Why China won’t catch-up with USA

Spoiler: The Chinese growth is slowing down. Communist China will never be able to make it to the richest economies even if it becomes the largest economy due to its size. Even if the Chinese has moved up the value-added ladder, it will become never become as innovative as USA.

Knowledge and innovation are not only cumulative, but they are also collaborative processes. The formation of these depends on interactions between scientists, researchers and other people involved in the innovation process. Free access to flows of information and knowledge is reinforcing the processes. Such conditions are more often found in democracies than in autocracies which explains why the former type of countries are more attractive to live and work in. Furthermore, scientists and researchers that move from autocracies to democracies become more productive.   

Further obstacles are the prioritization of the SOEs and the demographic change. Pouring investments and ordering banks to throw good money after bad is hampering growth. The Chinese working age population is getting older and smaller. But the communist regime is committing is committing genocide instead of trying to reverse that development.

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Graph of the day – Communist China’s sterilizations of Uighur women

In 2016, Communist China relaxed their Malthusian policy and allowed families to have two children. But all Chinese are not equal. And that applies especially to the Uighur people. Not only are they forced into concentration camps, , they are also subject to coercive methods of birth control, i.e. forced sterilization.

Birth control or genocide?

Source: Follet C. (2020). “Neo‐ Malthusianism and Coercive Population Control in China and India: Overpopulation Concerns Often Result in Coercion”. CATO Institute. Policy Analysis No. 897. July 21. 2020. https://www.cato.org/publications/policy-analysis/neo-malthusianism-coercive-population-control-china-india

 

The answer to the question above the graph is Genocide. At least according to United Nations. In Article II of the Genocide Convention, genocide is defined by acts with the

“intent to destroy, in whole or in part, a national, ethnical, racial or religious group, as
such:
(a) Killing members of the group;
(b) Causing serious bodily or mental harm to members of the group;
(c) Deliberately inflicting on the group conditions of life calculated to bring about its
physical destruction in whole or in part;
(d) Imposing measures intended to prevent births within the group;
(e) Forcibly transferring children of the group to another group”

Here is a shocking account of what is going on.

 

 

Graph of the day – The risk of being arrested increases when China steps in

As mentioned by this blog here and here, the Chinese security law makes “crimes” of subversion, terrorism, and co-operation with foreigners punishable by a minimum sentence of three years. The law is “designed” so broadly and vaguely to serve the communist regime to use it to quash freedoms of speech and assembly, political dissent and an independent judiciary. Features of Hong Kong that were taken for granted allowed in Hong Kong for decades, unlike in mainland China.

On the very first day the law entered into force, the police had arrested more than 300 people  , nine of which were arrested specifically for violating the new security law. Oce Hong Kong is brought to its knees,  the Communist regime will go for Taiwan where citizens still enjoy their freedom and can exercise their civil rights without fear of being arrested.

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Freedom is crushed in Hong Kong.

Spoiler: The Chinese communist regime has done what was expected. The security law which was designed to crush all opposition and human rights activists in Hong Kong, has been introduced. Soon to follow are mass arrests, torture, and murder according to communist traditions.

Within hours after the law entered into force, a man holding a flag with the text “Independence for Hong Kong” was arrested. He violated the law which makes it illegal to demand independence for Hong Kong from Communist China. Later, some 30 activists were arrested, and others were attacked by the police forces with water cannons.

As I briefly wrote in this post, the new law makes “crimes” of subversion, terrorism and co-operation with foreigners punishable by a minimum sentence of three years. But previous experience of the Chinese “judicial” system tells us that maximum punishment of life sentences are more likely. To make sure that the Hong Kong authorities implement in a satisfactorily way, Beijing has set up a security office in Hong Kong. The office is staffed with communist China’s own people who are not accountable to Hong Kong’s jurisdiction. That means that they can carry out any illegal acts Beijing deems necessary.

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