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OPINION

The ‘new productive forces’ is not the answer

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The Chinese People’s Political Consultative Conference (CPPCC) and the National People’s Congress (NPC) have recently concluded their sessions. The NPC, which is China’s top legislative body, convenes annually to discuss and vote on key national policies, enact laws, and appoint key government officials. 

Meanwhile, the CPPCC serves as a political advisory body and plays an important role to build consensus. 

Together, these two bodies involve in the shaping of China’s governance and policy direction, providing platforms for political discourse and public participation. 

Members of the NPC are elected through a multistage electoral process that begins at the local level. Though not elected to the National Congress, they are truly voted by the citizens to represent their local regions or a grassroots level branch of an industry. These representatives, in turn, nominate candidates for higher-level People’s Congresses, creating a hierarchical structure of electoral bodies finally to the national level. This is China’s form of democracy.

Currently, both the CPPCC and NPC serve five-year terms. Each term includes annual sessions where delegates convene in Beijing. This year marks the inaugural sessions of the 14th CPPCC and the 14th NPC.

The economic difficulties

Economy is always one of the central topics of the sessions. After a year of difficult recovery in the post pandemic era, it might be even more prominent. 

China’s economy has indeed been a powerhouse in recent decades, consistently achieving impressive growth rates that have propelled it to become the world’s second-largest economy. However, sustaining such high growth rates becomes increasingly challenging as an economy evolves and faces structural constraints even well before the geopolitical competition turning white-hot.

During the pandemic, CCP implemented the dynamic zero-covid policy under the slogan‘Life First’. At first, it helped the community avoid facing the virus without effective vaccines and kept the economy running smoothly.However, as the virus evolved to become more infectious, the dynamic policy had to shift to a rigid one, inadvertently harming the economy.

Then the real estate and the education industries were targeted with the strict regulations. In the long run, it’s appropriate to adapt the development models of the industries. However, the policy changes were implemented during a delicate phase of recovery from the pandemic. Finally, the leadership indirectly acknowledged the policy’s shortcomings by emphasizing the need to avoid the so-called ‘fallacy of composition’ in the future.

And taking a global view, the geopolitical competition is poised to intensify further. More technological blockade measures could be expected.  

The ‘new productive forces’

Under all that circumstances, it is important to raise the productivity internally. Chinese researcher and enterprises have applied tons of patents, but how to make them become real productive forces?

While new technologies, especially the digital technologies such as AI, 5G and block chains, hold tremendous potential to transform various sectors, their adoption and integration into the economy may indeed be a gradual process, with tangible effects limited to certain industries in the short to medium term.

It should also be recognized that technological transformation often unfolds unevenly across sectors and regions, influenced by factors such as infrastructure readiness, regulatory environment, and market dynamics. While some industries may experience rapid transformation and productivity gains, others may lag behind or face significant challenges in adapting to new technologies.

The ‘new productive forces’ was proposed and emphasized so that the industries would drag more resources to accelerate the effective adoption of the technologies.

Frankly, it doesn’t mean that China has the answer of creating ‘the new productive forces’, it is a top-level call for seeking the answer. 

It doesn’t serve for the 5% growth target of this year, either. It focuses on at least the next 5 years or even longer. 

Well, the transition to a more digitally-driven economy might have some implications for employment, as automation and AI-enabled technologies reshape the nature of work and skills required in the labor market. It is predictable that some individuals could face displacement or job transitions in the future. On the other hand, China’s government has demonstrated that it always has a proactive approach to addressing employment challenges through targeted policies, investment in infrastructure, and support for entrepreneurship and innovation. And the rural communities provide a potential buffer against significant unemployment.

Leveraging its vast human capital and resources, China has the potential to mitigate the negative effects of technological disruptions and harness the opportunities presented by the new productive forces to drive inclusive growth and prosperity.

Indeed, a 5% annual growth target would still be commendable for a country of China’s size and complexity. Achieving this target would not only benefit China but also have positive spillover effects for the global economy, given China’s pivotal role as an engine of global growth. 

And how about the ‘new productive forces’? The practice of integration technologies would also be beneficial to other countries. There might be chances to learn to catch up the developed countries by so called ‘Passing on a curve’. Even lessons in China would be priceless. 

As we conclude this article, let’s revisit the function of the two sessions. It’s highly unlikely that a delegate proposed the concept of ‘new productive forces’ and captured the attention of colleagues for discussion. In fact, the phrase was first introduced by Xi Jinping last September. The CCP actually leads the CPPCC and the NPC and it clearly states that. The proposal and the following discussion of the ‘new productive forces’ could be viewed as an example of the leadership of the party and the ‘democratic centralism’. 

The ‘democratic centralism’ might be not familiar to those who lived under a western ‘democratic’ system. However, I believe it holds a key to understanding China’s success.

OPINION

On what terms can a fresh start be made with Greece?

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Prime Minister Kyriakos Mitsotakis travels to Ankara today to discuss a new chapter and a positive agenda with Greece. Technically, this is the counterpart of President Erdogan’s visit to Athens in recent months, but it does not look like an ordinary return visit. The Greek prime minister was interviewed by a Turkish newspaper (Milliyet, 12 May) and President Erdogan by a Greek newspaper (Kathimerini, 12 May). The tone of both leaders is cautious and attentive. Obviously, they are trying to achieve ‘something new’.

As someone who has been closely following the Turkish-Greek tensions, crises and periods of détente from time to time, I have no intention of adding water to the cooked pot; however, since I do not know exactly what the cooked pot is, for whom, how and by whom it is being cooked, I would like to share some of my concerns and my thoughts/evaluations on how these problems, which I have been pondering for years, can be resolved.

First of all, it is necessary to analyse why and how this period of softening was reached. As you may recall, after a series of crises in the second half of 2020 (the Idlib crisis with Russia in January-February 2020 and the Libya crisis with Egypt in the summer of 2020), we found ourselves in a full diplomatic-military crisis with Greece. As a result of the wrong and ideological foreign policy that we have been insisting on for years, we have turned the whole region against us, made enemies of countries like Egypt and Israel, which have always been neutral in the Greek-Turkish issues, and even made Athens dream of taking us on militarily. Why not?

How and why did Greece go from confrontating Turkey in the Aegean to confront Turkey today?

If Turkey clashes with Egypt over Libya – a very serious scenario in the summer of 2020 – and Israel supports Egypt in the armed conflicts, why should Greece not carry out a fait accompli operation in the Aegean against Turkey, which seems to be feuding with Saudi Arabia and the United Arab Emirates at the same time? Moreover, in such a scenario, even France could ‘sell’ Greece enough Rafale fighters overnight. Even Armenia could have extended its front against Azerbaijan through Tovuz, and Turkey could have been shown the error of its ways. When the 15 July coup attempt took place in the summer of 2016, Athens complained that it was not sufficiently prepared to carry out such a military operation. I should also note here that in those years, when I tried to explain that such isolation was contrary to the spirit of the art of foreign policy and that we needed a serious review, I was subjected to a lot of lamentations by the so-called foreign policy experts (!).

In the end, Ankara had to realise that the flawed policies it insisted on pursuing, as if it were a finalist in a competition to create the best example of the worst foreign policy, were unsustainable. The rapid transformation of normalisation between Turkey and Russia into ‘rapprochement’ led to the historic victory of Azerbaijan, which Turkey had fully supported in the forty-four-day war, while Ankara quickly restored its relations with Saudi Arabia, the UAE, Egypt and even Israel. What is more, it did so in the space of a year. Although Syria remains the limping leg in this series, its remarkably balanced and cautious policy towards the upcoming Ukrainian war, especially since the second half of 2021, has once again shattered Greece’s crude dreams.

For Mitsotakis and Greece, an adventure in the Aegean against a Turkey that has restored its relations with Egypt and Israel in the Eastern Mediterranean, opened new and clean pages with Saudi Arabia and the UAE, and improved its relations with Russia in every field, while Athens’ relations with Moscow plummeted during the Ukrainian war, would have been literally suicidal. There is no doubt that Athens has studied what happened to Armenia when it attacked Tovuz. President Erdoğan’s statement that “we can come suddenly one night” should not be taken lightly. This is where the 2023 earthquake came to the rescue. Just as in 1999, this time Greece sent rescue teams, and both the Turkish and Greek media seized on the issue, making it the beginning of a positive agenda and a new page in politics.

New risks in a new period

In Turkey, where the Greek issue is not a serious agenda in domestic public opinion, decision-makers are always at ease when they talk about reconciling with Athens and solving the problems, because the problems with this country are not used to make a premium in our domestic politics. Even during the time of this government, which made foreign policy a domestic agenda, this issue was not used very much. But that is not the case with Greece. In what can be called an abuse of democracy, every party and every government has used the issue of Turkey to the hilt, publicising every problem with its content, Greek theses and red lines.

As a result, a negotiation process based on give and take has become almost impossible for Greek governments. That is why Greek governments always cling to this excuse. The worst thing is that Europe and America, which often mediated these negotiations, flattered all the politicians/decision-makers by saying ‘you are a big state, don’t compare yourself with Greece, you can be more generous’. This should not happen this time. If there is to be a positive agenda with Greece – and Athens knows very well that the reality of the multipolar world is in favour of Turkey and against Greece – then we should not allow our problems with Greece to be addressed within the Turkey-EU agenda or based on Turkey’s EU membership perspective, as if it actually exists. In short, the problems should be addressed through bilateral negotiations and outside the framework that has so far been polluted/poisoned by the Turkey-EU acquis.

As Dendias said in Ankara, the issue for Greece is simple: Ankara must recognise Greek Cyprus as the Republic of Cyprus, as enshrined in the EU-Turkey acquis through the efforts of Athens and with the complicity of all EU member states that do not want Turkey to become a member, and accept that the only problem in the Aegean, in line with Greek theses, is to refer the issue to the Hague Court of Justice or arbitration to determine where the continental shelf runs between the easternmost Greek-dominated islands and the Turkish mainland. Other issues, such as Greece’s claim to 12 miles of airspace in violation of international law, the arming of islands with non-military status, islands with undetermined status in the Aegean, the issue of adjacent islands and rocks, etc., are all fabricated by Turkey in order to open Greece’s rights to discussion, and Greece refuses to negotiate on these issues.

Wouldn’t it be nice to create appeasement?

It may be possible, but it also involves serious risks. For example, if we can achieve a détente with Greece in the Aegean, without compromising an inch on our thesis that the Cyprus problem should be solved on the basis of two states, so much the better! But such a détente should not take place if, as we have always done, we show unnecessary courtesy by saying that we should not frighten or offend Athens, and if we accuse each other internally of being those who want a solution and those who do not want a solution, And if we start accusing each other internally as those who want a solution and those who do not want a solution, because it will lead to compromising the steps to be taken towards the recognition of the TRNC, as well as justifying the thesis of the pro-federationists within the TRNC that ‘we told you so, Turkey will say a few words about two states and then take a step back’.

It should not be forgotten that in the last century of the Empire, Greece always managed to win both when it was at odds with the Ottoman Empire and when it was friendly with it. The reason for this is that Europe often took a pro-Greek stance. Atatürk put an end to this cursed period. After the Second World War, Ankara was always vigilant on the Cyprus issue and the Turkish-Greek problems that spread from there to the Aegean and did not allow the West to take initiatives in favour of Greece. However, it must be admitted that this policy could be maintained until the second half of the 1990s, when the EU issue was sold to Turkey through a massive media campaign, and in the two decades that followed, Turkey’s Cyprus and Greece policies were almost turned upside down within the European Union process. The recent caution and the advantages and benefits of multipolarity should not be wasted on a non-existent EU perspective.

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OPINION

Ukraine’s new $60 billion is ready: What changed Trump’s mind?

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7 months have passed… The phrase “as much as necessary” used by American officials has been replaced by “as much as we can”… American Congressmen, who would have rushed to the Congressional benches in the morning to vote for the aid package if Netanyahu had been allergic to spring, were no longer able to show the same enthusiasm when it came to Ukraine. At least some of the Republicans…

Over time, this particular group started to get in the good graces of the rest of the Congress. They said, “You’re throwing Putin a lifeline.” “You’re siding with the enemies of the United States,” they said. They probably also said “the arms industry is hungry”, but they said it quietly. But this conservative faction did not say “Noah says Noah”. They even sacked Kevin McCarthy, their own Speaker, who had hinted that he would make a deal with Biden for future packages, without blinking an eye. Meanwhile, time was running out. Ukraine was running out of ammunition and was retreating a little further on the ground every day.

CIA director Burns issued a grim prescription: “If this package is not passed now, Ukraine will not live to see 2025”.

As you know, the leader of this group was Donald J. Trump. The populist leader argued that the unconditional money given to Ukraine should be spent on issues of direct concern to Americans, such as border security and infrastructure needs, and many thought this stubbornness would be short-lived. “After the first of the year, Ukraine will begin to feel the lack of ammunition,” the Pentagon said. Then it would be resolved somehow in December, wouldn’t it?

The meetings in Congress were very heated. The Republicans wanted extra money for border security and tax cuts for the rich. Both were unacceptable to the Democrats. Mike Johnson, the new Republican spokesman, who had arrived after a lot of fighting within his party, was stamping rejection on Biden’s monthly packages before he even opened his eyes.

By December, there was no sound from the package. By February, Johnson was still calling the new proposals “stillborn”. Ukrainian President Zelenski had already raised the tone of his complaint. At this rate, a Russian summer offensive could lead to a serious disaster.

Persuasion tours

If the four years of Trump’s rule have taught his opponents anything, it is that he is not a man of principle. If the conditions were right, the former president could be convinced of anything. They started with Israel. They put support for Israel and Ukraine in the same package. But who were they fooling? How many brave Democrats could there be who would say no to aid for Israel? Of course, this could not be an offer that would “scare” the Republicans in return for support for Ukraine. And it didn’t. Support for Israel reached the White House without much fuss at the Congressional tables.

The border security issue was a dangerous adventure for the Democrats. Caving in to the Republicans would have alienated their own voters. The Muslim vote had already been lost on the Israel issue, and Biden could not risk more.

The picture that now emerged was grave for Biden’s plans for Ukraine. Obviously, Trump’s intention was to prevent the approval of this package until after the elections. Thus, Biden would go into the elections with the Ukraine disaster on his back and would surely be defeated.

Then something happened. First, Mike Johnson’s language changed. Suddenly he started talking about “what would happen if we left Ukraine in the middle”. When Marjorie Taylor Greene (MTG), known as the radical Trumpist of Parliament, smelled “betrayal”, she gave Johnson an ultimatum: “Don’t forget McCarthy, don’t you dare!”.

But unlike MTG, Trump thought differently this time.

The former president said: “We’re tired of giving gifts.We might consider lending money to Ukraine”. Although this comment suggests that Trump was somehow persuaded, it still sounded odd. As the war entered its third year, Ukraine’s economy was in shambles. To pay its soldiers, it had to receive $8 billion a month from the West. If the war ended today, it would take $500 billion to rebuild the country. If I went to a bank in my situation and asked for a loan, I would probably be laughed at. But Donald Trump, the author of The Art of the Deal, is obviously convinced.

Who am I kidding, of course he wasn’t convinced. But he must have got something out of it. But what was it?

What does Trump want?

We are in a period where Biden and the Republicans, who were in favour of supporting Ukraine, have realised that nothing can be done despite Trump. Whether they like him or not, there is a populist figure they have to convince. To understand what Trump might want, we need to go back five years, to the Ukraine issue that started the debate about Trump’s impeachment in 2019.

While there was talk of Biden running in the 2020 election, Trump started going through old notebooks.Remember the famous Biden son laptop incident? Hunter Biden was working for an oligarch’s energy company in Ukraine and used the power of his father, who was Vice President at the time (i.e. the whole of the US), to get rid of the prosecutor who was after the company’s owner. Trump was aware of this at the time and made plans to beat Biden in the election.

Meanwhile, just like today, aid packages for Ukraine were waiting in Congress. The amount of aid was much smaller and the public did not focus on it. But the package was not approved simply because Trump did not want it.

He called Zelenski. “You had a very fair prosecutor.It’s a shame,” he said.He asked Zelenski to appoint a prosecutor to go after Biden. It was the only way he could get the aid he was holding up in Congress released. The incident escalated.Because of that speech, the question of Trump’s impeachment erupted.But it told us what Trump could demand in such a position.

Fast forward to today. The Wall Street Journal reports that Trump has had two important visits in a month. One was, of course, Johnson, the Speaker of the House, and the other was Andrzej Duda, the former President of Poland. Duda, a leader known as a Trumpite, was also a good friend of Trump’s. They must have thought that a right-wing populist would understand the language of the right-wing populist, so they organised such a meeting. Duda explained the gravity of the situation to Trump. Johnson found a more effective vein.

In fact, Trump said: “If I am elected, I will bring peace in one day”. How would he do that if Ukraine were defeated today? Ukraine had to hold out at least until Trump took office. For some reason, CIA director William Burns said the package would keep Ukraine alive until 2025. If Trump wins, his inauguration will be in January.

Before we forget, there are also Trump’s ongoing lawsuits. It is rumoured that the money he has earmarked for his campaign could run out as a result of these lawsuits. Trump may have made a deal over Ukraine in order to avoid both financial damage and the blockage of his electoral path.

In conclusion, although Trump is popular today because of his isolationist and “America First” ideology, his policies are based on his personal interests. While 101 Republicans supported the package that Trump did not oppose, 112 voted against it. So despite everything, the isolationist wing does not even listen to Trump when it needs to. The former president’s order of importance is as follows: Trump first, then America, and Israel can squeeze in depending on the situation. Ironically, even in this equation, America is ahead compared to Biden’s order of importance.

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OPINION

Grassroots Democracy in China: A Field Study

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China is often portrayed as an “evil” communist dictatorship where allegedly no one can freely express their opinions. But is this really the case? How does democracy function in China? After all, China describes itself as a democratic state. A thorough on-site investigation is necessary to clarify these questions. – Christian Wagner (Beijing)

Expertise Instead of Activism: Democracy in Beijing’s Subdistricts

In March 2024, an investigation took place in subdistricts of Beijing (Haidian). Participants included local residents, lawyers, janitors, property management, sales representatives of the property, and a party representative who chaired the discussion. The topic was the introduction of mechanical speed limits to slow down cars, a discussion at the grassroots level in the neighborhoods. I had the opportunity to participate in the discussion and examine grassroots democracy in China.

In the Kongjia Community of the Haidian subdistrict of Beijing (Zhongguancunjiedao), the viewpoints of all participants were thoroughly discussed democratically. The party leadership only took on the role of facilitating the discussion and summarizing the results. It was interesting that it was not a classic debate aimed at overriding opinions. Rather, each participant sought to empathize with the perspective of others, including absentees such as children, the elderly, or drivers themselves. Both inclusive and psychological factors were considered, and a proportionality assessment took place. In the end, a solution was found that was in the best interest of all parties involved.

During a personal conversation with an elderly neighbor, it was strongly emphasized to me how crucial it is to involve experts. He said that “in China, every democratic discussion is characterized by an academic approach in which experts play a central role with their expertise. Political representatives who lack expertise in relevant areas face too great a challenge in analyzing complex issues adequately. Instead, they tend to argue purely based on their emotions, which ultimately serves no one. Therefore, it is of enormous importance that the party incorporates experts and acts as a mediator between the various sides. In this sense, the party acts almost like a wise father who gathers his children around a table to promote a factual and constructive discussion.”

In another small subdistrict with several tens of thousands of residents in the million-strong city of Beijing, called Huaqinyuan Community, there was a discussion on how local businesses and residents can live together in harmony. In China, companies also have local “citizen duties”. The Communist Party of China supported the organization, so a local research institute for the aerospace industry supported the construction of a small kiosk and a children’s playground.

I was able to attend the opening ceremony, where subsidized food was sold to retirees. In addition, employees of the research institute supported the repair of bicycles or other small tasks for the neighborhood population. In general, all neighborhoods have a shared office where both party members and neighborhood residents or members of other parties sit and take care of administrative tasks, order, coordination, bureaucracy, local development, or opinion formation.

At the opening, I asked a representative of the office about the current challenges in the community. He mentioned that the biggest problem was that fewer and fewer young people were interested in getting involved in the neighborhood, as they increasingly sit at home in their virtual world. I pointed out to him that similar challenges also exist in the West. However, he explained that the role of the party is crucial. Through its networks, it can help, and especially students from various social platforms volunteer.

 

Businesses and “citizen duties”: Investigation of the entire Haidian District

This was one of the numerous events in Beijing where representatives of local businesses and the seven democratic parties, under the organization of the Communist Party of China, came together from all subdistricts in Haidian (about 3 million inhabitants). Companies like Microsoft were also represented. Some companies presented how they want to improve the lives of everyone in the entire district together with the local government and citizens.

Presentations were also shown on how better cooperation between local businesses can be achieved. Topics such as the construction of a “Smart Infrastructure City”, an “Artificial Intelligence City”, and an “Intelligent Production and Supply Chain” were discussed in particular. Companies compete to demonstrate outstanding achievements in improving the local living conditions of the people and thereby receive special support from the government and party. It’s a win-win situation.

Exposed Illusions: Western Misconceptions about Communism and Democracy in China

There are still widespread misconceptions in the West about communism, often leading to the belief that it is supposed to take from the rich and redistribute to the poor, similar to Robin Hood. In reality, however, this notion is more of an extremism, which Lenin himself referred to as the “infantile disorder of communism”.

Mao Zedong emphasized in his work “On the Correct Handling of Contradictions Among the People” that it is naive to believe that contradictions between people can simply be eliminated. Rather, it is about finding ways for everyone to pull together. The Chinese concept of win-win cooperation stems from this idea. At the grassroots democracy level in China, this means that companies, the local population, the government, individuals, and all democratic parties work together to address issues of public interest. Public interest especially means that local people find work, are adequately supplied with affordable food, and have housing.

China has often struggled with poverty and hunger in the past, similar to many other developing countries. Therefore, it is of the utmost importance to stabilize this basic supply. Through these efforts, the People’s Republic has been able to lift over 800 million people out of poverty. It is a mistake to assume that companies are forced to do so. In fact, companies benefit greatly from their own investments and can test their own products in practice and conduct experiments, invest in the education of young people locally, or even improve their own structures, instead of just paying taxes.

China’s democratic system has two levels. On the one hand, there is the central government, which sets framework guidelines and laws from top to bottom. On the other hand, there is the “collective” or “inclusive” democracy on a horizontal level, where all participants of public space are involved in debates, especially experts. Therefore, activism is also frowned upon because activism is often associated with people arguing based on their feelings without considering the profound overall circumstances. Activism therefore takes place, among other places, in universities in the form of professional debates.

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