Beijing’s Belgrade Syndrome

China Matters: How It All Began: The Belgrade Embassy Bombing.

This is a superb post, and well worth the read. I do agree that we in the United States – including most of our leaders in Washington – underestimate the psychological impact that the bombing of China’s embassy in Belgrade had in certain quarters in Beijing. Nor do we realize, I think, the degree to which this shifted a modicum of power and credibility to the People’s Liberation Army.

That said, to suggest that the Belgrade bombing was the origin point of China’s grand strategy is to overstate, if not ignore history. The plans and doctrine that form the basis of China’s grand strategy were set in motion (at the latest) with the accession of Deng Xiaoping, and more likely traces its roots back to the Zhou Enlai’s Four Modernizations. (Defense, for those who will recall, was the fourth modernization, after agriculture, industry, national defense, and science and technology.)

China has been on this general course for decades. Have specific goals and force structure evolved as they adapted to new circumstances and opportunities? Certainly. But the tune China is playing today was first set on paper fifty years ago.

China and Green Finance

Greening China’s Financial System: Synthesis Report
Zhang Chenghui, Simon Zadek, Chen Ning, Mark Halle

International Institute for Sustainable Development (IISD)
March 16, 2005

Making China more environmentally friendly is more than simply a matter of installing scrubbers on factories and catalytic converters on cars. There are systemic issues that run deep, and that must be addressed in order for real, long-term change to take place.

In Greening China’s Financial System, global sustainability guru Simon Zadek teams with Zhang Chenghui, Chen Ning, and Mark Halle to examine how China’s financial system can be revamped in order to enable and support the nation’s shift to a more sustainable economy. Beyond simply identifying the problem, though, the report also offers specific recommendations for change based on current practice in China and best practices from abroad.

For those looking for a realistic, system-wide approach to greening a polluted China, this is an essential read.

Cato Institute on the SH-HK Stock Connect

Hong Kong, as the freest economy in the world, is an ideal place for global capital to enter the mainland. With the further opening of China’s capital account, Shanghai could one day outshine Hong Kong, but only if property rights are protected under the rule of law understood as a meta-legal principle whereby all individuals are guided by what F. A Hayek called “rules of just conduct.”

In all of our excitement about what this might mean for the finance industry, let us keep in mind that there are as many good reasons for staying out of Chinese investments right now than there are for getting in. 

Indonesia is Worried about ISIS

ISIL, a Growing Threat in Indonesia?”
Gwenael Njoto-Feillard

East-West Center
September 23, 2014

Lest we develop the impression that concern about ISIL/ISIS is restricted to the Middle East and select western capitals, this paper by Njoto-Feillard, a visiting scholar at the Institute of South-East Asian Studies in Singapore, makes clear that the entire Muslim world is coping with the disruption in the fertile crescent.

Njoto-Feillard suggests that the way to resist the tsunamis of extremism washing through Muslim communities worldwide is to build resilient societies. Those societies, he notes, would involve stronger cooperation between the state and “all elements of Islamic civil society.” Absolutely.

What we wonder, though, is what happens to non-Muslim minorities in a situation like that. Do you marginalize them for “their own good,” because being marginalized in a moderate society is better than being slaughtered in a radical one? Or do you bring them to the table and incorporate them into the process, finding a role for them in society that makes the entire society stronger?