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The Coming Chinese Crackup

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On Thursday, the National People’s Congress convened in Beijing in what has become a familiar annual ritual. Some 3,000 “elected” delegates from all over the country—ranging from colorfully clad ethnic minorities to urbane billionaires—will meet for a week to discuss the state of the nation and to engage in the pretense of political participation.

Some see this impressive gathering as a sign of the strength of the Chinese political system—but it masks serious weaknesses. Chinese politics has always had a theatrical veneer, with staged events like the congress intended to project the power and stability of the Chinese Communist Party, or CCP. Officials and citizens alike know that they are supposed to conform to these rituals, participating cheerfully and parroting back official slogans. This behavior is known in Chinese as biaotai, “declaring where one stands,” but it is little more than an act of symbolic compliance.

Despite appearances, China’s political system is badly broken, and nobody knows it better than the Communist Party itself. China’s strongman leader, Xi Jinping , is hoping that a crackdown on dissent and corruption will shore up the party’s rule. He is determined to avoid becoming the Mikhail Gorbachev of China, presiding over the party’s collapse. But instead of being the antithesis of Mr. Gorbachev, Mr. Xi may well wind up having the same effect. His despotism is severely stressing China’s system and society—and bringing it closer to a breaking point.

Predicting the demise of authoritarian regimes is a risky business. Few Western experts forecast the collapse of the Soviet Union before it occurred in 1991; the CIA missed it entirely. The downfall of Eastern Europe’s communist states two years earlier was similarly scorned as the wishful thinking of anticommunists—until it happened. The post-Soviet “color revolutions” in Georgia, Ukraine and Kyrgyzstan from 2003 to 2005, as well as the 2011 Arab Spring uprisings, all burst forth unanticipated.

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The Gate of Heavenly Peace in Beijing’s Tiananmen Square, the site of pro-democracy demonstrations in 1989. Photo: National Geographic/Getty Images
China-watchers have been on high alert for telltale signs of regime decay and decline ever since the regime’s near-death experience in Tiananmen Square in 1989. Since then, several seasoned Sinologists have risked their professional reputations by asserting that the collapse of CCP rule was inevitable. Others were more cautious—myself included. But times change in China, and so must our analyses.

The endgame of Chinese communist rule has now begun, I believe, and it has progressed further than many think. We don’t know what the pathway from now until the end will look like, of course. It will probably be highly unstable and unsettled. But until the system begins to unravel in some obvious way, those inside of it will play along—thus contributing to the facade of stability.

Communist rule in China is unlikely to end quietly. A single event is unlikely to trigger a peaceful implosion of the regime. Its demise is likely to be protracted, messy and violent. I wouldn’t rule out the possibility that Mr. Xi will be deposed in a power struggle or coup d’état. With his aggressive anticorruption campaign—a focus of this week’s National People’s Congress—he is overplaying a weak hand and deeply aggravating key party, state, military and commercial constituencies.

The Chinese have a proverb, waiying, neiruan—hard on the outside, soft on the inside. Mr. Xi is a genuinely tough ruler. He exudes conviction and personal confidence. But this hard personality belies a party and political system that is extremely fragile on the inside.

Consider five telling indications of the regime’s vulnerability and the party’s systemic weaknesses.

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A military band conductor during the opening session of the National People’s Congress on Thursday at the Great Hall of the People in Beijing. Photo: Associated Press
First, China’s economic elites have one foot out the door, and they are ready to flee en masse if the system really begins to crumble. In 2014, Shanghai’s Hurun Research Institute, which studies China’s wealthy, found that 64% of the “high net worth individuals” whom it polled—393 millionaires and billionaires—were either emigrating or planning to do so. Rich Chinese are sending their children to study abroad in record numbers (in itself, an indictment of the quality of the Chinese higher-education system).

Just this week, the Journal reported, federal agents searched several Southern California locations that U.S. authorities allege are linked to “multimillion-dollar birth-tourism businesses that enabled thousands of Chinese women to travel here and return home with infants born as U.S. citizens.” Wealthy Chinese are also buying property abroad at record levels and prices, and they are parking their financial assets overseas, often in well-shielded tax havens and shell companies.

Meanwhile, Beijing is trying to extradite back to China a large number of alleged financial fugitives living abroad. When a country’s elites—many of them party members—flee in such large numbers, it is a telling sign of lack of confidence in the regime and the country’s future.

Second, since taking office in 2012, Mr. Xi has greatly intensified the political repression that has blanketed China since 2009. The targets include the press, social media, film, arts and literature, religious groups, the Internet, intellectuals, Tibetans and Uighurs, dissidents, lawyers, NGOs, university students and textbooks. The Central Committee sent a draconian order known as Document No. 9 down through the party hierarchy in 2013, ordering all units to ferret out any seeming endorsement of the West’s “universal values”—including constitutional democracy, civil society, a free press and neoliberal economics.

A more secure and confident government would not institute such a severe crackdown. It is a symptom of the party leadership’s deep anxiety and insecurity.

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A protester is pushed to the ground by a paramilitary policeman March 5, 2014, in Beijing before the opening of the National People’s Congress nearby. Photo: Associated Press
Third, even many regime loyalists are just going through the motions. It is hard to miss the theater of false pretense that has permeated the Chinese body politic for the past few years. Last summer, I was one of a handful of foreigners (and the only American) who attended a conference about the “China Dream,” Mr. Xi’s signature concept, at a party-affiliated think tank in Beijing. We sat through two days of mind-numbing, nonstop presentations by two dozen party scholars—but their faces were frozen, their body language was wooden, and their boredom was palpable. They feigned compliance with the party and their leader’s latest mantra. But it was evident that the propaganda had lost its power, and the emperor had no clothes.

In December, I was back in Beijing for a conference at the Central Party School, the party’s highest institution of doctrinal instruction, and once again, the country’s top officials and foreign policy experts recited their stock slogans verbatim. During lunch one day, I went to the campus bookstore—always an important stop so that I can update myself on what China’s leading cadres are being taught. Tomes on the store’s shelves ranged from Lenin’s “Selected Works” to Condoleezza Rice’s memoirs, and a table at the entrance was piled high with copies of a pamphlet by Mr. Xi on his campaign to promote the “mass line”—that is, the party’s connection to the masses. “How is this selling?” I asked the clerk. “Oh, it’s not,” she replied. “We give it away.” The size of the stack suggested it was hardly a hot item.

Fourth, the corruption that riddles the party-state and the military also pervades Chinese society as a whole. Mr. Xi’s anticorruption campaign is more sustained and severe than any previous one, but no campaign can eliminate the problem. It is stubbornly rooted in the single-party system, patron-client networks, an economy utterly lacking in transparency, a state-controlled media and the absence of the rule of law.

Moreover, Mr. Xi’s campaign is turning out to be at least as much a selective purge as an antigraft campaign. Many of its targets to date have been political clients and allies of former Chinese leader Jiang Zemin . Now 88, Mr. Jiang is still the godfather figure of Chinese politics. Going after Mr. Jiang’s patronage network while he is still alive is highly risky for Mr. Xi, particularly since Mr. Xi doesn’t seem to have brought along his own coterie of loyal clients to promote into positions of power. Another problem: Mr. Xi, a child of China’s first-generation revolutionary elites, is one of the party’s “princelings,” and his political ties largely extend to other princelings. This silver-spoon generation is widely reviled in Chinese society at large.

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ENLARGE
Mr. Xi at the Schloss Bellevue presidential residency during his visit to fellow export powerhouse Germany in Berlin on March 28, 2014. Photo: Agence France-Presse/Getty Images
Finally, China’s economy—for all the Western views of it as an unstoppable juggernaut—is stuck in a series of systemic traps from which there is no easy exit. In November 2013, Mr. Xi presided over the party’s Third Plenum, which unveiled a huge package of proposed economic reforms, but so far, they are sputtering on the launchpad. Yes, consumer spending has been rising, red tape has been reduced, and some fiscal reforms have been introduced, but overall, Mr. Xi’s ambitious goals have been stillborn. The reform package challenges powerful, deeply entrenched interest groups—such as state-owned enterprises and local party cadres—and they are plainly blocking its implementation.

These five increasingly evident cracks in the regime’s control can be fixed only through political reform. Until and unless China relaxes its draconian political controls, it will never become an innovative society and a “knowledge economy”—a main goal of the Third Plenum reforms. The political system has become the primary impediment to China’s needed social and economic reforms. If Mr. Xi and party leaders don’t relax their grip, they may be summoning precisely the fate they hope to avoid.

In the decades since the collapse of the Soviet Union, the upper reaches of China’s leadership have been obsessed with the fall of its fellow communist giant. Hundreds of Chinese postmortem analyses have dissected the causes of the Soviet disintegration.

Mr. Xi’s real “China Dream” has been to avoid the Soviet nightmare. Just a few months into his tenure, he gave a telling internal speech ruing the Soviet Union’s demise and bemoaning Mr. Gorbachev’s betrayals, arguing that Moscow had lacked a “real man” to stand up to its reformist last leader. Mr. Xi’s wave of repression today is meant to be the opposite of Mr. Gorbachev’s perestroika and glasnost. Instead of opening up, Mr. Xi is doubling down on controls over dissenters, the economy and even rivals within the party.

But reaction and repression aren’t Mr. Xi’s only option. His predecessors, Jiang Zemin and Hu Jintao , drew very different lessons from the Soviet collapse. From 2000 to 2008, they instituted policies intended to open up the system with carefully limited political reforms.

They strengthened local party committees and experimented with voting for multicandidate party secretaries. They recruited more businesspeople and intellectuals into the party. They expanded party consultation with nonparty groups and made the Politburo’s proceedings more transparent. They improved feedback mechanisms within the party, implemented more meritocratic criteria for evaluation and promotion, and created a system of mandatory midcareer training for all 45 million state and party cadres. They enforced retirement requirements and rotated officials and military officers between job assignments every couple of years.

In effect, for a while Mr. Jiang and Mr. Hu sought to manage change, not to resist it. But Mr. Xi wants none of this. Since 2009 (when even the heretofore open-minded Mr. Hu changed course and started to clamp down), an increasingly anxious regime has rolled back every single one of these political reforms (with the exception of the cadre-training system). These reforms were masterminded by Mr. Jiang’s political acolyte and former vice president, Zeng Qinghong, who retired in 2008 and is now under suspicion in Mr. Xi’s anticorruption campaign—another symbol of Mr. Xi’s hostility to the measures that might ease the ills of a crumbling system.

Some experts think that Mr. Xi’s harsh tactics may actually presage a more open and reformist direction later in his term. I don’t buy it. This leader and regime see politics in zero-sum terms: Relaxing control, in their view, is a sure step toward the demise of the system and their own downfall. They also take the conspiratorial view that the U.S. is actively working to subvert Communist Party rule. None of this suggests that sweeping reforms are just around the corner.

We cannot predict when Chinese communism will collapse, but it is hard not to conclude that we are witnessing its final phase. The CCP is the world’s second-longest ruling regime (behind only North Korea), and no party can rule forever.

Looking ahead, China-watchers should keep their eyes on the regime’s instruments of control and on those assigned to use those instruments. Large numbers of citizens and party members alike are already voting with their feet and leaving the country or displaying their insincerity by pretending to comply with party dictates.

We should watch for the day when the regime’s propaganda agents and its internal security apparatus start becoming lax in enforcing the party’s writ—or when they begin to identify with dissidents, like the East German Stasi agent in the film “The Lives of Others” who came to sympathize with the targets of his spying. When human empathy starts to win out over ossified authority, the endgame of Chinese communism will really have begun.

Dr. Shambaugh is a professor of international affairs and the director of the China Policy Program at George Washington University and a nonresident senior fellow at the Brookings Institution. His books include “China’s Communist Party: Atrophy and Adaptation” and, most recently, “China Goes Global: The Partial Power.”
The Coming Chinese Crackup - WSJ

The sounds are becoming louder. Time is coming closer to face the music.
 
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I understand you have a boner for Japan and you are on permanent rage against China, but do you actively scour the internet for China collapse news?

A lot of these article just posts sensational topics to bait clicks for ad money.

Modern day China and Soviet Union are very different countries. For one, China is not made up of 16 federations. Second, USSR was only 50% Russians, so it was very ethnically diverse, China is 91% Han. Third, the Chinese Communist Party enjoy much more domestic support than the Soviet counterpart. Lastly, USSR had to deal with all the complications with the cold war, while modern day China is very interconnected with the entire world.

The truth is no one wants China to collapse, not USA, not Japan, and certainly not Turkey.

You can bet on China collapsing all you want, but I, along with many western investors in China have faith that China will succeed and prosper. This includes many multi billion dollar companies like Apple, Microsoft, Ford, ect.
 
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"There are two types of pains, one that hurts u and the other that changes u"

life must be pretty sad, so much pain and hate. being anti-Chinese not going to solve your the problem, take a deep breath turn ur pc off and read a book.
 
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I follow economic news throughout the world. Just because they don't read wall street journal from where you are doesn't make this article false. Instead of acting like a baby, you should try to use counter-arguments but I doubt you even read the article.

You can bet on China collapsing all you want, but I, along with many western investors in China have faith that China will succeed and prosper. This includes many multi billion dollar companies like Apple, Microsoft, Ford, ect.
This is actually not true. Big companies are moving away their production from China. And more and more smaller companies can't afford China because you are getting to expensive compared to other production countries.
 
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I follow economic news throughout the world. Just because they don't read wall street journal from where you are doesn't make this article false. Instead of acting like a baby, you should try to use counter-arguments but I doubt you even read the article.

I follow economic news through youtube. Just because i watch fox news and cnn it doesn't make this news false. Instead of acting like a mental person, you should see a doctor for some med.
 
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I follow economic news through youtube. Just because i watch fox news and cnn it doesn't make this news false. Instead of acting like a mental person, you should see a doctor for some med.
you are being trolled when you answer a troll.
 
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Another moronic article finding its way into the trash bin but these trashes are always cherished by the China-haters like gems

Xi is having an all time high approval rating and even the military is happy for his hard fisted crackdowns on corruption in the military ranks

Xi was playing hardballs on foreign enterprises. The government has been penalising the likes of Qualcomm, P&G for various infringements. It was a great slap on the face of Obama when Xi refused to back down on taking a tough stance in security scrutiny of iPhones selling in China

Apple agrees to Chinese security checks despite Obama criticism - Business Insider

So the hegemony's propaganda machine is on, harder this time on call of revenging american setbacks recently

If you want to do business here in China, do it according to our rules period

images

China porcelain dinner set

So when does Turkish army start to crush justice Kurdish freedom fighter?

He is not ethnic Turkish
Dont bash back on the Turkish people in general because of the troll
Dont be fooled by flags
 
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A point by point rebuttal for the article from National Interest.
******


Sorry, America: China Is NOT Going to Collapse

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The American fantasy that refuses to die...

Chen Dingding, March 10, 2015

In a recent piece published in the Wall Street Journal, The Coming Chinese Crackup, China scholar and George Washington University professor David Shambaugh boldly predicts that the Communist Party of China (CCP)’s endgame has begun. Although, in the past, such brave predictions of the CCP’s collapse have been proven wrong, the fact that such a prediction has come from Shambaugh, a leading China expert, makes it all the more interesting. In a report from China’s Foreign Affairs University, Shambaugh was named the second most influential China expert in the United States. As such, Chinese scholars and officials will take his opinions seriously.

Professor Shambaugh listed five indicators that point to China’s coming collapse. However, a closer analysis of these five points reveals that Shambaugh’s conclusion is based on incorrect facts and flawed interpretations of China’s recent socioeconomic and political developments.

First, he asserts that wealthy Chinese are fleeing China. Actually, this is only half true. While a large number of wealthy Chinese have migrated to countries like Canada, most of them still do business in China, meaning that they are still have a positive outlook on China’s future. In any case, a good number of these wealthy people move their assets out of China to avoid corruption charges, which has nothing to do with China’s future development. Moreover, in recent years an increasing number of overseas students have chosen to come back to China because they have confidence in China’s future.

The second indicator is increasing political repression and CCP insecurity. Actually, not much has changed in this area, compared to the Hu Jintao presidency. The party insecurity thesis is an old argument and one can say that the CCP has always been insecure, especially since 1989. So what is so special about the present that signals the Party’s endgame? Indeed, one can argue that the Party’s endgame is soon, no matter what it does. If the Party opens up, then civil society will rise up and overthrow the regime; if the Party continues to be repressive, it will breed insecurity, which will cause its collapse.

Third, Shambaugh argues that Chinese officials come across as wooden and bored. But many Chinese officials were always like that, so there is nothing new in this observation. It is definitely not something that can support Shambaugh’s “China collapsing” argument.

Fourth, Shambaugh points out there is massive corruption in China. Shambaugh is right about the seriousness of the corruption issue in China. But he neglects to mention that the anti-corruption campaign has been very successful so far, and the main reason for this is because it has the public's support. Corrupt officials know this too, which is why they are unable to fight back.

Shambaugh’s final argument is that the Chinese economy is slowing. Arguably, this fifth factor is the only new point in Shambaugh’s argument, as the previous four factors have been features of China’s political culture for quite some time. As such, this argument deserves serious consideration.

Shambaugh seems to believe that a slowing economy will lead to widespread grievances, which in turn will lead to civil unrest. This will lead to the collapse of the regime. Arguably, this is what fueled the Arab Spring and may be applied to China today.

However, there are several problems with this argument.

First, China’s economic slowdown is not an economic meltdown. It is true that compared to China’s past sensational growth rate, a six to seven percent growth rate is a slowdown. But which other major economy can grow at this rate? China’s economic growth must be viewed in a relative sense.

Second, would a slowdown, or even a massive financial meltdown lead to widespread disruption in Chinese society? The answer actually depends on how the effects of the slowdown are distributed throughout society. As Confucius pointed out long ago, Chinese people tend to get riled up more about inequality than scarcity(患均不患寡), which is just as true today. Most ordinary Chinese hate a high level of inequality, especially if such inequality is a result of corruption rather than legitimate hard work. While a severe crisis would lead to a massive loss of jobs and lower incomes, if the U.S. economy survived the 2008 global financial crisis, there is no reason to believe the Chinese economy cannot overcome a similar one.

Third, even if a severe economic crisis hits China and causes greater social grievances, why does this mean that social unrest will automatically lead to an uprising against the regime? In other words,, this claim is premised on the belief that the Chinese government’s legitimacy relies solely on economic performance.

Unfortunately this assumption, though widely held among scholars, is no longer true. Economic growth is certainly important for most Chinese people, but education, the environment, corruption, and legal justice matter just as much as growth. As long as the Chinese government seriously tackles problems in those areas, support for the CCP will remain high. This explains why the Xi administration has initiated bold reforms in all these areas.

Finally, even if there is political unrest will it necessarily topple the regime? This depends on the balance of power between the government and the dissenters. Where is the political opposition in China today? Does the political opposition enjoy the widespread support of ordinary Chinese people? Is there any leader who might want to play the role of Gorbachev? None of these factors exist in China.

More -> Sorry, America: China Is NOT Going to Collapse | The National Interest
 
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Another moronic article finding its way into the trash bin but these trashes are always cherished by the China-haters like gems

Xi is having an all time high approval rating and even the military is happy for his hard fisted crackdowns on corruption in the military ranks

Xi was playing hardballs on foreign enterprises. The government has been penalising the likes of Qualcomm, P&G for various infringements. It was a great slap on the face of Obama when Xi refused to back down on taking a tough stance in security scrutiny of iPhones selling in China

Apple agrees to Chinese security checks despite Obama criticism - Business Insider

So the hegemony's propaganda machine is on, harder this time on call of revenging american setbacks recently

If you want to do business here in China, do it according to our rules period

images

China porcelain dinner set



He is not ethnic Turkish
Dont bash back on the Turkish people in general because of the troll
Dont be fooled by flags
You contradict yourself. You first say they crack down on protest very harshly and then you say approval rates are very high. If you crack their heads of course they want say how they feel about the regime. We all know how much freedom of expression is in China. If you say what you think you can fear for the safety of yourself and your family. So I take such "approval ratings"from China with a grain of salt. The bad side of suppressing your people like that, is that anger is building and it will explode when conditions are right.

China Is Going Off the Rails: Gordon Chang - Bloomberg Business

People will decide their own faith.
 
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You contradict yourself. You first say they crack down on protest very harshly and then you say approval rates are very high. If you crack their heads of course they want say how they feel about the regime. We all know how much freedom of expression is in China. If you say what you think you can fear for the safety of yourself and your family. So I take such "approval ratings"from China with a grain of salt. The bad side of suppressing your people like that, is that anger is building and it will explode when conditions are right.

China Is Going Off the Rails: Gordon Chang - Bloomberg Business

People will decide their own faith.
:lol: you are so desperate that you need to refer to a dick to prove your point? Gordon Chang is well known to be anti China. His prediction about China is always wrong. Can you find a more credible one?
 
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You contradict yourself. You first say they crack down on protest very harshly and then you say approval rates are very high. If you crack their heads of course they want say how they feel about the regime. We all know how much freedom of expression is in China. If you say what you think you can fear for the safety of yourself and your family. So I take such "approval ratings"from China with a grain of salt. The bad side of suppressing your people like that, is that anger is building and it will explode when conditions are right.

China Is Going Off the Rails: Gordon Chang - Bloomberg Business

People will decide their own faith.

Save the grain of salt for yourself
Dont you know what is popularity votes?
Americans Indians and the place you may be living in called Turkey are also exercising control of discontented people in varying degrees.
China is no exception.

Gordon Chang plies his trade in China bashing similar to what you and many other trolls on forums are doing

Send my regards to your Indian grandkids

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Chinese penzai horticultural art
 
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