Tag Archives: Xi Jinping

Xi Jinping has been elevated to the same level as Mao Zedong

The largest political event of the year in China is «two sessions.» The National Peoples Congress (NPC) is the national legislature of the Peoples Republic of China. The party have 2,980 members (2018) and it is the largest parliamentary body in the world.

As the NPC and the Peoples Political Consultative Conference (CPPCC) are the main deliberative bodies of China, they are often referred to as the Lianghui (two sessions). Its annual meetings provide an opportunity for the officers of state to review past policies and to present future plans to the nation.

 

In theory, the NPC is the highest organ of state power in China, and all four PRC constitutions have vested it with great lawmaking powers. In practice, however, it usually acts a rubber stamp for decisions already made by the state`s executive organs and the Communist Party of China.

One of its members, Hu Xiaoyan, told BBC in 2009 that she has no power to help he constituents. She was quoted as saying; «As a parliamentary representative, I don`t have any real power.» But the Chinese leader Xi Jinping have.

The parliament is expected to rubberstamp major constitutional changes that will elevate the power of President Xi Jinping which means Xi Jinping has been elevated to the same level as Mao Zedong.

It will also confirm dropping China`s two-term presidential limit which means Xi could stay in power for life, leading China according to his new ideological guidelines, known as «Xi Jinping Thought».

Lianghui last between one or two weeks and this year the CPPCC started on 3 March and the NPC started on 5 March. The Chinese premier Li Kequang said that people in China must be fully prepared for a tough struggle. He warned that there will be greater risks ahead for China.

«Two sessions» comes amid tariff tensions with the U.S which is Chinas largest trading partner. As you may know, the U.S have placed huge pressure on Chinas economy and financial markets. Therefore, Li said that the growth target for 2019 will be 6,0 to 6,5 percent.

This years growth is in line with economists’ expectations. Last year, the Chinese economy grew at its slowest pace since 1990, expanding by 6,6 percent in 2018.

Last year, President Trump announced additional tariffs on $250 billion worth of goods from China and Li warned that the trade war with the U.S has so far had a negative impact on business activities in China.

But the tariff battle could soon ease while the two largest economies in the world are in the final stages of the trade deal that could end this month. Li reiterated Beijing`s commitment to «safeguarding economic glabalization» and pledged to promote China-U.S trade negotiations while advancing negotiations on other trade agreements.

Retail sales in China have slumped and as a result of that they are doing what President Trump did; they will cut the taxes and boost the growth.

Li told the NPC that China would aim to deliver nearly 2 trillion yuan ($4298bn) of cuts in taxes and other company fees. It plans to boost spending and increase foreign firms’ access to its markets.

China will also increase its military budget by 7,5 percent to 1,2 trillion yuan. The country`s defence spending is closely watched for any signals as to its military intentions.

A slower growth in China is not good news for the West. A slower growth in China means that they will buy less from the West while it accounts for one-third of the global growth.

But take official growth figures from China with a pinch of salt. For all I know, I could be as low as 5 percent, but tax cuts could push the growth up again. In the longer run, the growth will continue to decline.

The richer China get, the slower the growth will be.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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The United States are growing faster than China

The world`s biggest economy is the United States followed by China, and sooner or later, China will replace the locomotive and be the biggest economy in the world. You can delay it, but it will happen in this century anyway.

They are both in conflict with each other with tariff tensions and a trade war. A strategy that is bad for both of them in the long run. The U.S is waiting for China to come to the table and make a fair deal. Today is the first day of talks to renegotiate the trade dispute between them. A deal that President Donald Trump repudiated.

Take a look at the chart above. Surprisingly, the U.S is more productive than China. Twice as much. The US economy advanced an annualized 3,4 percent on quarter in the third quarter of 2018 while the Chinese economy grew by “only” 1,6 percent quarter-on-quarter in the three months to September last year.

The Chinese economy is slowing and this has been going on for a while. But it`s not because of the trade war. China obviously have some problems and the China-U.S tension is one of them, but this is not the first time China and the U.S are in conflict with each other.

Deng Xiaoping and President Jimmy Carter signed a historic accord in 1979 and then reversed decades of China-U.S tension. Deng Xiaoping was a Chinese revolutionary and veteran of the Communist Party and he was eager to adopt capitalist methods and reforms in order to stimulate economic growth and restore confidence in the party.

Today, China has embraced capitalism but remains Leninist at heart. The founder of the Soviet Union, and his Bolshevik revolution, Vladimir Lenin changed China`s economic and political landscape.

Lenins Russian revolution in 1917 have a causal relationship with the birth of Chinas Communist Party in 1921 and the founding of the People`s Republic of China in 1949. As Mao Zedong once said: “The salvoes of the October revolution brought Marxism-Leninism to China.”

Lenin has played a much bigger role in China than Karl Marx and Friedrich Engels. The wholesale execution of enemies inspired Mao`brutal dictatorship and his launch of the Cultural Revolution under the theory of “continuous revolution under the dictatorship of the proletariat.”

Now, China has changed dramatically since Deng Xiaopings free-market reforms and Maos terrifying Leninist experiment in utopia. Now, China is the world`s second largest economy. 70 percent of the “socialist” economy is privately owned and nobody have more billionaires than China right now.

China is more a Leninist capitalist state than a Marxist socialist one. 800 million people in the middle class has jumped on the consumerism train in only a couple of decades under the stewardship of communist totalitarianism. Leninism`s lasting legacy.

On the other side, China has a debt crisis and a real estate bubble, so the question is; when will China collapse, and will it cause a global crisis? China is declining and it will continue to do so. Lending money to Kenya or Venezuela to name a few, are putting them all in a debt trap and it remain to see that Beijing can afford it. I`m in doubt.

Xi Jinping and his leaders know that they are in a very weak position, so they have to come to the table and make a deal with the U.S.

The stock market is in a correction territory at the moment. Investors have priced in two rate hikes this year and some U.S-China tension fear, but Trump reports “Big Progress” in trade talks with China were top trained negotiators came to the table earlier today.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

 

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World Economic Forum`s motto is “Committed to improving the state of the world,” and President Trump will attend

Every year at the end of January, it is time for World Economic Forum (WEF) in Davos. The forum was founded in 1971 by Klaus Schwab. A German-born business professor at the University of Geneva. First named the “European Management Forum”, and then it changed its name to the World Economic Forum in 1987.

Its mission is cited as “committed to improve the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas”. President Trump is a business man and he will join the elite at the forum in Davos this time.

The meeting at Davos is synonymous with wealth and elite prestige and Presidents have therefore been concerned to participate because it would send wrong signals. Mr Trump will be the fist sitting President since Bill Clinton in 2000 to attend. Mr Trump is a business man and have an agenda. A message.

That being said; don`t forget the forums motto: “Committed to improving the state of the world.”

Mr Trump is finish with his first year as a President at the White House, and so far he has done a lot of good things, not only for the USA, but also for the rest of the world. But this is only the beginning.

The meeting in Davos brings together some 2,500 top business leaders, international political leaders, economists, and journalists for up to four days to discuss the most pressing issues facing the world.

But Trump`s agenda is not to make the world great again, but the USA. He will also try to sell his «America first» agenda to the world leaders. It is not difficult to understand that he also want to promote his policies to strengthen American businesses, their industry and their workers.

What Trump is doing in the U.S will also affect the rest of the world. For instance, a corporate tax cut in the U.S will also affect other countries. For all I know, maybe other countries will follow his strategy and cut the taxes as well.

Trump is also a great negotiator and he told Stoltenberg at NATO to pay the bills to the U.S Navy, and you know what; they did. This is brilliant. He is making USA more safe, but also NATO members and the European Union more safe.

I think Mr Trump will try to sell his economic growth agenda on the world stage and speak with the World Bank and the IMF, and I really look forward to his speech. It can be full of surprises. His administration said that Trump`s delegation to Davos will be large.

Mr Trump recognized Jerusalem as Israels capital. That can also be an issue if you think of the forums motto: “Committed to improving the state of the world.” We have seen this before.

At the 1994 annual meeting, Israeli Foreign Minister Shimon Peres and PLO chairman Yasser Arafat reached a draft agreement on Gaza and Jerico. Two years earlier, South African President F.W de Klerk met with Nelson Mandela and Chief Mangosuthu Buthelezi, which was the first joint appearance outside South Africa.

North Korea was invited to Davos in 2016, “in view of positive signs coming out of the country,” the WEF noted. North Korea has not been attending the WEF since 1998. The invitation was accepted but after their nuclear test on January 6, 2016 (only days before the meeting), the invitation was revoked.

North Korea`s delegation was made subject to “existing and possible forthcoming sanctions.”

The country protested and called the decision by the WEF managing board a “sudden and irresponsible” move, but the WEF committee maintained the exclusion because under these circumstances there would be no opportunity for international dialogue.

Last year, a head of state from the People`s Republic of China was invited to the alpine resort. With the backdrop of Brexit, an incoming protectionist US administration and significant pressure on free trade zones and trade agreements, President Xi Jinping defended the global economic scheme, and portrayed China as a responsible nation and a leader for environmental causes.

President Xi Jinping rebuked the current populist movements that would introduce tariffs and hinder global commerce, warning that such protectionism could foster isolation and reduced economic opportunity. This is still a hot potato.

Two year ago, the forum announced the opening of its new Center for the Fourth Industrial Revolution in San Francisco. They said the center will “serve as a platform for interaction, insight and impact on the scientific and technological changes that are changing the way we live, work and relate to one another.” Great news at that time.

What about the crypto currency revolution? The cryptobank boom? All this decentralized coins and banking industry with tokens and their «smart contracts» that is flooding the market. Will the world leaders talk about it, and will the central banks answer with a centralized version in the future?

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Chinese President Xi Jinping said President Donald Trump`s state visit is a successful and historic visit

President Donald Trump visited Asia and China last week, and what a visit it was. We all know that Mr Trump want to Make America great again, but the relationship between China and America will not only Make America great again, but also the world.

China treated Mr Trump like a pop star with red carpets, military bands, a goose-steppping honor guard of soldiers and a twenty-one gun salute to name a few. Kids were jumping up and down with American flags as Trump`s motorcade passed. They also dined with Chinese president Xi Jinping in the Forbidden City.

Mr Trump is the first foreign leader accorded that honor since the founding of the Peoples Republic in 1949. Wow!

Xi Jinping said at the end of his speech that Trump`s state visit is a successful and historic visit. What did they do?

President Donald Trump is a business man. He colaborates with a lot of business people in China and have negotiated with Chinese businesses for a long time, so he know this game. In addition; he is a great negotiator.

Before he was leaving China, he and Xi Jinping announced business deals worth $250 billion. This deal is by many called Trump “miracle” deals.

Mr Trump is trying to correct the $350 billion trade deficit between China and the U.S, and he is on the way.

President Trump withdrew the United States from the Trans Pacific Partnership (TPP) in January this year and called it a bad deal. It seems like Mr Trump is trying to make a better deal and he is doing it for the American people.

They try to better protect labor and intellectual property rights. One TPP chapter spelled out commitments on environmental issues such as illegal wildlife trade and marine fishery protection.

Many of the other countries were not enthusiastic about the intellectual property rights and labor clauses in the original TPP agreement, because it tended to favor U.S interests.

Washington pushed for the labor, environmental and intellectual property commitments to save its own companies. Workers get paid more and treated better on average in the U.S compared to developing countries on the TPP roster.

They`re required to follow environmental laws at home, and American courts protect their trademarks, patents and copyrights. If equivalent firms in other countries avoid these practices, they can cut costs, or snag an outside trademark without paying.

This is very important for Mr Trump and the White House, and they will probably be patient and continue with its meetings regarding the best agreement possible. In the meantime, the other countries will continue its agreement without the U.S.

Mr Trump is the first foreign diplomat to be given a rare tour and private dinner in the Forbidden City since the People`s Republic of China was founded in 1949.

Donald and Melania Trump shared an afternoon tea with Xi Jinping and his wife Peng Liyuan at the Forbidden Palace Hall, and it was intentionally chosen for its historical and cultural significance that underscores cooperation between the two countries.

Mr Trump is doing everything he can to make America great again. Since he was elected a year ago, the stock market have gone straight up. Up, up, up and up. The stock market is up in all months so far this year, and that hasn`t happened in many decades. It is unbelievable.

People in America is also beginning to be very positive about the U.S economy. Consumer Confidence has gone straight up in months after months. That too, is unbelievable.

If Trumpism is the policies advocated by Donald Trump, especially those involving a rejection of the current political establishment and the vigorous pursuit of American national interests, and a controversial or outrageous statement attributed to Donald Trump, this is what it is;

TRUMPISM.

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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The New Silk Road is the largest economic development project in history

The largest economic development project in history could have dramatic ripple effects throughout the world economy. China is building the world`s greatest economic development and construction project ever undertaken:

The New Silk Road.

 

Silk route

(Picture: Extend of Silk Road. Red is land route and blue is sea route)

 

The Silk Road is a network of trade and cultural transmission routes that were central to cultural interaction through regions of the Asian continent connecting the West and East by merchants, pilgrims, monks, soldiers, nomads, and urban dwellers from China and India to the Mediterranean Sea during various periods of time.

Extending 4,000 miles (6437 kilometers), the Silk Road derives its name from the lucrative trade in Chinese silk carried out along its length, beginning during the Han dynasty (206 BC – 220 AD). The Central Asian sections of the trade routes were expanded around 114 BC by the Han dynasty, largely through the missions and explorations of Chinese imperial envoy, Zhang Qian.

The Chinese took great interest in the safety of their trade products and extended the Great Wall of China to ensure the protection of the trade route.

Trade on the Silk Road was a significant factor in the development of the civilizations of China, the indian subcontinent, Persia, Europe, the Horn of Africa and Arabia, opening long-distance, political and economic relations between the civilizations.

The main traders during antiquity were the Chinese, Persians, Somalis, Greeks, Syrians, Romans, Armenians, Indians, and Bactrians, and from the 5th to the 8th century the Sogdians. Following the emergence of Islam, Arab traders became prominent.

The Silk Road derives its name from the lucrative Chinese silk trade. The German terms Seidenstraße were coined by Ferdinand von Richthofen, who made seven expeditions to China from 1868 to 1872.

The new Silk Road will be massive, and the ambitious vision is to resurrect the ancient Silk Road as a modern transit, trade, and economic corridor that runs from Shanghai to Berlin. The «Road» will traverse China, Mongolia, Russia, Belarus, Poland, and Germany, extending more than 8,000 miles, creating an economic zone that extends over one-third the circumference of the earth.

The plan envisions building high-speed railroads, roads and highways, energy transmission and distributions networks, and fiber optic networks. Many cities and ports along the route will be targeted for economic development.

An equally essential part of the plan is a sea-based «Maritime Silk Road» (MSR) component, as ambitious as its land-based project, linking China with the Persian Gulf and the Mediterranean Sea through Central Asia and the Indian Ocean.

Three continents will be connected when the ancient Silk Road is completed; Asia, Europe and Africa. The Chain of infrastructure projects will create the world`s largest economic corridor, covering a population of 4,4 billion and an economic output of $21 trillion.

The idea for reviving the New Silk Road was first announced in 2013 by the Chinese President, Xi Jinping. As part of the plan, in 2014, the Chinese leader also announced the launch of an Asian International Bank (AIIB), providing seed funding for the project, with an initial Chinese contribution of $47 billion.

China has invited the international community of nations to take a major role as bank charter members and partners in the project. Members will be expected to contribute, with additional funding by international funds, including the World bank, investments from private and public companies, and local governments.

58 nations have signed on to become charter bank members, including most of Western Europe, along with many Silk Road and Asian countries. After failed attempts by the U.S to persuade allies against joining the bank, the U.S reversed course, and now says that it has always supported the project, a disingenuous position considering the fact that U.S opposition was hardly a secret.

The Wall Street Journal reported in November 2014 that the U.S has also lobbied hard against Chinese plans for a new infrastructure development bank.

Russia is fully integrated into the project.

The Huffington Post`s Alastair Crooke has this to say on the matter: «For very different motives, the key pillars of the region (Iran, Turkey, Egypt and Pakistan) are re-orienting eastwards. It is not fully appreciated in the West how important China`s «Belt and Road» initiaive is to this move (and Russia, of course is fully integrated into the project).

Regional states can see that China is very serious indeed about creating huge infrastructure projects from Asia to Europe. They can also see what occurred with the Asia Infrastructure Investment Bank (AIIB), as the world piled in (to America`s very evident dismay). These states intend to be a part of it.»

Buttressing this effort, China plans to injecting at least $62 billion into banks to support the New Silk Road. The China Development Bank (CDB) will receive $32 billion, the Export Import Bank of China (EXIM) will take on $30 billion, and the Chinese government will also pump additional capital into the Agricultural Development Bank of China (ADBC).

Will the U.S join the effort? If the new Trans-Pacific Partnership (without Russia and China, two Pacific powers) is any indication, U.S participation seems unlikely and opposition all but certain.

The project is expected to take decades, with costs running into the hundreds of billions of dollars, if not trillions. What that will mean for the world economy and trade is almost inconceivable. This project will face many geopolitical abstractions. It has already started.

The U.S President Barack Obama said; «If we don`t write the rules, China will write the rules out in that region,» he said in defence of the Trans-Pacific Partnership (TPP).

Beyond the riches of silks, spices, and jewellery, it could be argued that the most important thing that Marco Polo brought back from China was a famous nautical and world map that was the basis for one of the most famous maps published in Europe, one that helped spark the Age of Discovery.

Christopher Columbus was guided by that map and was known to have a well-annotated copy of Marco Polo`s travel tales with him on his voyage of discovery of a new route to India. The decisions about the new Silk Road are massive.

The geopolitical conflicts over the project could lead to a new cold war.

 


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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. UA-63539824-1.

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