China
Why China cares about the label of democracy
Author: Xunchao Zhang, University of Wisconsin-Madison
If you access any Chinese state media or pro-state social media published in late 2021, you will be bombarded with attacks on US President Joe Biden’s ‘Summit for Democracy’ and relentless insistence that China is the world’s largest democracy. Beyond the fear of geopolitical containment, it is puzzling why China cared about Biden’s democracy summit.
It is not initially clear why China would insist on being a democracy when claiming democratic status risks falling into a rhetorical trap.
While most Western media dismisses China’s claim to democracy as simply a cynical propaganda ploy, some ‘democratisation optimists’ in the West have suggested that China’s reaction to Biden’s summit shows China’s commitment to some vague notion of eventual democratisation. These observations miss the point. China’s reaction to the summit — clinging onto the concept of democracy — largely reflects a lack of a conceptual alternative, geopolitical fear and some genuine domestic perception that the country is democratic.
The most important problem facing China is a lack of alternative concepts to legitimise the state. Although contemporary China is the heir to a socialist revolution, beyond nostalgic leftist circles, orthodox Marxism cannot capture the public imagination as an alternative to liberal democracy.
Granted, there is growing intellectual interest in critiques of democracy such as meritocracy and the Schmittian notion of self-justifying authoritarian state power. Eric Li is perhaps the most eloquent critic of democracy in China offering universal critiques of liberal democracy, such as institutional vulnerability to being captured by elites and the tendency to be gridlocked in unhealthy partisanship and identity politics. Beyond critiques, there are also alternative visions being offered, such as by Daniel Bell who often characterises China as an examination-based meritocracy rather than electoral democracy.
Yet, so far, none of the alternative concepts of legitimisation have gained official endorsement. You will not find meritocracy or citation of Carl Schmitt in the plethora of documents produced by China Communist Party plenums. These alternative concepts are rare sights even in the less rigid Chinese media propaganda targeting foreign audiences.
There are also geopolitical concerns. Embracing any legitimisation concept other than democracy by China, even one that is not explicitly anti-democratic, may unite the Western world in a democratic alliance against China. There are anti-democratic leaders and anti-democratic movements all over the world, usually referred to as ‘populists’, who do not have a systematic anti-democratic ideology. Most of these populists also take up anti-China foreign policy positions. Some even treat China as a scapegoat for their domestic grievances. There is little chance for anti-democratic solidarity between China and the international populist right.
It is advantageous for Beijing to cling to the democratic label to avoid contributing to the formation of a united Western democratic coalition against China. Plenty of people in China genuinely believe their country is democratic. One historical reason behind this is the presence of so-called ‘people-oriented (minben)’ thought in traditional Chinese political culture, which emphasises governance ‘for the people’, rather than government ‘by the people’. Mencius outlined the classic Confucian ideal of state–society relations, under which ‘the people come first, the state comes second, [and] the ruler comes last’.
Yet a state that works for the benefit of the people is not necessarily democratic. People-oriented governance often means a paternalistic but responsive form of authoritarianism. Elites and the public in China often use performance metrics, rather than procedural and institutional criteria, to measure how legitimate or ‘democratic’ the state is. These performance metrics include economic growth and also Beijing’s ability to avenge China’s century of humiliation and reclaim China’s great power status.
The primacy of performance metrics over procedural ones is also reflected in survey data. Pollsters repeatedly find that a majority of Chinese respondents consider China a democracy. It would be self-deceiving for Western observers to dismiss these survey results as a simple reflection of public quiescence under state pressure. A more nuanced interpretation is that ‘democracy’ is simply what the public calls a state…
China
The Latest Updates on China’s Visa-Free Policies
China has fully reopened its borders, allowing international tourism to recover. Visa-free travel policies are reinstated, and visa fees for foreign travelers will be reduced by 25% from December 11, 2023, to December 31, 2024. China and Singapore are also pursuing a 30-day visa-free travel arrangement.
China has fully reopened its borders, promising recovery of international tourism and travel. Many of the visa-free travel policies that were in place prior to the pandemic have therefore come back into effect, enabling people from a wide range of countries to visit
UPDATE (December 8, 2023): On December 8, 2023, the Ministry of Foreign Affairs released the Notice on Temporary Reduction of Fees for Applying Visa to China. According to this notice, during the period from December 11, 2023, to December 31, 2024, China shall cut visa fees by 25 percent across the board for foreign travelers. For more details, please consult with your local Chinese embassy or consulate.
UPDATE (December 7, 2023): China and Singapore are seeking to establish a mutual 30-day visa-free travel arrangement to boost people exchanges between the two countries, according to Reuters. At the time of writing, no further details have been released regarding the timeline or the eligibility, requirement, and application procedures of this new arrangement. Click here for more information regarding this mutual 30-day visa-free travel between China and Singapore.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
China
Analysis of UK Investments in China for 2023: Evaluating Deals, Values, M&A, and Investments
British Government underwent reshuffle with pro-China David Cameron as Foreign Minister. Possible mild rapprochement with Beijing. Analysis of UK investments in China this year reveals potential trends. Report includes unique Q1-Q3 data and predicts outlook for 2024.
By Chris Devonshire-Ellis & Henry Tillman
With a reshuffle in the British Government and ex-Prime Minister – and generally pro-China politician David Cameron now as the UK’s Foreign Minister, there have been early signs of a potential mild rapprochement in the British governments overall attitude towards Beijing.
But before people get carried away, we can look at what investments the UK has made into China this year – as investments made while anti-China politics have tended to be the norm are typically indicative of stronger trends. In this report I include unique data that has not previously been made public, and examine the Q1-Q3 investment trends to see what may lie ahead for 2024.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
China
Ratings agency cuts China’s credit outlook
Financially strapped local governments and state-owned enterprises pose a risk to China’s future economic growth, the ratings agency Moody’s said today in a report downgrading the country’s credit outlook from stable to negative.
Growing evidence suggests that the central government will be required to shore up the debt-laden entities, creating “broad downside risks to China’s fiscal, economic and institutional strength,” Moody’s said.
Local governments are thought to have accumulated trillions of dollars of debt due to spending during the COVID pandemic and a loss of income due to a troubled real estate market.
Despite the challenges, Moody’s maintained China’s overall credit rating of A1, which it describes as low-risk though not the safest category of investment. Moody’s said the rating reflects its belief in the country’s “financial and institutional resources to manage the transition in an orderly fashion.”
“Its economy’s vast size and robust, albeit slowing, potential growth rate, support its high shock absorption capacity,” Moody’s said.
Even so, the outlook downgrade signals some concern about China’s future creditworthiness.
In a statement, China’s Foreign Ministry said it was disappointed in the ratings change and that Moody’s concerns about its growth and financial stability were “unnecessary.”
“In recent years, through the continuous efforts of relevant departments and local governments, China has established a system to prevent and resolve the risks of local government debt,” the ministry said. “The trend of disorderly and illegal borrowing by local governments has been initially curbed, and positive results have been achieved in the disposal of local government debt.”
Moody’s projects China’s annual growth rate will be 4% in 2024 and 2025 but average 3.8% from 2026 to 2030, at which time it might drop again to 3.5%.
Derek Scissors, the chief economist at China Beige Book, a firm that analyzes China’s economy for investors, said in an email that the downgrade was to be expected.
“It’s a recognition of long-standing conditions, not a new development,” said Scissors, who is also a senior fellow at the free-market think tank American Enterprise Institute in Washington. “I think growth will be faster than Moody’s thinks in 2024 and decelerate more than they think after that.”
Fees from local land sales account for nearly 40% of the revenue to local and regional governments. But China’s real-estate sector has been hit hard by overbuilding. One giant, Evergrande, defaulted under massive debt last year, triggering a broader real estate crisis.
Moody’s report said that “the downsizing of the property sector is a major structural shift in China’s growth drivers which is ongoing and could represent a more significant drag to China’s overall economic growth rate than currently assessed.”
Edited by Tara McKelvey
Read the rest of this article here >>> Ratings agency cuts China’s credit outlook
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- Analysis of UK Investments in China for 2023: Evaluating Deals, Values, M&A, and Investments
- Ratings agency cuts China’s credit outlook
- Balancing China’s labour migration through education
- Annual Confirmation for China IIT Special Additional Deductions to Commence on December 1st
