strong> one more battlefield of Sino-U.S. tech war.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">And another indicator</strong> of the tech split.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">&nbsp;</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">4. 'Why China Dominates Medical Supplies in This Outbreak – and Will in the Next Too.'</strong></span><span style="color: #d0021b">&nbsp;</span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Keith Bradsher</strong> of The New York Times has written what is essentially a terrific case study of China’s medical supply industry that shows its industrial policy in action.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;">And he sets forth a number of specific examples of Chinese government assistance – all the things the U.S. and its allies complain about.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘China has laid the groundwork</strong> to dominate the market for protective and medical supplies for years to come.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Factory owners</strong> get cheap land, courtesy of the Chinese government.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Loans and subsidies</strong> are plentiful.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Chinese hospitals</strong> are often told to buy locally, giving China’s suppliers a vast and captive market.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘China’s grip on the market</strong> is a testament to its drive to dominate important cogs in the global industrial machine.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘For years,</strong> China’s leaders have worried that the country depended too much on foreign sources for everything from medical supplies to microchips to airliners.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘It has used subsidies,</strong> economic targets and other government inducements to emerge as a powerhouse in those important industries.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The policies</strong> have often proved effective in building industries that can withstand losses and tough foreign competition.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">And which are often</strong> seen as unfair competitive practices for just those reasons.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">In short,</strong> reshoring medical supply manufacturing is going to a lot tougher than anyone thinks.</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">&nbsp;</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">5. 'China as Economic Bogeyman.’</strong></span><span style="color: #d0021b">&nbsp;</span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Dani Rodrik</strong> of the Harvard Kennedy School quotes from the NYT reporting (above) on China’s medical supplies industry, which seems to have inspired his essay.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">As I read his piece, </strong>he argues that when it isn’t predatory, China’s industrial policy is a good thing for China and the world.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘If one-half of China’s economic miracle</strong> reflects its turn to markets after the late 1970s, the other half is the result of active government policies that protected old economic structures – such as state enterprises – while new industries were spawned through a wide array of industrial policies.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The Chinese people</strong> were the main beneficiaries, of course, experiencing the fastest poverty reduction in history.'</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘But these gains</strong> did not come at the expense of the rest of the world. Far from it.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The growth policies</strong> that today arouse other countries’ ire are the reason China has become such a large market for Western exporters and investors.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘If Chinese policymakers</strong> effectively targeted activities where social benefits exceed private benefits, producing improved economic performance, then it is not clear why foreigners should complain.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘This is especially true</strong> when the externality in question is a global one, as in the case of climate change.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Chinese subsidies</strong> for solar panels and wind turbines have produced a decline in the cost of renewable energy – an enormous benefit for the rest of the world.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">That’s great </strong>for the world, I guess.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">But if in conveying this public good,</strong> China does so in a way hampers other countries from developing its own solar and wind industries, is that fair?</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Sounds more like</strong> a rationalization for than a defense.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">He ends</strong> by pointing to an issue I am watching closely: the debate about whether the U.S. should have an industrial policy and, if so, in what form.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘There is now broad political agreement</strong> in the US political spectrum that the country needs a more explicit industrial policy targeting good jobs, innovation, and a green economy.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Much of the new push for industrial policy</strong> in the US and Europe is motivated by the perceived Chinese “threat.” ’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The objective</strong> should be to build more productive, more inclusive economies at home – not simply to outcompete China or try to undercut its economic progress.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">That may be so.</strong></p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">But I don’t why</strong> we can’t be more productive and at the same time outcompete China.</li></ul><h2 style="display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">Go deeper into these issues - Browse the posts below.</strong></h2><h2 style="display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">To read the original article, click the title.</strong></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Let me know what you think. </strong>And please forward the <strong style="font-weight: bold">China Macro Reporter</strong> to your friends and colleagues.</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">All the best,</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Malcolm</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">&nbsp;</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">1. ‘Front &amp; Center’</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7EOsNc?track_p_id=8MXNFCkfk8J6KAI_Qz6YCiU" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/R2honJU3MXkzC1EUKtMivki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/7EOsNc?track_p_id=2hz8J6KAI_kMDA4zA1sKbtg" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'How Trump is losing Asia'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/PonZP9447tm-U3uAwJGzIDl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/7EOsNc?track_p_id=ahl6D6riKLV8J6KAI_jrz36" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/7AJzymxvvtVx317G0UZ-HEi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/7EOsNc?track_p_id=6sOXSSI8J6KAI_uuNShLcKM" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">'How Trump is losing Asia'</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">The Washington Post</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Robert D. Kaplan</strong> | Foreign Policy Research Institute</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">‘What is now tethering the United States’ Asian allies to Washington is less confidence in the United States than outright fear of China.’</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The United States</strong>&nbsp;<a href="https://www.reuters.com/article/us-usa-defence-nimitz/u-s-navy-carriers-conduct-south-china-sea-drills-as-chinese-ships-watch-idUSKBN2470UT" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">has dispatched</a>&nbsp;two aircraft carrier strike groups to the South China Sea to contest China’s creeping annexation of the maritime region.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘It is one</strong> of the bluntest expressions of U.S. hard power in years.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Yet the very fact</strong> that such a dramatic step was even necessary indicates how the power balance is shifting in China’s favor.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘China’s&nbsp;</strong><a href="https://www.washingtonpost.com/world/asia_pacific/us-carriers-drill-after-southeast-asian-nations-rebuke-china/2020/06/29/28a2ce7e-b9dd-11ea-97c1-6cf116ffe26c_story.html?itid=lk_inline_manual_5" rel="nofollow"><strong style="font-weight: bold">long-term and methodical attempt to dominate shoals and islands</strong></a><strong style="font-weight: bold"></strong>in the region is a reflection of both U.S. domestic distractions and its loss of prestige throughout Asia.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘While the United States</strong> is half a world distant from Asia, China is Asia’s geographical, demographic, economic and military organizing principle.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Asians simply</strong> cannot escape the Chinese.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘For them to align with the United States</strong> in the face of China’s immovable presence has always required faith in the word and commitment of the United States to this vast region.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘But for the first time since World War II,</strong> a U.S. president&nbsp;<a href="https://www.brookings.edu/blog/order-from-chaos/2019/12/18/trump-shakedowns-are-threatening-two-key-u-s-alliances-in-asia/" rel="nofollow">has shaken that faith to its core</a>.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Donald Trump</strong> began his presidency&nbsp;<a href="https://www.washingtonpost.com/opinions/2020/05/27/trumps-foreign-policy-doctrine-withdrawal-doctrine/?itid=lk_inline_manual_9" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">by abrogating the Trans-Pacific Partnership</a>, the years-in-the-making trade, investment and political cornerstone of a U.S.-led liberal order in Asia.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Trump tore up</strong> this historic framework in the face of China’s own grand strategy for Eurasia: the&nbsp;<a href="https://www.washingtonpost.com/world/asia_pacific/power-tussle-in-nepal-ruling-party-as-china-influence-grows/2020/07/08/b421f6e4-c0fb-11ea-8908-68a2b9eae9e0_story.html?itid=lk_inline_manual_9" rel="nofollow">Belt and Road Initiative</a>.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘While China was promoting a vision,</strong> however imperfect and coercive, the United States deliberately has had nothing to offer.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘It gets worse.’</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The basis of Asian security</strong> since World War II has been the United States-Japan treaty alliance.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘By anchoring the United States</strong> to Asia’s second-strongest nation, Washington elegantly contained Beijing, allowing states from Japan south to Australia to get rich off China’s economic growth, while the United States provided for their security.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘No nation</strong> had to choose between the United States and China.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And no nation</strong> had to fear Japanese militarism ever again.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Yet, since before he was inaugurated,</strong> Trump&nbsp;<a href="https://english.kyodonews.net/news/2020/06/90ab4fcc1d28-focus-bolton-memoir-raises-concern-over-japan-alliance-if-trump-re-elected.html" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">has questioned the very foundation</a>&nbsp;of the treaty alliance: providing for Japan’s defense.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘This has terrified the Japanese,</strong> and the region, to a degree unprecedented in the post-World War II era.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The United States’ standing in Japan</strong> and the region has been demonstrably weakened.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Meanwhile,</strong> Japan&nbsp;<a href="https://www.washingtonpost.com/opinions/2019/11/20/south-korea-is-one-most-loyal-us-allies-now-were-being-bullied-by-trump/?itid=lk_inline_manual_15" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">has been mired in a vicious trade war</a>&nbsp;with South Korea for a year now — a conflict that has its origins in contentious World War II history.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Another administration</strong> might have dispatched an assistant secretary of state to Tokyo and Seoul to conduct vigorous shuttle diplomacy in order to quickly extinguish the issue and repair the alliance.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘But the Trump administration</strong> has done relatively little.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘There is now a feeling of exposure</strong> and loneliness among the United States’ Asian allies.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘For the first time</strong> since President Richard M. Nixon went to China in 1972, the United States’ bilateral relationship with China is both hostile and unpredictable, even as Washington has provided its friends in the region with less reassurance than at any time since the Korean War 70 years ago.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘China’s&nbsp;</strong><a href="https://www.washingtonpost.com/opinions/global-opinions/whats-happening-in-xinjiang-is-genocide/2020/07/06/cde3f9da-bfaa-11ea-9fdd-b7ac6b051dc8_story.html?itid=lk_inline_manual_19" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;"><strong style="font-weight: bold">pulverizing repression of the Turkic Muslim Uighurs</strong></a>&nbsp;in Xinjiang province, followed by&nbsp;<a href="https://www.washingtonpost.com/opinions/2020/07/03/chinas-national-security-law-hong-kong-doubles-down-imperialism/?itid=lk_inline_manual_19" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">its security crackdown in Hong Kong</a>&nbsp;and its continued aggression in the South China Sea, suggests that Taiwan may be next in Beijing’s sights — as a nation bordering the South China Sea and the only part of historic China yet to be forcibly brought to heel.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Taiwan,</strong> like West Berlin during the Cold War, is an outpost of freedom in stark opposition to the authoritarian mainland. Its symbolism should not be underestimated.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Were Taiwan’s independence</strong> ever compromised, it would signal the end of the United States’ preeminent influence not only in Asia but far beyond.'</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Taiwan</strong> is not about to be invaded by China.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">'Yet it is unclear</strong> how much it can rely on the United States in a crisis. Alliances depend on deterrence.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Deterrence, in turn,</strong> rests on an unshakable moral commitment to a common strategy.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Yet we are witnessing</strong> unprecedented Chinese aggression coupled with unprecedented doubts about U.S. intentions.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Rather than lead an alliance,</strong> Trump has emerged as merely a transactor for whom nothing is sacred.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘It will take</strong> more than two aircraft carriers to repair this impression and the damage it has caused.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘What is now tethering</strong> the United States’ Asian allies to Washington is less confidence in the United States than outright fear of China.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘But if this situation</strong> goes on, what may start to emerge is a creeping&nbsp;<a href="https://www.historytoday.com/archive/finland-and-finlandization" rel="nofollow">Finlandization</a>, in which the United States’ erstwhile Asian allies are careful not to interfere with Beijing’s objectives, while they continue to pay lip service to Washington.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Like the case</strong> with Soviet influence over Finland during the Cold War, their foreign policies will no longer be wholly independent.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Consider Vietnam,</strong> which has both a land border with China and a bloody history with it. Vietnam’s vulnerable geography makes it prone to greater Chinese influence were Trump to become even more unreliable.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The case is similar</strong> with the Philippines, Malaysia and Singapore.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘We can never</strong> take these countries for granted.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘It is all about geography:</strong> China’s very size and proximity make a sturdy and unquestioning U.S. regional order essential for the power balance in Asia.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">2. The Sino-U.S.Tech Split</td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/jOSrak3IEnU1qn1ftIvMbTl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7WZChk?track_p_id=5Jdpff73pa6I_I13d1HYtN%40" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/_WMiBTDcNqqcPnQt-JHFGUi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/7WZChk?track_p_id=073pa6I_T5lx31uV6IIYwI5" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'The tech cold war is hotting up: the Sino-American tech split'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/7WZChk?track_p_id=eU2G6HV%40ERRYEr473pa6I_F" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/4XqXl3fB2CU8K63MfiCTpUi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/7WZChk?track_p_id=2MV73pa6I_WoUtsQ3SW1IR6" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">The tech cold war is hotting up: the Sino-American tech split&nbsp;</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">The Economist</strong></h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">‘The tech split is under way. Do not assume it will happen safely.’</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Over the&nbsp;past few years</strong> countless predictions have been made that the global technology industry will suffer a painful rupture because of tensions between America and China.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Real damage</strong> has been surprisingly hard to spot.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Last year Apple</strong> made over $100m of sales a day in China, while Huawei reported record revenues despite America’s campaign to cripple it. Investors have piled into tech companies’ shares, buoyed by the prospect of new technologies such as&nbsp;5g&nbsp;and a pandemic that is forcing billions of customers to spend more time and money online.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Judged by sales, profits and shareholder returns,</strong> it has been a golden era for American and Chinese tech.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The industry</strong> now has a colossal market capitalisation of $20trn and accounts for a quarter of the world’s stockmarket value.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Yet if you examine the events</strong> of the past two weeks you can sense the split that is about to come.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘On July 6th Mike Pompeo,</strong> America’s secretary of state, said that the administration was considering banning TikTok, a Chinese-run app that is wildly popular in the West.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘This followed India’s decision</strong> a week earlier to prohibit it, and 58 other Chinese apps, after lethal brawls between soldiers in the Himalayas.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Britain and France</strong> are considering sidelining Huawei from their&nbsp;5g networks (see&nbsp;<a href="https://www.economist.com/node/21789097" rel="nofollow">article</a>).’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Between July 6th and 7th</strong> Facebook, Google, Microsoft and Twitter all said that they will stop co-operating with Hong Kong’s authorities for the time being, because of the introduction of China’s brutal security law there.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And&nbsp;smic,</strong> China’s aspiring semiconductor champion, has just said that it will raise $7bn in a state-supported listing in Shanghai—it delisted from New York last year (see&nbsp;<a href="https://www.economist.com/node/21789109" rel="nofollow">article</a>). The proceeds will be used to supersize China’s home-grown chipmaking capacity.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The split</strong> is happening at two velocities’: software &amp; internet and hardware.</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">Software &amp; Internet</strong></span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The American and Chinese</strong> software and internet universes are heading at light-speed towards total separation.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘They were never particularly connected</strong>—American software firms made just 3% of their sales in China last year, and China has long kept its internet users isolated from the world.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The bill for shutting up shop</strong> and finding substitute products is usually low.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘TikTok</strong> creates few jobs and pays little or no tax in America or India, so the main cost of banning it is sullen teenagers.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Likewise,</strong> Facebook and the other firms taking a stand in Hong Kong do little or no business in China.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Two important exceptions</strong> have been Microsoft’s office software and, especially, Google’s system of apps like&nbsp;gmail and Maps, found on Chinese-made phones sold worldwide.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘America’s blacklisting of Huawei</strong> has cut off the world’s second-biggest phone seller from some of the world’s most popular apps.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Chinese handset firms</strong> are racing to develop an alternative.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The American and Chinese</strong> software worlds are thus quickly becoming entirely separate universes.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">Hardware</strong></span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Hardware</strong> is moving much more slowly.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘That is because</strong> it is more globally integrated and involves $1trn of physical plant and $400bn of inventories.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Later this year</strong> Apple will launch a new&nbsp;5g handset that will still rely on the same vast manufacturing cluster in China that it used five years ago.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Even so,</strong> the techtonic plates are shifting.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Because of a new set</strong> of American restrictions on the use of chipmaking tools put in place in May, Huawei may run out of stock of its specialist chips in early 2021 and will have to scramble to find an alternative.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘That will be</strong> cumbersome and costly.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The&nbsp;smic capital-raising</strong> shows that China intends to create a chip giant on a par with Intel or Taiwan’s&nbsp;tsmc, although it will take years to do so.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘If Britain and France</strong> both eventually ditch Huawei, they will shift to using Nokia and Ericsson in their networks, which will be expensive and take several years.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><br></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘If the splintering</strong> now seems inevitable, there will be some surprises.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘One is how the two technospheres</strong> of influence are drawn.’                      <ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘American policymakers</strong> tend to assume the world will use Silicon Valley products, but plenty of countries may ally with China’s tech system or hedge their bets.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘India is frosty</strong> towards both American and Chinese digital firms and hopes to build up its own champions, although it cannot compete yet in hardware.'</li></ul></li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Another surprise</strong> is how much the split could cost.’                      <ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The global listed hardware industry</strong> has annual expenses of $600bn, much of which may need to be replicated.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Plenty of key firms,</strong> including Apple and&nbsp;tsmc, are equally dependent on America and China and have no clear plan to cope with a deeper divide.’</li></ul></li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The tech split is under way.</strong> Do not assume it will happen safely.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">3. Big Tech in Hong Kong: Caught in the Middle</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7ojX1s?track_p_id=8sKSJcwdQ6LGYgA_SLiY52%40" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/3QKIJ28TXRxlm_PNLipujEi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/7ojX1s?track_p_id=3IC16LGYgA_5VrLz4UJxj6l" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'Hong Kong Security Law Sets Stage for Global Internet Fight'&nbsp;</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/N4XC1xLX3HsucPdI-mX4LDl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/7ojX1s?track_p_id=06LGYgA_t6N2ZxpwrqdsAs6" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/0OCCY3FfwCMmJcYWu9rfkEi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/7ojX1s?track_p_id=31bF6LGYgA_Mh1i3eSl1KIj" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Hong Kong Security Law Sets Stage for Global Internet Fight&nbsp;</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">The New York Times</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Paul Mozur</strong> | The New York Times</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">‘Caught in the middle are the city’s seven million residents, online records of rollicking political debate — some of which may now be illegal — and the world’s largest internet companies, which host, and by extension guard, that data.’</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘As Hong Kong grapples</strong> with a draconian&nbsp;<a href="https://www.nytimes.com/2020/06/29/world/asia/china-hong-kong-security-law-rules.html" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">new security law</a>, the tiny territory is emerging as the front line in a global fight between the United States and China over censorship, surveillance and the future of the internet.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘</strong><a href="https://www.nytimes.com/2020/07/01/world/asia/hong-kong-security-law-china.html" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;"><strong style="font-weight: bold">Long a bastion</strong></a>&nbsp;of online freedom on the digital border of China’s tightly managed internet, Hong Kong’s uneasy status changed radically in just a week.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The new law</strong> mandates police censorship and&nbsp;<a href="https://www.nytimes.com/2020/07/02/world/asia/hong-kong-security-china.html" rel="nofollow">covert digital surveillance</a>, rules that can be applied to online speech across the world.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Now,&nbsp;</strong><a href="https://www.nytimes.com/2020/06/30/world/asia/hong-kong-security-law-explain.html" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;"><strong style="font-weight: bold">the Hong Kong government</strong></a>&nbsp;is crafting web controls to appease the most prolific censor on the planet, the Chinese Communist Party.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And the changes threaten</strong> to further inflame tensions between China and the United States, in which technology itself has become a means by which the two economic superpowers seek to spread influence and undercut each other.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Caught in the middle</strong> are the city’s seven million residents, online records of rollicking political debate — some of which may now be illegal — and the world’s largest internet companies, which host, and by extension guard, that data.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘A standoff</strong> is already brewing.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Many big tech companies,</strong> including Facebook, Google, Twitter,&nbsp;<a href="https://hongkongfp.com/2020/07/07/breaking-zoom-suspends-data-requests-from-hong-kong-govt-over-national-security-law-concerns/" rel="nofollow">Zoom&nbsp;</a>and&nbsp;<a href="https://qz.com/1877636/chinas-great-firewall-arrives-in-hong-kongs-internet/" rel="nofollow">LinkedIn</a>, have said in the past two days that they would temporarily stop complying with requests for user data from the Hong Kong authorities.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The Hong Kong government,</strong> in turn, has made it clear that the penalty for noncompliance with the law could include jail time for company employees.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘</strong><a href="https://www.nytimes.com/2020/07/06/technology/tiktok-google-facebook-twitter-hong-kong.html" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;"><strong style="font-weight: bold">TikTok</strong></a><strong style="font-weight: bold">,</strong> which despite being owned by the Chinese internet giant ByteDance has its eye on the U.S. market, went even further than its American rivals.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The video app</strong> said late Monday it would withdraw from stores in Hong Kong and make it inoperable to users there within a few days.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The company</strong> has said that managers outside China call the shots on key aspects of its business, including rules about data.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Based on the law,</strong> the Hong Kong authorities can dictate the way people around the world talk about the city’s contested politics.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘A Facebook employee</strong> could potentially be arrested in Hong Kong if the company failed to hand over user data on someone based in the United States whom Chinese authorities deemed a threat to national security.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘ “If Facebook</strong> refuses to give national security data, its service may be terminated in Hong Kong, and it will lose access to the Hong Kong market,” said Glacier Kwong of Keyboard Frontline, a nongovernmental organization that monitors digital rights in Hong Kong.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘ “It’s not impossible</strong> that this will happen,” Ms. Kwong added. “China often uses its market and boycotting to make foreign companies listen to their demands.” ’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘While it is not clear</strong> how widely Hong Kong’s government will enforce the law, the looming legal fights could determine whether the city falls behind China’s digital Iron Curtain or becomes a hybrid where online speech and communications are selectively policed.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The technological Cold War</strong> between China and the United States is playing out on various fronts around the world.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The trade war</strong> has ensnared Chinese tech giants like Huawei and ZTE, while American companies complain of industrial policies that favor Chinese businesses at home and subsidize them abroad.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Beijing’s severe digital controls</strong> have kept companies like Google and Facebook from operating their services in mainland China.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Though U.S. internet companies</strong> still earn billions of dollars in Chinese ad revenue, a decision to go along with the Hong Kong rules would risk the ire of Washington, where there has been bipartisan condemnation of the security law.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘New restrictions</strong> on American businesses could also trigger retaliation.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Google’s experience</strong> over the past year shows the fraught position of the largest U.S. internet companies.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘As the Hong Kong police</strong> struggled to contain protests across the city in 2019, they turned to internet companies for help.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Overall data requests</strong> and&nbsp;<a href="https://www.charlesmok.hk/legco/council-question-requests-made-to-information-and-communication-technology-companies-for-disclosure-and-removal-of-information/" rel="nofollow">orders from police&nbsp;</a>to remove content more than doubled in the second half of 2019 from the first half to over 7,000 requests, according to a pro-democracy lawmaker, Charles Mok.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The police asked Google</strong> to take down a number of posts, including a confidential police manual that had leaked online, a YouTube video from the hacking group Anonymous supporting the protests, and links to a website that let the public look up personal details about police officers, according to a company report.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘In each case,</strong> Google said no.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The new law</strong> could punish the company with fines, equipment seizures and arrests if it again declines such requests.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘It also would allow the police</strong> to potentially seize equipment from companies that host such content.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Companies,</strong> meanwhile, have the option of shifting data away from Hong Kong.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘For companies like Amazon and Google,</strong> which have large data centers in Hong Kong, such a move would be neither cheap nor easy.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘And their other options</strong> are equally complicated.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Moving all employees</strong> out of the city would insulate firms from arrests, but it may not be feasible.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div></td></tr><tr><td style="max-width:600px"><div></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">4. How China Took the Lead in Global Medical Supplies</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/8hEW0G?track_p_id=7S6Y4uoG7Zy6U2_ZknkZ2ly" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/3QKIJ28TXRxlm_PNLipujEi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/8hEW0G?track_p_id=2Yt7Zy6U2_FcYFa4CiMVHyH" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'Why China Dominates Medical Supplies in This Outbreak – and Will in the Next Too'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/R1iVL5O7kUxgBO3Q2fjG_Tl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/8hEW0G?track_p_id=55qHDa7Zy6U2_WE%40SdEvvvJ" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/_wcLA2l7vqG2QPWH2zHds0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/8hEW0G?track_p_id=cVljac3npErz17Zy6U2_qSa" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Why China Dominates Medical Supplies in This Outbreak – and Will in the Next Too</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">The New York Times</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Keith Bradsher</strong> | The New York Times</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">‘Government support and protectionism have built a low-cost industry making masks, testing kits, and other health gear. Other countries will find it tough to compete.</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Before the pandemic,</strong> China already exported more respirators, surgical masks, medical goggles and protective garments than the rest of the world combined.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Beijing’s coronavirus response</strong> has only added to that dominance.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘China increased mask production</strong> nearly 12-fold in February alone.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘It can now make 150 tons per day</strong> of the specialized fabric used for masks.'</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘That is five times </strong>what China could make before the outbreak, and 15 times the output of U.S. companies even after they ramped up production this spring.'</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Ma Zhaoxu, vice minister of foreign affairs</strong>, said that from March through May, China exported 70.6 billion masks.'</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Last year - all of last year - 'the entire world</strong> produced about 20 billion, with China accounting for half.'</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Alarmed at China’s stranglehold</strong> over&nbsp;<a href="https://www.nytimes.com/2020/03/13/business/masks-china-coronavirus.html" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">supplies of masks</a>, gowns,&nbsp;<a href="https://www.nytimes.com/2020/05/14/world/asia/coronavirus-testing-china-wuhan.html" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">test kits</a>&nbsp;and other front-line weapons for battling the coronavirus, countries around the world have set up their own factories to cope with this pandemic and outbreaks of the future.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘But when the outbreak subsides,</strong> those factories may struggle to survive.'</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Chinese companies</strong> are likely to have the lowest costs by far and be best positioned for the next global outbreak.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘China has laid the groundwork</strong> to dominate the market for protective and medical supplies for years to come.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Factory owners</strong> get cheap land, courtesy of the Chinese government.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Loans and subsidies</strong> are plentiful.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Chinese hospitals</strong> are often told to buy locally, giving China’s suppliers a vast and captive market.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘China’s grip on the market</strong> is a testament to its drive to dominate important cogs in the global industrial machine.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘For years,</strong> China’s leaders have worried that the country depended too much on foreign sources for everything from medical supplies to microchips to airliners.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘It has used subsidies,</strong> economic targets and other government inducements to emerge as a powerhouse in those important industries.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘When Chinese leaders</strong> grew concerned about pollution and dependence on foreign oil, for example, they helped local makers of solar panels, wind turbines and high-speed rail equipment clobber the competition.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘They have taken similar steps</strong> to dominate industries of the future, like the next generation of wireless data transmission, known as 5G.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The state’s heavy involvement</strong> in its economy has led to waste and graft that could slow China’s growth.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘But the policies</strong> have often proved effective in building industries that can withstand losses and tough foreign competition.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Medical supplies</strong> may be similar.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Check out</strong> the case study - from the same article - below.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="height:40px; font-size:0; background-color:#f6f6f6;">&nbsp;                </td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/8zOqKO?track_p_id=071uEsI_jAXS6aRAuVGPJ4W" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/3QKIJ28TXRxlm_PNLipujEi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/8zOqKO?track_p_id=aQrmJVXAtZg71uEsI_3fbmv" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">Case Study: China Industrial Policy in Medical Supplies</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/8zOqKO?track_p_id=33U671uEsI_SXqIXgLilqvP" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/_wcLA2l7vqG2QPWH2zHds0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/8zOqKO?track_p_id=8IeVs3d5p71uEsI_WqAL3HT" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Case Study: China Industrial Policy in Medical Supplies</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">The New York Times</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Keith Bradsher</strong> | The New York Times</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">‘The Chinese government played a major role in this year’s medical-equipment build-out.’</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘China’s&nbsp;</strong><a href="https://www.nytimes.com/2017/03/07/business/china-trade-manufacturing-europe.html" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;"><strong style="font-weight: bold">$300 billion “Made in China 2025” industrial policy</strong></a><strong style="font-weight: bold">&nbsp;</strong>to replace imports in many key industries includes medical devices.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The ministry</strong> called for raising China’s share of the local market by 30 to 40 percentage points in each category of medical supplies.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Chinese makers of medical gear</strong> enjoyed generous government subsidies.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Shenzhen Mindray,</strong> a maker of ventilators and other intensive care equipment, received up to $16.6 million a year over the past three years, according to company documents.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Winner Medical,</strong> a mask manufacturer, received $3 million to $4 million a year.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Guangzhou Improve,</strong> a producer of masks and test kits, received $2.5 million to $5 million a year.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The Chinese government</strong> played a major role in this year’s medical-equipment build-out.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Sinopec,</strong> a state-owned Chinese oil company, said it had worked closely with the Chinese Communist Party as it set out to build a factory to make the particle-trapping fabric needed for surgical masks and respirators.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘At one site,</strong> 600 engineers and workers labored in shifts day and night for 35 consecutive days to build a factory that would normally take a year to construct.'</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘A “party member assault team”</strong> worked 20 hours straight on Feb. 26 to prepare a warehouse for the project, according to the company.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Officials also accelerated efforts</strong> to make land available for new factories.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The city of Hangzhou</strong> in Zhejiang Province transferred 1.6 acres to the Jiande Chaomei Daily Chemical Company on Feb. 15 for an emergency expansion of respirator production.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Lanxi, a county in Zhejiang,</strong> transferred land to the Baihao New Materials Company by the end of February for respirator production.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Officials in Guangdong Province</strong> and the city of Jinan in Shandong Province approved more lenient land policies for medical supply businesses as well.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Government support</strong> for the medical supply industry is continuing.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">'Guangzhou Aoyuan Biotech Company</strong> decided this year to expand from its usual business of making disinfectant into the manufacture of N95 masks.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘A top local official</strong> immediately visited the company, arranged land for it in an industrial park and approved all of the necessary forms.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘At least three</strong> other large, populous provinces — Liaoning, Hubei and Shandong — made similar announcements.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">5. China Industrial Policy</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/9HZAeW?track_p_id=4Xm5d8ntnmI_Xv3PLQBOwhA" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/F5oOqbo1JBgSwB670WGJUki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/9HZAeW?track_p_id=9Jbc5%403ORx8ntnmI_OWCCxz" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'China as Economic Bogeyman'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/GNWrNeZk_2ARsTS23J_Irjl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/9HZAeW?track_p_id=eiFax%403aq2OQqMr8ntnmI_t" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/LC2mddKuOfndXlWhkd2gnEi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/9HZAeW?track_p_id=dOYQ2tzxrtDeq38ntnmI_qR" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">China as Economic Bogeyman by Dani Rodrik</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Project Syndicate</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Dani Rodrik</strong> | Harvard Kennedy School of Government</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">‘But aren’t Chinese industrial policies, such as those deployed in medical supplies, unfair to competitors elsewhere? We should exercise caution before reaching such a verdict.’</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘ “China has laid the groundwork</strong> to dominate the market for protective and medical supplies for years to come,” according to&nbsp;<a href="https://www.nytimes.com/2020/07/05/business/china-medical-supplies.html" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">recent reporting</a>&nbsp;by the&nbsp;<em style="font-style: italic">New York Times</em>.’ [This essay is a response to points covered in the posts above]</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘As everyone recognizes</strong> by now, China’s manufacturing prowess is not the result of unfettered market forces.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘But we should not allow</strong> economics to become hostage to geopolitics or, worse, to reinforce and magnify the strategic rivalry.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘For starters,</strong> we must recognize that a mixed, state-driven economic model has always been at the root of Chinese economic success.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘If one-half of China’s economic miracle</strong> reflects its turn to markets after the late 1970s, the other half is the result of active government policies that protected old economic structures – such as state enterprises – while new industries were spawned through a wide array of industrial policies.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The Chinese people</strong> were the main beneficiaries, of course, experiencing the fastest poverty reduction in history.'</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘But these gains</strong> did not come at the expense of the rest of the world. Far from it.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The growth policies</strong> that today arouse other countries’ ire are the reason China has become such a large market for Western exporters and investors.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘But aren’t Chinese industrial policies,</strong> such as those deployed in medical supplies, unfair to competitors elsewhere?’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘We should exercise</strong> caution before reaching such a verdict.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The standard justification</strong> for industrial policy is that new industries produce learning spillovers, technological externalities, and other broad social benefits that render state support desirable.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘But many Western economists</strong> presume that governments are not very good at identifying industries that merit support, and that domestic consumers and taxpayers incur the bulk of the costs.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘In other words,</strong> if Chinese industrial policy has been misguided and misdirected, it is China’s own economy that has suffered as a result.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘By the same logic,</strong> if Chinese policymakers effectively targeted activities where social benefits exceed private benefits, producing improved economic performance, then it is not clear why foreigners should complain.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘This is what economists</strong> call a case of “fixing market failures.” ’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘This is especially true</strong> when the externality in question is a global one, as in the case of climate change.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Chinese subsidies</strong> for solar panels and wind turbines have produced a decline in the cost of renewable energy – an enormous benefit for the rest of the world.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The economics of industrial policy</strong> can get more complicated in the presence of monopolies and market-dominant firms.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Industrial policies</strong> can be justifiably restricted when they enable the exercise of market power at the expense of the rest of the world.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘But Chinese producers</strong> are rarely accused of propping up prices, which is the hallmark of market power.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘More often,</strong> the complaint is the opposite.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Such considerations</strong> probably apply more to the US and European firms that are frequently the dominant players in high-tech markets.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘None of this is an argument</strong> for other countries to stand idly by while China progresses to ever more sophisticated industries.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The US, for one,</strong> has a long history of successful industrial policy, particularly in defense-related technologies.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘There is now broad political agreement</strong> in the US political spectrum that the country needs a more explicit industrial policy targeting good jobs, innovation, and a green economy.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘A&nbsp;</strong><a href="https://www.sciencemag.org/news/2020/05/us-lawmakers-unveil-bold-100-billion-plan-remake-nsf" rel="nofollow"><strong style="font-weight: bold">bill&nbsp;</strong></a><strong style="font-weight: bold">advanced</strong> by the US Senate’s top Democrat, Chuck Schumer, proposes to spend $100 billion over the next five years on new technologies.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Much of the new push for industrial policy</strong> in the US and Europe is motivated by the perceived Chinese “threat.” ’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘But economic considerations</strong> suggest this is the wrong focus.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The needs and remedies</strong> lie in the domestic sphere.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The objective</strong> should be to build more productive, more inclusive economies at home – not simply to outcompete China or try to undercut its economic progress.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div></td></tr></tbody></table>

<table cellpadding="0" cellspacing="0" width="100%" style="background-color:#f5f5f5; text-align:center; overflow:hidden"><tbody><tr><td style="max-width:600px"><div><link href="https://fonts.googleapis.com/css2?family=Merriweather:wght@900&amp;display=swap" rel="stylesheet"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; background-color:#fff;"><tbody><tr><td style="padding:3.5%; text-align:left; font-weight:700; font-style: normal; font-variant: normal; line-height: 20px;"><span style="font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 17px; color: #c80000;">CHINA</span><span style="font-family: 'Merriweather', serif; font-size: 15.5px; color: #001544;">Debate</span></td><td style="padding:3.5%; text-align:right; font-weight:normal; font-size: 14px; font-style: normal; font-variant: normal;color: #001544; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif;"></td></tr></tbody></table><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; background:#fff"><tbody><tr><td style="padding:3.5%; text-align:center;"><a style="border-bottom:none; text-decoration:none;" href="https://www.chinadebate.com/china-macro-reporter/archive" target="_blank"><img style="width:70px; border-radius:3%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19);" src="https://assets-global.website-files.com/5a3e922cf6b9a40001bc2d6b/5e3dbbf161e6c357b022bea5_China%20Macro%20Reporter%20.png" alt="China_Macro_Reporter"></a></td></tr><tr><td style="text-align:center; font-size: 27px; font-family: gorditamedium, sans-serif; color:#001544; font-weight:bold; letter-spacing: -0.5px; line-height: 1;">China Macro Reporter</td></tr><tr><td style="text-align:center; line-height:1.5; padding-bottom:35px; padding-top:10px; font-size: 13px; color:#001544; font-family:'gordita', sans-serif;">By Malcolm Riddell<span style="margin:0 6px">·</span>July 8, 2020</td></tr><tr><td style="text-align:center; line-height:1.5; display:block; max-width:480px; margin:0 auto; padding:7px 0; font-size: 1.175em; font-family: Georgia, serif; color:#c80000; font-weight:normal; letter-spacing: -0.5px; border-bottom:2px solid #c80000;">Opening Statement</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/77NHqS?track_p_id=7iA1wyLU526yy6_6TFe6Mpc" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/4x73lYAycA6tlG4fEtV_j0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'The Political Logic of China’s Strategic Mistakes'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/77NHqS?track_p_id=5rYGzM526yy6_W5PJ3CyVvb" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/4fU93yk3JTPjl8GKxIiDo0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/77NHqS?track_p_id=4n5li526yy6_aiyiT3CXXSX" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">China Macro Reporter Archive</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h1 style="display: inline-block;font-size: 1.35em;margin-top: 0em;margin-bottom: 0em;margin-left: 0;margin-right: 0;line-height: 1.35em;font-weight: normal;font-family: gorditamedium, sans-serif;color: #001544;letter-spacing: -0.1px;"><strong style="font-weight: bold">Greetings!</strong></h1><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">In today’s issue:</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">1. 'The Political Logic of China’s Strategic Mistakes'&nbsp;</strong></span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Falling back on cliché:</strong> If I had a nickel for every time someone asked me why China is imposing a draconian national security law on Hong Kong that could have dire consequences, or why China is employing ‘wolf warrior’ diplomacy when it’s alienating rather persuading other nations, or why…</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">I can only speculate,</strong> but veteran China explainer Minxin Pei has some thoughts.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘It is tempting to see</strong> China’s major policy miscalculations as a consequence of over-concentration of power in the hands of President Xi Jinping: strongman rule inhibits internal debate and makes poor decisions more likely.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘This argument</strong> is not necessarily wrong, but it omits a more important reason for the Chinese government’s&nbsp;<a href="https://www.project-syndicate.org/commentary/china-reputation-wolf-warrior-diplomacy-covid19-by-minxin-pei-2020-06" rel="nofollow">self-destructive policies</a>: the mindset of the Communist Party of China (CPC).’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The CPC sees the world</strong> as, first and foremost, a jungle.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Having been shaped</strong> by its own bloody and brutal struggle for power against impossible odds between 1921-49, the party is firmly convinced that the world is a Hobbesian place where long-term survival depends solely on raw power.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The CPC’s worldview</strong> is also colored by a cynical belief in the power of greed.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Even before China</strong> became the world’s second-largest economy, the party was convinced that Western governments were mere lackeys of capitalist interests.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">All plausible.</strong></p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">But my own take</strong> relies more on hubris, misundereading of the current situation, and miscalculation about just how much the rest of the world will let China get away with.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><br></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">2. Is Taiwan the Next Hong Kong?</strong></span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Regular readers</strong> know that I have been a sometime lonely voice saying that the biggest gray swan in U.S.-China relations is Taiwan.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Recently the issue</strong> has been moving to front &amp; center – from think tank analyses to bills in Congress to reorganizing the American military to counter any threats from Taiwan.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">While no one,</strong> including me, believes a Chinese invasion of Taiwan is imminent, John Pomfret has given me reason to reevaluate this conclusion. Some background:</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">The centenary</strong> of the founding of the China Communist is coming up in 2021.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">The economic goals</strong> Xi Jinping wanted to achieve by the anniversary have been made impossible by the pandemic.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">He needs a win and among his broader goals</strong> are reintegrating Hong Kong and Taiwan into the Chinese Communist regime; he has effectively achieved that in Hong Kong with the new security law.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Is Taiwan next?</strong></li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘There has been considerable speculation</strong> in China that Xi wants to solve “the Taiwan question” sometime near July of next year, when the Chinese Communist Party will celebrate its centenary,’ writes John Pomfret.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Makes some sense</strong> and gives more reason to follow what’s happening in the Taiwan Straits and also the South China Sea more closely.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Reminder:</strong> If this happens, don’t call it a ‘Black Swan’ event – you have been alerted by me and many others.</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><br></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">3. Defend Taiwan: For &amp; Against</strong></span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">For:</strong> ‘The Biden administration should draw a line that places Taiwan within the sphere of regional nations whose self-defense implicates vital U.S. interests,' writes right-leaning columnist and public intellectual, George Will.</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Against: </strong>‘The risks of a conflict over Taiwan escalating out of control are very great,’ writes venerable diplomat and China expert Chas Freeman (a reprint from an earlier issue to give balance).</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘This needs to be approached</strong> with respect for the political achievements of people in Taiwan, but with due regard for American interests, which must come first.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And those interests</strong> dictate peace, stability, and no war with China.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The price of that interest</strong> is deference to Beijing on the issue of Taiwan.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Your editor:</strong> Please hand me that map and a marker.</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><br></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">4. 'Coming Soon to the United Nations: Chinese Leadership and Authoritarian Values'</strong></span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Business leaders and institutional investors</strong> don’t pay much attention to the workings of international organizations, until they do.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">International organizations</strong> help create the environments they operate in.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">But often</strong> they don't know how the organizations are shaping those environments - and more importantly - which countries are shaping those outcomes in the organizations - until they do, and it's too late.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Go into your local U.S. law library,</strong> and you will see shelves of statutes and cases.</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">International law</strong> isn’t like that.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">It’s a hodgepodge</strong> of customary practices, bilateral treaties, and conventions &amp; the like agreed to by some large number of countries.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">This last,</strong> multilateral conventions, emanate mostly from the halls of international organizations.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">While generally lacking stern enforcement provisions,</strong> these conventions do set the accepted standard of conduct on issues of common importance.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Even with some notable exceptions</strong> – like China and the WTO – signatory nations recognize that these conventions should govern their actions and try to abide.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">And, again, these conventions</strong> help to create the environments that businesses operate in.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">So their impact </strong>goes far beyond the world of cookie-pushing diplomats.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">That's why you want the good guys</strong> exerting influence, and why President Trump’s disengagement with – and distaste for – international organizations is creating difficulties.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">The WHO</strong> is a case in point – and so is the UN.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The United States</strong> has let go of the wheel, and Beijing stands poised to take hold of it,’ writes Kristine Lee of The Center for a New American Security.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Eager to expand its influence</strong> on the world stage in ways that serve its interests, China has placed considerable resources behind an effort to present its leadership at the UN as a nimbler, more dynamic alternative to that of the United States.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘If Beijing succeeds</strong> in retooling the UN to its purposes, China won’t become more like the rest of the world—the rest of the world will become more like China.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Lastest example reported by Axios: </strong>‘Dueling statements at the UN Human Rights Council in Geneva shed light on geopolitical currents far beyond the walls of that institution.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">China's Foreign Ministry</strong> and state media declared victory after 53 countries backed&nbsp;<a href="https://link.axios.com/click/20800944.30335/aHR0cHM6Ly93d3cuYXhpb3MuY29tL2hvbmcta29uZy1uYXRpb25hbC1zZWN1cml0eS1sYXctY2hpbmEtOTU4OWExMjktYTZlNC00NWE0LWFjMGUtOTdhNjRmNjA4Nzg3Lmh0bWw_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPW5ld3NsZXR0ZXJfYXhpb3N3b3JsZCZzdHJlYW09d29ybGQ/58af12c227fdb0d83d8b51d9Bc289eb2d" rel="nofollow">Beijing's new national security law for Hong Kong</a>.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Just 27 criticized the law, </strong>which imposes harsh penalties for vaguely defined political crimes and is widely viewed as the death knell for Hong Kong's autonomy.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Our thought bubble:</strong>&nbsp;China's massive investments are bearing fruit:'</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">"Beijing has effectively</strong> leveraged the UN Human Rights Council to endorse the very activities it was created to oppose." ’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The U.S.</strong>&nbsp;has been highly critical of China over the law, but withdrew from the&nbsp;<a href="https://www.axios.com/us-backs-out-of-un-human-rights-council-1529443745-56b33b56-94c7-48ed-b580-960dfcea9d72.html" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">Human Rights Council</a>&nbsp;in 2018.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Keith Harper,&nbsp;</strong>who served as America's representative to the council from 2014 to 2017, says America's absence is one major reason why the balance tipped so dramatically in China's favor.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘ "Since we have pulled away</strong> from nearly all international organizations, China has stepped up big time," Harper says. "They really want to take over for the United States, and this is why.” ’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">That can’t be good.</strong></li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">My modest proposal</strong> is that the Trump administration return to the field and work to bring these organizations into line with the world as it is today – not as it was when the organizations were created.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Goodness knows</strong> they need this overhauling, and the U.S. needs to lead it.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><br></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">5. Global Economics Quarterly: 'A Year Like No Other'</strong></span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Our friends at CreditSuisse</strong> have assembled an outstanding chart deck that sets forth the state of the global economy, region by region.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The idea</strong> is to assess underlying dynamics that can help investors navigate through the partial reopening rebound, the stressful risks of later this year, and the broader implications that lie further ahead.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Only the four China slides</strong> are included here.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">But the entire presentation</strong> is definitely worth your attention.</li></ul><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">Go deeper into these issues - Browse the posts below.</strong></h2><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">To read the original article, click the title.</strong></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Let me know what you think. </strong>And please forward the <strong style="font-weight: bold">China Macro Reporter</strong> to your friends and colleagues.</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">All the best,</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Malcolm</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/6uFL4y?track_p_id=44H2K9KSkzG_PphoZNkePEC" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/JQGXP95HYy5hVTjw-HmldUi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/6uFL4y?track_p_id=d31G63Nzsjxvva9KSkzG_SB" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Opinion | How China Scammed Hong Kong - The New York Times</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">1. 'China's Political Logic'</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7CPfP6?track_p_id=2sm6q1L02_gnj6exUjq1PBZ" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/F5oOqbo1JBgSwB670WGJUki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/7CPfP6?track_p_id=8JYPVZNxN6q1L02_L3kGbXl" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'The Political Logic of China’s Strategic Mistakes'&nbsp;</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/n_UMdWLbd-O4LS0urh67Yzl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/7CPfP6?track_p_id=dQziLwd3RJF5du6q1L02_zN" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/Pv77ZYi8piSOxFndXpR4IUi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/7CPfP6?track_p_id=2uT6q1L02_h2%40Gp6%404BqvZT" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">'The Political Logic of China’s Strategic Mistakes'&nbsp;</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Project Syndicate</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Minxin Pei</strong> | Claremont McKenna College</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">‘The CPC sees the world as, first and foremost, a jungle.’</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Some of the Chinese government’s recent policies</strong> seem to make little practical sense, with its&nbsp;<a href="https://www.project-syndicate.org/commentary/china-hong-kong-security-law-crisis-by-minxin-pei-2020-05" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">decision</a>&nbsp;to impose a national-security law on Hong Kong being a prime example.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Hong Kong’s future</strong> as an international financial center is now in grave peril, while resistance by residents determined to defend their freedom will make the city even less stable.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Moreover,</strong> China’s latest move will help the United States to persuade wavering European allies to join its nascent anti-China coalition.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The long-term consequences</strong> for China are therefore likely to be dire.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘It is tempting to see</strong> China’s major policy miscalculations as a consequence of over-concentration of power in the hands of President Xi Jinping: strongman rule inhibits internal debate and makes poor decisions more likely.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘This argument</strong> is not necessarily wrong, but it omits a more important reason for the Chinese government’s&nbsp;<a href="https://www.project-syndicate.org/commentary/china-reputation-wolf-warrior-diplomacy-covid19-by-minxin-pei-2020-06" rel="nofollow">self-destructive policies</a>: the mindset of the Communist Party of China (CPC).’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The CPC sees the world</strong> as, first and foremost, a jungle.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Having been shaped</strong> by its own bloody and brutal struggle for power against impossible odds between 1921-49, the party is firmly convinced that the world is a Hobbesian place where long-term survival depends solely on raw power.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The CPC’s worldview</strong> is also colored by a cynical belief in the power of greed.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Even before China</strong> became the world’s second-largest economy, the party was convinced that Western governments were mere lackeys of capitalist interests.'</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Although these countries</strong> might profess fealty to human rights and democracy, the CPC believed that they could not afford to lose access to the Chinese market – especially if their capitalist rivals stood to profit as a result.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Such cynicism</strong> now permeates China’s strategy of asserting full control over Hong Kong.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Chinese leaders</strong> expect the West’s anger at their actions to fade quickly, calculating that Western firms are too heavily vested in the city to let the perils of China’s police state be a deal breaker.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Until recently,</strong> the West’s acquiescence in the face of Chinese assertiveness appeared to have vindicated the CPC’s Hobbesian worldview.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Before the rise of Trumpism</strong> and the subsequent radical shift in US policy toward China, Chinese leaders had encountered practically no pushback, despite repeatedly overplaying their hand.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘But in Trump and his national-security hawks,</strong> China finally has met its match.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Like their counterparts in Beijing,</strong> the US president and his senior advisers not only believe in the law of the jungle, but also are unafraid to wield raw power against their foes.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Unfortunately for the CPC,</strong> therefore, it now has to contend with a far more determined adversary.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Worse still,</strong> America’s willingness to absorb enormous short-term economic pain to gain a long-term strategic edge over China indicates that greed has lost its primacy.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘In particular,</strong> the US strategy of “decoupling” – severing the dense web of Sino-American economic ties – has caught China totally by surprise, because no CPC leader ever imagined that the US government would be willing to write off the Chinese market in pursuit of broader geopolitical objectives.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘For the first time</strong> since the end of the Cultural Revolution, the CPC faces a genuine existential threat, mainly because its mindset has led it to commit a series of calamitous strategic errors.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And its latest intervention in Hong Kong</strong> suggests that it has no intention of changing course.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">2. The 'Taiwan Question'</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7UZzjE?track_p_id=aiM%40d4YYpuB569lZW_cCjyM" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/2P2LxiV-sg54VayqL9X2F0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/7UZzjE?track_p_id=0569lZW_jtPzOnynpbUhb2k" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">Is Taiwan the Next Hong Kong?</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/jYkuPUFGjNvWnWnllYgVfjl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Evan Medeiros</strong></p></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/7UZzjE?track_p_id=22I569lZW_5J6oLxogwrAO1" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/kwLqY03V1fyIk3zEtvEVtEi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/7UZzjE?track_p_id=56YsrE569lZW_hYQhCe3XtO" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Is Taiwan the Next Hong Kong?</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Foreign Affairs</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Michael Green and Evan Medeiros</strong> | Georgetown University</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">‘Xi and other Chinese leaders are still weighing the costs and benefits of a harder line on Taiwan as they take the measure of U.S. and international willpower—which is why the U.S. response to the Hong Kong law matters so much.’</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘China has imposed</strong> a draconian national security law that will undermine the territory’s autonomy and, by extension, its identity.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The new law</strong> is a profound tragedy for the people of Hong Kong, but unfortunately, there is little the international community can do to halt its implementation.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The administration</strong> of U.S. President Donald Trump has suggested that it will dial up pressure on Hong Kong’s government.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Some analysts</strong> have therefore&nbsp;<a href="https://thediplomat.com/2020/06/the-us-should-not-punish-hong-kong-for-chinas-sins/" rel="nofollow">counseled </a>U.S. restraint, arguing that a softer touch could encourage Beijing to moderate its implementation of the law and avoid making the situation worse.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘But there are larger issues at stake.</strong> U.S. policymakers must consider more than Hong Kong when formulating their response.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘A tepid U.S. reaction</strong> could leave Beijing with the impression that it can proceed with relative impunity on other contentious issues in Asia.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The shadow of Taiwan</strong> looms large in this context.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Unless the United States</strong> demonstrates the resolve and ability to resist Chinese coercion and aggression, China’s leaders may eventually conclude that the risks and the costs of future military action against Taiwan are low—or at least tolerable.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Beijing’s recent actions in Hong Kong</strong>—and elsewhere in Asia—raise worrying questions about its evolving objectives and increasing willingness to use coercive tactics to achieve them.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘In short,</strong> the United States must be careful not to play a narrow game on Hong Kong when Beijing is positioning itself for a broader competition for the future of Asia.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Under President Xi Jinping,</strong> China has become much more tolerant of friction in international affairs than it once was and much bolder about using coercion to advance Chinese interests—often at the expense of the United States and other powers, such as Japan and India.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘In recent months,</strong> China has increased its military and paramilitary pressure on neighboring countries with which it has territorial disputes, including India, Japan, Vietnam, Malaysia, and Indonesia.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Whether these aggressive maneuvers</strong> were intended to remind the world of China’s resolve or to capitalize on the distraction caused by the coronavirus pandemic, they offer a stark reminder of Xi’s appetite for risk, tolerance for conflict, and desire to assert territorial claims.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘China’s leaders</strong> have always maintained that they are prepared to use force over Taiwan—either to prevent the island’s de jure independence or to compel its unification with the mainland.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘But Xi</strong> has taken a progressively harder line on Taiwan, in word as well as deed.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘China has ramped up</strong> military pressure on Taiwan.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Its air force and navy</strong> have conducted more than ten transits and military exercises near the island since mid-January, including an increasing number of deliberate incursions into Taiwan’s airspace, according to&nbsp;<a href="https://www.csis.org/analysis/chinas-provocations-around-taiwan-arent-crisis" rel="nofollow">research&nbsp;</a>by Bonnie S. Glaser and Matthew P. Funaiole of the Center for Strategic and International Studies.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘In March,</strong> China’s air force sent two advanced fighter jets over the centerline of the Taiwan Strait for the first time in 20 years.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Since then,</strong> it has sent an increasing number of aircraft across the centerline.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘China’s strategic bombers</strong> have also circumnavigated the island multiple times in recent months, while other Chinese aircraft have crossed the Miyako Strait between Taiwan and Japan.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘All of these maneuvers</strong> were intended to intimidate Taiwan by demonstrating Beijing’s readiness to use force at a moment’s notice.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘There is little Taiwanese President Tsai Ing-wen</strong> can do to convince China to dial back the diplomatic and military pressure short of accepting its unilateral definition of “one China” and its “one country, two systems” model, both of which are now wholly discredited by what has happened in Hong Kong.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘In the worldview of China’s leaders, </strong>Tsai’s commitment to Taiwanese independence, her perceived efforts at “de-Sinification” on the island, and the growing connections between Taiwan, Hong Kong, and the democratic world more broadly all legitimize China’s saber rattling—and perhaps, eventually, its use of force.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Xi appears</strong> to have made up his mind about Tsai—wrongly but perhaps conclusively.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Xi and other Chinese leaders</strong> are still weighing the costs and benefits of a harder line on Taiwan as they take the measure of U.S. and international willpower—which is why the U.S. response to the Hong Kong law matters so much.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="height:40px; font-size:0; background-color:#f6f6f6;">&nbsp;                </td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7mkK3M?track_p_id=06fiHL4_4dRsBLtAfoZbY2a" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/R2honJU3MXkzC1EUKtMivki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/7mkK3M?track_p_id=7qpGmX3B6fiHL4_txzrECMg" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'The Hong Kong security law could be China’s blueprint to deal with the "Taiwan problem" ’&nbsp;</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/sHrfZzI17JCUXt-hDiSD9zl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/7mkK3M?track_p_id=7uYsybsO6fiHL4_Apccqk3F" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/QO6Q4d00T4epYc3Nz3u1bki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/7mkK3M?track_p_id=7CYXrhmI6fiHL4_Kv1CP3Bt" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">The Hong Kong security law could be China’s blueprint to deal with the ‘Taiwan problem’&nbsp;</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">The Washington Post</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">John Pomfret</strong> | The Washington Post</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">‘There has been considerable speculation in China that Xi wants to solve “the Taiwan question” sometime near July of next year, when the Chinese Communist Party will celebrate its centenary.’</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The&nbsp;</strong><a href="https://www.washingtonpost.com/world/asia_pacific/hong-kong-national-security-law-ends-freedom-democracy-china/2020/06/30/c37e5a4a-ba8b-11ea-97c1-6cf116ffe26c_story.html?itid=lk_inline_manual_2" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;"><strong style="font-weight: bold">national security law</strong></a>&nbsp;that China passed last week is scary for many reasons.'</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;">‘<strong style="font-weight: bold">But perhaps</strong> the most worrisome element in the law is what is left unsaid.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘And that is that the legislation</strong> could serve as a blueprint for dealing with Taiwan.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘In fact,</strong> with the passage of the national security law on Hong Kong, China has arguably moved a step closer to preparing for war with the island democracy that sits 90 miles off its coast.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Don’t take my word for it.</strong> Listen to Li Su, the president of the Modern Think-Tank Forum and a prominent hard-liner in Beijing.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Following the passage of the law,</strong> Li&nbsp;<a href="https://m.weibo.cn/status/4518938866287879?from=groupmessage#&amp;video" rel="nofollow">took to Chinese social media</a> to hail the law as a critical step in “liberating Taiwan.” ’</li><li style="text-align: left;margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Li is part of an influential group of scholars</strong> in China who support an armed solution to what they call “the Taiwan problem.” ’</li></ul><p style="text-align: left;display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">‘<strong style="font-weight: bold">In his lecture</strong> on Chinese social media, Li said he interpreted the Hong Kong security law as a “test case” on which China will model its takeover of Taiwan.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘ “We will learn how to control Taiwan</strong> by experimenting with this law on Hong Kong,” he declared.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘ “From the experiment on Hong Kong,</strong> we will tell the people on Taiwan that after we forcibly unite with you, we will have a way to deal with you.” ’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Simply put,</strong> that would consist of rounding up “your independence activists, democracy activists, students who cause trouble and bring them to the mainland to be sentenced.” ’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘After that,</strong> Li asked, “who would dare oppose us?” ’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘At least 10 people&nbsp;</strong><a href="https://news.un.org/en/story/2020/07/1067682" rel="nofollow">have already been arrested in Hong Kong under the new law</a>, and Chinese officials said they could be tried in mainland Chinese courts.'</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">‘<strong style="font-weight: bold">For years,</strong> China has used Hong Kong as a test case for its dealings with Taiwan.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘In 1997,</strong> China agreed with Britain to resume control over Britain’s old colony of Hong Kong under a model that the Chinese government called “one country, two systems. ” ’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Under that model,</strong> China promised to maintain Hong Kong’s freewheeling capitalist and more open political system for 50 years, an agreement that China is now accused of breaking. China subsequently proposed to Taiwan that it follow the “one country, two systems” model to unite with China.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Today, a vast majority of Taiwanese,</strong> who live in one of Asia’s most vibrant democracies, reject any idea of uniting with mainland China.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">‘<strong style="font-weight: bold">China claims Taiwan is part of China</strong> and has never abandoned the threat of force to take over the island.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘China’s president, Xi Jinping,</strong> reiterated that vow in a speech on Jan. 1, 2019, declaring that China would <a href="https://www.nytimes.com/2019/01/01/world/asia/xi-jinping-taiwan-china.html" rel="nofollow">“retain the option of taking all necessary measures”</a>&nbsp;to absorb the island.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘U.S. law requires</strong> that the U.S. government provide for Taiwan’s defense but stops short of requiring that American soldiers die for Taiwan.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘There has been considerable speculation in China</strong> that Xi wants to solve “the Taiwan question” sometime near July of next year, when the Chinese Communist Party will celebrate its centenary.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Li said</strong> the promulgation of the security law last week basically confirmed that theory.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘ “Sometime around 2021,”</strong> Li predicted, “we are definitely going to liberate Taiwan.” ’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">‘<strong style="font-weight: bold">Li and other like-minded hard-liners</strong> played down the reaction of Western nations, which were generally united in their condemnation of the Hong Kong law.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘ “China’s enemies</strong> are a group of a dragons without a head,” Li declared.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘ “The U.S.</strong> is already a hooligan nation. How can a hooligan nation be a leader?’ America doesn’t even qualify to be China’s opponent.” ’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘ ”What are they going to do, </strong>fight a war over Hong Kong?” ’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The same question</strong> could be asked for Taiwan.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">3. Defend Taiwan: For &amp; Against</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/84ueNU?track_p_id=07uwa5u_L2IFQqwXDpso33P" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/hzpVC3f-tQtl7XtjIBz6pki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/84ueNU?track_p_id=3aLf7uwa5u_OtSXeCZ6rOUO" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">America's Interest is No War with China, Not Defending Taiwan</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/84ueNU?track_p_id=2ct7uwa5u_QE3GgLSEAVr1v" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/3u31A4drJ5u_Hg3m5KYEUki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/84ueNU?track_p_id=aWjG45AgqaC7uwa5u_BXvBq" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Chas Freeman on Picking Fights the U.S. Can Win</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">The Wire China</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Chas Freeman</strong></h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">‘This needs to be approached with respect for the political achievements of people in Taiwan, but with due regard for American interests, which must come first.’</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Chas Freeman: ‘The Chinese Civil War</strong> did not come to a conclusion, because on June 27, 1950, the U.S. interposed the Seventh Fleet between the contending Chinese forces.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘So, the Chinese Civil War</strong> was suspended; it has not ended.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Our position from June 27, 1950,</strong> has been that we would like to see this resolved peacefully, rather than through the use of force.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘We oppose unilateral change</strong> imposed by either side; that’s our official position.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘In recent years,</strong> we have begun to drift more and more into open support of self-determination for Taiwan because it evolved into a democratic society.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘When I first lived there,</strong> it was totalitarian under Chiang Kai-shek, but it has become a robust democracy with a great deal of respect for civil and human rights.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And it is</strong> from that perspective ideologically admirable.’&nbsp;</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘This is a classic contest</strong> between ideology and interest, between the value of the word of the U.S., which affirmed that Taiwan was part of China on several occasions, and our ideological druthers.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘This is not a problem</strong> to be approached lightly.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘We are in fact,</strong> contesting the borders and the territorial integrity of a nuclear power.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘We never did</strong> that with the Soviet Union.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The risks of a conflict over Taiwan</strong> escalating out of control are very great.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘This needs to be approached</strong> with respect for the political achievements of people in Taiwan, but with due regard for American interests, which must come first.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And those interests</strong> dictate peace, stability, and no war with China.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The price of that interest</strong> is deference to Beijing on the issue.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘We have had diplomatic relations with Beijing</strong> since January 1, 1979, and have managed those in a way that actually facilitated the emergence of democracy in Taiwan where there was none.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And we have not</strong> in any respect harmed Taiwan, except in terms of its obsession with face.’&nbsp;</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Q: ‘Are you worried that we might be heading towards armed conflict with China?’&nbsp;</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Chas Freeman: ‘Yes.</strong> We are in the process of violating, directly or indirectly, almost every assurance we’ve given the Chinese on the question of Taiwan:’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘the&nbsp;</strong><a href="https://history.state.gov/historicaldocuments/frus1969-76v17/d203" rel="nofollow"><strong style="font-weight: bold">Shanghai Communiqué&nbsp;</strong></a><strong style="font-weight: bold">in 1972,</strong> the&nbsp;<a href="https://photos.state.gov/libraries/ait-taiwan/171414/ait-pages/prc_e.pdf" rel="nofollow">normalization communiqué&nbsp;</a>of 1979, the&nbsp;<a href="https://history.state.gov/milestones/1981-1988/china-communique" rel="nofollow">arms sales agreement of 1982</a>.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘We are not in compliance</strong> with any of our assurances anymore, and the Chinese in response have begun to build a military capacity to devastate Taiwan.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘We no longer</strong> have the ability to block that but are talking and passing legislation as though we did.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘We are essentially leading with our chins,</strong> and we are dependent on the self-restraint of Beijing, rather than our own restraint, to keep the peace in the Taiwan Strait.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="height:40px; font-size:0; background-color:#f6f6f6;">&nbsp;                </td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/8N4yhc?track_p_id=cDJ%40BQ3NOKU2A6Len78_qZs" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/R2honJU3MXkzC1EUKtMivki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/8N4yhc?track_p_id=aLU2VxbhHcA6Len78_URIHo" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'End U.S. "Strategic Ambiguity" on Taiwan'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/Utl7Z4rwJqnhG40gn048fzl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">The 'Acheson Defense Perimeter': "We will defend any area to the East of the Line."</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">Opps...forgot South Korea.</p></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/8N4yhc?track_p_id=74a6rux36Len78_lCaEVPEl" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/YR4PQepY_0iN7q8I6qTNI0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/8N4yhc?track_p_id=dmTcOMhQs3X2Wz6Len78_lZ" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Opinion | China extends its reign of random fear - The</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">The Washington Post</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">George Will </strong>| The Washington Post</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">‘The Biden administration should draw a line that places Taiwan within the sphere of regional nations whose self-defense implicates vital U.S. interests.'</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The Korean War,</strong> which brought Americans into combat against Chinese troops,&nbsp;<a href="https://www.britannica.com/event/Korean-War" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">began 70 years ago</a> after Dean Acheson, President Harry S. Truman’s secretary of state,&nbsp;<a href="https://journals.lib.unb.ca/index.php/jcs/article/view/366/578" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">gave a speech</a>&nbsp;in which he left South Korea outside his definition of America’s defense perimeter.’ [see the map above]</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The Biden administration</strong> should draw a line that places Taiwan within the sphere of regional nations whose self-defense implicates vital U.S. interests.'</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘President Biden’s urgent foreign policy tasks</strong> will include revising the long-standing U.S. policy of “<a href="https://www.tandfonline.com/doi/abs/10.1080/1067056022000054678?journalCode=cjcc20" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">strategic ambiguity</a>” regarding Taiwan.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Beijing</strong> is demonstrating in Hong Kong “<a href="https://www.politico.com/news/2020/07/01/pelosi-hong-kong-security-law-347060" rel="nofollow">one country, two systems</a>” actually means one country, one simmering stew of Leninism and Stalinism flavored with fascism.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The dictator Xi Jinping</strong> has repeatedly said that Taiwan’s current status — nationhood in all but name — is intolerable and “<a href="https://www.brookings.edu/blog/order-from-chaos/2019/01/07/8-key-things-to-notice-from-xi-jinpings-new-year-speech-on-taiwan/" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">should not be passed down generation after generation</a>.” ’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘A reelected President Trump,</strong> whose cramped notion of America’s role in the world is confined to commercial bookkeeping, might swap Taiwan’s freedom for increased Chinese purchases of U.S. soybeans.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘When at&nbsp;</strong><a href="https://en.wikipedia.org/wiki/United_States_presidential_inauguration#:~:text=Since%201937%2C%20it%20has%20taken,20%20fell%20on%20a%20Sunday." rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;"><strong style="font-weight: bold">noon Jan. 20</strong></a> the United States ends the policy of making America marginal again, Biden should adopt strategic clarity, informing Beijing that the U.S. legal obligation to sell Taiwan weaponry needed for self-defense entails a moral obligation to assist with that project.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">4. PRC, USA, &amp; the UN</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/8fFJ1k?track_p_id=7INIbUoa7wpgnW_wDxhFD3W" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/2P2LxiV-sg54VayqL9X2F0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/8fFJ1k?track_p_id=92GjmNI%40LS7wpgnW_EFCGbC" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'Coming Soon to the United Nations: Chinese Leadership and Authoritarian Values'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/8fFJ1k?track_p_id=9UswtF3USK7wpgnW_kgAPhz" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/PiirKGSuWbjXdmgd3jYHu0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/8fFJ1k?track_p_id=7LfEbZLi7wpgnW_bG1TtmZ3" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Coming Soon to the United Nations: Chinese Leadership and Authoritarian Values</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Foreign Affairs</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Kristine Lee </strong>| The Center for a New American Security</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">‘If Beijing succeeds in retooling the UN to its purposes, China won’t become more like the rest of the world—the rest of the world will become more like China.’</strong></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The United States</strong> has let go of the wheel, and Beijing stands poised to take hold of it.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Eager to expand its influence</strong> on the world stage in ways that serve its interests, China has placed considerable resources behind an effort to present its leadership at the UN as a nimbler, more dynamic alternative to that of the United States.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘In the past few years alone,</strong> the Chinese Communist Party (CCP) has&nbsp;<a href="https://www.scmp.com/news/china/diplomacy/article/3017723/why-does-new-chinese-head-un-food-agency-feed-us-suspicion" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">positioned its officials</a>&nbsp;to head up four of the UN’s 15 specialized agencies, while the United States leads only one.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘It has also advanced</strong> more than two dozen&nbsp;<a href="http://wedocs.unep.org/bitstream/handle/20.500.11822/26318/UN%20Agencies%20BRI%20Involvement%2002%20%2801%20Oct%202018%29.pdf?sequence=17&amp;isAllowed=y" rel="nofollow">memorandums of understanding</a> in support of its Belt and Road Initiative (BRI) and mobilized a&nbsp;<a href="https://www.nytimes.com/2019/07/12/world/asia/china-human-rights-united-nations.html" rel="nofollow">consortium of illiberal states&nbsp;</a>to tamp down international criticism of its repression of ethnic Uighurs in Xinjiang Province.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The United States</strong> has responded to China’s rising profile in only a piecemeal fashion, in part because Washington has been busy recalibrating its own relationship with the international body.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The administration</strong> of President Donald Trump has passed through numerous ambassadors to the UN in a short time, while unilaterally withdrawing the United States from certain UN agencies and repudiating multilateral institutions more broadly.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘With China</strong> seeking to steer the United Nations away from its founding principles, however, the United States can’t afford to sit back.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘A China-dominated UN</strong> would only lead to the steady erosion of U.S. values and interests in matters that range from nonproliferation to sustainable development.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘All major powers</strong> seek to promote their interests within international organizations.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘As President Trump</strong> told the UN General Assembly in 2017, “I will always put America first, just like you, as the leaders of your countries, will always, and should always, put your countries first.” ’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘But China’s pursuit</strong> of its core interests at the UN is perilous, because among those interests is the narrow political goal of shoring up power under a single authority: the CCP.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘If Beijing succeeds</strong> in retooling the UN to its purposes, China won’t become more like the rest of the world—the rest of the world will become more like China.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘If the Trump administration</strong> is serious about competing strategically with China, it will have to step up its game on this highest international stage.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="height:40px; font-size:0; background-color:#f6f6f6;">&nbsp;                </td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/8xPdLs?track_p_id=8dS6fJEdX7XmrcM_d5Y1OM6" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/yROivUZ552UArCWXK0YWaUi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/8xPdLs?track_p_id=7AdHa1oN7XmrcM_vtziRCCX" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'The 53 countries supporting China's crackdown on Hong Kong'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/j8lI3Z7W0hluEY1s2emSWjl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/8xPdLs?track_p_id=3Z5Z7XmrcM_MVEDcQX1ieIl" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/r1w43cuDDF2WJaOyc0TsdUi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/8xPdLs?track_p_id=2et7XmrcM_lNEKbY25FF36z" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">The 53 countries supporting China's crackdown on Hong Kong</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Axios</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Dave Lawler</strong> | Axios</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">"Beijing has effectively leveraged the UN Human Rights Council to endorse the very activities it was created to oppose."</strong></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Dueling statements</strong> at the UN Human Rights Council in Geneva shed light on geopolitical currents far beyond the walls of that institution.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><br></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Driving the news:</strong>&nbsp;China's Foreign Ministry and state media declared victory after 53 countries backed&nbsp;<a href="https://link.axios.com/click/20800944.30335/aHR0cHM6Ly93d3cuYXhpb3MuY29tL2hvbmcta29uZy1uYXRpb25hbC1zZWN1cml0eS1sYXctY2hpbmEtOTU4OWExMjktYTZlNC00NWE0LWFjMGUtOTdhNjRmNjA4Nzg3Lmh0bWw_dXRtX3NvdXJjZT1uZXdzbGV0dGVyJnV0bV9tZWRpdW09ZW1haWwmdXRtX2NhbXBhaWduPW5ld3NsZXR0ZXJfYXhpb3N3b3JsZCZzdHJlYW09d29ybGQ/58af12c227fdb0d83d8b51d9Bc289eb2d" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">Beijing's new national security law for Hong Kong</a>.'&nbsp;</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">'Just 27 criticized the law, </strong>which imposes harsh penalties for vaguely defined political crimes and is widely viewed as the death knell for Hong Kong's autonomy.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><br></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘In the room:</strong>&nbsp;The two statements were read back to back in Tuesday's session, with Cuba supporting China and the U.K. representing the critics. China's other allies weren't named publicly until Axios obtained the list this morning.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><br></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The big picture:</strong>&nbsp;This is one of the clearest indications to date of which countries are challenging a rising superpower, at least on human rights, and which are lining up behind it.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><br></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">‘<strong style="font-weight: bold">China's critics</strong>&nbsp;are concentrated in Europe and also include major democracies like Australia, Canada and Japan. All 27 are considered "free" in Freedom House's global ratings.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘China is backed</strong> by an assortment of "not free" and "partially free" countries, including many of the world's most brutal dictatorships — North Korea, Saudi Arabia, Syria.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Three small “free” countries</strong> did back Beijing: Antigua and Barbuda, Dominica, and Suriname (combined pop. ~700,000).’&nbsp;</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘All three,</strong> and at least 40 of the other signatories, have signed onto China’s Belt and Road infrastructure project.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Many of the African signatories,</strong> meanwhile, are trying to renegotiate debt payments to China amid sharp COVID-related downturns.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><br></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Our thought bubble:</strong>&nbsp;China's massive investments are bearing fruit, notes Axios' Bethany Allen-Ebrahimian: "Beijing has effectively leveraged the UN Human Rights Council to endorse the very activities it was created to oppose." ’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><br></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The U.S.</strong>&nbsp;has been highly critical of China over the law, but withdrew from the&nbsp;<a href="https://www.axios.com/us-backs-out-of-un-human-rights-council-1529443745-56b33b56-94c7-48ed-b580-960dfcea9d72.html" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">Human Rights Council</a>&nbsp;in 2018.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><br></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Keith Harper,&nbsp;</strong>who served as America's representative to the council from 2014 to 2017, says America's absence is one major reason why the balance tipped so dramatically in China's favor.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Statements</strong> like this often play out as "battles between China and the United States," Harper says, with China putting "unbelievable pressure" on countries to back it.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘While some countries</strong> on the list "are always going to back China," he says, others joined because "they will get better deals if they are in the good graces of China" and "there’s no detriment there because the U.S. isn’t at the table." ’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘ "Since we have pulled away</strong> from nearly all international organizations, China has stepped up big time," Harper says. "They really want to take over for the United States, and this is why.” ’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><br></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Sophie Richardson,&nbsp;</strong>China director at Human Rights Watch, says China is attempting not only to silence critics of its record on human rights, but "to change the norms and the protocols of these institutions so that no state really can be held accountable." ’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div></td></tr><tr><td style="max-width:600px"><div></div><div></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">5. China &amp; the World Economy</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/5ANleS?track_p_id=08GItdG_s332Lv1W3AWR32b" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/Pd2AGi8v7b5rElII6CSyYki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/5ANleS?track_p_id=08GItdG_gw1qCoQlemCZv6M" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">Global Economics Quarterly: 'A Year Like No Other'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/9oalIe9QFoWGwhRxV1skHjl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/5ANleS?track_p_id=1E8GItdG_6GYJuRzzmnQYSs" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">'A Year Like No Other'</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">CreditSuisse</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">James Sweeney </strong>| Chief Economist &amp; CIO Americas, CreditSuisse</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">‘China: Elevated deficit does not imply aggressive stimulus.’</strong></h2><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Only the China slides here </strong>- have a look at this outstanding deck of slides.</h3><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Global growth</strong> volatility was exceptionally tranquil from 2010 to 2019 but 2020 is a year like no other.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘On many measures,</strong> the world is experiencing its largest shock in at least seventy years, and government policy measures have been used aggressively to counter it.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The pandemic</strong> that has caused all this still rages, though its geographic distribution has wandered.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Presently</strong> the Americas are the epicenter.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The northern hemisphere’s autumn</strong> is still a major concern, and in some places reopening plans are already beginning to reverse.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The world’s output </strong>is far above its March/April lows.'</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And in the coming months</strong> many economic indicators will continue to improve, as if a light has been switched back on.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘But the threat of renewed contagion,</strong> the incomplete damage assessment process, and the ultimate implications of government policy measures suggest that a growth momentum rebound should not be mistaken for true recovery.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The big uncertainties</strong> in the second half are the virus, the further policy responses, and the political implications, including the result of the November US election.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Beyond that,</strong> we will learn how a total redistribution of balance sheet health among the world’s firms, households, and governments will shape the true recovery when infections are low enough that it can begin.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">'In this chart deck, </strong>our economists show their most important charts for each region.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The idea</strong> is to assess underlying dynamics that can help investors navigate through the partial reopening rebound, the stressful risks of later this year, and the broader implications that lie further ahead.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/gCwcLOV0kqkaJ8m3UCla0zl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/JQuDELufKr4IcvnEpT8CFjl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/pgmapYCZQHu7kwxgaUZQFTl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/anqVhbFPO1mqbossV9Sn2zl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div></td></tr></tbody></table>

<table cellpadding="0" cellspacing="0" width="100%" style="background-color:#f5f5f5; text-align:center; overflow:hidden"><tbody><tr><td style="max-width:600px"><div><link href="https://fonts.googleapis.com/css2?family=Merriweather:wght@900&amp;display=swap" rel="stylesheet"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; background-color:#fff;"><tbody><tr><td style="padding:3.5%; text-align:left; font-weight:700; font-style: normal; font-variant: normal; line-height: 20px;"><span style="font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 17px; color: #c80000;">CHINA</span><span style="font-family: 'Merriweather', serif; font-size: 15.5px; color: #001544;">Debate</span></td><td style="padding:3.5%; text-align:right; font-weight:normal; font-size: 14px; font-style: normal; font-variant: normal;color: #001544; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif;"><a href="https://www.chinadebate.com/china-macro-reporter/archive" target="_blank" style="text-decoration: none; border-bottom:1px solid #008dc8;">View in the browser</a></td></tr></tbody></table><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; background:#fff"><tbody><tr><td style="padding:3.5%; text-align:center;"><a style="border-bottom:none; text-decoration:none;" href="https://www.chinadebate.com/china-macro-reporter/archive" target="_blank"><img style="width:70px; border-radius:3%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19);" src="https://assets-global.website-files.com/5a3e922cf6b9a40001bc2d6b/5e3dbbf161e6c357b022bea5_China%20Macro%20Reporter%20.png" alt="China_Macro_Reporter"></a></td></tr><tr><td style="text-align:center; font-size: 27px; font-family: gorditamedium, sans-serif; color:#001544; font-weight:bold; letter-spacing: -0.5px; line-height: 1;">China Macro Reporter</td></tr><tr><td style="text-align:center; line-height:1.5; padding-bottom:35px; padding-top:10px; font-size: 13px; color:#001544; font-family:'gordita', sans-serif;">By Malcolm Riddell<span style="margin:0 6px">·</span>July 4, 2020</td></tr><tr><td style="text-align:center; line-height:1.5; display:block; max-width:480px; margin:0 auto; padding:7px 0; font-size: 1.175em; font-family: Georgia, serif; color:#c80000; font-weight:normal; letter-spacing: -0.5px; border-bottom:2px solid #c80000;">Opening Statement</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/4p5d2m?track_p_id=2rY5TIbhm_lbPrdwpSFbbFZ" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/4x73lYAycA6tlG4fEtV_j0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/4p5d2m?track_p_id=1N5TIbhm_p3myQEyTNDqUaB" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">Why I May Never Go To Hong Kong Again</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/4p5d2m?track_p_id=5FXzDp5TIbhm_X1JMZb5bbO" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/4fU93yk3JTPjl8GKxIiDo0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/4p5d2m?track_p_id=1S5TIbhm_vqH5LawkXtb6ge" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">China Macro Reporter Archive</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h1 style="display: inline-block;font-size: 1.35em;margin-top: 0em;margin-bottom: 0em;margin-left: 0;margin-right: 0;line-height: 1.35em;font-weight: normal;font-family: gorditamedium, sans-serif;color: #001544;letter-spacing: -0.1px;"><strong style="font-weight: bold">Greetings!</strong></h1><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">When I was waking up this morning,</strong> it hit that I may never go to Hong Kong again.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">For the past week,</strong> I’ve been researching and analyzing the new Hong Kong National Security Law’s impact on Hong Kong and its citizens.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">But now I realize</strong> that in fact the law has an impact on me and maybe you.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Article 38</strong> of the law states:'</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">“This Law</strong> shall apply to offences under this Law committed against the Hong Kong Special Administrative Region from outside the Region by a person who is not a permanent resident of the Region.”</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘I know of no reason</strong> not to think it means what it appears to say:&nbsp;<em style="font-style: italic">it is asserting extraterritorial jurisdiction over every person on the planet,’ </em>writes Donald Clarke of George Washington University Law School.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">As for what things could get you [me] in trouble: </strong>'I don’t think there’s a lot to be said about these, because the general idea is clear: don’t do anything that will annoy the Chinese Party-state.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Anything can be stretched</strong> as necessary to cover something done by the person being targeted.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘As the old cliché goes,</strong> 欲加之罪何患无辞 (roughly, “if you are determined to convict, you needn’t worry about the lack of grounds”).’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘My short take</strong>: <strong style="font-weight: bold">‘If you’ve ever said anything</strong> that might offend the PRC or Hong Kong authorities, stay out of Hong Kong,’ Professor Clarke writes.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">I wonder if a lifetime</strong> of advocating for Taiwan self-determination would count?</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">My short take: I may never go to Hong Kong again </strong>– especially if I keep publishing the China Macro Reporter.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Today’s issue</strong> is all about the National Security Law.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">I have read</strong> so many editorials and op-eds, think tank analyses, and popular pundits’ takes on the subject.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">And they all say </strong>about the same thing: the people of Hong Kong are screwed and maybe Hong Kong as a business and financial center itself is too. Got it.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">So today I’ve highlighted</strong> instead some of the ways the law is bad and disconcerting.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">You’ve just seen</strong> Article 38. But wait there’s more.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">&nbsp;</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">1. ‘Hong Kong Will Be Punished’</strong></span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">To set the mood, </strong>we begin with a few comments from Diana Choyleva of Enodo Economics:</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Not only is Hong Kong</strong> going to become just another Chinese city, but because of its rebellion, the Communist Party views it as a cancer cell that must be eradicated and incised and not allowed to split.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘So they will be vindictive</strong> towards Hong Kong.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Hong Kong</strong> really is going to be punished for what it did.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">As you go deeper</strong> into the National Security Law, you see that the stage has been set for that punishment.</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">&nbsp;</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">2. ‘Gestapo-level Stuff’</strong></span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘China’s totalitarians</strong> call their new instrument for suffocating Hong Kong the&nbsp;Commission for Safeguarding National Security,’ writes George Will, right-leaning columnist for The Washington Post and public intellectual.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">The Commission’s blunt instrument</strong> is the ‘Office for Safeguarding National Security.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">And </strong>it is scary.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">The law provides that:</strong></p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><em style="font-style: italic"><strong style="font-weight: bold">‘In the course of performing duty,</strong></em><em style="font-style: italic"> a holder of an identification document or a document of certification issued by the Office and the articles including vehicles used by the holder shall not be subject to inspection, search or detention by law enforcement officers of the Region.’</em></li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘In other words,</strong> they are untouchable under Hong Kong law,’ writes Professor Clarke.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘This is real</strong> Gestapo-level stuff.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And here’s the kicker:</strong> it would seem&nbsp;they are untouchable under mainland law as well.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Suppose one such officer</strong> commits a deliberate homicide “in the course of duty.” ’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Not liable</strong> under Hong Kong law.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Well,</strong> what about the Criminal Law of the PRC? ‘</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Unfortunately,</strong> the only PRC laws applicable in Hong Kong are those listed in Annex III to the Basic Law, and the Criminal Law is not listed there.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Incredible.</strong> It seems that officials of the Office for Safeguarding National Security can move around Hong Kong in their own little lawless bubble.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">&nbsp;</strong></span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">3. 'Hong Kong’s National Security Law: a first look.’</strong></span></p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">To repeat:</strong> ‘The general idea is clear: don’t do anything that will annoy the Chinese Party-state.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">&nbsp;</strong></span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">4. ‘Should You Ever Go to Hong Kong Again?’</strong></span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">To repeat</strong>: ‘If you’ve ever said anything that might offend the PRC or Hong Kong authorities, stay out of Hong Kong.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">&nbsp;</p><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">Go deeper into these issues - Browse the posts below.</strong></h2><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">To read the original article, click the title.</strong></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Let me know what you think. </strong>And please forward the <strong style="font-weight: bold">China Macro Reporter</strong> to your friends and colleagues.</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">All the best,</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Malcolm</strong>&nbsp;</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">1. Hong Kong Will Be Punished</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/8l8G7k?track_p_id=bQqTZoyIC2227ePfcU_HBF5" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/Q7K3LvBpUHwYzkoXdXm2WUi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/8l8G7k?track_p_id=07ePfcU_WiEoncSJxlARcak" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'The Way We Know Hong Kong Is Gone.'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px;"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding: 0 12% 20px 12%;"><tbody><tr><td style="padding: 0 15% 20px 15%;"><img width="100%" src="https://img.scoop.it/RNrqJ_JGyjwCeZ2TZKawqTl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/8l8G7k?track_p_id=9my6LAmV527ePfcU_fplCkI" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/Q_qqiskQNf8iGvLYEgWWk0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/8l8G7k?track_p_id=6tYfTiV7ePfcU_zJWdNYpEP" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">"The Way We Know Hong Kong Is Gone"</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: left;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Bloomberg</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Diana Choyleva</strong> | Enodo Economics</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">‘Hong Kong is going to be punished for what it did.’</strong></h2><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><a href="https://www.bloomberg.com/news/videos/2020-07-02/the-way-we-know-hong-kong-is-gone-says-enodo-economics-choyleva-video" rel="nofollow"><strong style="font-weight: bold">Watch</strong></a> Diana’s video interview</h3><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Hong Kong is gone.</strong> The way we know Hong Kong is gone.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The multinationals</strong> based in Hong Kong has to realize here is that not only is Hong Kong going to become just another Chinese city,’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘but because of its rebellion,</strong> the Communist Party views it as a cancer cell that must be eradicated and incised and not allowed to split.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘So they will be vindictive</strong> towards Hong Kong.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">'Hong Kong</strong> will not get preferential status.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘In my conversations with clients,</strong> I hear some of them saying, “Oh, well, we have to have a presence in China. We might as well stay in Hong Kong.” ’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">'Well,</strong> it's not actually going to be that way.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Hong Kong</strong> really is going to be punished for what it did.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">2. 'Gestapo-level Stuff'</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/93IaRs?track_p_id=9f2fb2LlN38f4LXC_1Od55Z" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/R2honJU3MXkzC1EUKtMivki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/93IaRs?track_p_id=eNIEOzomUeVg5Jc8f4LXC_D" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'China extends its reign of random fear'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/hLWrCdPcfOZEiPoD_9haKzl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/93IaRs?track_p_id=5MjwSq8f4LXC_23kiBAbXao" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Opinion | China extends its reign of random fear - The</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: left;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">The Washington Post</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">George Will</strong> | The Washington Post</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">‘The new law mocks the rule of law.’</strong></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The French revolutionaries’</strong> instrument for administering the&nbsp;<a href="https://www.britannica.com/event/Reign-of-Terror" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">1793-1794 Reign of Terror</a>&nbsp;was the Committee of Public Safety.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Today,</strong> China’s totalitarians, displaying either ignorance of this unsavory history, or arrogance in flaunting their emulation of it, call their new instrument for suffocating Hong Kong the&nbsp;<a href="https://www.washingtonpost.com/world/asia_pacific/china-enacts-hong-kong-security-law-escalating-confrontation-with-us/2020/06/29/59ad568c-b9bb-11ea-97c1-6cf116ffe26c_story.html?itid=lk_inline_manual_1" rel="nofollow">Commission for Safeguarding National Security</a>.’<strong style="font-weight: bold"> [see Prof Clarke's analysis below]</strong></li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Yet again,</strong> actual tyranny is imposed in the supposed service of safety.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Acting as communists do, </strong>the leaders of China’s Communist Party, which is the bone and sinew of that nation’s Leninist party-state, have, less than halfway through their commitment, shredded the&nbsp;<a href="https://www.washingtonpost.com/world/asia_pacific/china-signals-plan-to-take-full-control-of-hong-kong-realigning-citys-status/2020/05/21/2c3850ee-9b48-11ea-ad79-eef7cd734641_story.html?itid=lk_inline_manual_3" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">agreement</a>&nbsp;to respect Hong Kong’s autonomy until 2047.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The new law mocks the rule of law,</strong> which requires sufficient specificity to give those subject to the law due notice of what is proscribed or prohibited.'</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The new law</strong>&nbsp;<a href="https://www.aljazeera.com/news/2020/07/china-national-security-law-hong-kong-200701024705923.html" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">stipulates&nbsp;</a>four major offenses: separatism, subversion, terrorism and collusion with foreign governments.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘These will be defined post facto,</strong> in capricious enforcements against those whose speech is not chilled by the law’s menacing vagueness.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Modern technologies of communication</strong> enable the world to watch darkness descend on one of the world’s most vibrant metropolises.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Modern technologies of surveillance</strong> enable Beijing to refine a deep, penetrating oppression beyond what Winston Churchill could have imagined when he&nbsp;<a href="https://winstonchurchill.org/resources/speeches/1940-the-finest-hour/their-finest-hour/" rel="nofollow">warned&nbsp;</a>that Nazism’s triumph would mean the world would “sink into the abyss of a new Dark Age made more sinister, and perhaps more protracted, by the lights of perverted science.” ’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘China’s faux law,</strong> which echoes Stalin’s use of randomness to intensify fear, serves two purposes:’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘It smashes Hong Kong dissent</strong> — Leninism brooks no challenge to the party’s supremacy.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And it distracts attention from reports</strong> that Beijing is pioneering a sinister fusionism that melds Leninism and Stalinism with an ethno-nationalism reminiscent of fascism.'</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Beijing should remember this:</strong> France’s Committee of Public Safety was&nbsp;<a href="https://en.wikipedia.org/wiki/Committee_of_Public_Safety#:~:text=The%20Committee%20of%20Public%20Safety,phase%20of%20the%20French%20Revolution." rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">created&nbsp;</a>in April 1793.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;">‘<a href="https://www.britannica.com/biography/Maximilien-Robespierre/The-Committee-of-Public-Safety-and-the-Reign-of-Terror" rel="nofollow"><strong style="font-weight: bold">Maximilien Robespierre</strong></a><strong style="font-weight: bold">,</strong> who prefigured Lenin, joined it on July 27.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘One year and a day later,</strong> devoured by forces he had fomented, he was guillotined in Paris’s Place de la Révolution, now called Place de la Concorde.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Beijing’s totalitarians,</strong> who have murderous French precursors, may one day have a similarly disagreeable rendezvous with their handiwork.'</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="height:40px; font-size:0; background-color:#f6f6f6;">&nbsp;                </td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/9LSum0?track_p_id=43xQ593litq_reZrq55lCiA" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/rSuYzsxAw2qUI-9QPE5uBki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/9LSum0?track_p_id=bSPK2tfG1%40%40p93litq_dbyC" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">Office for Safeguarding National Security</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/gUNi_Ya8zd5SUJhi6Qvnhjl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/9LSum0?track_p_id=dZzlWlNVzfcfRl93litq_Uv" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/gyj3NYuDPOWNXm40oid_D0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/9LSum0?track_p_id=8WatK25uf93litq_H3ahkR6" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Office for Safeguarding National Security</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: left;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">The China Collection</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Donald Clarke </strong>| George Washington University Law School</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">‘This is real Gestapo-level stuff.’</strong></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Article 48 is very important.</strong> It provides for the establishment within the territory of Hong Kong of a special Office for Safeguarding National Security.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Let’s take a closer look</strong> at the powers of the Office and its personnel.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">'Here we see</strong> something really remarkable.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘First,</strong> Article 57 states that with respect to measures undertaken according to law (this is not a meaningful qualifier) by the Office, relevant organs, organizations, and individuals must obey. Whatever the Office says, you must do.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Second,</strong> here’s Article 60. Look closely:’                      <ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><em style="font-style: italic"><strong style="font-weight: bold">‘The acts performed</strong></em><em style="font-style: italic"> in the course of duty by the Office for Safeguarding National Security of the Central People’s Government in the Hong Kong Special Administrative Region and its staff in accordance with this Law shall not be subject to the jurisdiction of the Hong Kong Special Administrative Region.’</em></li><li style="margin-top: 0.5em;margin-bottom: 0em;"><em style="font-style: italic"><strong style="font-weight: bold">‘In the course of performing duty,</strong></em><em style="font-style: italic"> a holder of an identification document or a document of certification issued by the Office and the articles including vehicles used by the holder shall not be subject to inspection, search or detention by law enforcement officers of the Region.’</em></li></ul></li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘In other words,</strong> they are untouchable under Hong Kong law.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘This is real</strong> Gestapo-level stuff.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And here’s the kicker:</strong> it would seem&nbsp;<em style="font-style: italic">they are untouchable under mainland law as well</em>.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Suppose one such officer</strong> commits a deliberate homicide “in the course of duty.” ’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Not liable</strong> under Hong Kong law.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Well,</strong> what about the Criminal Law of the PRC? ‘</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Unfortunately,</strong> the only PRC laws applicable in Hong Kong are those listed in Annex III to the Basic Law, and the Criminal Law is not listed there.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Incredible.</strong> It seems that officials of the Office for Safeguarding National Security can move around Hong Kong in their own little lawless bubble.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">3. 'Hong Kong’s National Security Law: a first look'</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/4y6OQK?track_p_id=2qz93U7lm_3iIwJYflfxg6y" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/rSuYzsxAw2qUI-9QPE5uBki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/4y6OQK?track_p_id=6HHCeRw93U7lm_xL6iGzTYG" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank"> “If you are determined to convict, you needn’t worry about the lack of grounds”</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/dUhNq6TNY_SmfIoEDxZ0QTl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/4y6OQK?track_p_id=093U7lm_33vWpewNAbaEGdy" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/gyj3NYuDPOWNXm40oid_D0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/4y6OQK?track_p_id=4jpeV93U7lm_sDRpAjRGsSx" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Hong Kong's National Security Law: a first look</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: left;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">The China Collection</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Donald Clarke </strong>| George Washington University Law School</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">‘As the old cliché goes, 欲加之罪何患无辞 (roughly, “if you are determined to convict, you needn’t worry about the lack of grounds”).’</strong></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘An important point:</strong> I’m not going to talk much about the substantive offenses and their definitions in Hong Kong’s National Security Law.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">'I don’t think</strong> there’s a lot to be said about these, because the general idea is clear: don’t do anything that will annoy the Chinese Party-state.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The details</strong> are not that important, and most of the offenses will be familiar to those who are familiar with Chinese criminal law.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘If mainland practice</strong> to date is any guide—and it is—then the definitions don’t matter that much.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Anything can be stretched</strong> as necessary to cover something done by the person being targeted.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘As the old cliché goes,</strong> 欲加之罪何患无辞 (roughly, “if you are determined to convict, you needn’t worry about the lack of grounds”).’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The key is in the institutions</strong> and procedures the law establishes and empowers.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Who has power to do what?</strong> What are the procedures under which they operate? Who appoints and pays for them? To whom are they responsible? Etc.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘So it’s not the substantive crimes</strong> and their definitions that count; it’s the institutions that will investigate, prosecute, and judge them that count.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Language matters</strong> only if there are institutions that will make it matter.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘This whole law</strong> is about avoiding the involvement of such institutions.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">4. Should you ever go to Hong Kong again?</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/5GGikS?track_p_id=5L2TiX6ld5W2_sqx6EHj3HF" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/rSuYzsxAw2qUI-9QPE5uBki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/5GGikS?track_p_id=6Z61Yi16ld5W2_scRfSxNSa" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">Hong Kong's National Security Law: how dangerous is Article 38?</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/X4AIxRHhTh6IvxnNjf4tGDl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/5GGikS?track_p_id=3gjc6ld5W2_TKAF4KgVCdHs" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/2Cuq5jEGrmp3Y9MvKtY3OUi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/5GGikS?track_p_id=eHADcXEzyN%40NVS56ld5W2_n" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Hong Kong's National Security Law: how dangerous is Article 38?</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: left;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">The China Collection</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Donald Clarke </strong>| George Washington University Law School</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">‘My short take: If you’ve ever said anything that might offend the PRC or Hong Kong authorities, stay out of Hong Kong.’</strong></h2><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Note: </strong>the following combines points made in <a href="https://thechinacollection.org/hong-kongs-national-security-law-first-look/" rel="nofollow">‘Hong Kong’s National Security Law: a first look’</a>&amp; <a href="https://thechinacollection.org/hong-kongs-national-security-law-dangerous-article-38/" rel="nofollow">‘Hong Kong’s National Security Law: how dangerous is Article 38?’</a></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><br></h3><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Many people</strong> who live outside of mainland China and Hong Kong and who have been critical of the Chinese Party-state are wondering about their safety in the wake of Hong Kong’s National Security Law’s (the “NSL” or the “Law”) Article 38, which states:'</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">“This Law</strong> shall apply to offences under this Law committed against the Hong Kong Special Administrative Region from outside the Region by a person who is not a permanent resident of the Region.”</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘I know of no reason</strong> not to think it means what it appears to say:&nbsp;<em style="font-style: italic">it is asserting extraterritorial jurisdiction over every person on the planet.’</em></li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Thus, it is clear</strong> that an act that would violate the NSL if committed in Hong Kong will also violate it, and subject the actor to potential liability, if committed outside Hong Kong, even if the actor is not a Hong Kong resident or PRC citizen and has absolutely no connection with either Hong Kong or the PRC more broadly.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Remarkably,</strong> this provision gives the Law an even broader reach than mainland criminal law.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Under mainland criminal law,</strong> a foreigner is not liable for an act that’s a crime under the law unless “(a) the act is punishable by a minimum of three years’ imprisonment,&nbsp;<em style="font-style: italic">and</em>(b) the act is a crime in the state where it is committed.” ’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><em style="font-style: italic"><strong style="font-weight: bold">‘The Nat Sec Law has no such limitation.’</strong></em>&nbsp;</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Suppose a US newspaper columnist</strong> advocates Tibetan independence in their column.’&nbsp;</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘They are not liable</strong> under mainland criminal law.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘But they are liable</strong> under the Nat Sec Law.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘With a law as sweeping</strong> as this in its text, the reality could hardly be worse.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘But lest anything think</strong> the above understanding is an exaggeration, I would note that despite some three days of this kind of commentary on Article 38, no PRC or Hong Kong government spokespersons have to my knowledge yet come forth to pooh-pooh this understanding as a hysterical over-reaction.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘It would seem</strong> that doing so would undermine the purpose of Article 38, which is to put the fear of God into all China critics the world over.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Now we get to the key question:</strong> do critics of the Party-state need to fear extradition to Hong Kong?’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘It is easier</strong> for the Hong Kong authorities to allege a crime under the NSL than it is for the PRC authorities to allege a crime under the PRC Criminal Law, because as noted above the NSL does not contain the limitations on jurisdiction we see in the PRC Criminal Law.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And allegations</strong> are all that are needed in extradition proceedings.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘However, the other barriers</strong> in the way of extradition still exist, and those strike me as for more important than the authorities’ modestly greater ease in alleging that the elements of a crime have been made out.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘If you would not get extradited</strong> (legally or illegally) to mainland China now for some act, I think it’s very unlikely you would get extradited to Hong Kong for the same kind of act.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘My short take</strong>: <strong style="font-weight: bold">‘If you’ve ever said anything</strong> that might offend the PRC or Hong Kong authorities, stay out of Hong Kong.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div></td></tr></tbody></table>

<table cellpadding="0" cellspacing="0" width="100%" style="background-color:#f5f5f5; text-align:center; overflow:hidden"><tbody><tr><td style="max-width:600px"><div><link href="https://fonts.googleapis.com/css2?family=Merriweather:wght@900&amp;display=swap" rel="stylesheet"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; background-color:#fff;"><tbody><tr><td style="padding:3.5%; text-align:left; font-weight:700; font-style: normal; font-variant: normal; line-height: 20px;"><span style="font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 17px; color: #c80000;">CHINA</span><span style="font-family: 'Merriweather', serif; font-size: 15.5px; color: #001544;">Debate</span></td><td style="padding:3.5%; text-align:right; font-weight:normal; font-size: 14px; font-style: normal; font-variant: normal;color: #001544; font-family: 'Helvetica Neue', Helvetica, Arial, sans-serif;"></td></tr></tbody></table><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; background:#fff"><tbody><tr><td style="padding:3.5%; text-align:center;"><a style="border-bottom:none; text-decoration:none;" href="https://www.chinadebate.com/china-macro-reporter/archive" target="_blank"><img style="width:70px; border-radius:3%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19);" src="https://assets-global.website-files.com/5a3e922cf6b9a40001bc2d6b/5e3dbbf161e6c357b022bea5_China%20Macro%20Reporter%20.png" alt="China_Macro_Reporter"></a></td></tr><tr><td style="text-align:center; font-size: 27px; font-family: gorditamedium, sans-serif; color:#001544; font-weight:bold; letter-spacing: -0.5px; line-height: 1;">China Macro Reporter</td></tr><tr><td style="text-align:center; line-height:1.5; padding-bottom:35px; padding-top:10px; font-size: 13px; color:#001544; font-family:'gordita', sans-serif;">By Malcolm Riddell<span style="margin:0 6px">·</span>July 1, 2020</td></tr><tr><td style="text-align:center; line-height:1.5; display:block; max-width:480px; margin:0 auto; padding:7px 0; font-size: 1.175em; font-family: Georgia, serif; color:#c80000; font-weight:normal; letter-spacing: -0.5px; border-bottom:2px solid #c80000;">Opening Statement</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/645J0i?track_p_id=65EeLv18jPpSo_l2oelWlVz" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/4x73lYAycA6tlG4fEtV_j0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/645J0i?track_p_id=dSetQKeCahXaqA8jPpSo_wl" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">“Today Hong Kong, Tomorrow Taiwan”</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/645J0i?track_p_id=dDZ%40RSgbeFoWtf8jPpSo_2V" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/4fU93yk3JTPjl8GKxIiDo0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/645J0i?track_p_id=dVYhlTcjFUlwoX8jPpSo_ou" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">“Today Hong Kong, Tomorrow Taiwan”</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h1 style="display: inline-block;font-size: 1.35em;margin-top: 0em;margin-bottom: 0em;margin-left: 0;margin-right: 0;line-height: 1.35em;font-weight: normal;font-family: gorditamedium, sans-serif;color: #001544;letter-spacing: -0.1px;"><strong style="font-weight: bold">Greetings!</strong></h1><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">In today’s issue:</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">1. 'Hong Kong makes first arrests under China’s new national security law.'</strong></span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">The day came</strong> a little sooner than we thought, but it came.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘IF CHINA’S RULERS</strong> hoped the new national-security law they have imposed on Hong Kong late on June 30th would immediately cow its critics there into silence, they have been proved wrong,’ writes The Economist.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Protests to mark July 1st,</strong> the anniversary of the handover of the territory from British to Chinese sovereignty in 1997, defied both the law and a ban this year on what has become an annual event.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘So the first arrests</strong> under the law came almost at once.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Now the question</strong> is what do the democracies do now? As is often the case, Bill Bishop of Sinocism has a great analysis:</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The US runs the risk</strong> of having made a big deal about this law and then issuing a weak response that imposes relatively little cost on Beijing.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘I believe</strong> that is what Xi is betting on, and certainly the utterances from other governments have been fairly milquetoast, or non-existent as in the case of most of the PRC’s neighbors.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">And he raises</strong> the issue most on my mind:</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The new Hong Kong law</strong> will likely bring much more attention to the question of what if anything the US and its allies should or can do to protect Taiwan.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">'Taiwan is the reddest</strong> of red lines for Xi and the CCP.'&nbsp;</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">'How much longer</strong> can the status quo between Taiwan and the PRC, and the status quo between the PRC and the US over Taiwan, hold?'</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Also, have a look</strong> at ‘How China Scammed Hong Kong’ by Yi-Zheng Lian.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The Chinese government today</strong> isn’t violating the Basic Law, neither in letter nor in spirit, so much as connecting different dots in it.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And&nbsp;</strong><em style="font-style: italic"><strong style="font-weight: bold">that&nbsp;</strong></em><strong style="font-weight: bold">is the true horror</strong> lurking behind its original concessions.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">&nbsp;</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">2. “Today Hong Kong, Tomorrow Taiwan”</strong></span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">A popular slogan in Taiwan,</strong> it captures the geopolitical implications of China’s new security law in Hong Kong.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Because as sad the move </strong>is for the people of Hong Kong, it is of a piece with Chinese new assertiveness in the region.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">And many fear that China </strong>could miscalculate U.S. will and power and invade Taiwan.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">What should the U.S. do?</strong></p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Highlighted here</strong> are three views on U.S. policy toward Taiwan.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">1. Defer: ‘The risks of a conflict over Taiwan</strong> escalating out of control are very great,’ says Chas Freeman.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘This needs to be approached</strong> with respect for the political achievements of people in Taiwan, but with due regard for American interests, which must come first.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And those interests</strong> dictate peace, stability, and no war with China.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The price of that interest</strong> is deference to Beijing on the issue.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">2. Confront: ‘Xi’s increasing pressure</strong> and suppression of Hong Kong and related messaging appears intended in part to intimidate Taiwan,’ write Gabe Collins and Andrew Erickson.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Washington should reject</strong> such pressure on Taipei, and instead link it to both ensured and judiciously increased support for Taipei in a carefully calibrated manner.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">3. Ignore: ‘Doubts have emerged</strong> about President Trump’s personal commitment to Taiwan, especially as he tries to hold together a trade deal with China. In his new memoir, John R. Bolton, Mr. Trump’s former national security adviser, said:’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">“One of Trump’s favorite comparisons</strong> was to point to the tip of one of his Sharpies and say, ‘This is Taiwan.’ ”</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">“Then point</strong> to the Resolute desk and say, ‘This is China’ ”</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">“So much for American commitments</strong> and obligations to another democratic ally.” ’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">My Take: </strong>Chas Freeman says, ‘This is a classic contest between ideology and interest, between the value of the word of the U.S., which affirmed that Taiwan was part of China on several occasions, and our ideological druthers.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">Since we made those commitments</strong> to China in the 1970s, China has not developed into the benign ‘global steward’ that policymakers had hoped for.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">And Taiwan</strong> has – unexpectedly - become a thriving democracy, one filled with people who do not want to be part of China.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Given these changes</strong> the U.S. should reexamine its agreements with China regarding Taiwan.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">And renegotiate</strong> according to policies best suited to our times.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">For my part, </strong>I would hope that that reexamination leads to an affirmation of our support for Taiwan.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">And an unambiguous warning</strong> that we will defend Taiwan against an unprovoked Chinese invasion.</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><br></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">3. A Look Back to 1955: &nbsp;'United States Foreign Policy and Formosa'</strong></span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">As this essay from 1955,</strong> Formosa (we now say Taiwan) has been a U.S. policy headache since the Kuomintang escaped there in 1949 after the Chinese Communists defeated them.</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">But at least the</strong> option of nuking China, which the author discusses, seems to be off the table.</li></ul><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">Go deeper into these issues - Browse the posts below.</strong></h2><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">To read the original article, click the title.</strong></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Let me know what you think. </strong>And please forward the <strong style="font-weight: bold">China Macro Reporter</strong> to your friends and colleagues.</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">All the best,</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Malcolm</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/6nChXs?track_p_id=6DdYWL69KSkzG_UvTvjwdZY" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/JQGXP95HYy5hVTjw-HmldUi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/6nChXs?track_p_id=8f3n4xeTZ9KSkzG_PYMemOb" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Opinion | How China Scammed Hong Kong - The New York Times</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">1. 'Hong Kong makes first arrests under China’s new national security law.'</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/75N1s0?track_p_id=avGrspZOj%40g6PvsGE_pnw3v" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/3QKIJ28TXRxlm_PNLipujEi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/75N1s0?track_p_id=aKTzg3HHWOX6PvsGE_t%40FIS" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">Happy Anniversary, Hong Kong</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/75N1s0?track_p_id=4Wahv6PvsGE_Bhvh%40yRsbEr" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/JQGXP95HYy5hVTjw-HmldUi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/75N1s0?track_p_id=aZ3ulBmstuB6PvsGE_3Zs%40Y" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Happy Anniversary</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">The New York Times</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Yi-Zheng Lian</strong> | New York Times</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">Happy Anniversary, Hong Kong</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘China chose</strong> the eve of July 1, a triple anniversary — of</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘the birth</strong> of the Chinese Communist Party (1921),’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘the handover</strong> of Hong Kong from Britain to China (1997) and</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">a break-in</strong> of the city’s legislature by pro-democracy activists (2019) —'</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘to pass</strong> a draconian national security law that will forever harm Hong Kong’s political freedoms and hobble its economic relations with the rest of the world.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="height:40px; font-size:0; background-color:#f6f6f6;">&nbsp;                        </td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7NXMC8?track_p_id=26d9IG5gE_hL1R6LqYd5Wp4" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/_WMiBTDcNqqcPnQt-JHFGUi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/7NXMC8?track_p_id=129IG5gE_X5f2ToWpPntZzE" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'Unhappy birthday - Hong Kong begins life under a new Chinese national-security law'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/gu3tTDez61r8TAmIir3-aDl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/7NXMC8?track_p_id=4BwYN9IG5gE_2pE6sOuHx2d" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/OkLf1Mlc3kyAoiBVHN6lXki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/7NXMC8?track_p_id=09IG5gE_iTpPwIMBHUerGgT" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Unhappy birthday - Hong Kong begins life under a new Chinese national-security law | China</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">The Economist</strong></h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">“Kill a few chickens to frighten the monkeys.”</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘IF CHINA’S RULERS</strong> hoped the new national-security law they have imposed on Hong Kong late on June 30th would immediately cow its critics there into silence, they have been proved wrong.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Protests to mark July 1st,</strong> the anniversary of the handover of the territory from British to Chinese sovereignty in 1997, defied both the law and a ban this year on what has become an annual event.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘So the first arrests</strong> under the law came almost at once.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘By the evening</strong> hundreds of people had been detained.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Police carried banners</strong> warning the law would be enforced.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘They also deployed</strong> water-cannon, tear-gas and pepper-spray.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Even before the law was enacted</strong> it had affected Hong Kong’s internal politics and international relations.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘On June 30th,</strong> Joshua Wong [see his Tweet above], a leading activist, and his young colleagues from Demosisto, a small pro-democracy party, announced it was disbanding.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Mr Wong promised on Facebook</strong> to keep up his advocacy work as an individual: “I will continue to defend my home—Hong Kong—until they silence, obliterate me from this piece of land.” ’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘His apocalyptic tone</strong> captured the fears of other anti-China protesters.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Three small groups</strong> that have campaigned for Hong Kong’s independence also dissolved themselves.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘A senior adviser in Hong Kong</strong> to the central government, Lau Siu-kai, says the aim of the law is to:’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘ “Kill a few chickens to frighten the monkeys”</strong>—to deter people with a few high-profile sentencings rather than carry out sweeping arrests.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘That is just how the party</strong> likes to crush dissent on the mainland.'</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘That echoes the official line</strong> that Hong Kong has just a small number of “troublemakers”.'</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="height:40px; font-size:0; background-color:#f6f6f6;">&nbsp;                        </td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7fhgWG?track_p_id=aBAJLpYZ3k37ZWuly_PmpzJ" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/3QKIJ28TXRxlm_PNLipujEi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/7fhgWG?track_p_id=07ZWuly_xJthFu5JH6P%40RKP" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'How China Scammed Hong Kong'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/7fhgWG?track_p_id=2GZ7ZWuly_UfU%40BN5gTXc5F" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/3QKIJ28TXRxlm_PNLipujEi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/7fhgWG?track_p_id=2Hh7ZWuly_EvPg3%402npIvYb" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">How China Scammed Hong Kong</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">New York Times</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Yi-Zheng Lian </strong>| New York Times</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">‘The Chinese government today isn’t violating the Basic Law, neither in letter nor in spirit, so much as connecting different dots in it. And&nbsp;that&nbsp;is the true horror lurking behind its original concessions.’</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Many seem to have looked upon</strong> the first 15 years or so after Britain handed over Hong Kong to China in 1997 as the golden age of the city’s semi-autonomy.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘They endorsed</strong> the “one country, two systems” principle that was put forward by the Chinese leader Deng Xiaoping in the 1980s — and enshrined in the&nbsp;<a href="https://www.basiclaw.gov.hk/en/basiclawtext/images/basiclaw_full_text_en.pdf" rel="nofollow">Basic Law</a>, Hong Kong’s mini-constitution — as a benign concept that would protect the city.'</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘In their view,</strong> President Xi Jinping of China has recently reversed, even betrayed, Deng’s blueprint for Hong Kong.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘But this is faulty thinking.’</strong></p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And it would be simplistic,</strong> as well as ultimately dangerous, to think that China has been acting in bad faith only under Mr. Xi today.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">Deng hardly</strong> was a man of concessions.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘During the late 1980s,</strong> while China was relatively weak, he repeatedly advised acting meek and biding one’s time.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Yet even during negotiations</strong> with Britain about the status of Hong Kong, it was he who insisted that Chinese soldiers should be stationed in Hong Kong after 1997, over the advice of some of his top officials.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And it was Deng&nbsp;</strong><a href="https://www.nytimes.com/2019/05/30/world/asia/china-tiananmen-crackdown.html" rel="nofollow">who ordered tanks into Tiananmen Square</a>&nbsp;in 1989 to mow down peaceful demonstrators by the hundreds.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Mr. Xi today</strong> isn’t betraying Deng’s vision for Hong Kong back then:’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘He is only dutifully</strong> carrying that vision forward to what is, some three decades later, its natural, logical culmination.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The Basic Law,</strong> which was designed in the late 1980s and adopted in 1990, is an inherently cynical document.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘It was instrumental</strong> in ensuring the smooth transfer of sovereignty from Britain in 1997 because it seemed to contain generous guarantees from China, in particular provisions that safeguarded Hong Kongers’ fundamental political liberties and promised to give them more democratic rights in the future.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘But many observers</strong> and major political actors in Hong Kong — including some who helped draft the Basic Law — have consistently overrated its apparent assurances, while overlooking the fact that many of those come with sleeper clauses or caveats [read about them in the full article] that can override them.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The Chinese government today</strong> isn’t violating the Basic Law, neither in letter nor in spirit, so much as connecting different dots in it.'</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">'And&nbsp;</strong><em style="font-style: italic"><strong style="font-weight: bold">that&nbsp;</strong></em><strong style="font-weight: bold">is the true horror</strong> lurking behind its original concessions.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘In the 1980s,</strong> when people in Hong Kong were worried about their post-1997 future, the Chinese government played up the concessionary parts of the Basic Law.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘That was the first,</strong> the good-looking, stage in a two-stage plan to absorb the city into the mainland’s universe.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The inevitable second stage</strong> is unfolding today.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Now that Hong Kong</strong> is under the watchful eye of both Chinese soldiers garrisoned in the city and their newly loyal local cousins — the increasingly violent and politicized Hong Kong police force — Beijing is activating the sleeper clauses of the Basic Law to feather the deathbed of the city’s autonomy.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Politicians and thought leaders</strong> in Western countries, as well as older members of Hong Kong’s pro-democracy movement, are only beginning to realize — if they are at all — that for three decades or more they have been reading the Basic Law, and China itself, wrong.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="height:40px; font-size:0; background-color:#f6f6f6;">&nbsp;                        </td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/7xs0qO?track_p_id=2qp8loe7S_yZFezoUsg6xWG" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/mSKpZDA7T21BMMaFwefwGEi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/7xs0qO?track_p_id=dVKo4OxDVL5Owk8loe7S_Ke" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'Hong Kong National Security Law is in effect.'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/ohyks5gnqKeE1nqHMuQLjzl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/7xs0qO?track_p_id=aTPtuhVDEOh8loe7S_l3lf6" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/m6v6DxmWiasHTv3CLy0ik0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/7xs0qO?track_p_id=aFZ6cekwbEZ8loe7S_aQrGd" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Hong Kong National Security Law is in effect; CCP turns 99; Gaokao - Sinocism</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Sinocism</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Bill Bishop</strong> | Sinocism</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">‘The US runs the risk of having made a big deal about this law and then issuing a weak response that imposes relatively little cost on Beijing.’</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The Hong Kong National Security law</strong> has been promulgated and is now in effect.’&nbsp;</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Xi and the CCP leadership</strong> were never going to back down from pushing through this law, no matter how much the Trump administration threatened.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Now the US</strong> is in a bit of a bind, as the measures threatened so far look like they harm Hong Kong citizens and US interests more than they impact Xi and the CCP.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Will the Trump administration blink,</strong> or will we see much more impactful moves like sanctions on major PRC financial institutions and senior Party/central government leaders and their family members?’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And will the US</strong> or any other Western governments do anything meaningful for Hong Kong residents?’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘I still stand</strong> by my comments from the&nbsp;<a href="http://email.substack1.sinocism.com/c/eJxNUMtuxCAM_JrllgjIo9kDh176GxEBJ0EhkGLTVfr1JbutVMnP0cgaj9EES0ynOiISywhpdFb14s6smox808zhOCeAXTuv2JEn74wmF8PFk2xVXWc6wc0ErWwnIwbL-7mdgYtBd7oRll2XR52tg2BAwRekMwZgXq1EB96a95v8KIEuRONwr03cy3qUDIepIFis1hiWartKxsqsLuiK3EZxY05JLjnvGy6FbLioRY32Wz6W-6fHW8sxT0jabAX-d58ltWtvot_r5KwF7wv1d6oIISxPVvl2LH3PwdE5QtCTB6soZWD0Muz5G50HqAAP9EAE6QVeLvJhkC0rEmws9gX1J-EHlzuDCg" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">May 28 newsletter</a>:’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The US runs the risk</strong> of having made a big deal about this law and then issuing a weak response that imposes relatively little cost on Beijing.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘I believe</strong> that is what Xi is betting on, and certainly the utterances from other governments have been fairly milquetoast, or non-existent as in the case of most of the PRC’s neighbors.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘For Xi and the CCP,</strong> Hong Kong political security and the territory’s place in the Motherland trump whatever increase in US-China friction may come.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘In the logic</strong> the two countries are now stuck in a harsh US response will only confirm to Xi and many in China that the US is hellbent on keeping China down, while a weak response from DC will add to the view already held by more than a few in Beijing that Trump and the US are paper tigers, as Mao liked to say, and Beijing can increasingly act with impunity.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘It is a toxic dynamic.’</strong></li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The new Hong Kong law</strong> will likely bring much more attention to the question of what if anything the US and its allies should or can do to protect Taiwan.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘There is no longer</strong> any reasonable prospect of “peaceful reunification” as the CCP calls it. Taiwan President Tsai tweeted a few hours ago:’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/L8OYZRgVctWBHRpd_Kqh4Dl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/8G2LAW?track_p_id=1r5YuEik_c3sMPWb5%40uvhfs" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/m6v6DxmWiasHTv3CLy0ik0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/8G2LAW?track_p_id=2wj5YuEik_YuDVQCn2yukYr" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Hong Kong National Security Law is in effect; CCP turns 99; Gaokao - Sinocism</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">'Taiwan is the reddest</strong> of red lines for Xi and the CCP.'&nbsp;</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">'It is also a democracy</strong> of nearly 24 million people that has won many more friends over the last few months with its stellar handling of the pandemic.'&nbsp;</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">'How much longer</strong> can the status quo between Taiwan and the PRC, and the status quo between the PRC and the US over Taiwan, hold?'</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div></td></tr><tr><td style="max-width:600px"><div></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">2. “Today Hong Kong, Tomorrow Taiwan!”</td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:0px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/JihMcoLC7-eNtssLrfEjQDl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/8YCfUe?track_p_id=2xD5bBniA_gWun6mcCJiW2m" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/3QKIJ28TXRxlm_PNLipujEi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/8YCfUe?track_p_id=93EVEAjuAp5bBniA_b3fWyz" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'As China Strengthens Grip on Hong Kong, Taiwan Sees a Threat'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px;"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/eZcXDwK8c8CPJMgMknX-_jl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr><tr><td style="text-align:center; display:block; padding:10px 3.5% 20px 3.5%; font-family: gorditamedium, sans-serif; color:#001544; letter-spacing: -0.1px; line-height:1.35em; border-bottom:0px solid #f5f5f5;background:#fff;"><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;">President Tsai Ing-wen of Taiwan, center, has repeatedly pledged to defend the island’s sovereignty against threats from China. Credit...Taiwan Presidential Office, via Associated Press</h3></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/8YCfUe?track_p_id=5tabNC5bBniA_UOPNUAzh5a" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/gbqnrQCkZM29mdUxDlBmhki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/8YCfUe?track_p_id=8xxdfqj4K5bBniA_H5Bjy2J" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">As China Strengthens Grip on Hong Kong, Taiwan Sees a Threat - The New York Times</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">The New York Times</strong></h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">‘The new security rules for Hong Kong has raised fears that China will move more aggressively to bring Taiwan, too, under its control.’</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘China’s leader, Xi Jinping,</strong> has long tried to convince Taiwan that unification was a historical inevitability, alternately enticing the democratic island with economic incentives while bluntly warning that any move toward formal independence would be answered with military force.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Now, the incentives are gone</strong> and the warnings seem more ominous following Mr. Xi’s swift move to strengthen China’s grip on Hong Kong, a semiautonomous territory that only last year&nbsp;<a href="https://www.nytimes.com/2019/01/01/world/asia/xi-jinping-taiwan-china.html" rel="nofollow">he held out as a model&nbsp;</a>for Taiwan’s future.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The new security rules</strong> for Hong Kong that China passed this week — without input from the city’s Beijing-backed leadership — have made Mr. Xi’s promise of autonomy under the “one country, two systems” framework seem hollow.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And it has raised fears</strong> that China will move more aggressively to bring Taiwan, too, under its control.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘ “Hong Kong has become less free,</strong> so our sense of fear has increased,” said Chen Po-wei, a Taiwanese lawmaker who supports independence.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;">‘ “Because of China’s nature, there is a high possibility of conflict.” ’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Mr. Xi,</strong> China’s most powerful leader in decades, has shown a penchant for&nbsp;<a href="https://www.nytimes.com/2020/05/24/world/asia/china-hong-kong-taiwan.html" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;">provocative actions</a>, especially lately, with the world distracted by the devastating spread of the coronavirus.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘In recent weeks,</strong> China has buzzed Taiwan’s territorial airspace almost daily.</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘It accused Taiwan’s president, Tsai Ing-wen,</strong> of carrying out a “<a href="http://www.gwytb.gov.cn/wyly/202006/t20200622_12282890.htm" rel="nofollow">separatist plot</a>” by speaking at an international democracy forum.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘It has warned</strong> the Taiwan government to stop providing shelter to Hong Kong political activists, who are flocking to what they call the last bastion of freedom in the Chinese-speaking world.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘ “Part of the game </strong>is making people in Taiwan feel helpless and trying to direct their frustration against leaders in Taipei,” said Matthew P. Funaiole, a senior fellow with the China Power Project at the Center for Strategic and International Studies.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Mr. Funaiole said Beijing</strong> was also looking at how the United States and other countries would respond.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘ “We’ve seen plenty of examples</strong> of China testing and prodding and doing just enough to stay below the threshold of eliciting a strong response from the U.S.,” he added.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The repeated pledges by Ms. Tsai</strong> to preserve the island’s sovereignty now set the stage for even greater tensions in the months ahead.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Mr. Xi’s attempts</strong> to rein in dissent in Hong Kong have only heightened a sense of crisis and galvanized pro-independence forces who have pressed Ms. Tsai to do more.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘ “We are very disappointed</strong> that China is not able to carry out its promises,” Ms. Tsai said on Tuesday after the Hong Kong security law was passed.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘ “It proves</strong> that ‘one country, two systems’ is not feasible.” ’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The possibility of a military conflict</strong> between China and Taiwan remains remote, experts say, because the costs for Beijing would be extraordinary, including significant casualties and damage to its international standing.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Yet the two sides</strong> are moving farther and farther apart, with little appetite for compromise.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘As always,</strong> Taiwan’s defense turns on the question of American support.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The United States</strong> is committed to providing help for Taiwan to defend itself, and the Trump administration has cleared the way for the sale of weapons to the island, including F-16 fighter jets.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Doubts have emerged</strong> about President Trump’s personal commitment to Taiwan, especially as he tries to hold together a trade deal with China. In his new memoir, John R. Bolton, Mr. Trump’s former national security adviser, said:’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">“One of Trump’s favorite comparisons</strong> was to point to the tip of one of his Sharpies and say, ‘This is Taiwan.’ ”</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">“Then point</strong> to the Resolute desk and say, ‘This is China’ ”</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">“So much for American commitments</strong> and obligations to another democratic ally.” ’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The lack of vocal support from Mr. Trump</strong> — who shortly after his election took a telephone call from Ms. Tsai, infuriating Beijing — has contributed to fears in Taiwan that China might be emboldened to take aggressive action.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="height:40px; font-size:0; background-color:#f6f6f6;">&nbsp;                        </td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/8qMzom?track_p_id=dhxZddZsVeiNAI7uwa5u_bO" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/hzpVC3f-tQtl7XtjIBz6pki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/8qMzom?track_p_id=07uwa5u_1xGxh4JGMDejcgV" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">Chas Freeman on U.S.-China-Taiwan Relations</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/GBwzcsysPXXduVewmtoCDTl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/8qMzom?track_p_id=6NmpasA7uwa5u_RYXO3kHHP" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/3u31A4drJ5u_Hg3m5KYEUki__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/8qMzom?track_p_id=6JFxvAC7uwa5u_NpO2U3cw6" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">Chas Freeman on Picking Fights the U.S. Can Win</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">The Wire China</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Chas Freeman</strong></h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">‘The risks of a conflict over Taiwan escalating out of control are very great.’</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><a href="https://chasfreeman.net/" rel="nofollow" style="color: #001544;text-decoration: none;border-bottom: 1px solid #008dc8;"><em style="font-style: italic"><strong style="font-weight: bold">Chas W. Freeman Jr.&nbsp;</strong></em></a><em style="font-style: italic">is one of the world’s foremost authorities on China, and served for years as one of America’s top diplomats.</em></p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><em style="font-style: italic"><strong style="font-weight: bold">&nbsp;He was President Richard Nixon’s </strong></em><em style="font-style: italic">principal interpreter on his historic 1972 trip to China.</em></li><li style="margin-top: 0.5em;margin-bottom: 0em;"><em style="font-style: italic"><strong style="font-weight: bold">Freeman</strong></em><em style="font-style: italic"> went on to be the charge d’affaires at the newly opened U.S. Embassy in Beijing, where he frequently interacted with Chinese leaders like Deng Xiaoping and Zhou Enlai.</em></li><li style="margin-top: 0.5em;margin-bottom: 0em;"><em style="font-style: italic"><strong style="font-weight: bold">He later served</strong></em><em style="font-style: italic"> as the U.S. Ambassador to Saudi Arabia during the Gulf War and Assistant Secretary of Defense for International Security Affairs.</em></li><li style="margin-top: 0.5em;margin-bottom: 0em;"><em style="font-style: italic"><strong style="font-weight: bold">Freeman </strong></em><em style="font-style: italic">is now a&nbsp;</em><a href="https://watson.brown.edu/people/fellows/freeman" rel="nofollow"><em style="font-style: italic">senior fellow at Brown University’s Watson Institute for International and Public Affairs</em></a><em style="font-style: italic">.</em></li></ul><p style="text-align: center;display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">_______________________________________________</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><br></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">Q:</strong></span><strong style="font-weight: bold"> ‘Why should the U.S. accept Beijing’s claim that Taiwan is a part of the People’s Republic?’&nbsp;&nbsp;</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">Chas Freeman: </strong></span><strong style="font-weight: bold">‘The Chinese Civil War</strong> did not come to a conclusion, because on June 27, 1950, the U.S. interposed the Seventh Fleet between the contending Chinese forces.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘So, the Chinese Civil War</strong> was suspended; it has not ended.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Our position from June 27, 1950,</strong> has been that we would like to see this resolved peacefully, rather than through the use of force.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘We oppose unilateral change</strong> imposed by either side; that’s our official position.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘In recent years,</strong> we have begun to drift more and more into open support of self-determination for Taiwan because it evolved into a democratic society.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘When I first lived there,</strong> it was totalitarian under Chiang Kai-shek, but it has become a robust democracy with a great deal of respect for civil and human rights.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And it is</strong> from that perspective ideologically admirable.’&nbsp;</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘This is a classic contest</strong> between ideology and interest, between the value of the word of the U.S., which affirmed that Taiwan was part of China on several occasions, and our ideological druthers.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘This is not a problem</strong> to be approached lightly.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘We are in fact,</strong> contesting the borders and the territorial integrity of a nuclear power.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘We never did</strong> that with the Soviet Union.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The risks of a conflict over Taiwan</strong> escalating out of control are very great.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘This needs to be approached</strong> with respect for the political achievements of people in Taiwan, but with due regard for American interests, which must come first.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And those interests</strong> dictate peace, stability, and no war with China.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The price of that interest</strong> is deference to Beijing on the issue.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘We have had diplomatic relations with Beijing</strong> since January 1, 1979, and have managed those in a way that actually facilitated the emergence of democracy in Taiwan where there was none.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘And we have not</strong> in any respect harmed Taiwan, except in terms of its obsession with face.’&nbsp;</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">Q: </strong></span><strong style="font-weight: bold">‘Are you worried that we might be heading towards armed conflict with China?’&nbsp;</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">Chas Freeman:</strong></span><strong style="font-weight: bold"> ‘Yes.</strong> We are in the process of violating, directly or indirectly, almost every assurance we’ve given the Chinese on the question of Taiwan:’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘the&nbsp;</strong><a href="https://history.state.gov/historicaldocuments/frus1969-76v17/d203" rel="nofollow"><strong style="font-weight: bold">Shanghai Communiqué&nbsp;</strong></a><strong style="font-weight: bold">in 1972,</strong> the&nbsp;<a href="https://photos.state.gov/libraries/ait-taiwan/171414/ait-pages/prc_e.pdf" rel="nofollow">normalization communiqué&nbsp;</a>of 1979, the&nbsp;<a href="https://history.state.gov/milestones/1981-1988/china-communique" rel="nofollow">arms sales agreement of 1982</a>.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘We are not in compliance</strong> with any of our assurances anymore, and the Chinese in response have begun to build a military capacity to devastate Taiwan.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘We no longer</strong> have the ability to block that but are talking and passing legislation as though we did.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘We are essentially leading with our chins,</strong> and we are dependent on the self-restraint of Beijing, rather than our own restraint, to keep the peace in the Taiwan Strait.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="height:40px; font-size:0; background-color:#f6f6f6;">&nbsp;                        </td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/8XMhFY?track_p_id=8z3zyvvHe9EvIty_2xXjeb3" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/tAhT8nTWlZ2I2FDjCkQDxEi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/8XMhFY?track_p_id=ca6Mx3otGnb3X9EvIty_6h3" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">'Policy Options to Impose Costs on Beijing’s Coercive Envelopment of Hong Kong'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/8XMhFY?track_p_id=bUmHNUfY31o59EvIty_svDO" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/tAhT8nTWlZ2I2FDjCkQDxEi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/8XMhFY?track_p_id=2i39EvIty_1ZSsJHafdSVod" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">“Policy Options to Impose Costs on Beijing’s Coercive Envelopment of Hong Kong: Version 1.0”&nbsp;</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">China SignPost</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Gabe Collins</strong> | Baker Institute for Public Policy</h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Andrew Erickson</strong> | Naval War College</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><em style="font-style: italic"><strong style="font-weight: bold">‘Xi’s increasing pressure and suppression of Hong Kong and related messaging appears intended in part to intimidate Taiwan. Washington should reject</strong></em><em style="font-style: italic"></em><em style="font-style: italic"><strong style="font-weight: bold">such pressure.'</strong></em></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Beijing has chosen</strong> to breach legal commitments it made to assure Hong Kong’s autonomy until at least 2047, most prominently through the sweeping national security law it is preparing to impose.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘PRC actions</strong> are part of a broader pattern of revisionist and destabilizing behavior across an arc stretching from the Himalayas to the East China Sea and deep into Southeast Asia.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Beijing increasingly</strong> operates according to a “might makes right” approach that eschews institutional, legal, and normative constraints and instead relies on raw coercion.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Such behavior</strong> undermines the regional diplomatic, economic, and security architecture that suppressed interstate warfare in the Asia-Pacific region and drove robust economic growth and improvements in human wellbeing over the past 70 years.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Protecting the structures</strong> now that helped the Asia-Pacific become a global engine for growth and human development is the first critical step to making them even stronger in the future.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘But getting to that future</strong> requires imposing costs on PRC revisionism today, holding our ground, and inspiring others to stand with us.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The policy measures</strong> outlined in this essay are not just about saving Hong Kong, its people, way of life, and unique entrepôt role.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Beijing has already smothered</strong> those flames such that the previous fire can likely never be revived.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘The core importance</strong> of U.S. actions focused on Hong Kong now increasingly far transcends the territory and instead entails taking a strong stance to demonstrate to Beijing that revisionism has real costs and to signal to allies and partners that Washington will stand with them in the face of coercive pressure from the PRC.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Moreover,</strong> unless met with robust and sustained pushback that begins to shift the cost/benefit calculus, the blade likely will not stop in Hong Kong.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><br></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">‘Summary of Key Recommended Policy Measures’</strong></span></p><ol style="margin-top: 0px;margin-bottom: 0px;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Create safe havens</strong> in the United States and allied/partner countries to absorb Hong Kongers fleeing political persecution and other forms of repression as Beijing exerts power more directly over daily life and activities in Hong Kong.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Prohibit the export of semiconductor</strong> manufacturing equipment and support services, as well as other core dual-use technologies, to Mainland China and Hong Kong.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Amend Section 241</strong> and other relevant portions of the Countering America’s Adversaries with Sanctions (“CAATSA”) law in order to leverage an effective and existing set of options for calibrated, targeted measures against selected PRC Mainland and Hong Kong entities and persons whereby pressure can be modulated in response to events.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Intensify Freedom of Navigation</strong> and presence operations to challenge illegal PRC maritime claims and land reclamation activities in the South China Sea and East China Sea.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Review and enhance</strong> finely-calibrated and-targeted aspects of the U.S. diplomatic, economic, and security relationships with Taiwan.’</li></ol><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">&nbsp;</strong></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><span style="color: #d0021b"><strong style="font-weight: bold">‘Option 2: Hold the Line Beyond Hong Kong, Starting with Taiwan’</strong></span></p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Xi’s increasing pressure</strong> and suppression of Hong Kong and related messaging appears intended in part to intimidate Taiwan.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘Washington should reject</strong> such pressure on Taipei, and instead link it to both ensured and judiciously increased support for Taipei in a carefully calibrated manner.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘One of the best ways to deter Beijing</strong> from smothering Hong Kong is to show that such aggressive actions will generate progressive American interactions with, and defenses of, Taiwan that will be self-defeating to PRC expansionism thereto.’ &nbsp;</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘Part of the message</strong> that the PRC is sending is essentially that what is happening to Hong Kong is Hong Kong-specific, since Hong Kong is part of the PRC.’</p><ul style="margin-top: 0px;margin-bottom: 0.5;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘This has obvious</strong> implications for Taiwan but is designed to make it easy for other U.S. allies and key partners to write-off valid concerns.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘A U.S. approach emphasizing</strong> the interconnections between events in Hong Kong, and the interests of Taiwan and other regional actors, can force the PRC to fight on multiple fronts concurrently, thus imposing greater diplomatic and financial costs.’</li></ul><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div><div></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:40px auto 0 auto;"><tbody><tr><td style="text-align:center; display:block; padding:10px; background-color:#c80000; font-size: 1.375em; font-family: gorditamedium, sans-serif; color:#ffffff; font-weight:bold; letter-spacing: 0px; line-height:1.35em; border-bottom:0px solid #f5f5f5;">3. A Look Back to 1955</td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; border-top:solid 1px #ccc;"><tbody><tr><td style="padding:3.5% 3% 3% 3%"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:block; padding-top:10px;"><a href="http://sco.lt/5LVSRU?track_p_id=bMtWhPG14Hi16LEAZC_s%40HB" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/2P2LxiV-sg54VayqL9X2F0i__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="padding-left:5%;"><a href="http://sco.lt/5LVSRU?track_p_id=7bbWEmKi6LEAZC_qhFvQtLY" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.7; text-decoration: none; border-bottom:none;" target="_blank">1955: 'United States Foreign Policy and Formosa'</a></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellpadding="0" cellspacing="0" width="100%"><tbody><tr><td style="max-width:600px"><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff; padding-bottom:20px;"><tbody><tr><td><img width="100%" src="https://img.scoop.it/R6N2_1vwDY7RPpUN_oDElDl72eJkfbmt4t8yenImKBXdhNIf0Yl8YfRAVzhohB7e"></td></tr></tbody></table></td></tr></tbody></table></div><div><table cellspacing="0" cellpadding="0" style="max-width:600px; width:100%; margin:0 auto; text-align:left; background:#fff"><tbody><tr><td style="padding:0"><table cellspacing="0" cellpadding="0" width="100%"><tbody><tr><td width="50px" style="display:none;"><a href="http://sco.lt/5LVSRU?track_p_id=4Z1JP6LEAZC_2iWGWmEia%40k" target="_blank" title="SourceLogo"><img height="50px" width="auto" alt="SourceLogo" src="https://img.scoop.it/_O-BCf99IEy7jYiTcYt9NEi__cjguAuwrRM5-qsdIhQ=" style="display:block; overflow:hidden; border: 1px solid #ddd; border-radius:10%; box-shadow: 0 4px 8px 0 rgba(0, 0, 0, 0.2), 0 2px 6px 0 rgba(0, 0, 0, 0.19); width:auto;"></a></td><td width="100%" style="display:none; padding-left:5%;"><a href="http://sco.lt/5LVSRU?track_p_id=aqQwUH6cFPh6LEAZC_Shvse" style="color:#001544; font-size:1.3em; font-weight:bold; font-family: Georgia, serif; letter-spacing: -0.1px; line-height: 1.5; text-decoration: none; border-bottom:none;" target="_blank">United States Foreign Policy and Formosa</a></td></tr></tbody></table></td></tr><tr><td style="height:0px; font-size:0">&nbsp;</td></tr><tr><td style="padding:0 3.5%; font-size: 1em; font-family: gorditamedium, sans-serif; color: #001544; line-height: 1.5em; letter-spacing:-0.1px;"><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p><h3 style="text-align: right;display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Foreign Affairs</strong></h3><h3 style="display: block;font-size: 0.85em;margin-top: 0em;margin-bottom: 0.3em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #5d5d5d;letter-spacing: -0.1px;line-height: 1.35em;"><strong style="font-weight: bold">Arthur Dean</strong> | Special U.S. Ambassador to Korea &amp; senior partner at Sullivan and Cromwell</h3><h2 style="text-align: center;display: block;font-size: 1.15em;margin-top: 1em;margin-bottom: 1em;margin-left: 0;margin-right: 0;font-weight: normal;font-family: Georgia, serif;color: #c80000;border-top: 0px solid #ddd;padding: 0.5em 3.5% 0.5em 3.0%;letter-spacing: -0.1px;line-height: 1.5em;background-color: #f5f5f5;"><strong style="font-weight: bold">‘United States foreign policy seems to have three major alternative methods of dealing with Formosa.’</strong></h2><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">This essay</strong> shows that the U.S. problems in managing the Taiwan issue in 1955 haven’t changed all that much.</p><p style="text-align: center;display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">________________________________________</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;">&nbsp;</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘FORMOSA [Taiwan]</strong>--symbol of the struggle between freedom and Communism in the Orient--poses a test of how far United States foreign policy can combine the ideals of freedom with the flexible realism required by the harsh facts of world politics.’</p><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"><strong style="font-weight: bold">‘United States foreign policy</strong> seems to have three major alternative methods of dealing with Formosa.’</p><ol style="margin-top: 0px;margin-bottom: 0px;"><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The first</strong> is to acquiesce in frightened demands (made, for example, by prominent members of the British Labor Party) that we abandon Formosa to the Communist Chinese.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The second</strong> is to insist that the Communist rule of the mainland should be formally ignored, regardless of what the alternatives may be or what they hold in prospect for us.’</li><li style="margin-top: 0.5em;margin-bottom: 0em;"><strong style="font-weight: bold">‘The third</strong>, an intermediate position, is to accept, albeit unhappily, that at the present time the Peking government controls continental China and that any prospect of stabilizing the Far East may of necessity entail that we negotiate with it.’</li></ol><p style="display: block;margin-top: 0.5em;margin-bottom: 0.5em;margin-left: 0;margin-right: 0;font-size: 1em;font-weight: normal;letter-spacing: -0.1px;line-height: 1.5em;color: #001544;font-family: gorditamedium, sans-serif;"></p></td></tr><tr><td style="height:10px; font-size:0; border-bottom:10px solid #fff;">&nbsp;</td></tr></tbody></table></div></td></tr></tbody></table>

‘Wall Street will be the next US-China battleground’
August 1, 2019
1. TRADE TALKS
2. BEYOND THE TRADE WAR
3. HONG KONG
4. GEO-POLITICS
5. ECONOMY
6. ONLINE BANKING
7. MANUFACTURING LEAVING CHINA
8. CHINESE INVESTMENT IN THE U.S.
‘China’s continuing drag on the global economy’
June 27, 2019
1. ‘The Value of Global China’: McKinsey
2. China's Maritime Militias in the ‘Gray Zone’
3. ‘The Failures of the “Failure of Engagement” with China’
4. Hardline trade minister joins China’s negotiating team
5. ‘The Continuing Chinese Drag on the Global Economy’
‘Does China rule the Fortune 500?’
July 24, 2019
1. ‘Who Likes Facebook's Libra Currency? Not the Chinese.’
2. ‘Does China rule the Fortune 500?’ Pro & Con
3. ‘China's Private Firms Continue to Struggle’: Nick Lardy
4. ‘Does China’s “Invisible Hand” Steer Funds to State-Owned Firms?’
5. ‘Party Loyalty in China Helps Private Companies Get Cheaper Loans’
6. 'Why the United States doesn’t need to return to a gentler China policy'
'China’s State-Driven Growth Model Is Running Out of Gas'
July 20, 2019
1. Trade war fallout not crushing China’s economy: Stephen Roach
2. ‘Trump tries to woo Federal Reserve in China trade fight’
3. ‘China’s State-Driven Growth Model Is Running Out of Gas’
4. ‘U.S.-China Trade: If We Get to Yes, Will It Make Any Difference?’
5. ‘Who Actually Pays Tariffs?’
6. ‘Is China Weakening the Yuan to Fight U.S. Tariffs?’
7. ‘China’s Exchange Rate Policy Woes’
China’s slowing economy not caused by trade war
July 17, 2019
1. China’s slowing economy not caused by trade war
2. China’s economy doing better than latest numbers
3. ‘China’s global business footprint shrinks’: China Global Investment Tracker (CGIT)
4. China: ‘The Art of Wait and See’
5. Why China Still Needs Hong Kong
‘U.S.-China Positions Have Hardened’
July 13, 2019
1. ‘U.S.-China Positions Have Hardened’
2. Impact of tariffs on business decisions: Richmond Fed President
3. ‘China tariffs: We can do better’
4. “Who Knew Trump Would Offer A Truce With Xi?”: The Mystery Of The Wall Street Trump Trades
5. ‘Trump’s tariff claims are demonstrably false. Here’s why.’
6. 'Is the China model a threat?'
‘How China Failed to Fail’
July 10, 2019
1. ‘Graphic Truth: China Since Tiananmen’
2. Secretary Pompeo’s two-prong China strategy
3. ‘The Fed Is Trump’s Secret Ally in the Trade War’
4. ‘Should China help secure the Strait of Hormuz?’
5. ‘Why I’ve Lost Faith in China’s Private Sector’: Shuli Ren, Bloomberg
6. ‘How China Failed to Fail: Can China’s Glass Remain Both Half Full and Half Empty?’
'China Is Not An Enemy'
July 6, 2019
1. ‘China is not an enemy’
2. Alipay & WeChat: China’s retail payment revolution
3. Can Facebook’s Libra replicate WeChat Pay’s digital payment dominance?
4. 'Hong Kong Has Nothing Left to Lose'
Trade war: 'Wet US-China firecracker at G20’
July 3, 2019
1. ‘What the US and China each got out of the Trump-Xi meeting in Japan.’
2. ‘Wet US-China firecracker at G20’: Derek Scissors
3. ‘Trump's “brilliant stroke” with China's Xi a win for US’: Michael Pillsbury
4. ‘The Chinese move only to the extent that it suits their domestic economic agenda.’: Kevin Rudd
5. Peter Navarro on the trade war cease fire and Huawei
6. ‘The big takeaway from this meeting is that you have a ceasefire.’: Michael Hirson, Eurasia Group
7. ‘Trump hasn’t reversed his position on Huawei’: Michael Pillsbury
8. From the World Economic Forum in Dalian China
At the G20, 'Xi still believes he has the upper hand'
June 29, 2019
1. G-20 leaders face a toxic trifecta of political instability, trade tensions and slowing global growth
2. Trump & Xi at the G20: the context
3. Trade War: Xi Still Believes He Has the Upper Hand
Xi's 'Self-reliance' - Why Blacklisting Huawei Could Backfire
June 26, 2019
1. Xi Jinping’s Trade Conundrum: Why the Chinese Leader Isn’t About to Back Down
2. Why Blacklisting Huawei Could Backfire
3. BACKGROUNDER | Huawei: China’s Controversial Tech Giant
4. Mao Redux: The Enduring Relevance of Self-reliance in China
Roubini on the U.S.-China trade war, the impact on the global economy, and the stakes at the coming G20
June 22, 2019
1. Roubini – ‘Dr. Doom’ - on the U.S.-China trade war
2. ‘The Global Consequences of a Sino-American Cold War’
3. The Coming Sino-American Bust-Up
4. The Growing Risk of a 2020 Recession and Crisis
'Trump Has Gotten China to Lower Its Tariffs. Just Toward Everyone Else.'
June 19, 2019
1. ‘America Must Prepare for the Coming Chinese Empire’: Robert Kaplan, Eurasia Group
2. 'Trump Has Gotten China to Lower Its Tariffs. Just Toward Everyone Else.'
3. ‘Services are ½ of the value-added in global trade- we just don’t see them or count them.’: David Dollar, Brookings
4. HK Protests: ‘An analysis of events’ by Nuri Vattachi + a response from a noted Greater China expert
Hong Kong Protests: 'If China doesn't back down, the U.S. will make it pay dearly.'
June 15, 2019
1. ‘People v power: The rule of law in Hong Kong’: The Economist
2. What is the proposed law that the protesters oppose?
3. ‘Plugging a loophole?’
4. ‘Hong Kong’s proposed extradition law puts ties with America at risk’: The Economist
5. ‘China Is Courting Disaster in Hong Kong’: Minxin Pei
6. CONGRESS | ‘The reaction that really matters is in Washington, D.C.’: The Economist
7. CONGRESS | Actions by the Congressional-Executive Commission on China (CECC)
8. PRESIDENT TRUMP | ‘So I hope it all works out for China and for Hong Kong.’
9. PRO | ‘There Are Huge Misconceptions About Extradition Bill.’: Ronnie Tong
10. CON | ‘My take on Hong Kong's extradition bill’: Jerry Cohen
11. CON | ‘A convenient legal tool to grab individuals deemed to be “enemies” of the Chinese state’: Minxin Pei
12. CON | President Xi Needs to tell Carrie Lam ‘no amendment now’ : Michael Pillsbury
'Not another downturn in U.S.-China relations: a paradigm shift'
June 12, 2019
1. ‘China’s rise would have eroded any hegemon’s unrivaled power, no matter how skillful its diplomacy’: Fareed Zakaria
2. ‘Not another downturn in U.S.-China relations: a paradigm shift’: Jim McGregor
3. ‘China had America right where it wanted it - and they overreached’: Jim McGregor
4. ‘China's Private Firms Continue to Struggle’: Nick Lardy
5. ‘Why is China so interested in building and buying ports?’: Deborah Bräutigam
'The Middle East has its oil, China has rare earths.’ Deng Xiaoping
June 7, 2019
1. The trade war is paralyzing business decision making.
2. Impact of tariffs on U.S. businesses in China: AmCham China chairman
3. ‘The Middle East has its oil, China has rare earths.’ Deng Xiaoping
4. Trade war: How lawyers vs economists as negotiators lead to the breakdown in talks
5. A primer on how Chinese law might enforce a US-China trade deal
6. Impact of tariffs on U.S. businesses in China: AmCham survey
The 30-year detour: The path from Tiananmen to Xi Jinping
June 4, 2019
1. ‘Tiananmen divides PRC history into before and after’
2. The 30-year detour: The path from Tiananmen to Xi Jinping
3. ‘The Party has relied on brute force since its inception’
4. Tiananmen: Reporting from ABC World News Tonight 1989
5. ‘Assignment: China - Tiananmen Square’
6. The story behind the ‘Tank Man’ photo
Peter Navarro talks tariffs on CNBC
June 1, 2019
1. Peter Navarro talks tariffs on CNBC 💣
2. Navarro : ‘The producers in Mexico and China pay for this. Here's how it works. A tariff goes on that puts pressure on the Chinese or the Mexican producers to lower their prices – otherwise they can't sell.’
3. Navarro : ‘Corporate executives are recognizing that the supply chain is better off in other places in the globe or better yet bring that here.’
4. Navarro : ‘So these people who say that somehow American consumer is going to pay for this - that's simply not true.’
5. Navarro : ‘We’ve had tariffs on dishwashers and solar panels - half of Chinese exports to this country - steel and aluminum and we see virtually no inflation.' — DISHWASHERS & SOLAR PANELS
6. Navarro : ‘We’ve had tariffs on dishwashers and solar panels - half of Chinese exports to this country - steel and aluminum. And we see virtually no inflation.’ — STEEL
‘How China Sees Trump’s Trade War’
May 29, 2019
1 ‘How China Sees Trump’s Trade War’: Victor Shih
2. Nick Lardy on the trade war, fixing capital allocations, & why China’s GDP numbers are right
3. ‘Death by China’ & Peter Navarro
Why the West is getting Xi wrong
May 22, 2019
1. How the West is getting China wrong
2. Now China's Got Its Own Anti-U.S. Trade War Song
3. ‘Trade tensions will persist until global financial imbalances are addressed’
4. ‘Five Big Myths of China's Belt and Road Initiative.’
5. Trump's 2019 Protection Could Push China Back to Smoot-Hawley Tariff Levels
6. More from Bill Overholt
Trade talks breakdown: How the U.S. misunderstands Chinese negotiating style
May 18, 2019
1. Tracing Trump's Aggressive Tariff Strategy Back to the 1980s
2. Tom Friedman explains why he agrees with Trump's China aims but not his means
3. Trade talks breakdown: How the U.S. misunderstands Chinese negotiating style
4. Trade War Won’t Dent China’s GDP
5. Comments on the U.S.-China trade war from PIIE president Adam Posen
6. China’s response: a stable or a weakened Yuan?
Sharpening the US-China trade debate
May 15, 2019
1. It's Trump vs. Xi in the China trade war — and it's personal
2. 'Reaching an agreement can only be done at the top.’
3. Sharpening the US-China trade debate
4. FACE OFF: Brookings vs. American Enterprise Institute
5. Trade war: Is the U.S. panicking due to China’s big hedge?
6. ‘The Chinese don't get this concept “earn” their way out of punitive tariffs’: Michael Pillsbury
'Trump was right to call China's bluff in the trade talks'
May 10, 2019
1. As China Trade Talks Stall, Xi Faces a Dilemma: Fold? Or Double Down?
2. 'Trump was right to call China's bluff in the trade talks': Bill Bishop
3. The US-China trade war is poised to enter the next phase
4. Tariffs on China are no substitute for a trade deal
5. China can earn its way out of Trump’s tariffs
6. Xi Jinping Wanted Global Dominance. He Overshot
7. Trade War Results in Substantial Losses for U.S.
8. Trump Could Raise Tariffs on China. Here’s How China Could Respond.
9. A year of trade losses in the U.S.-China tariff war.....—AEI
Will Trump's ‘Crazy Uncle’ strategy work this time?
May 8, 2019
1. 'Expect the president to move forward with tariffs this Friday.": Meredith Sumpter, Eurasia Group
2. Will Trump's ‘Crazy Uncle’ strategy work this time?
3. New tariffs could cost China 1% GDP: Tao Wang, UBS
4. 'Why Trump Is Raising Tariffs on China' - by Trump advisor Michael Pillsbury
5. Trump's Tariff Threat on Rest of Chinese Goods Would Hit Final Consumer Product
China Never Stopped Managing its Trade
May 4, 2019
1. China Never Stopped Managing its Trade
2. A dash of stimulus helps stabilize China’s wobbly economy
3. 'May 4th Movement': Happy 100th anniversary
4. 'How the Communist Party seized the legacy of May Fourth'
Xi's Belt and Road Reboot
May 1, 2019
1. Xi Jinping's Second Belt and Road Forum: Three Key Takeaways
2. Brooking's David Dollar on praise and criticism of Belt and Road Initiative
3. Three ways of looking at the Belt and Road Initiative
4. A Slimmer Belt and Road Is Even Scarier
5. Expert Insights | 'China&rsquo;s Belt And Road: The New Geopolitics Of Global Infrastructure Development'
6. Director's Summary | 'China&rsquo;s Belt And Road: The New Geopolitics Of Global Infrastructure Development'
7. QUIZ: How much do you know about the Belt and Road Initiative?
8. 'Durian "Little Thai" takes us on a journey along the Belt and Road'
'The State Has Dragged Down China’s Economic Growth'
April 27, 2019
1. 'The State Has Dragged Down China’s Economic Growth': Nick Lardy
2. U.S.-China trade talks: How Trump’s latest Iran sanctions decision could impact a deal
3. In US-China Trade Disputes, the WTO Usually Sides with the United States
4. Trump and the WTO: From trashing to crippling
5. 'China Growth Outlook': Credit Suisse
6. Caixin PMI has become a leading indicator of global momentum
5G: 'The US. is winning a race that no one else is running'
April 24, 2019
1. 5G: 'The U.S. is winning a race that no one else is running'
2. Department of Defense: The obstacle to U.S. winning 5G
3. China in the report
In China, Party Control Trumps the Economy
April 20, 2019
1. China's economy back on track - Not so fast
2. In China, political control trumps the economy
3. JUST OUT | 2019 OECD Economic Survey of China
4. Why the calculations that led to the trade war are wrong
'Only Trump can save China'
April 17, 2019
1. Five things to watch for in China’s new GDP data
2. 'Only Trump can save China'
3. ‘China’s land prices deserve as much attention as European industrial production or U.S. retail sales’
4 'Trump’s Foreign Policies Are Better Than They Seem'
Europe's 'new realism' at the 'EU-China Summit'
April 13, 2019
1. 'EU-China Summit': China faces a tougher Europe
2. Europe's 'new realism' at the 'EU-China Summit'
3. China's strategy for the EU
4. The EU's (possible) strategies toward China
5. VIDEO | The Heat: China-EU summit
Trade war: 'U.S. policy has changed because China has changed'
April 10, 2019
1. Trump & Kim Hangin' in Hanoi
2. Trade war: 'U.S. policy has changed because China has changed'
3. China’s leaders should study James Bond films
4. The best explanation of Xi's view on China's private sector – beat it into submission
5. Heads Up | Watch GZERO World with Ian Bremmer – terrific!
6. April 2019 Trade Bulletin
'Why China market reforms haven't worked'
April 6, 2019
1. 'We're going from an unregulated trade war with China to a regulated one.’
2. Why China's market reform isn't working
3. All is well in China's intelligence service
4. 'China's GDP could start to grow again in 5-10 years': Prof Xu Bin, CEIBS
5. Starbucks opens a new store in China every 15 hours
'China is the world’s best consumer story'
April 3, 2019
1. 'China stimulus tracker: A one-year report card' | Development Bank of Singapore (DBS)
2. 'China is the world’s best consumer story' | McKinsey
3. When will China GDP > U.S GDP?: '2030 is not a bad estimate - but so is never.'
4. Xi and Trump Miss Their Chance
An unmistakable first-quarter recovery' for China's economy
March 30, 2019
1. 'An unmistakable first-quarter recovery' for China's economy
2. China’s Bond Market Comes of Age—Sort of
3. 'The Future of China's Bond Market'
4. 'The president has taught me that tariffs have an important use in trade negotiations': Larry Kudlow
5. 'A prolonged period of radical uncertainty' - 'a major source is the Sino-American trade war': Michael Spence
'Xi visits a divided EU with charm and deals'
March 27, 2019
1. Mueller report give U.S. more clout in trade negotiations
2. 'The time of European naïveté towards China had ended': Macron
3. Xi in Europe: How China is outmaneuvering Trump on trade
4. 'The Belt and Road Initiative Impact on Europe: An Italian Perspective'
'Two Sessions' End
March 23, 2019
1. 'Foreign Investment Law': the level playing field
2. 'Foreign Investment Law': 'Tech transfer in China is no longer the main concern'
3. Yi Gang: 'China has deleveraged' | Michael Pettis: 'No. Debt has gone up'
4. 'China can't create growth- or jobs - out of tax cuts'
5. 'The manufacturing sector, mired in a crisis of confidence, needs more than this tax cut.'
6. With Streaks of Gray Hair, Xi Jinping of China Breaks With Tradition
7. Another insight from 'The Relevant Organs'
'Two Sessions' II
March 13, 2019
1. China's increased State role is reason for slowing economy, Lardy Says
2. Addressing the crisis of confidence - what Premier Li said and didn't say
3. Is China looking for 'good' shadow banks?
4. PODCAST (12m 22s) | Analysing China’s Two Sessions and the influence of tech company chiefs
5. Explaining the seating plan at China's Two Sessions
6. IN DEPTH | More Nick Lardy on 'The State Strikes Back: The End of Economic Reform in China?'
'Two Sessions' I
March 9, 2019
1. Facing Slowing Economic Growth, China’s Premier Promises Relief for Business
2. Six key takeaways from China's annual policy blueprint
3. China’s Stimulus Muddle Deepens
4. China’s ‘two sessions’: an economic watershed or more of the same?
5. Xi Jinping Works to Stifle Dissent Amid Concerns About China’s Economy
6. FINTECH: Two Sessions Sends Strong Signals on Support for Chinese Fintech Development
7. How tea is served in the Great Hall of the People in China
8. 'Two Sessions': A rap song extolling China's annual political meeting
Podcast