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1 /3.stm An introduction to China... 10 minutes and you know china

2 Totalitarian vs Authoritarian Totalitarianism is a tricky and often misused term, though quite distinct from authoritarianism. Totalitarianism connotes violence and error, and so the word is often used in a partisan way to label a political system that we particularly dislike. What then is the difference between totalitarianism and other forms of nondemocratic rule? There are several important elements. Totalitarianism is a form of nondemocratic rule with a highly centralized state and a regime with a well-defined ideology that seeks to transform and fuse the institutions of state, society, and the economy. Unlike other nondemocratic regimes, the main objective of totalitarianism is to use power to transform the total institutional fabric of a country according to some ideological goal. Finally, because of the ambitious goals of totalitarianism, violence often becomes a necessary tool to destroy and obstacle to change.

3 Although the CCP’s original heroic stature and revolutionary legitimacy may have little hold on China’s younger generations, recent party leaders have effectively employed a mixture of authoritarian controls, patriotic nationalist appeals, and economic benefits to maintain the party’s monopoly of political power. Democratic regimes have rules that emphasize a large role for the public in governance and protect the basic rights and freedoms. Authoritarian regimes limit the role of the public in decision making and often deny citizens’ basic rights and restrict their freedoms.

4 Sovereignty, Authority, and Power China is a _____Party-State GovernmentParty Apex: Standing Committee; p______/ National Party Congress Apex: Standing Committee of National People’s Congress “p_______ hierarchies”: All gov’t exec., leg and adm. agencies are matched by a corresponding party organ.

5 Parallel Organization of the Chinese Communist Party and the Chinese Government Party Office or Organ Officeholder or Number of Members or Departments Corresponding Government office or Organ Officeholder or Number of Members or Departments ChairmanOffice abolished in 1982President (head of state)Xi Jinping General secretaryXi JinpingPremier (head of gov.)Li Keqiang Politburo standing committee (PSC) 9 membersState council standing committee 10 members Politburo24 membersState council43 members Central Committee (CC) 198 membersNational people’s congress standing committee 159 members National party congress 2979 membersNational People’s Congress2120 members Central military commission (CMC) 8 membersCentral Military Commission 7 members CMC ChairmanHu JintaoCMC ChairmanXi Jinping SecretariatLarge staff of the party cadre State council general officeLarge staff of civil servants Party departmentsApprox. 46 departmentsBureaucratic ministriesApprox. 46 ministries, bureaus, and commissions Central discipline inspection commission 121 membersSupreme people’s court1 president and 8 vice presidents

6 Good youtube explanation on NPC vs NPC In contrast with the NPC which has become more assertive since the 1990s, the NPC has shown no signs of becoming a deliberative assembly with independent power As China’s economy and society have become more complex, it and its standing committee have gradually become venues for delegates to offer opinions, express dissatisfaction with government policy and even occasionally cast dissenting votes..... as its constituent committees and specialized policy groups have become more knowledgeable and sophisticated, it has started to shape the policies of reform

7 BBC China’s leaders what you need to know: BBC role of party Decoder: how China chooses its leaders Graphic and video 90932446806300.html?mod=WSJ_ChinaInTransition_RightAbov eVideo

8 Mao: “Political power grows out of the b ________ of a ______. Our party commands the gun and the gun must never be allowed to command the party.”. Link b/w Military and politics: Xi president and GS AND is also chair of ______ _____ ________ Officers and men swear allegiance to ______ and state.: PLA officers are also ____ members a separate Party machine inside the military makes sure rank and file stay in line with Party thinking Gen Sec is _____________ in ___________________ Military

9 Thousands of soldiers and rows of tanks commemorated 60 years of Communist Party rule during National Day celebrations in Beijing. Female officers and soldiers of the People's Liberation Army marched during the military parade Institutions: the military

10 Changing of the Guard Close Army Ties of China’s New Leader Could Test the U.S. March 8, 2013 In the last four months, China has forged an aggressive, more nationalistic posture in Asia that may set the tone for Mr. Xi’s expected decade-long tenure, analysts and diplomats say, pushing against American allies, particularly Japan, for what China considers its territorial imperatives. The son of a revolutionary general, Mr. Xi, 59, boasts far closer ties to China’s fast-growing military than the departing leader, Hu Jintao, had when he took office. As Mr. Xi rose through the ranks of the Communist Party, he made the most of parallel posts in the People’s Liberation Army, deeply familiarizing himself with the inner workings of the armed forces. Even if Mr. Xi does not immediately become head of the crucial Central Military Commission as well as party leader, he will almost certainly do so within two years, giving him at least eight years as the direct overseer of the military. This combination of political power as head of the Communist Party and good relations with a more robust military could make Mr. Xi a formidable leader for Washington to contend with, analysts and diplomats in China and the United States say

11 Politics Politics Xi Jinping Elected Chinese President, Military Chief Politics Politics Xi Jinping Elected Chinese President, Military Chief Politics Xi Jinping Elected Chinese President, Military Chief BEIJING, March 14 2013 (RIA Novosti) - General Secretary of the Central Committee of the Communist Party of China Xi Jinping was elected Chinese president Thursday morning at the session of the 12th National People's Congress. Xi, who replaced Hu Jintao in this post, was also elected the chairman of the Central Military Commission of China

12 The “Princelings” An important but informal politically influential group in China are the so-called “princelings.” This group consists of relatives (most frequently, the sons and daughters) of senior Chinese government officials who use their family relationship to obtain access to privilege, positions of power, and wealth—often by circumventing the official channels and procedures. For many people in China, the “princelings” represent that type of “class privilege” that the Cultural Revolution was supposed to eradicate. Because their access to power and privilege is seen not necessarily to be based on merit, some view the “princelings” at least as a minor source of corruption and at worst as a serious threat to the Party’s legitimacy with the public. The “princelings” have chosen different avenues to power in China. Some have used their access to better education and job opportunities to become important figures within the Party or the government. Others chose to focus their energies on obtaining economic power by establishing private companies (often by securing special loans from state-run banks) or being appointed the leading officials of important state-run enterprises

13 Although some of the “princelings” have used their preferential access to power for social causes, some have been accused of serious corruption. Deng Pu-fang, son of Deng Xiao-ping and himself a paraplegic,30 is widely known in China as a leading advocate for the rights of the handicapped. Hu Hai-feng—son of President Hu Jin-tao and party secretary for Tsinghua Holdings, a multibillion dollar state-owned conglomerate, was accused of bribery by the Namibian government during the summer of 2009. See you tube on princilings and gang/ gang/ My father is the mayor “My father is Li Gang” has become a bitter inside joke, a catchphrase for shirking any responsibility — washing the dishes, being faithful to a girlfriend — with impunity

14 The son of a Chinese army general well-known for his singing will be detained for a year, state media reported late Thursday, following an alleged assault that renewed public criticism of the children of the nation’s powerful elite. The son of Li Shuangjiang, a 72-year-old senior official in the People’s Liberation Army known for singing patriotic songs at public events, will be detained by police in a correctional facility for one year, according to the state-run Xinhua news agency. Police said Gen. Li’s 15-year-old son last week assaulted a Beijing couple following a traffic dispute then warned onlookers not to call the authorities, according to state- run media. Update: General’s BMW-Driving Son Gets a Year

15 Levels of Government: SupRAnational? The World Trade Organization (WTO) is an international body whose purpose is to promote _____ trade by persuading countries to abolish import t_________ and other barriers. As such, it has become closely associated with globalisation. The WTO is the only international agency overseeing the rules of international trade. It polices free trade agreements, settles trade disputes between governments and organises trade negotiations. WTO decisions are absolute and every member must abide by its rulings. So, when the US and the European Union are in dispute over bananas or beef, it is the WTO which acts as judge and jury. WTO members are empowered by the organisation to enforce its decisions by imposing trade sanctions against countries that have breached the rules. Membership of the WTO now stands at 149 countries. China formally joined the body in December 2001 after a 15-year battle. Russia wants admission, but must first convince the EU and US that it has reformed business practices. (note—provisional permission to get in has been granted) news flash Russia is in

16 18 October 2012 Last updated at 22:00 ET China tariffs on US steel: WTO rejects Beijing's appeal Beijing had imposed duties on a particular kind of US steel, alleging that its makers were being given subsidies by the US government. The WTO ruled against the tariffs in June, a decision it upheld saying that China had failed to prove its charges. The case is the latest in a series of trade conflicts between the countries. "Today we are again plainly stating that we will continue to take every step necessary to ensure that China plays by the rules and does not unfairly restrict exports of US products," US trade representative Ron Kirk said. 'Beating China' Disagreements between China and the US have been growing in recent times and the two have sparred over issues ranging from China's currency policies to allegations of state subsidies given to Chinese firms. The US has upped its ante against Beijing recently, not least because of the upcoming presidential elections.The impact of China's growing economic might on the US economy, and how the US should respond to it, has become a key issue in the elections. The World Trade Organisation (WTO) has upheld its decision that China's tariffs on imports of certain US steel products were illegal

17 Levels of Government: from the Economist Decentralisation of power is substantial BUT.... Given China's geographical size—the People's Republic of China is almost as big as the US— and the extent of some of its provinces, local authorities have historically enjoyed a high degree of devolved power. Sometimes this has led to chaos, notably during the Cultural Revolution that took place during the 1960s and 1970s. However, more often experiments at the local level have been able to function as pilot projects; agricultural schemes in Sichuan, for example, paved the way for the national reform programme of the early 1980s. Since then, the devolution of control has continued. Regional governments have become major stakeholders in many local enterprises (TVEs) and have sought to maximize employment, output and revenue-raising opportunities in areas under their jurisdiction, sometimes acting counter to central government policy. Some observers argue that devolution is irreversible and that the government will eventually be reorganised along federal lines. However, the central government is far from powerless and can intervene to enforce compliance with its main policies. The promotion prospects of local officials depend on their ability to meet targets based on the government's policy guidelines. Moreover, the central authorities can still exercise considerable influence through their ability to appoint and remove leading local officials, and provincial governors are frequently reshuffled to prevent them from "going native"..

18 Number of TVEs (millions) Contribution of TVEs to rural income per capita Gross output of TVEs Sources: China Statistical Yearbook, 1997, 1998. The Yearbook of Chinese ________and Village Enterprises, 1995, 1996 1997, 1998. China Economic Yearbook, 1997, 1998.

19 Market Reform in China: Creating a “Socialist Market Economy” “_______cat, White Cat, it doesn’t matter what color the cat is, as long as the Cat catches________” “to get rich is glorious“ \ " poverty is not Socialism" “Socialism with Chinese Characteristics" “ENGELS never flew on an aeroplane; Stalin never wore Dacron.” Deng’s words meant Maoist dogma was out and pragmatism was in.

20 Architect: _________Xiaoping Time: early 19______s Characteristics: Perestroika without_________ "Crossing the river by groping for stones" Strong state model continues in planning and ownership

21 V. Political and Economic Change ……………………………….15% A. Revolution, coups, and war B. Trends and types of political change (including democratization) 1. Components 2. Promoting or inhibiting factors 3. Consequences C. Trends and types of economic change (including privatization) 1. Components 2. Promoting or inhibiting factors 3. Consequences D. Relationship between political and economic change E. Globalization and fragmentation: interlinked economies, global culture, reactions against globalization, regionalism F. Approaches to development

22 VI Public Policy……………………………………………………………10% Common policy issues A.Economic performance B.Social welfare (e.g., education, health, poverty) C.Civil liberties, rights and freedoms D.Environment E.Population and migration F.Economic development Factors influencing public policymaking and implementation A.Domestic B.International

23 How: Two Pillars One: Decentralize the economy by: (A) Shifting authority for decision making from central bureaucrats to individual families (first through the “__________responsibility system), factory managers, local governments (“T__ ___”s) and private entrepreneurs: (B) recognizing diverse forms of _________rights in 2001 Jiang invited so-called "red _______s" - private entrepreneurs and high tech barons - to join the Party – March 2004, NPC changed constitution so that it says “Citizen’s Lawful p_________ _________is inviolable” and that the state will protect private property and give compensation when it is confiscated” Note that this is limited Privatization: diminish (NOT eliminate) state owned factories (C) Most prices set by s________ and d__________, not administrative decree (D)_________ of law: So far, the main change is a gradual regularization of commercial law

24 TWO: Opening China to the outside world by... (A)Increasing trade with a focus on “ex_______ lead” growth (B) encouraging foreign investment (e.g create Special ___________Zones (SEZs))


26 Jiang Zemin’s ________Represents (1) the most advanced forces of production [ Read: allow entrepreneurs and professionals to become Party members ] (2) the most advanced forces of culture (3) the fundamental interests of the broadest number of people (including c___________s GULP!) comm party home of richestrichest A9QW2yrodyw

27 Hu’s “______________s Society” October, 2006: The annual meeting of the ruling party’s Central Committee formally adopted President Hu Jintao’s proposal to “build a harmonious socialist society,” a move some analysts said was one of most decisive shifts in the party’s thinking since Deng Xiaoping accelerated the push for high growth rates in the early 1990’s. The leadership declared that a range of social concerns, including the surging wealth gap, corruption, pollution and access to education and medical care, must be placed on a par with economic growth in party theory and government policy.... The catch phrase covers a range of policies intended to restore a balance between the country’s thriving market economy and its neglected socialist ideology, primarily by paying greater attention to peasants and migrant workers who have benefited much less than the white-collar elite in China’s long economic boom. President Hu Jintao, left, and Premier Wen Jiabao have called for "harmonious society" and "social stability." Washington Post

28 RESULTS Well, uhh did you get this one yet?

29 China overtakes Japan as world's second-biggest economy 14 Feb 2011

30 But even as officials trot out a litany of achievements they attribute to the country’s “_____________and opening” policy—200m fewer citizens living in poverty, a 6% share of global GDP compared with 1.8% in 1978, a nearly 70% increase in grain production—the world’s financial crisis weighs heavily on their minds, and their leaders are struggling with unfinished business Results: Poverty rate overall has:

31 Results: The Gap between the _______ and poor grows A man begs in Shanghai as wealthier residents pass by. Today, some experts say, success has become a secular religion, reinforced by official messages of opportunity Living the good life in China: Angelina Lei, 5, begins training early. NYTimes

32 Jobs for life are a thing of the past Results: Broken Iron _____bowl BBC:.... a Chinese idiom which referred to the now abolished system of guaranteed lifetime employment. After the Communists came to power, all workers and farmers were put under state control. Their work units controlled every aspect of daily life, including the allocation of housing, food and clothing. They also decided who could marry and when, and who was allowed to have children. In return, work units would look after their workers for life. But China's transition from a centrally planned economy to a market economy has smashed the old guarantees. Millions of workers have been laid off as state-run firms have been restructured or shut down. This has sparked angry protests from their workers, who complain they have been left without the welfare Economist October 2007 Missing the barefoot doctors

33 Results: growing rural/_________ income gap and r________ gap

34 The challenges are closely intertwined. Like Mr. Greenspan nearly a decade ago, Zhou Xiaochuan, the current governor of the People’s Bank of China, faces the knotty question of what to do about a speculative mania that has drawn millions of people with limited investing experience into betting their savings on the stock market. May 25 2007 Results.. They now have a ________ market—in a communist country..

35 Results: growth in ___________ products A couple buying decorations in Beijing for the Chinese New Year 2006. Economists say consumer spending is becoming more important to growth

36 Tho let’s not forget: China has undergone __________ reform, not ________ reform: Why you could say it has experienced p_______________ but not g__________

37 Recession Elsewhere, but It’s Booming in China The exhibition floor of the Guangzhou International Auto Show in China. After decades of gorging on consumption, Americans are saving. And the Chinese, who economists thought were addicted to saving, are spending more

38 Results: F___________ D_____________ ___________ up Figure 3. Inward FDI in China (US$ billion), 1979–2004

39 Results: China is accepted into the__________ __________ ___________

40 Results: Legitimacy issues so party tries... Village elections “Harmonious Society” “One China Policy”

41 Results: _______imbalance for US


43 17 JANUARY 2013 Smog in Beijing Patrick Chappatte, The International Herald Tribune

44 China's Xi urges officials to 'sweat' corruption out of system BEIJING Tue Mar 18, 2014 6:57am EDT China's President Xi Jinping stands next to a Chinese national flag during a welcoming ceremony at the Great Hall of the People, in Beijing, November 13, 2013. BEIJING (Reuters) - Chinese President Xi Jinping urged rural officials on Tuesday to make "spicy" efforts to "sweat" corruption out of their systems, state news agency Xinhua reported, as he pressed on with his campaign to crack down on deep-rooted graft. "The weapons of criticism and self-criticism should be well-wielded, with some spice to make every party official blush and sweat a little," Xi said during a visit to a rural area in central China's Henan province called Lankao, Xinhua said

45 China executes corrupt Hangzhou and Suzhou officials July 2011 China has executed two officials from eastern cities after convicting them of corruption. Xu Maiyong, a former vice-mayor of Hangzhou, and Jiang Renjie, who was vice-mayor of Suzhou, were put to death after their appeals were rejected. Officials said Xu and Jiang took almost 300m yuan ($46m; £29m) by embezzling and taking bribes. Corruption is one of the main causes of public discontent in China. Hundreds of officials are convicted every year. But only a handful are executed, and it is extremely rare for two officials to be put to death on the same day.Xu was said to be well known for his extravagant lifestyle - reports said investigators found gold bullion and expensive jewellery at his home. State-run Xinhua news agency reported that he used his power to interfere with project contracts and to help companies and people obtain land, promotions and tax breaks. China is often criticised for its widespread use of the death

46 comm party home of richest

47 Results

48 China overtakes US as world's biggest CO2 emitter, Tuesday 19 June 2007 Cyclists pass a factory in Yutian in China's north-west Hebei province. Photograph : Peter Parks/AFP

49 An industrial park built in Wuhai, in Inner Mongolia, along the Yellow River. In 1998, the city had only 4 factories; now there are more than 400. But the rapid industrialization has created a pollution nightmare for Wuhai, and with more development planned for the area, the demand for water is expected to skyrocket

50 Beijing residents in Tiananmen Square, used to pea-soup smog, ignored a citywide stay-indoors warning on Thursday. Beijing’s Olympic Quest: Turn Smoggy Sky Blue BEIJING — Every day, monitoring stations across the city measure air pollution to determine if the skies above this national capital can officially be designated blue. It is not an act of whimsy: with Beijing preparing to play host to the 2008 Olympic Games, the official Blue Sky ratings are the city’s own measuring stick for how well it is cleaning up its polluted air. Thursday did not bring good news. The gray, acrid skies rated an eye-reddening 421 on a scale of 500, with 500 being the worst. Friday rated 500. Both days far exceeded pollution levels deemed safe by the World Health Organization. In Beijing, officials warned residents to stay indoors until Saturday, but residents here are accustomed to breathing foul air. One man flew a kite in Tiananmen Square.

51 As China Roars, Pollution Reaches Deadly Extremes China’s industrial growth depends on coal, plentiful but polluting, from mines like this one in Shenmu, Shaanxi Province, behind a village store.

52 Perpetual Haze During the three decades since Deng set China on a course toward market-style growth, rapid industrialization and urbanization have lifted hundreds of millions of Chinese out of poverty and made the country the world’s largest producer of consumer goods. But there is little question that growth came at the expense of the country’s air, land and water, much of it already degraded by decades of Stalinist economic planning that emphasized the development of heavy industries in urban areas. For air quality, a major culprit is coal, on which China relies for about two-thirds of its energy needs. It has abundant supplies of coal and already burns more of it than the United States, Europe and Japan combined. But even many of its newest coal-fired power plants and industrial furnaces operate inefficiently and use pollution controls considered inadequate in the West. Expanding car ownership, heavy traffic and low-grade gasoline have made autos the leading source of air pollution in major Chinese cities. Only 1 percent of China’s urban population of 560 million now breathes air considered safe by the European Union, according to a World Bank study of Chinese pollution published this year. One major pollutant contributing to China’s bad air is particulate matter, which includes concentrations of fine dust, soot and aerosol particles less than 10 microns in diameter (known as PM 10).


54 A busy upscale shopping district in downtown Shanghai. Notice the advertisements for McDonald's, Coca Cola and Pizza Hut. These and many other Western consumer goods and chain restaurants have become pervasive in China's larger cities Results: McDonald's

55 Air Pollution in China Attribution: Jianping Fan, Guangzhou, China

56 Foreign governments hold about 46 percent of all U.S. debt held by the public, more than $4.5 trillion. The largest foreign holder of U.S. debt is China, which owns more about $1.2 trillion in bills, notes and bonds, according to the Treasury. In total, China owns about 8 percent of publicly held U.S. debt. Of all the holders of U.S. debt China is the third-largest, behind only the Social Security Trust Fund's holdings of nearly $3 trillion and the Federal Reserve's nearly $2 trillion holdings in Treasury investments, purchased as part of its quantitative easing program to boost the economy. China and U.S. Debt The largest portion of U.S. debt, 68 cents for every dollar or about $10 trillion, is owned by individual investors, corporations, state and local governments and, yes, even foreign governments such as China that hold Treasury bills, notes and bonds.

57 Why Does China Wish to Undervalue the Yuan? China’s engine of growth is exports. The lower the value of the Yuan, the better it is for China’s exporters. Basically, if 1 Dollar buys 7 Yuans, and a exporter sells a Chinese Shirt for 10 dollars – he pockets 70 yuans. But if one Dollar was worth only 5 Yuans, the exporter would only be able to pocket 50 yuans. Buying Dollars to Keep the Dollar Price High China has been interested in keeping the Yuan (Chinese Currency) undervalued relative to the US Dollar, and the easiest way (if you can afford it) to keep the Dollar price high, and the Yuan low is to buy dollars from the open market. A country like China, which runs a huge Trade Surplus can afford to buy dollars in the open market to keep the demand for dollars high, and push the dollar price upwards relative to the Yuan. This keeps the Yuan undervalued.

58 How does China hold down the value of its yuan (

59 Investors holding a lot of Treasury Bills or U.S.-dollar-denominated bonds. Mortgage providers like Countrywide Financial (CFC), Wells Fargo (WFC), and Federal National Mortgage Association (FNM) would face higher rates, which would decrease their business volume Mass-market retailers Wal-Mart Stores and Target Stores Electronics producers such as Dell (DELL), Hewlett-Packard (HPQ), Motorola (MOT) and Nokia (NOK) who built factories in China and employed Chinese workers to manufacture their products for the U.S. market. U.S. manufacturers of capital equipment, such as Caterpillar (CAT) and Deere (DE),. Wholesale food exporters like Archer-Daniels-Midland Company (ADM), DANONE, and Chiquita Brands International (CQB), Western commodity manufacturers, such as steel companies like Nucor (NUE), Arcelor Mittal (MT), and Wheeling-Pittsburgh (WPSC), who face less competition due to higher Chinese prices. Chinese airlines, such as China Eastern Airlines (CEA) and China Southern Airlines Company (ZNH), who now pay less in Yuan for airplanes and aviation fuels. One of these lists is titled “Who might be Hurt by a Yuan Appreciation” Another is titled “Companies Which Would Benefit from a Yuan Appreciation” Which is which? “Who might be Hurt by a Yuan Appreciation” “Companies Which Would Benefit from a Yuan Appreciation”

60 FRQ: Explain the two Pillar’s of Deng’s Reform and Opening: Pillar ONE: De_____ (explain what you mean by that and give policy examples) Pillar TWO: Open to (explain what you mean by that and give policy examples) Identify 3 Political, 3 Economic and 3 Social results of the market reform Deng started

61 the_Wire/2013- 03/14/content_28244864.htm Candidate for China's new premier finalized Xinhua, March 14, 2013 Slide show to go along with articl e on consumers 360504577408493723814210.html?mod=ITP_revie w_0#slide/eos 360504577408493723814210.html?mod=ITP_revie w_0#slide/eos

62 14 NOVEMBER 2012 China, which way Attribution: Paresh Nath, The Khaleej Times, UAE In pictures: leadership-transition leadership-transition

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