Saturday, June 27, 2009

China's unquenchable thirst for oil

June 27, 2009, Dr. Wenran Jiang, Mactaggart Research Chair at the China Institute and Associate Professor of Political Science, was quoted in the Global and Mail on Sinopec's attempt to acquire Canadian-based oil company Addax for more than $8 billion Canadian dollars.

Dr. Jiang, who maintains close ties to many major Chinese energy firms, said in the paper that oil companies around the world are looking for investment from China. But so far, he said, Canadian-based firms are more likely to sell offshore assets to the Chinese than their domestic holdings.

You can read the article here.

Despite recession, the Chinese are aggressively pursuing energy assets.
Copyright: The Globe and Mail


Thursday, June 04, 2009

Tiananmen 20 years later: The withering of ideologies

Chinese not willing to jeopardize their prosperity by pressing for political reform

The Toronto Star
Jun 04, 2009 04:30 AM
WENRAN JIANG

Twenty years ago today, Canadians and people around the world were glued to their televisions to watch the tragic events in Beijing unfold as the Chinese government used force to crack down on demonstrators in and around Tiananmen Square.

Two decades later, there is much debate about the nature of the student-led movement. While Beijing officially labels it as "turmoil," some call it a forgotten revolution, or even the end of revolution. For most, however, life has moved on and memories of the bloodshed have faded. When I began teaching at the University of Alberta in 1993, all students, including those from China, could recall the live coverage of the Beijing demonstrations. Today, they learn about the event the same way they do the Korean war.

Many young people who participated in the student demonstrations now live affluent middle-class lives, with their own apartments, cars and other modern gadgets, enjoying China's new urban prosperity.

They look back at 1989 with mixed feelings of nostalgia and realism. "It was an exciting moment in Chinese history, and my heart is always with those students," a friend told me recently in Beijing, "but I won't go to Tiananmen now if the same thing happens again, and I won't donate money and time as I did last time."

"Why?" I pressed further.

"Well, I have benefited a lot from the reforms since then, and there is so much to lose if there are dramatic changes."

Indeed, the Chinese government has made providing economic benefits to most citizens its top priority for the past two decades. As Deng Xiaoping, the paramount leader who ordered the bloody crackdown, put it: "Economic development is the core."

This doctrine is based on three pragmatic calculations.

First, the legitimacy of the Chinese Communist party's monopoly on power derives from continuously improving living conditions for the ordinary people. Post-1989 China, while resisting political reform, has experienced explosive economic growth at an annual rate of around 10 per cent. Beijing, Shanghai and other large Chinese cities have been transformed into modern metropolises. Several hundred million poor people have been lifted out of poverty. Today, most Chinese are satisfied with the country's material progress, and China soon will overtake Japan as the second largest economy in the world.

Second, China is becoming a modern world power not through democratization – as Mikhail Gorbachev tried in the Soviet Union – but through Western-style capitalism. Facing post-Tiananmen sanctions by Western countries, Deng asserted that the only way for China to break its international isolation was to pursue open-door economic policies. Believing that foreign multinational corporations were driven by the logic of profit, he predicted that if China could make itself a profitable place, they would return – and so would their governments. And they did. China today attracts the world's largest share of foreign direct investment, holds the largest foreign reserves, and is the largest creditor of the United States. And most Western leaders are muted about Tiananmen.

Third, political and social stability must be maintained at all cost. Zhao Ziyang, the former Communist party general secretary who lost his job in 1989 due to his sympathy with the student movement, revealed in a newly published memoir based on tapes recorded before his death that the Chinese leadership was split on how to deal with the protest: one side favoured negotiation and the other urged force. The latter prevailed at the time but the lessons were not lost on those involved. Today, Beijing does everything possible to preserve elite unity and safeguard social stability. "To nip it in the bud" has become the guiding principle in dealing with any challenges to authority.

Beneath the surface of China's brutal pragmatism, however, there is an ever-growing undercurrent for further political openness. For hundreds of parents who lost their beloved sons and daughters 20 years ago, life has never returned to normal. A group of "Tiananmen Mothers" continues to demand answers from the government. Pressure for transparency, anti-corruption, freedom of expression and other political reforms, all of them raised two decades ago, continues to build from the bottom up.

But unlike the students of the 1980s, many of whom adored the "Goddess of Democracy" and passionately advocated "total Westernization" as the answer to China's political future, Chinese youth today are more sophisticated and critical. They still share the last generation's idealism but are much less ideological.

And there is an unspoken but widely shared consensus among the Chinese people that, sooner or later, the official verdict on the Tiananmen movement as "anti-government riots" will be reversed and the patriotism of the students recognized.

In the mid-1970s, a group of foreign visitors asked long-serving Chinese premier Zhou Enlai, who had studied in France in his youth, about the historical significance of the 1789 French Revolution, which was approaching its 200th anniversary. Zhou reportedly paused for a moment and responded, "It is still too early to tell."

Those were the thoughts going through my mind when I went to Zhao Ziyang's home to pay my respects after he passed away in January 2005 and later attended his funeral – the only foreign academic to do so. I admired his final effort to avoid violent repression of the students in 1989. Today, I remain hopeful that history ultimately will deliver a fair verdict on the tragedy of Tiananmen.

Wednesday, June 03, 2009

Canada not yet ready for China

On June 3, 2009, Dr. Wenran Jiang was interviewed by the Financial Post on the recent developments of Canada China energy relations.

As reported in the Financial Post on June 2, China is renewing its push for an energy alliance with Canada and seeking the support of Canadian political leaders to establish a major energy corridor linking Western Canadian supplies to the Chinese market.

Dr. Jiang noted that the Chinese see the oil sands as expensive, largely because of high labour costs. Nonetheless, they feel they can fix the problem by supplying their own cheap workforce, as they are doing in oil projects around the world, but are frustrated by Canadian regulations and public perceptions.

You can read the article here.

GM's gas-guzzler now China's new ride

On June 3, 2009, Dr. Wenran Jiang was quoted by the Globle and Mail on a likely acquisition deal by a Chinese firm over the Hummer division of troubled General Motors Corp.

Dr. Jiang said the deal is all about China buying a recognizable consumer label – just as in 2004 Lenovo bought the rights to ThinkPad notebooks and other personal computer technology from IBM. He remarked that this is the automobile industry's equivalent of the IBM deal.

You can read the article here.

Monday, June 01, 2009

Tiananmen Anniversary - On the Action Plan

On June 1, 2009, Dr. Wenran Jiang was interviewed by CBC's the Current, on the twenty years anniversary of the Tiananmen Square Incident.

Twenty years after the killings in Tiananmen Square, the Chinese Government is still the focus of a great deal of international criticism over its human rights record.

In April, the Chinese cabinet unveiled a lengthy document meant to address those criticisms. It's what Chinese leaders call an action plan to better protect the political, economic, social and cultural rights of Chinese citizens ... ostensibly the first of its kind in China's history.

According to the offficial line, the plan: "Signals that the human-rights cause has become a major theme of China's national development and will promote the concept of respecting and safeguarding human rights at various levels of government and the whole of society at large."

Dr. Jiang thinks that's a step in the right direction. To listen to his complete interview with the CBC, please go to CBC webpage and click on RealOne player "Listen to Part Two".

Sunday, May 31, 2009

Treasury's Geithner Faces an Assertive China

On May 31, 2009, Dr. Wenran Jiang was quoted by the BusinessWeek on US Treasury Secretary Timothy Geithner's recent visit to Beijing.

China is now pushing for a larger international role for its currency, which would by necessity weaken the leading global role the U.S. dollar now plays.

Wenran noted in the article that this is the beginning of the end for the U.S. dollar if attention is brought to the bigger historical trend. But he also concedes that it could take years for the yuan to become fully convertible and really rival the dollar.

You can read the article here.

Thursday, May 28, 2009

China Thinks Beyond the Dollar

On May 28, 2009, Dr. Wenran Jiang was quoted in the BusinessWeek on China's concerns over the weakness of US dollar and its potentially negative impact on China's vast foreign currency reserves, 70% of which are estimated to be in dollar assets.

Dr. Jiang points out that well-informed Chinese now realize Beijing's strategy of keeping the yuan artificially low vs. the dollar to stoke exports—and then recycling export earnings back into the U.S. Treasury market—has backfired. Chinese blogs rant about "irresponsible investment policies of the Chinese government, which also happen to be subsidizing the U.S. economy.

You can read the article here.














Central banker Zhou wants a new global currency to supplant the greenback
Illustration by Sean McCabe; Photograph of Zhou by Zhang Peng/Imaginechina/ZUMA Press

Tuesday, May 26, 2009

North Korea Issues Heated Warning to South

On May 26, 2009, Dr. Wenran Jiang was interviewed by the Washington Post on North Korea's recent long-range missile test.

In China, where condemnation of the North's nuclear test was surprisingly swift and unambiguous, the state media on May 26th printed strong reprimands of North Korea from other countries.

The shower of criticism was far different from the reaction to North Korea's first nuclear test in 2006, when the Chinese media blamed the United States for provoking Pyongyang by cutting off aid.

Dr. Jiang believes that this may be a reflection of Beijing's frustrations for not being able to assert control and influence over North Korea.

You can read the article here.


Saturday, May 16, 2009

Little openness in China's progress

On May 16, 2009, Dr. Wenran Jiang wrote an article on the Edmonton Journal. In the article, he noted that positive developments in wake of the Sichuan earthquake in China last May have failed to yield concrete political reforms in the country.

You can read the article here.


People flock to the devastated town of Beichuan on May 12, the first anniversary of its destruction in
the Sichuan earthquake. Nearly 87,000 people died or remain missing in the 8.0-magnitude earthquake,
a disaster that galvanized the nation but left deep emotional scars.

Photograph by: Peter Parks, Agence France-Presse, Getty Images, Freelance

Thursday, May 14, 2009

The Debate: Whither the United States?

The Obama administration's emerging foreign policy: mea culpa or managing the relative decline of American power?

On May 14, 2009, Dr. Wenran Jiang, Mactaggart Research Chair and Associate Professor of Political Science at the University of Alberta, participated an hour-long debate on "Whither the US Power" for TVO Agenda with Steve Paikin. The episode is scheduled to be on air at 8 pm, May 15, Friday.
You can access to the information related to this episode here.

Tuesday, May 12, 2009

Interview by Calgary's CHQR AM 770 The World Tonight Program on the current state of Canada-China relations

Dr. Wenran Jiang was invited for a 25 minute interview on the current state of Canada-China relations by Calgary's CHQR AM 770 The World Tonight Program on May 12. He discussed with the host Greg Bohnert a range of issues from human rights to trade, especially the recent changing policies by the Conservative government toward China.

China reports first swine flu case

On May 12, 2009, Dr. Wenran Jiang's May 6th Toronto Star article "Hard Lessons of SARS Crisis Explain China's Tough Action" was quoted by the Australian on their news coverage on China's swift quarantine measures against the swine flu epidemic.

"This time around, Beijing is not taking any chances," as quoted by the Australian. "Although the virus did not originate in China, the authorities have been on high alert. Senior Chinese leaders have been on the case from the beginning, and the Chinese press has followed the flu story closely with a rather open attitude."

You can read the coverage here.

Saturday, May 09, 2009

China takes firm steps to rescue itself from the US dollar trap

On May 8, 2009, Dr. Jiang was requested by a number of papers around the world to provide a short version of his April 28 YaleGlobal piece on what China is doing recently on the global financial stage, including the Globe & Mail.

His paper was also covered by a Mexican Magazine Enkidu "China: What world recession?".

Wednesday, May 06, 2009

Hard lessons of SARS crisis explain China's tough action

On May 6, 2009, Dr. Wenran Jiang was invited to write an Op-ed article in Toronto Star, commenting on China's aggressive measures against the swine flu, including quarantining Canadians travelling in China and banning Alberta pork.

Wenran advises Canadian Foreign Minister Lawrence Cannon to discuss these issues with persuation, not threat, during his scheduled visit to Beijing next week.

Read the article here.


ANDY WONG/ASSOCIATED PRESS

Chinese security officers, wearing masks as a precaution against the swine flu, stand guard in front of a sealed-off hotel where foreign travellers were held under quarantine in Beijing this week. (May 5, 2009)

Thursday, April 30, 2009

China Tries to Wriggle Out of the US Dollar Trap


On April 29, 2009, Dr. Wenran Jiang was invited to write a short essay on what China is doing recently on the global financial stage, published by the YaleGlobal Online magazine. You can read his article here.

Tuesday, April 28, 2009

Lawsuit claims Chinese workers' wages not paid

On April 25, 2009, Dr. Wenran Jiang was interviewed by the Edmonton Journal on a lawsuit brought by several Chinese workers against their employer for unpaid wages arising from their service in Canada. Wenran said the case will likely hinge on whatever agreements the Chinese workers signed with the host company before they came to Canada. Read the article here.

Tuesday, April 21, 2009

Op-ed in Ottawa Citizen: You can’t promote rights from way over here

BY WENRAN JIANG , THE OTTAWA CITIZEN
APRIL 20, 2009

Let’s give International Trade Minister Stockwell Day credit for making a successful mission to East Asia. The highlights included opening six new Canadian trade offices across China, and breaking the ground for the Canadian-funded reconstruction of a seniors’ home that was levelled in China’s devastating earthquake last year.

As Canada’s top-security-guard-turned-top-salesman, Mr. Day showed unprecedented enthusiasm for forging closer economic ties with China, now Canada’s second-largest trading partner. Yet he insisted that there are no fundamental shifts in the Conservative government’s China policy.

Mr. Day is partly right in the sense that the Conservatives never had a clearly articulated China policy to begin with. Former Canadian ambassador to the United States Derek Burney has characterized Prime Minister Stephen Harper’s China policy as “juvenile” — implying immaturity as the cause of the problem.

The reality of the Conservatives’ China policy in the past three years is more like being infected by an ideological tumor. It did not lead to brain death, largely due to former international trade and foreign minister David Emerson’s persistent efforts to engage China within the cabinet. He was right but almost a lone voice in the Harper top circle. As a result, the body of Canadian national interests has suffered.

The first casualty is in fact human rights. Unlike the commonly accepted perception that this government has emphasized human rights issues since coming to power, the record shows that Canada has done very little in promoting human rights in China since 2006.

Ottawa suspended the annual bilateral human rights dialogue, saying it was not effective, thus throwing the baby out with the bath water. The House Committee on human rights pursued a lengthy hearing that led nowhere, produced nothing tangible and became a disappointment even for human rights groups.

With the Conservatives removing China from their foreign policy priority list, Canada’s economic relations with the world’s fastest growing market have not kept pace with other industrialized countries, losing trade and investment shares. It is now evident more than ever that ignoring China has cost Canadians jobs that would have otherwise been created with an active, engaging strategy at the highest level.

And Harper’s suspension of mutual summit visits with China since 2006 has made Canada totally out of sync with other world powers — all of them have annual regular summit diplomacy with Beijing.

Thus, Harper stands alone and has no effective means of engaging the emerging superpower on important issues such as environment, global warming, and many regional issues vital to Canada’s economic and security wellbeing.

Now Stockwell Day has openly reversed Harper’s infamous quote on not selling out human rights for the mighty dollar by declaring that trade and rights are not mutually exclusive goals in dealing with China. This is a good step in the right direction.

But it’s too early to conclude that the Harperites have come to terms with China’s reality. The Conservatives must make strides in the following areas to make up lost ground in China.
In the short term, Mr. Harper must resume summit diplomacy by going to Beijing, a long overdue trip to reciprocate Chinese President Hu Jintao’s visit to Canada in the fall of 2005. He may send more ministers to China or open more trade offices. But they are all marginal measures in contrast to personally engaging the Chinese leadership at the highest level.

Ottawa’s medium-term goal is to formulate a non-partisan China vision and strategy that treats our relationship with Beijing as no less important than our ties with Washington. It is tunnel vision for those who advocate better Chinese language skills of Canadian diplomats in the Beijing embassy as a solution to advance Canadian interests in China.

Instead, Canada must work actively to re-establish the strategic partnership that the two countries announced in 2005. In addition to regular summit meetings, Canadian interests will be best served with a number of high-level annual bilateral dialogues on issues ranging from trade to investment to security to climate change to human rights.

And Canada’s long-term China policy goal is to design a series of programs that not only serve our own interests but also assist reform-oriented forces in the Chinese society and within the Chinese government to move China toward more openness, more transparency and more respect for human rights.

Canada warms up to Beijing

On April 20, 2009, Dr. Wenran Jiang was interviewed by the Vancouver Sun commenting on the Conservative government's recent attempt to push for a closer relation with China. “I immediately registered a very different tone from him,” Jiang said. “I see a pragmatist, his body language, the phrases he used to describe his trip.”

You can read the article here.

[Picture: Nicholas Sonntag, president of Westport Asia, says state-owned enterprises in China are highly influenced by politics. Vancouver Sun]

Saturday, April 18, 2009

Canada seeks to strengthen trade ties with China

On April 15, Dr. Jiang was interviewed by International Herald Leader on Canadian International Trade Minister Stockwell's recent trip to China.

He noted that Canada is eager to grow business with its second largest trading partner in part because of the dwindling buying power of its largest trading partner, the U.S.. "In order to have commodity prices and other resources prices to go up, the key factor is not the United States, but China," Dr. Jiang said, "China is the manufacturing powerhouse of the world."

You can read the news report in Chinese, or in English.

Wednesday, April 08, 2009

The newly released 2009 provincial budget

On April 8, 2009, Dr. Jiang was interviewed by OMNI TV Edmonton on the newly released provincial budget, its implications for the provincial economy, the education sector and the energy sector.