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Tuesday, November 23, 2021

Learn Common prosperity plan to build a fairer society in China






Cheah Cheng Hye: Malaysians should find this campaign of special interest because China, like Malaysia, is trying to break out of the “middle income trap”, a phenomenon faced by much of the developing world. Although Malaysia and China are different in many respects, they do share a common feature: an almost identical level of average incomes.

CHINA has launched a new campaign, called “Common Prosperity”, to improve the living standards of its people and make its society fairer.

Malaysians should find this campaign of special interest because China, like Malaysia, is trying to break out of the “middle income trap”, a phenomenon faced by much of the developing world.

Although Malaysia and China are different in many respects, they do share a common feature: an almost identical level of average incomes.

According to the World Bank, per capita gross domestic product in Malaysia and China were US$10,402 (RM43,517) and US$10,500 (RM43,927), respectively, in 2020. Thus, both are currently middle-income countries seeking to achieve developed-nation status in the medium-term future.

China’s plan is based largely on enlarging its middle class, by creating opportunities for the lower-income people, who currently make up a majority of its population, to become more productive and earn higher incomes. ADVERTISING

Already, China, with a population of 1.4 billion, has 340 million middle-class people, larger than the entire population of the United States. Some estimates put the Chinese middle class at more than 400 million, using a looser definition of “middle class” status.

Beijing aims to increase the middle class to 500 million by 2025 and about 750 million by 2035. Put another way, Beijing is looking for roughly half the mainland Chinese population to be middle class by 2035, compared with less than 30% today, using a conservative definition.To realise the plan, the Chinese economy will need to double in size by 2035, having just doubled from 2010 to 2021.

In recent months, the Common Prosperity plan has caused concern among some investors, who worry that it is a kind of “Robin Hood” campaign. This is simply wrong. One only has to look at the “Zhejiang Plan”, announced in mid-2021, to get a detailed picture.

Zhejiang province (population: 65 million), located in the Yangtze River delta in central China, has set 52 performance targets to achieve Common Prosperity. The government has stated that Zhejiang is a “demonstration zone”, intended as a model for the nation.

Investors can rest assured.

The plan supports private enterprise, innovation, market development and small and medium enterprises (SMEs).

The plan takes aim against monopolistic business practices, supports the concept of a level playing field in the economy and aims to deflate the real estate market.

As officials have repeatedly stated, the overall objective is to create a society that is olive shaped, not pyramid shaped.

The plan does not emphasise wealth distribution but aims to make society more productive and fairer, with measures added to promote social mobility and better welfare for the needy. It confirms that Beijing remains committed to “state capitalism” (a Chinese version of the concept of “stakeholder capitalism”, currently gaining support in the West).

Clearly, the market-opening, pro-business reforms of the past four decades are irreversible.

Currently, the private sector (China has about 40 million SMEs) provides 50% of tax revenues, 60% of gross domestic product, 70% of patent filings and more than 80% of urban employment.

China’s domestic stock market, which trades through exchanges in Shanghai, Shenzhen and Beijing, is today the world’s most active, with a daily trading volume about four times that of second place New York. Indeed, there is no turning back the clock on using capitalism to help socialism.

Over the past several months, Beijing has launched restrictive regulations against Internet platforms, property developers, after-school tutoring and so on. These are aimed at problems that can’t wait for longer-term solutions.

But the reality of Common Prosperity is that it is mainly about long-term structural reforms to create a more sustainable and inclusive society. President Xi Jinping himself has stated that the objectives will take decades to achieve.

Over time, stock markets and other capital markets are to be encouraged so that more savings can be channelled into manufacturing, innovation and green energy. Real estate development is a different matter. The government is sticking to its restrictions on real-estate investments as housing seems over-built and bubbles have formed.

So, will it work?

The Chinese public, it seems, is confident that Common Prosperity targets can be achieved, given the party’s strong track record, with 800 million people – roughly 10% of the global population – lifted out of extreme poverty over the past four decades.

Indeed, China has already come a long way; as recently as the early 1960s, parts of the country suffered from starvation.

But the obstacles to Common Prosperity cannot be under-estimated, ranging from geo-political tensions to an ageing population and the overheated property market.

Undoubtedly, Common Prosperity represents a shift leftwards in Chinese politics, after decades of liberal policies that enabled a privileged few to make a lot of money. Capital flight could become a persistent problem for China (as it is for Malaysia) as the rich move money to offshore shelters.

Furthermore, for Beijing, real estate is a particularly difficult balancing act, as the property sector represents about 25% of the Chinese economy and 40% of people’s savings.

In urban areas, 80% of households already own their own property, and 40% have second homes. Home prices are up 50% over the past decade.

The property boom is financed by heavy debts, putting financial stability at risk. Beijing has to find ways to cool down the property sector but avoid a hard landing for house prices.

China’s ageing population, too, is a headwind.

But the impact can be offset by improving productivity and innovation.

Here, China’s great success in education is helpful. Each year, China produces more than nine million university graduates, exceeding the combined total of the United States, Britain, Germany, Japan and South Korea. The Chinese graduates are concentrated in science, math and engineering.

In addition, about five million people complete vocational school each year with technical and trade skills. Chinese talent is on an upward spiral, meaning many problems can be overcome.

Common Prosperity is driven by the Communist Party of China, which has been in power since 1949, and has always identified itself as a party representing workers and peasants.

But now, the party has staked its brand on the success of the prosperity plan and in the process, it is transforming itself into a party for the middle class.

If successful, the party will lift China into the ranks of developed nations by 2035.

Datuk Seri Cheah Cheng Hye is the head of Value Partners Group, an asset management firm in Hong Kong. He is also an independent non-executive director of Hong Kong Exchanges and Clearing Ltd. He started his career as a reporter in The Star.

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Monday, November 22, 2021

Booster shots vital in reducing Covid-19 infectivity rate



THIS week’s big discussion is whether people should or shouldn’t take the Covid-19 booster shot.

Social media is buzzing with the supposed repercussions and negative impacts of the third jab – the problem is, it’s all unfounded hearsay, and it is discouraging many people from getting their booster shots.

Last week, Health Minister Khairy Jamaluddin said 40% of those eligible for booster shots did not turn up for their appointments.

This is a real concern for Malaysia.

Health director-general Tan Sri Dr Noor Hisham Abdullah tweeted last week that Covid-19’s R-nought factor, a calculation of the average “spreadability” of an infectious disease, has also gone up again, past the 1.0 mark.

And once again, intensive care unit beds in the country’s local public hospitals are experiencing between 80% and 90% usage, which is critical.

All this means that getting the booster shot is urgent, just as it was previously vital that people get vaccinated.

Getting a booster shot is safe, as it has been given to millions of people worldwide with minimal side effects – more than 21 million Americans have received a booster, according to the Centres for Disease Control and Prevention website.

Don’t be confused or alarmed by talk in WhatsApp chat groups and social media.

Importantly, do not simply forward unverified information. Check and authenticate what you read, find out where the information came from – and your aunty’s next door neighbour’s cousin is not a believable source (unless he or she is a scientist)!

The booster shots – Sinovac, Pfizer-BioNTech and AstraZeneca-Oxford vaccines – have all been authorised for use by Malaysia’s National Pharmaceutical Regulatory Agency (NPRA).

The NPRA also says it’s OK for recipients of the Sinovac vaccine to get a different vaccine.

No government body would give its approval without researching studies and precedents.

The NPRA, the country’s drug control authority that authenticates the quality, efficacy and safety of all pharmaceutical products in Malaysia, would not risk its reputation and professionalism to allow boosters if it found them unsuitable.

Sinovac vaccine recipients who worry about being scheduled to have the Pfizer-BioNTech vaccine as a booster should take a look at studies conducted by Chile, Brazil, and Thailand on the use of the mix and match formula.

All three countries have successfully applied the mix-and-match – aka heterologous – formula to lessen the severity of infection among those who had completed their two Sinovac jabs.

People’s fear do need to be properly addressed, though. This is the time for the government to step up efforts to create awareness about the booster shot and how it can help to reduce the infectivity rate among the population.

There should be official channels to counter the adverse social media rumours and talk about the issue.

A barrage of official information could help counter the fake news and encourage more people to keep their MySejahtera appointments to get their booster shots and bring down the R-nought value.

And don’t forget that the highly infectious Delta variant is lurking within the population – booster shots are vital to keep it at bay and stop a spike in the number of cases.

We cannot afford to shut the country down again.

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Sunday, November 21, 2021

Covid-19 in Malaysia: The situation so far, Daily numbers stay above 6,000 for third day in a row



 PETALING JAYA: The health ministry has reported 5,859 Covid-19 cases in the past 24 hours.

This comes after three consecutive days of the number of cases breaching the 6,000 mark.

In a statement, health director-general Dr Noor Hisham Abdullah said the total number of infections now stands at 2,581,747.

CLICK HERE FOR THE LATEST DATA ON THE COVID-19 SITUATION IN MALAYSIA


Daily numbers stay above 6,000 for third day in a row 

PETALING JAYA: Malaysia’s daily Covid-19 cases stayed above the 6,000 mark for the third day straight with 6,355 new infections recorded.

Health director-general Tan Sri Dr Noor Hisham Abdullah said of yesterday’s cases, 6,240 or 98.2% were mild and asymptomatic.

“Another 1.8% or 115 cases were in Category Three, Four, and Five.

“There were 31 imported cases, involving 20 Malaysians and 11 foreigners,” he said in his daily Covid-19 statement.

Cumulatively, Malaysia recorded a total of 2,575,888 Covid-19 cases since the pandemic began.

Dr Noor Hisham said the infectivity rate had seen a slight decrease in the last few days, with Thursday’s RT level at 1.02.

The country’s RT went up as high as 1.05 on Nov 13. An RT level of 1.0 and above indicates that the Covid-19 outbreak is growing.

Melaka (RT 0.99), Sabah (RT 0.97), Penang (RT 0.96), Perlis (RT 0.89), Sarawak (RT 0.85) and Labuan (RT 0.00) are the only states with RT levels below 1.0.

Dr Noor Hisham added that another 5,031 patients were discharged in the same 24-hour span.

“This brings the total of Covid-19 recoveries to 2,477,314, which is a 96.2% recovery rate.

“Currently, there are 542 patients in intensive care units, of which 436 are confirmed Covid-19 cases and 106 are suspected.

“There are 268 people on ventilator support,” he said, adding that 10 new clusters had been identified nationwide.

According to the Health Ministry’s CovidNow website, 78.4% of active cases as of Thursday are mild or asymptomatic infections requiring home quarantine.

The death toll stands at 29,892 after 55 fatalities were registered on Thursday. 

 

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Tuesday, November 16, 2021

Xi-Biden’s rare long virtual meet concludes, ‘injects certainty into bilateral ties’




Chinese President Xi Jinping met with US President Joe Biden on Tuesday morning (Beijing time), the first face-to-face meeting virtually since Biden took office. (Photo: Xinhua)

Chinese President Xi Jinping met with US President Joe Biden on Tuesday morning (Beijing time), the first face-to-face meeting virtually since Biden took office. (Photo: Xinhua)

Chinese President Xi Jinping had thorough and in-depth communication and exchanges with US President Joe Biden in a rare long virtual meeting on Tuesday morning (Beijing time) during which they discussed strategic, overarching and fundamental issues on bilateral relations.

The first face-to-face virtual meeting between the top two leaders lasted three hours and a half after they opened their talks on a friendly note. Chinese observers said that the meeting will inject certainty into the bilateral ties and is sending a signal that the two countries will cooperate in many areas despite they could not avoid fierce competition, and the fact that they are trying to manage competition is itself a positive sign for the world.

A video released by China Central Television showed that Xi hailed Biden as an old friend in the opening remarks, saying that he was very happy to see his old friend and it's crucial for China and the US to work together in addressing common challenges.

Both China and the US are at critical stages of development, and the "global village" of humanity faces multiple challenges, the Chinese president said.

As the world's two largest economies and permanent members of the UN Security Council, China and the US need to increase communication and cooperation, each run their domestic affairs well and, at the same time, shoulder their share of international responsibilities, and work together to advance the noble cause of world peace and development, Xi told Biden.

A sound and steady China-US relationship is needed for advancing the two countries' respective development and for safeguarding a peaceful and stable international environment, including finding effective responses to global challenges such as climate change and the COVID-19 pandemic, Xi stressed.

"China and the US should respect each other, coexist in peace, and pursue win-win cooperation," he said, expressing his readiness to work with Biden to build consensus and take active steps to move China-US relations forward in a positive direction.

The Chinese President laid out three principles and four priority areas for the China-US relations. In terms of principles, the two countries firstly need to respect each other's social systems and development paths, respect each other's core interests and major concerns, and respect each other's right to development.

They also need to treat each other as equals, keep differences under control, and seek common ground while reserving differences. The other two principles include peaceful coexistence and win-win cooperation. No conflict and no confrontation is a line that both sides must hold, the Chinese President said.

The US side has suggested coexistence between China and the US. One more word can be added to make it peaceful coexistence, Xi said. With their interests deeply intertwined, China and the US stand to gain from cooperation and lose from confrontation.

The world is big enough for the two countries to develop individually and collectively. The right thing to do is to choose mutual benefit over zero-sum game or the I-win-you-lose approach, Xi said.

Photo:Xinhua
Photo:Xinhua

The most important event in international relations in the coming 50 years will be for China and the US to find the right way to get along. History is a fair judge. What a statesman does, be it right or wrong, be it an accomplishment or a failure, will all be recorded by history. It is hoped that President Biden will demonstrate political leadership and steer US' China policy back on the track of reason and pragmatism, Xi said.

Biden told Xi that he was looking forward to a "candid and forthright discussion" as in the past and he believed it is the responsibility of the two countries' top leaders to ensure "the competition between our countries does not veer into conflict."

We need to build the guardrail of commonsense, be clear and honest about our differences, and work together on areas of mutual interest, especially on major global issues like climate change. The relationship between our two countries has a huge impact not only on our two countries, but on the whole world, Biden said.

While Biden insisting that the US is not seeking a new cold war, Xi said he hopes that the US can meet its word of not seeking a "new Cold War" with concrete actions.

While Biden made three promises, including not seek to change China's system, the revitalization of its alliances is not anti-China and have no intention to have clash with China, Xi expressed hope for the US to fulfill its promises.

In terms of four priority areas, Xi stressed that the two countries should shoulder responsibilities of major countries and lead global response to outstanding challenges, and act in the spirit of equality and mutual benefit to move forward exchanges at all levels and in all areas and generate more positive energy for China-US relations.

Also, the two countries need to manage differences and sensitive issues in a constructive way to prevent China-US relations from getting derailed or out of control, and strengthen coordination and cooperation on major international and regional hotspot issues to provide more public goods to the world.

The atmosphere of the meeting, to some extent, reflected a pretty good personal relationship between the two leaders, which has already been underscored in the previous phone calls, Wu Xinbo, dean of the Institute of International Studies at Fudan University, told the Global Times on Tuesday.

"It's also rare for heads of state to have such a long conversation, and such a good relationship is seen as a positive condition for handling bilateral ties," Wu said.

The virtual summit could enhance political trust between the two countries, which plays an important role for current and future development of bilateral relations and it's conducive for improving the atmosphere of bilateral relations, he continued.

The China-US relationship is undoubtedly the most important relationship between major powers in today's international relations. The ongoing virtual summit is sending a signal to the world that China and the US will cooperate in many areas despite they could not avoid fierce competition, according to Chinese experts.

"The fact that China and the US are trying to manage competition is itself a positive sign for the world," Wu said.

On the Taiwan question, Xi said we have the patience and will strive for the prospect of peaceful reunification with utmost sincerity and efforts. But if the separatist forces for "Taiwan independence" provoke us, force our hands or even cross the red line, we will be compelled to take resolute measures, Xi said.

The US President reaffirmed the US government's long-standing one-China policy, stated that the US does not support "Taiwan independence", and expressed the hope for peace and stability to be maintained in the Taiwan Straits.

The virtual meeting was held during the working hours in China but late night in the US, which clearly shows which side is more eager. From the interactions in Anchorage in Alaska in March, to Tianjin in China in July and Zurich in Switzerland in October, China gradually has the initiative of the bilateral relations. The era for the US to unilaterally define the bilateral ties has ended and the two countries have entered into a period of equal and fair dialogue, Wang Dong, an expert on China-US relations at Peking University, told the Global Times.

The first half of the virtual meeting finished at 10:45 am after two hours of exchanging views on issues of common concern.

Ding Xuexiang, a member of the Political Bureau of the CPC Central Committee and director of the General Office of the CPC Central Committee, Chinese Vice Premier Liu He, Yang Jiechi, a member of the Political Bureau of the CPC Central Committee and director of the Office of the Foreign Affairs Commission of the CPC Central Committee, Chinese State Councilor and Foreign Minister Wang Yi as well as Vice Foreign Minister Xie Feng are among the attendees to the meeting.

Treasury Secretary Janet Yellen, US Secretary of State Antony Blinken, US National Security Advisor Jake Sullivan, White House Asia adviser Kurt Campbell and Laura Rosenberger, a US foreign policy veteran are among the US officials to the meeting, according to media reports.

The top leaders had spoken twice over the phone, in February and September.

The meeting, which lasted for rarely long of three hours and a half, concluded at 12:24 Tuesday noon Beijing time, which is midnight in Washington.

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Monday, November 15, 2021

Vigorous Chinese democracy vs aging Western one; Democracy not 'patent' of the West

The Political Bureau of the Communist Party of China (CPC) Central Committee presides over the sixth plenary session of the 19th CPC Central Committee in Beijing, capital of China. Photo: Xinhua
The Political Bureau of the Communist Party of China (CPC) Central Committee presides over the sixth plenary session of the 19th CPC Central Committee in Beijing, capital of China. Photo: Xinhua
 

 Vigorous Chinese democracy vs aging Western one: Global Times editorial

"Whole-process people's democracy" has been officially written into the Communiqué of the Sixth Plenary Session of the 19th Central Committee of the Communist Party of China. At Friday's press conference on the sixth plenum, the concept has been further clarified, which has garnered extensive attention from home and abroad.

Democracy is one of the important results of human society's development. It is destined to form different gene combinations in different social environments and manifest itself in various forms, just like that of plants and flowers.

The US and the West have always regarded themselves as property owners and missionaries of democracy, as if they are issuing democratic licenses to the world, preaching to people of other countries about how to be democratic and judging who is democratic and who is not. But they are no longer able to carry on such moves.

China has risen. We hold high the banner of people-centered socialist democracy, and develop an efficient market economy based on China's political system. We have rapidly improved livelihood and eliminated poverty, gaining remarkable and globally eye-catching economic and social achievements.

In this process, elements of democracy with Chinese characteristics have continued to develop and grow. Governments at various levels have been exploring how to make democracy truly effective in all areas. This has formed the goal-oriented democratic construction in which the people are masters of the country. From election to consultations, from policymaking to management and supervision, all have been carried out, upgraded and institutionalized under the promotion of China's fundamental political system. As a result, people's wishes and opinions can always be reported to governments at different levels rapidly. The Party's leadership has ensured that national governance always responds to the demands of the broadest masses of people and can make the most reasonable plan based on the interests of all groups in the society. This will make people the country's masters.

China has developed democracy, but avoided populist radicalism. Everyone has the right to share the fruits of national development but vicious conflicts have been prevented among different interests groups. Although people often express opinions on the internet, sometimes in a fierce manner, China's social governance has generally maintained order. There are very few disruptions caused by partial or large-scale disorder.

The US and the West still regard their democracy as a hallmark. Their political systems have been seriously aging after hundreds of years. Powerful Western interest groups seek to obtain from and exploit their systems in radical ways regardless of the damage they would cause, which has made Western-style democracy full of drawbacks such as populism, political struggles, derailed people participation, and manipulated and misguided elections.

Western-style democracy is still able to have a say in the international public opinion arena. It's because of the economic and social strength accumulated in history. Those countries are still the most developed ones, which has helped them conceal their ugliness and fool the world with their sophistries and cover-ups.

However, some Western elites are now a little bit panicked. They know the West is plagued by problematic politics and a sluggish economy. Meanwhile, they have seen the fast development of China. After the outbreak of COVID-19, China's "people first" political ideology has quickly transformed to great achievements in fighting the epidemic. They worry that if this continues, the fundamental flaws in their narratives about democracy will be exposed, and the perception that their political systems are "bad" will spread throughout the world.

The US and some Western countries in recent years have frantically increased their attacks on China's political system. Doing so is of no help to solve the decline of their own systems. The political dividends of Western-style democracy have already been seriously overdrawn. Now the shortcomings of Western-style democracy have been exposed and further fermented, which is consuming the competitiveness of those countries.

Those Western political elites want to eliminate the challenge of democratic diversity and change the competition rules in the globalization era by stifling China's development. However, China is a super-scale market and a powerful country. It's a dead end if they attempt to solve their own difficulties by changing China.

The Chinese and Western democratic systems could learn from each other and carry out sound competition. Unfortunately, some political elites in the US and West stubbornly seek to turn the two systems into antagonistic relations. Then they will have to bear the long-term consequences of their actions. China will develop faster than them in the long run. After passing a critical point -it's doomed to appear in future - the US and West's political confidence will be greatly shaken. Their unrealistic flattery of Western-style democracy will collapse.

The world is seeing active reflections and hot debates over democracy. Which kind of democracy is good is not defined by a war of words. The good democracy must effectively provide economic and social development with a steady stream of impetus and promote the well-being of the broad masses of people. Facts will be the best judge.

China is making great efforts to bring benefits to its people and contribute positively to building a community with a shared future for mankind. We are earnest explorers of a democratic system that fits our own conditions. Our efforts and success have received much attention and praises from a vast number of developing countries. We have expanded people's political vision, and contributed important experiences.

Developing countries generally face pressure from the US and the West. Due to their size, many countries are unable to withstand the pressure to explore an independent democratic paradigm. China's practice is in line with their interests, bringing the light of freedom to the world when it comes to the national choice of development path. 

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 Democracy not 'patent' of the West; US democracy summit a 'huge irony' aiming to split world: senior CPC official


Photo: Zhao Juecheng/GT
Photo: Zhao Juecheng/GT

The US' democracy summit convened next month with the attempt to "revive" Western democracy amid mounting democratic problems in their countries is a huge irony, as its purpose is simply to suppress other countries and divide the world into different camps, a senior Chinese official said on Friday.

Jiang Jinquan,director of the Policy Research Office of the Communist Party of China (CPC) Central Committee, made the remarks at Friday's press conference on the sixth plenary session of the 19th Central Committee of the Communist Party of China (CPC).

He said democracy is not a patent of the West, nor can it be defined by the West. Western democracy is a democracy dominated by capital, a democracy of the rich, not true democracy.

Some Western countries have shown a hollowing out of democracy,triggering dissatisfaction among their fellow people, but they are still trying to impose their democratic model on other countries. Color revolutions in recent years ago have resulted in disasters to local people, which the people of the world have become increasingly aware of, Jiang said in response to a question on comparison between China's whole-process people's democracy and Western democracy.

Jiang listed several polls as an example. According to a new survey from the Pew Research Centre, 57 percent of global respondents and 72 percent of Americans said that US democracy used to be a good example but has not been recently.

According to an NPR poll, 81 percent of US adults say the future of US democracy is under threat.

In contrast, two recent polls released by a US polling agency show that Chinese people's satisfaction with the CPC and the Chinese government is 95 percent and 98 percent, respectively.

Democracy is not for decoration, but for solving people's problems. Whether a country is democratic or not depends on whether its people are the masters of the country, whether its people have the right to vote and more importantly, whether they have the right to participate widely. It depends on what promises are made during the election process, but more importantly, it depends on how many of these promises are fulfilled after an election, Jiang said.

"Democracy is not true if the people are awakened only at the time of voting and then fall into hibernation, if they can only listen to the election slogans but have no say after the election, if they are favored only at the time of campaigning and then are left out after the election," Jiang said.

Jiang said the CPC has realized that China's political civilization and political system must be deeply rooted in the mind of Chinese society. Copying other countries' political systems will not work and may even destroy the country's future.

Since the 18th CPC National Congress, the CPC Central Committee with Comrade Xi Jinping at its core has adhered to the path of political development under socialism with Chinese characteristics and upheld the leadership of the Party and the position of the people as masters of the country, has resolutely resisted the erosion and influence of the Western political trend of so-called "constitutionalism", ruling party rotation, and developed a democratic road of whole-process people's democracy, Jiang said.

The Chinese people have a high degree of confidence in their political system,and the fundamental reason lies in the fact that whole-process people's democracy is highly democratic, fully fledged and deeply welcomed by the Chinese people. This is true people's democracy, Jiang said.

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Renovating democracy and the China challenge

To break out of its paralysis, the West needs to take a hard look and address three key challenges, Rethinking Democracy, the Social Contract, and Globalization