What Type of Government does China have?

February 15, 2017

By definition, as you will learn from this post, 21st century China is not a socialist and/or Communist country, even though it is still labeled as one. It is also not a capitalist country.

Socialism is a system where there is no private property and the means of production are owned and controlled by the state. But in 2014 Bloomberg reported that private companies are driving China’s growth. Only 25-percent of China’s industrial output came from state-owned enterprises in 2014.

Communism is a political theory derived from Karl Marx, advocating class war and leading to a society in which all property is publicly owned and each person works and is paid according to their abilities and needs. When Mao died in 1976, China moved away from this political theory by ending Mao’s Cultural Revolution and arresting the Gang of Four, who planned to lead China and continue the Cultural Revolution’s class war forever.

Then there is capitalism that is an economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.

Since about 25-percent of China’s industry is still state-owned, China clearly isn’t a capitalist system like the United States is.  The evidence for this was on display soon after the 2007–08 global financial crises created by U.S. Banks and Wall Street greed that caused millions of Chinese to lose their jobs in private sector manufacturing.

That’s when China’s government stepped in.

The Global Economic Crises and Unemployment in China reports, “The state provided subsidies and basic entitlements to urban workers and their families in an effort to maintain social and political stability within the subsystem … the government has poured billions of dollars into public works designated for road and rail transportation improvements. These projects have created many jobs for migrant labor.”

What else do we know about today’s China?

China has one political party with 85-million voting members; it’s one of the largest political parties in the world. — Britannica.com

More than 600-million rural Chinese vote in village elections. New Politics reports, “Elections of Village Committees and Village Leaders in China’s approximately 950,000 villages began in 1989 as part of a wider village self-government movement.”

China has its own Constitution from 1982 that includes Amendments.  For instance, the president of China is limited to two 5-year terms and can be impeached.

There is also a mandatory retirement age that comes with a pension.

However, every year, China’s president is listed as one of the world’s dictators by elements of the U.S. media, but under China’s Constitution, the presidency is a largely ceremonial office with limited powers. This doesn’t fit the definition of a dictator who holds absolute, imperious, or overbearing power or control and who is not responsible to the people or their elected representatives.

How are China’s representatives elected?  About.com reports, “China’s representative elections begin with a direct vote of the people in local and village elections operated by local election committees. In cities, the local elections are broken down by residential area or work units. Citizens 18 and older vote for their village and local people’s congresses, and those congresses, in turn, elect the representatives to provincial people’s congresses.

“The provincial congresses in China’s 23 provinces, five autonomous regions, and four municipalities directly ruled by the Central Government, special administrative regions of Hong Kong and Macao, and armed forces then elect the roughly 3,000 delegates to the National People’s Congress (NPC).

“The National People’s Congress is empowered to elect China’s president, premier, vice president, and Chair of the Central Military Commission as well as the president of the Supreme People’s Court and the procurator-general of the Supreme People’s Procuratorate.”

Let’s look at how the United States elects its president.  Political Parties that are private sector organizations allow party members to vote in state primaries. These primaries are not public elections because most of them only allow registered party members to vote.

Donald Trump, for instance, only won a little more than 14-million votes from registered Republicans to end up representing the Republican Party as its presidential candidate in 2016, and this is in a country that has more than 200-million registered voters. Hillary Clinton had more than 16.8 million votes from the Democratic primaries.

The winners (Trump and Clinton) moved on to campaign in the national election that is held and monitored by the public sector in each state.  In the 2016 election, Donald Trump won the Electoral College vote 303 to 235, but he lost the popular vote 62,979,879 votes to Hillary Clinton’s 65,844,954.

Does this seem strange?  Is there any other republic in the world where the winner loses the popular vote?

Last, a republic is a state in which supreme power is held by the people and their elected representatives, and which has an elected or nominated president rather than a monarch.

After reading this post, what type of government do you think China has?

  1. a dictatorship
  2. a socialist state
  3. a communist state
  4. a capitalist state
  5. a republic
  6. A hybrid capitalist-socialist republic
  7. None of the above

 

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Where Have All the Jobs Gone?

August 23, 2016

In 2012, U.S. News and World Report said, “America Lost 2.7 Million Jobs to China in 10 Years.”

In 2013, Think Progress.org wrote, “Study Finds Free Trade With China Lowered American Manufacturing By 29.6 Percent.”

In 2014, the Economic Policy Institute reported, “Growing U.S. trade deficit with China cost 3.2 million jobs between 2001 and 2013, with job losses in every state.”

In 2015, Boomberg.com published, “After Doubts, Economists Find China Kills U.S. Factory Jobs.”

In 2016, NPR broadcast on All Things Considered that “China Killed 1 Million U.S. Jobs, But Don’t Blame trade Deals.”

And those previous 5 stories are only the tip of Mt. Everest. When I Googled “U.S. Jobs Lost to China,” there were almost 70 million hits.

That’s why I find the following information so interesting: 59.2 percent of the civilian labor force age 16 and older had jobs in 1950, but in 2015, that ratio was 66.8 percent. Isn’t that an increase in jobs instead of jobs lost? – Labor Force Change, BLS.gov, table 4, page 22

In addition, Heritage.org says, “Those who attack China often do not examine real economic events: They do not measure actual failed businesses and actual job losses. Instead, they assume the U.S.–China trade deficit means that both production and production jobs are moving from the U.S. to China. … Imports do not cause unemployment; quite the opposite, they are a signal of prosperity and plentiful jobs.” The Heritage Foundation is an American conservative think tank based in Washington D.C. and the foundation took a leading role in the conservative movement during the Presidency of Ronald Reagan.  Therefore, you can’t blame alleged liberals for this report.

Cato.org, an American libertarian think tank (To be clear, libertarians are not liberals.) founded by the Charles Koch Foundation, (yes, that Koch) supports what Heritage says: “In the quarter century between 1983 and 2007, as real GDP more than doubled and the real value of U.S. trade increased five-fold, the U.S. economy created 46 million net new jobs, or 1.84 million net new jobs per year.”

If what Heritiage.org and Cato.org says is true, is the United States really losing jobs?

First, after the 2007-08 global financial crises caused by U.S. Banks and Wall Street greed, trade between the United States and the world shrunk by 12 percent and almost 9 million jobs were lost in the U.S. — jobs that were not lost to China. In fact, since 2009, more than 9 million jobs were added back making up for those lost jobs.

That proves that the United States has not had a reduction in jobs, but “In the U.S., jobs paying between $14 and $21 per hour made up about 60% of those jobs lost during the recession … such mid-wage jobs have comprised only about 27% of jobs gained during the recovery through mid-2012. In contrast, lower-paying jobs constituted about 58% of the jobs regained.”

Did you know that the United States has the 2nd largest manufacturing sector in the world, and that China only became #1 recently? Brookings.edu says, “As recently as 2010, the United States had the world’s largest manufacturing sector measured by its valued-added and, while it has now been surpassed by China, the United States remains a very large manufacturer.”

I wouldn’t be surprised if you said no.

At this point you may be confused or in denial.  You might be thinking that this can’t be true. How can the U.S. have such a large manufacturing sector when millions of jobs have been lost there?

Bright Hub Engineering.com offers one answer: “Robots have replaced a lot of activities formerly carried out by a human, with one robot replacing as many as ten workers.”

“In the last fifteen years, manufacturing in the United States has undergone a fundamental shift,” Arena Solutions.com reports. “As millions of U.S. manufacturing jobs have been lost to … automation, output has steadily continued to grow. And while U.S. manufacturing output has decreased by only 1% since 1990, manufacturing jobs have decreased by over 30% in the same time period.”

Losing manufacturing jobs is not only happening in the US. The Harvard Business Review.org says, “Manufacturing employment decline is a global phenomenon. As a Bloomberg story summarized: “Some 22 million manufacturing jobs were lost globally between 1995 and 2002 as industrial output soared 30 percent.”

Instead of blaming China, blame the real culprits: robots and the greedy rich who are behind the decisions to replace humans with automation. If one robot can replace ten humans, that’s a lot of increased profits, and more job losses are on the way. Earlier this year CBS Money Watch reported The robot revolution will take 5 million jobs from humans.

After all, Robots don’t need Social Security, medical care, retirement plans, paid sick leave or vacations — in fact, they don’t earn any money, even minimum wage with no benefits, making robots better than human slaves.

China is also going through its own robot revolution. FT Magazine reported this June that “Factories in China are replacing humans with robots in a new automation-driven industrial revolution.”

The manager of one Chinese company that makes stainless steel sinks in Guangdong talked about 9 robots doing the job of 140 full-time workers, “These machines are cheaper, more precise and more reliable than people.”

But what happens when there are no human jobs left for people to earn money so they can buy stainless steel sinks and all the other consumer crap factories churn out around the world? After all, robots don’t read books, watch films, use sinks or toilets, or even eat.

Are the world’s rich and powerful planning to get rid of the rest of us and replace us with robots, because they certainly are not creating robots to replace them?

Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. When you love a Chinese woman, you marry her family and culture too. This is the unique love story Sir Robert Hart did not want the world to discover.

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A History Lesson from Mao on How to Win the War on Drugs in 24 Hours

June 8, 2016

From The Opium Monopoly by Ellen N. La Motte, we learn how opium addiction became an epidemic in China. Although The Chinese knew about opium for more than a thousand years, it wasn’t until the Portuguese arrived in the 18th century that the Chinese used it as a drug by smoking it. Merchants from Britain, France, Portugal, America and other nations became the drug cartels that plagued China into the 20th century.

In 1729, the emperor issued the first anti-opium edict, but the supply of opium flooding China went from 220 chests in 1729 to 70,000 in 1858.

It is estimated that before 1950, as many as 20 million Chinese were drug addicts. To solve this problem, Mao had the People’s Liberation Army execute the drug dealers and forced millions of addicts into compulsory treatment in a twenty-four hour period. — How Maoist Revolution Wiped Out Drug Addiction in China

Opium growers, who did not want to comply, fled into the Golden Triangle Region of Southeast Asia where many of Chiang Kai-shek’s nationalist troops had gone to escape defeat. Those generals also did business with the CIA, and American soldiers in Vietnam became the new customers. It is estimated that at least 20% of the almost nine million American troops that served in Vietnam became addicted.

China remained free of drugs until Deng Xiaoping declared, “Getting Rich is Glorious” and opened China to world trade. In 2003, it was estimated that China had four million regular drug users—even with China’s strict laws concerning illegal drug use.

And in America, where human rights are king and fear of Communism by Capitalists is supreme, drug users and sellers often end up in prison costing taxpayers an average of $47,000 annually explaining why America has more people serving time in prisons than any other country on the planet; that price tag is more than $90-billion a year. Where are the protests and the accusations? Instead, the U.S. has a presidential candidate, a billionaire called Donald who wants to build the Great Wall of Trump between the United States and Mexico.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. When you love a Chinese woman, you marry her family and culture too. This is the unique love story Sir Robert Hart did not want the world to discover.

#1 - Joanna Daneman review posted June 19 2014

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The Global Hooters Girls

March 23, 2016

As of 2014 there were more than 460 Hooters company-owned locations and franchises throughout the United States. The company has restaurants in 44 U.S. states, the US Virgin Islands, and Guam. Hooters also operates restaurants in 24 other countries, and China is one of them. In fact, the first Hooters in China opened October, 2004.

With more than 234 million middle class Chinese, 113 million more than the United States, the fact that Hooters is doing business in China shows how fast China is changing as the Middle Kingdom evolves into an Asian Super Power that is beginning to look more like the U.S.  China is roaring toward capitalism with all the trappings of a consumer society.

Will the two countries become equal partners one day, because of companies like Hooters, McDonalds, KFC, Pizza Hut, Ford and GM? For instance, KFC has more than 4,500 outlets in China and Chinese buyers are obsessed with Buick. According to the New York Times, Buick is the hottest luxury brand in China. Imagine the profits that American companies would lose if China and the U.S. went to war.

I’ve never been to a Hooters in any country, but on my next trip to China, I might visit one since they are six spread out between Shanghai, Beijing, Xi’an and Chingdu. I’ve already watched the YouTube videos. See for yourself.

As fast at McDonald’s, KFC, Pizza Hut, Starbucks, GM, and Ford are all growing in China (and making money), it’s easy to imagine that Hooters may have more stores in China one day than the U.S.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. When you love a Chinese woman, you marry her family and culture too. This is the unique love story Sir Robert Hart did not want the world to discover.

A1 on March 13 - 2016 Cover Image with BLurbs to promote novel

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Will the real Emperors of Greed please Stand

March 16, 2016

From several pieces I’ve read in the U.S. media and a few comments I’ve received on this Blog, it appears that some people think the Chinese are the emperors of greed, but they aren’t.

In fact, greed is everywhere — even, GASP, in the United States.

For example, ABC’s Good Morning America reported, “Phantom Debt Collectors from India Harass Americans, Demand Money.”

GMA reported, “Hundreds of thousands of cash-strapped Americans have been targeted by abusive debt collectors operating out of overseas call centers suspected of links to organized crime in India, law enforcement officials told ABC News.”

Working through call centers in India, the commission estimates that the criminals have dialed at least 2.5 million calls, persuading already cash-strapped victims to send them more than $5 million.

Another example is A New Crime Wave of Identity Theft: Is Your Child in Danger.

“It’s undetected and undetectable. They’ll use your child’s Social Security number with a different name and a different birth date.” In fact, over several years, 57,000 cases of child identity theft was reported to the Federal Trade Commission. A new report from All Clear ID estimates that one in 10 U.S. children are victims.

“Olivia McNamara was starting her freshman year at Vanderbilt University when she applied for her first credit card. After being rejected twice, she did some digging and found that someone had stolen her identity and had run up massive debt – to the tune of $1.5 million. When she was 9, someone had stolen her Social Security number and set up false identities and more than 42 accounts. All of them had defaulted.”

Then in June 2012, the AARP Bulletin reported (on page 20), Locked out of Luck by Sid Kirchheimer. The piece said, “The overwhelming majority of locksmiths with an 800 phone number are not legitimate … In reality, the pro arrives in a van with no fixed address and a scam in mind. … The work is faulty plus expensive—often $1,000 or more, and demanded in cash.”

AARP even has a book out by fraud expert Doug Shadel, Outsmarting the Scam Artist. Shadel and a team of scientists interviewed thousands of victims and dozens of scam artists who revealed their trade secrets.

The Federal Trade Commission warns, “Consumer frauds pose a threat to consumers and the economy. Even the most wary and sophisticated consumers may fall victim to fraudulent offers – in the mail, in the media, and on the Internet.”

The FTC report stated that in the year prior to the survey the number of victims of the most common types of consumer fraud reached almost 36 million with 53 million incidents.

In fact, in 2010, the Better Business Bureau reported, “$2.9 trillion is lost to fraud annually.” In a decade that adds up to $29 trillion or almost twice the National Federal debt.

So, next time you read in the media or in a Blog that China, or any other country, is filled with crooks and corruption, remember that China is not alone. Don’t stereotype anyone. After all, the Chinese were not behind the 2008 financial crisis that cost the U.S. economy more than $22 Trillion in addition to nine-million jobs, and that does not  count what the rest of the world lost. – U.S. Government Accountability Office

One last thought. The 2008 financial crises caused nine-million working Americans to lose their jobs in a few months, but the Economic Policy Institute reports that the U.S. trade deficit with China cost only 3.2 million American jobs between 2001 and 2013 (12 years or about 258 thousand jobs a year).  In addition, a recent report from PBS.org and the BBC says that one in three jobs today will be lost to software, robots and smart machines by 2025—not to China.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. When you love a Chinese woman, you marry her family and culture too. This is the unique love story Sir Robert Hart did not want the world to discover.

A1 on March 13 - 2016 Cover Image with BLurbs to promote novel

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What happens when any Form of Government becomes destructive and many people suffer?

March 1, 2016

I was recently asked, “What can China learn from the US political model? American government is looking more and more like ‘of the 1% by the 1% and for the 1%’!”

My answer follows: If China learns anything from what is happening in the U.S., it’s to keep a balance between socialism and capitalism and not let socialism dominate capitalism and capitalism dominate socialism.

Capitalism benefits the 1% – everyone cannot be a winner even though many of the wealthy think everyone can make it like they did and they look down on and discriminate against everyone who doesn’t make it. After all, everyone has the right to work harder to make it, right, even on poverty wages with no benefits?

Socialist programs benefits the other 99% where many can end up suffering horribly without a safety net.

I’m not talking about pure socialism where the state—representing the people—own everything: the land and everything built on and under it, the means of production and the retail sector that sells what’s produced. I’m talking about social safety-net programs like affordable and/or free universal health care for every citizen no matter how much they earn, a livable wage, Social Security for when people are old and retire, unemployment insurance for people who have lost their jobs, labor unions that represent the workers, and disability insurance for workers injured on the job and even from accidents outside of work, who can no longer work because of the injury.

The capitalists, the 1%, will moan and groan because of these social programs that protect 99% of the people—the workers that helped make the 1% wealthy and powerful. The 1% will moan and groan because enough is never enough and the social programs that protect the 99% cut into the profits and the growth of their wealth and power. Angry, the 1% will bribe as many leaders in the country as possible to get rid of the socialist programs that protect the 99%. The corruption and lies will be rampant, because money buys power and power corrupts and absolute power corrupts absolutely. Wealth and power is similar to cancer and to contain that disease and protect the 99%, the government must walk a fine line to keep the balance.  The 99% must be stopped from destroying the 1% and the 1% must be stopped from causing the 99% from suffering due to the greed of the 1%.

The 99% can cause tyranny and suffering too because the mob is dangerous and powerful when united against tyranny, and the 1% can quickly become the tyranny behind the suffering caused to the 99%. That is what is happening in the United States today. The 1% is systematically attacking every public sector socialist program that protects the quality of life for the 99%.

The U.S. Declaration of Independence, that is not the law of the United States—the U.S. Constitution and Bill of Rights is the law that guides America—says it best:

“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.–That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.–Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world.”

A government’s struggle to keep that balance between capitalism and socialism never ends because the temptations to lean toward capitalism’s 1% are many, and it has been said through the ages that every person has a price and can be bought one way or the other. Government also must resist the cry of the mob, loud and organized factions of the 99%, that demand more from the social safety net. In the end, it is up to knowledgeable, honest voters to help keep that balance in place.

Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. When you love a Chinese woman, you marry her family and culture too. This is the unique love story Sir Robert Hart did not want the world to discover.

#1 - Joanna Daneman review posted June 19 2014

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Quality Wine from China

February 16, 2016

The World Bank reports, “In 1981, private sector employment accounted for 2.3 million workers, while state-owned enterprises (SOEs) had 80 million workers. Twenty years later, the private sector accounted for 74.7 million workers, surpassing, for the first time, the 74.6 million workers in SOEs.”

In addition, Bloomberg.com said, “Many of the world’s richest self-made women are Chinese,” and Psychology Today.com tells us, “Women own more than 40% of private businesses in China.”

Meet one of those women. Judy Leissner was 24 when she became the CEO and President of 168-acre Grace Vineyard in Shanxi province, south of Beijing after she quit her job at Goldman Sachs.

The first grape-vine plantings were in 1997 and the first vintage in 2001. Judy started the winery because her father liked to drink. Today, Judy produces a quality wine—about 700,000 bottles annually.

Most people do not know that quality wine is produced in China. In fact, Judy has competition because, according to the International Organisation of Vine and Wine, China now has the second-largest vineyard area worldwide after Spain, pushing France into third position.

Judy says there is an opportunity in China to make a lot of money in a short period of time, because the country is developing and growing.

The difference between the wine market in China and the rest of the world is that most drinkers in China must drink because they have to. It’s part of the culture of doing business and developing guanxi.

Grape Wall of China.com visited Grace Vineyard in September 2011, and Jim Boyce says he visited Grace CEO Judy Leisser, and he reported, “About a week ago, she sent an email that the wines Grace bottled under screw cap earlier this year are doing fine and, if all goes well with final trials, the winery will switch closures this year for its entry level and premium level wines. Grace’s Premium Chardonnay ranks among the better Chinese wines and is found in top hotels and restaurants in Beijing and Shanghai.”

______________________________

Lloyd Lofthouse is the award-winning author of My Splendid Concubine [3rd edition]. When you love a Chinese woman, you marry her family and culture too. This is the unique love story Sir Robert Hart did not want the world to discover.

#1 - Joanna Daneman review posted June 19 2014

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