China Strategic Review
China Strategic Review - 5/2018
Release Time:2018-05-10

Salute to Great Karl Marx

Yang Yiyong

Karl Heinrich Marx was born on May 5, 1818 in 664 Bryken Lane, Trier City, Germany. As one of the founders of Marxism and the organizer and leader of the First International, he is well-deservedly known as the great mentor of the proletariat and working people of the world, the spiritual leader of the proletariat, and the pioneer of the international communist movement. This year marks the 200th anniversary of Mr. Marx’s birth. “The proletarians of the world, unite!” The loud declaration is still rounding in our ears.

The Marxist theory was born in Europe, but it has formed an important practice base in the East of Asia and has achieved great success in China. On September 30, 2017, General Secretary Xi Jinping emphasized that in the 43rd collective study of the Politburo, our party is a political party armed with Marxism. Marxism is the soul of the ideals and beliefs of our communists. To develop Marxism in the 21st century and Marxism in contemporary China, we must base ourselves on China, look to the world, maintain the theoretical character of advancing with the times, profoundly understand the significance and practical significance of Marxism, and persevere in promoting the sinicization, modernization, and popularization of Marxism.

First, Marx is a born international communist fighter who struggled for communism throughout his life.

Second, Marx is a great thinker recognized by the world, whether it is a socialist camp or a capitalist camp.

Third, the revolutionary friendship between Marx and Engels is a model of like-minded people.

Fourth, Marxism is always shining, which is determined by its enormous vitality and ability to solve problems.

Around the globe, Marxism's practice in the world continues to develop, proving its tenacious vitality and becoming an important idea to guide the practice of socialism with Chinese characteristics. The sinicization of Marxism is to combine the basic principles of Marxism with the actual conditions of the Chinese revolution and construction, so as to draw a socialist revolution and construction path suited to China's national conditions. In his speech at the Symposium on Philosophy and Social Science, General Secretary Xi Jinping asked us to continuously deepen our understanding, sum up experience, and constantly realize the benign interaction of theoretical innovation and practice innovation according to the changes of the times and practice, and develop Marxism in the 21st century. Marxism will surely renew its youthful vitality in the new era.

 

 

Studies on Xi Jinping’s Thought about Income and Distribution

Huang Yanfen/ Kong Weiyan

Xi Jinping's thought of income distribution is not only a distribution theory in the primary stage of socialism, but also important content of Xi Jinping's thoughts on socialism with Chinese characteristics in the new era. It is the latest achievement of the modernization of the contemporary Marxist theory of income distribution, and our Party’s collective innovation in the theory of income distribution. The thoughts of socialist income distribution in the new era include three parts: distribution according to labor, distribution according to production factors and common prosperity. On February 28, 2013, Xi Jinping pointed out at the second plenary meeting of the Second Plenary Session of the 18th CPC Central Committee: "The reform of the income distribution system is a very arduous and complicated system project, and all departments and regions must fully understand the great significance of the reform of the income distribution system, regard it as an important task to implement the income distribution system, increase the income of urban and rural residents, narrow the income distribution gap, regulate the income distribution order, and focus on solving the outstanding problems of the people." In order to implement Xi's idea of income distribution, we should focus on rationalizing the relationship of income distribution, broaden the channels of labor income and property income, deepen the reform of the labor wage system, improve the distribution of production factors according to contributions, and improve taxation, social security and precision poverty alleviation policies.

I. The three sections of Xi Jinping's thinking on income distribution

As we all know, income distribution refers to the process and form of social products distributed to government departments, social groups and members of society, including the distribution of total social products, the distribution of national income, and the distribution of personal consumer goods. Among them, the distribution of national income includes initial distribution and redistribution.

(1) About distribution according to labor

Distribution according to work refers to the principle of obtaining the same amount of remuneration according to the same amount of labor, and all the proceeds (the society has made all necessary deductions) to the workers according to the socially necessary labor time contributed by the workers.

(2) About distribution according to production factors

According to the distribution of production factors, under the conditions of the socialist market economy, the users of production factors pay a corresponding reward to the owners of the production factors according to the contribution of various production factors in the production and management process.

(3) About common prosperity

Common prosperity means that all the people will eventually achieve common prosperity, for which making a big "cake" is an important premise. It is a prerequisite for common prosperity.

II. The logic of Xi Jinping's income distribution thought

(1) The positioning of the three major plates

(2) The relationship between the three major sectors

III. Practicing Xi Jinping's income distribution thought

Practicing Xi Jinping's thought of socialist income distribution with Chinese characteristics in the new era requires us to strengthen the income distribution system and income distribution policy design, deepen the reform of the labor wage system, improve the wage decision and growth mechanism of enterprises and institutions, and improve the system in which labor, capital, technology, management, information and other factors participate according to contributions, implement taxation and social security system reform and precise poverty alleviation, effectively enhance the people's sense of acquisition and happiness, and constantly move toward common prosperity, and thus realize a socialist harmonious society.

(1) Deepen the reform of the wage system

(2) Improve the mechanism of production factors participating in the distribution system according to their contributions

(3) Accelerate the realization of common prosperity

 

 

What’s US Intention by Pressing China’s Manufacturing Industry

Yuan Ze

The Trump administration has provoked trade disputes with China with two main intentions. The first is to save its downhill manufacturing industry to get more votes in the midterm elections. The second is to boost its manufacturing industry to a new height to ensure a solid economic foundation and enable local manufacturers to expand production, therefore to promote multinational enterprises to "go back to America".

Why is the United States, known as the world’s “top technology powerhouse” fragile to such a degree? The reason is the same as the long-term implementation of the technology export control of the United States to China. This is the exposure of the hegemonic mentality and the "masterpiece" of the Cold War mentality.

I. Limiting the restrictions on Sino-US trade and investment

Based on Article 301 of the US Trade Act, the Trump Administration has enacted the Trade Sanctions Act and imposed a 25% tariff on China’s 1,300 products exported to the United States, awarding export and punishing import. It has also set limits on the normal trade and investment activities in the high-tech fields between China and the United States in the name of safeguarding its national security. There are frequent actions: congressional legislation, administrative intervention, business review, fabrication of "spyness", and ban on sales--especially labeling the US IT companies as "non-sales" and trying to prevent mergers and acquisitions involving Chinese companies.

II. Worrying about security on the surface, actually afraid of being overtaken

The United States maintained its position as the world's number one manufacturing powerhouse for 115 years (1895-2010). Until 2010, the US share of world manufacturing (19.6%) was surpassed by China (19.8%).

III. The United States paying attention to the economic highland: innovation

The United States is taking the return path of "industrialization - deindustrialization - re-industrialization." To this end, the US official and scientific community have re-examined the strengths and weaknesses of the US innovation system and manufacturing industry.

IV. Trump invoking to "start with Pittsburgh"

At the beginning of 2017, Trump repeatedly mentioned to "start with Pittsburgh" in his inauguration speech. The whole process of "de-industrialization" and industry "hollowing" of the United States is engraved in Pittsburgh. The decline of Pittsburgh’s economy indicates the fact that poor countries are hard, and big countries are also not easy: the journey for poor countries to catch up with big ones and for big ones to become strong is filled with hardships.

V. The United States banning chip export to China

Today, a new round of industrial revolution centered on the information physics system is influencing on the manufacturing industry. From "manufacturing" to "creation" - the ways in which the world economic powers to embrace the new industrial revolution were basically the same, but because of the difference in industrial culture and development conditions, they have chosen different promoters to upgrade the industry.

VI. Respecting each other in negotiations to gain mutual benefit and win-win situation

Faced with the changing trend of the international manufacturing pattern, China and the United States should abandon the zero-sum game thinking, and cooperate like passengers in the same boat, in order to embrace economic globalization, seek development strategy coordination, promote scientific research cooperation, build a new competitive order, and strive for a win-win situation.

Almost all the American senior officials in economic and trade affairs have come to China for the formal negotiations. As the differences between the two sides are still huge, it is unlikely that a fundamental solution will be reached at a glance. But the fact that the two countries are willing to sit down and conduct trade negotiations is a key step in avoiding the escalation of the trade war. As the Chinese Foreign Ministry spokesperson said, "As long as the US is willing to maintain the overall interests of maintaining China-US economic and trade relations, and with mutual respect, equal consultation, and mutual benefit, the consultations between the two sides are constructive."

 

 

Analysis on US Intending Coming Back to TPP

Zhang Zheren/ Yuan Qian

Earlier this year, US President Trump stated during the Davos Forum that he would return to the TPP (Trans-Pacific Partnership Agreement), with one condition that “the agreement is much better than before”. This has caused concern around the world. TPP was once an important tool for the United States to seek strategic interests and implement “Asia-Pacific rebalancing” strategy. Today, the TPP without the US has evolved into CPTPP (Trans-Pacific Partnership Comprehensive Progress Agreement), but it is still a high-standard large FTA (Free Trade Agreement). It is of high relevance to study the prospects and influence of the United States returning to the TPP, in order for China to implement the strategy of developing a free trade zone and promote the formation of a comprehensive new opening pattern.

I. The reasons why Trump proposed to return to TPP

(1) This is Trump's gimmick to reshape his own and American international image.

(2) This is Trump’s means of seeking to consolidate the foundation of governance and win the 2018 midterm elections.

(3) This is the default for Trump to continue to promote the so-called fair trade.

(4) This is Trump’s response to the pressure of the Belt and Road Initiative.

II. The prospect of the United States returning to the TPP

(1) It is difficult to make substantial progress in the short term.

(2) Uncertain factors in the medium and long term are multiple.

 

 

To Create China’s New Success on Science and Technology

Li Changjiu

Science is the mother of technology. Regarding the relationship between science and technology, Professor Rao Yi, who taught at the University of Washington and Northwestern University in the United States and then at the Department of Biology of Peking University after returning to China in 2007, explained that science is the knowledge system of human exploration, research, and understanding of the changing laws of the universe, while technology is the accumulation of knowledge, experience, skills and means in the long process of human using and transforming of the nature. Science and technology, although closely related to each other, are very different. Science mainly solves theoretical problems, and technology mainly solves practical problems. Science is mainly dealing with unknown areas, especially major breakthroughs, and therefore is unpredictable, while technology is generally working under the condition that the theory is relatively mature and can be planned.

 At the National Science and Technology Innovation Conference on May 30, 2016, entitled "Struggling to Build China into an Advanced Country in Science and Technology", President Xi Jinping pointed out that, "Technology is a sharp weapon of the country, relying on which the country becomes strong, enterprises can win, and the people are able to live happily."

Lessons from China's science and technology lagging behind three hundred years

Why is China not stepping into modernization?

China's science and technology has created new glory

First, we have strengthened basic scientific research ability.

Second, we have increased input on education in order to attract talents.

Third, we have enhanced R&D investment, innovation capabilities and competitiveness.

Under the strong leadership of the Party Central Committee with Comrade Xi Jinping as the core and Xi Jinping's thoughts of socialism with Chinese characteristics in the new era, China will not only become a technological power, but also realize the great rejuvenation of the Chinese nation, and will make new and greater contributions to promoting scientific and technological progress, world prosperity and benefiting people of all countries.

 

 

China’s Household Service’s Supply-side Structural Contradiction and Its High-quality Development Method

Fei Xiang/ Guan Bo

First, the "quality" crisis in the household service market has caused widespread concern in society.

(1) The household service market is expanding rapidly, accompanied by a serious "quality" crisis

(2) Research methods and sample composition

Second, the supply side of household service market is not adapted to the demand change.

(1) Demand side: the family's dependence on professional services is increasing, and service demand is diverse.

(2) Supply side: the effective supply of domestic services is insufficient, and families are unsatisfied.

Third, a lack of personnel, services, and policies has resulted in the low quality of domestic services.

(1) With the pressure of continuous shortage of personnel, the household service industry is caught in the dilemma of price and affordability.

(2) Developed in an extensive model, the household service industry is caught in a vicious circle of high personnel mobility and low-quality service supply.

(3) As a result of the disorder of external supervision disorder and a lack of rigid norm system, the household service industry is caught in the predicament of "the bad drives out the good".

Fourth, we should open up the household service market, upgrade its quality and strictly supervise it, in order to add to the quality and effective supply of domestic services.

(1) Open up the market, introduce foreign household workers in an orderly manner to defuse the domestic “nanny gap”.

(2) Upgrade the service, further consolidate the foundation of high-quality domestic service, and expand and improve the effective supply of quality services.

(3) Introduce strict supervision, establish an open and transparent information disclosure mechanism and standardized industry management system, and improve service efficiency in the whole industry.

 

 

A General Structure of Constructing the Mega Transportation

Dong Peng/ Li Wei/ Wen Kun

Mega transportation refers to a system that makes full use of the Internet, connects traffic into a network, improves traffic efficiency, reduces transportation costs, and gives full play to the functions of transportation. From the perspective of “mega traffic”, we actively promote the construction of exchange nodes such as railways, highways, waterways, civil aviation, postal industries, and logistics parks, which have a fundamental and main role in promoting the development of the logistics industry. Mega transportation is an important part of the logistics system, and transportation costs account for a large proportion of the total logistics costs. According to the recent plans of large traffic, large logistics, sea, land and air, China's railway, highway and shipping systems are undergoing changes, not only inside the country but also across the world. The construction of the logistics park and the level of warehousing facilities are constantly improving, a number of new logistics centers are being formed, and the technology of the logistics equipment center has made breakthrough.

Large-scale logistics structure

First of all, the formation of the Ministry of Transport will enable more development space for transportation modes such as “sea-rail combined transport” and “public rail transport”.

Second, the formation of the Ministry of Transport is conducive to the coordinated development of various modes of transport.

Third, the formation of the Ministry of Transport can avoid or reduce the redundant construction of the logistics infrastructure.

Improve efficiency and reduce costs to promote the healthy development of the logistics industry

First, accelerate the seamless integration of transport facilities.

Second, improve the freight organization.

Third, accelerate the promotion of freight standardization and specialization, and take the lead in promoting the efficient operation of the logistics service system.

Fourth, promote the construction of the platform and improve the efficiency of transportation organization.

Fifth, strengthen the government's guidance and policy control in the macro level.

Sixth, base on the large logistics and large port logistics to achieve new developments in the port economy.

In short, relying on "mega transport" to develop "mega logistics" is not only an objective law, but also a realistic requirement, and it is also an important duty of the transportation industry to serve the economy and society. Under the "mega transport" system, with the further integration of resources, it will be beneficial to change the situation of division of labor, postal service, express delivery, etc., and the status of each other, which is conducive to the coordination of various transportation and logistics departments and links. Only from the perspective of adapting logistics needs, unified infrastructure planning, unified equipment specifications, technical performance, and information standards can we promote the transportation, storage, loading and unloading, packaging, distribution processing, distribution, and information processing of various types of transportation organization logistics. The exchange of information and the integration of time and space can greatly eliminate the bottlenecks in the process of logistics enterprises to carry out integrated and integrated logistics services, reduce the direct and indirect costs of logistics, and thus enhance competitiveness.

 

 

China’s Image Continues Positively Improving

Yu Sui

Recently, some foreign polling institutions, think tanks and media report to believe that China's image continues to improve. According to the latest survey by Gallup in the United States, the proportion of people in the United States who have a positive view of China in recent years is increasing. From 2016 to 2018, they are 44%, 50%, and 53% respectively. This year, it is approximately 10 percentage points higher than 2016. Other polling agencies, think tanks and media have similar reports from different angles.

Gallup is a world-renowned poll and business survey/consulting company that is authoritative. At the time when the "China threat theory" was once again raised after the convening of the 19th National Congress of the Communist Party of China, the image of China was more positive, which is really thought-provoking.

The national image is a representation of the state's strength and national spirit. It is an important intangible asset of a sovereign state and a concentrated expression of comprehensive national strength. Some media believe that China's image improvement is due to China's rising "score" in global influence, economic development potential, government and media credibility. This argument makes sense.

First, China adheres to the path of peaceful development, its national strength is growing rapidly, and China's respectability is increasing. - This is the primary factor in the promotion of China's image.

Second, China's peaceful development strategy and policies are in line with the national conditions of the country and are also in line with the requirements of the development of the times, and its credibility is increasing. - This is another important factor in the promotion of China's image.

Third, China's diplomacy follows the principle of win-win cooperation for peace and development and focuses on building a community with shared destiny of humankind, and its hope is increasing. - This is a particularly significant factor in promoting China's image growth.

Fourth, the Chinese leaders respect different civilizations, speak justice, preside over justice, and act as what they said, so their amiableness is increasing. - This is a unique factor in the promotion of China's image.

There is always a force in the world using media to distort China’s image. This may temporarily confuse some people, but it is impossible to last long. Nowadays, in the age of informationization, China’s bright and honest image will always be reflected from different angles.

 

 

Big Powers Politics in Pacific Ocean from the Western Perspective

Tian Xiaohong

On March 26, 2018, the US East-West Research Center released its Asia Pacific Bulletin this month. This announcement focuses on Oceania affairs and publishes views of well-known experts and scholars from the "international academic community" on the policies of major powers in Pacific island countries and regions.

From the catalogue, this article focuses on the policies and roles of the four major countries currently in Pacific island countries and regions in Oceania, and two of them are about the United States, the world's only superpower. However, when you read the contents of each article, you will find that the facts are far from the same. Because almost all articles are criticizing China's policies and influence there. China has become the only country that has not appeared in the catalog but has been running through it.

The Pacific Ocean is an ocean of the island people. It is the Pacific Ocean of all neighboring countries. It is the Pacific Ocean where people of all countries interact and connect with the world. It is by no means a private property of a certain country or certain countries and groups. China's construction and investment activities in the Pacific island countries of Oceania are carried out in an open and fair manner. They are welcomed by the island countries and people. There are evidence of the common development of the Chinese people and island people. This can not be distorted by deliberate people with ulterior motives.

Chinese scholars should speak for their own policies and behaviors. The study of Pacific island countries and regions in the world academic arena cannot be monopolized by the "Western camp". Our policies here cannot be left to blame and discredit.

 

 

An “Misty” Visit: On Abe’s US Visit

Ding Yuanhong

On April 17-18, Japanese Prime Minister Shinzo Abe visited the United States. According to Japanese media reports, Abe had a three-time meeting with US President Trump at the Sea Lake Manor in Florida, for a total of about 4 hours. The two had dinner twice, and played golf together once. A "ceremonial show" as it is, the two leaders failed to achieve any substantive results. The Japanese media called it an "invisible" visit.

Japan has been playing the role of "spoiler" since participating in the six-party talks on the DPRK nuclear issue. In the case of major changes in the situation, insisting on doing so for the sake of self-interest can only leave a despicable and stupid impression on the world.

Trump was dissatisfied with the US-Japan trade relationship, and Japan refused to negotiate bilateral trade agreements. The US will force Japan to open its highly protected agricultural market. Even in exchange for US steel and aluminum import tariff exemptions, it should not participate in negotiations on the US-Japan bilateral free trade agreement. Abe’s current visit to the United States has not only had no results on the DPRK nuclear issue, instead, he has been trapped by the US on the issue of bilateral trade negotiations, and has to start new negotiations with the US on bilateral free trade agreements.

Abe’s visit to the United States was carried out out of a decline in his support ratings due to scandals such as the Senyou Academy. The visit with the "invisible" results will not have any positive effect on improving the difficult situation in the country. CNN even commented that Abe’s throne may not last long. From what Abe has done as prime minister, it seems that he is a politician who can only play a small calculation, and there is no big strategy in his heart.

 

 

“Agent Poisoning Case” Triggers Western’s Collective Anti-Russia Tide

Ding Yuanhong

On March 4th, former Russian agent Scripal and his daughter were seriously comatose due to neurotoxicity poisoning in Salisbury, England. On March 14th, British Prime Minister Teresa May, in the absence of any evidence, insisted that this was done by Russia and asked the Russian side to explain it within one day in an ultimatum, and then announced the expulsion of the 23 Russian diplomats stationed in the UK, canceled the British Foreign Secretary’s visit to Russia, and decided that members of the British royal family and government officials would not go to Russia to watch the World Cup in June, which actually equals to declaring a break with Russian official exchanges.

What deserves attention is the attitude of the United States. First, Trump ignored the tips of his national security team, congratulated him on his re-election in the call with Putin, and did not mention the "agent poisoning case", and the two also talked about the coming meeting. However, under the pressure of domestic public opinion, on March 26th, the US government announced its support for the British "agent poisoning case" and decided to expel 60 Russian diplomats in the United States and close the Russian consulate in Seattle. In declaring the decision, the 60 diplomats were Russian intelligence personnel, and that expelling them could weaken Russia’s intelligence work in the United States. At the same time, it also indicated that the United States is willing to strengthen cooperation with Russia in some areas.

This round of anti-Russian wave, with the United Kingdom taking the lead, Germany and France’s cooperation, is obviously played in the hope of achieving ulterior motives.

Although Britain, Germany, and France tried to use this matter to show the unity of the EU; in fact, each has its own intention.

People with a little bit of diplomatic knowledge know that it is not enough to be prudent and secure to use the inference that Russia is most likely to be responsible for the "agent poisoning case" as an excuse to take categorical measures such as recalling ambassadors and expelling diplomats. The result shows that this practice is also unpopular within the EU. The EU summit is plagued by the fact that many member states are tired of the existing sanctions against Russia. Western countries and Russia do not want high-level contacts to be interrupted. "We cannot avoiding to turn to Russia for help in the future."

 

 

Jointly Promoting “Belt and Road Construction and Taiwan Entrepreneurs’ Participation Approach

Wang Jianmin

The two sides of the strait have promoted the construction of the "Belt and Road" and the participation of Taiwanese businessmen to achieve cross-border regional economic cooperation, which is in line with the common interests of the two sides of the strait, is conducive to the common development of the two sides of the strait, and has certain economic foundations and favorable conditions. But we must fully understand the difficulties and obstacles that we may face in the “Belt and Road” construction, make realistic, scientific and objective analysis and judgment on the political and economic situation, in order to make pragmatic and feasible decisions. At the same time, we must actively explore the path choices and feasible cooperation methods for Taiwanese businessmen to participate in the construction of the “Belt and Road”.

First, the two sides of the strait have promoted political and economic environment to build the "Belt and Road".

(1) The development of the political structure and political situation on the island is unfavorable for the two sides to promote the construction and cooperation of the “Belt and Road”.

(2) The DPP authorities have a negative, repulsive and confrontational stance on the construction and cooperation of the "Belt and Road".

(3) The political, ethnic, and religious issues of the countries or regions along the line are complex, and bring uncertainty to the extensive foreign-related regional economic cooperation that promotes the “Belt and Road” construction across the Taiwan Straits.

Second, the main paths to promote cross-strait civil cooperation and Taiwan businessmen to participate in the "Belt and Road" construction.

(1) Encouraging and guiding the mainland policy is the most important institutional guarantee.

(2) The assistance of the government (Mainland), the main body of the enterprise, the operation of the market, the follow-up of the Taiwanese businessmen and the participation of the mainland businessmen are the basic principles of "co-promotion" and operation.

(3) The participation of Taiwanese businessmen in the construction of “Belt and Road” should focus on key regional and industrial projects.

(4) Following the laws of the market, Taiwanese businessmen should independently participate and cooperate in the construction of the “Belt and Road”.

(5) The “Belt and Road” funds or related organizations established by non-governmental enterprises on both sides of the strait are important platforms for participation and cooperation.

(6) Pragmatically handling the relationship between the construction of the “Belt and Road” and Taiwan’s “new southward policy”.

In short, the changes in the political structure of Taiwan and the increase in the uncertainty of the development of cross-strait relations in the future have led to corresponding changes in the political environment and economic conditions for the construction of the "Belt and Road" across the Taiwan Straits. The difficulties and challenges faced by the two sides have increased. The possibility of the department leading the promotion of cooperation is reduced, but it will not affect the participation and cooperation of the people on both sides of the strait under the guidance of the mainland. The mainland will continue to encourage and support Taiwanese businessmen to actively participate in the construction of the “Belt and Road” and share development opportunities.

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