Bad News: The China edition

Bad News: The China edition

Want to hear some bad news? No, we don't either. But if you're leading a government, you need accurate information about what's happening inside your country and what people think of you—especially if it's not what you want to hear. You also need good advice about how to respond to what you hear.


Case in point: After Yuri Andropov became Soviet leader in 1982, he admitted publicly that Soviet economic decision-making had fallen prey in previous years to "elements of separation from reality." His predecessors had spent much more time on propaganda than on rational economic policy. Andropov, and eventual successor Mikhail Gorbachev, also knew that the Kremlin had no idea what Soviet citizens thought about anything.

That's one reason that Russia's Vladimir Putin allows his government to publish credible economic statistics, good or bad. It's why he's allowed the Levada Center, a public polling organization based in Moscow, to publish credible opinion surveys with only occasional political pressure. At least, so far.

Unwillingness to hear bad news and dissenting views made headlines again this month when Donald Trump seemed surprised by the furious response from within his own party following his announcement of a US troop pullback from northern Syria—as if no one had warned him this reaction was inevitable. He also provoked anger and disbelief with a (since aborted) plan to host next year's G7 Summit at a Trump-owned hotel. He faces fresh accusations that he's rid himself of advisors willing to speak truth to power.

At least as worrying is the question of whether China's President Xi Jinping is hearing warnings of trouble inside his country. Tom Mitchell wrote in Monday's Financial Times that China's heavily centralized system "may be great at building infrastructure, repressing dissent and censoring the internet, but it is often hopeless when it comes to passing bad news up the chain." We've written before that a future economic or financial crisis inside China will leave investors wondering whether the statistics Beijing publishes are reliable.

Take for example the introduction of a law in Hong Kong earlier this year that would have permitted residents of the territory to be extradited into mainland China's highly politicized court system. If senior Chinese officials knew of this proposal in advance, they were naïve to believe it would be easily accepted. If they didn't know in advance, then the center isn't effectively connected to local administrators, even on crucial questions. Either way, that law sparked protests that have convulsed Hong Kong for three months now.

For now, there are no economic or political problems that Beijing can't manage. But what about the future?

President Xi has repeatedly promised a "new era" in which China will "take center stage in the world." Is there anyone within China's leadership willing to tell him that this expansionist rhetoric might needlessly provoke pushback from foreign leaders, particularly in the United States and Europe? Is there anyone to take aside a man – whose "thought" has been written into the constitution – to offer a frank appraisal of why so many Hong Kongers are so angry?

Even if someone is willing to speak the truth, is Xi Jinping listening?

Advancing global money movement for everyone, everywhere

https://ad.doubleclick.net/ddm/trackimp/N6024.4218512GZEROMEDIA/B26379324.311531246;dc_trk_aid=504469522;dc_trk_cid=156468981;ord=[timestamp];dc_lat=;dc_rdid=;tag_for_child_directed_treatment=;tfua=;gdpr=${GDPR};gdpr_consent=${GDPR_CONSENT_755};ltd=?

Even with innovations in fintech and digital payments, roadblocks related to basic infrastructure like electricity and internet connectivity still prevent many migrant workers from being able to transfer money to their families back home with a truly digital end-to-end flow. While more workers can send money digitally today, the majority of people still receive funds in cash. Read more about why public-private partnerships are key to advancing the future of global money movement and why it matters from experts at the Visa Economic Empowerment Institute.

The European Union is, for better or worse, the most ambitious experiment in human history in institutionalized multinational cooperation. Its success depends on the willingness of its members to abide by its rules.

In recent years, the populist-nationalist governments of former Communist bloc members Hungary and Poland have flouted some of those rules in order to boost their own popularity with citizens suspicious of the EU's liberal values on issues like immigration and minority rights. In response, the EU has scolded these "illiberal" governments and threatened forceful action – so far without much effect.

The fight between EU institutions and Poland and Hungary has escalated.

More Show less

Some of the worst sectarian clashes since Lebanon's 15-year civil war (1975-1990) broke out in Beirut this week between supporters of Hezbollah and Amal, both Shiite political parties, and Christian, far-right Lebanese Forces. Shiite protesters were rallying against the state probe into the Beirut port blast, which occurred last year. They say authorities were singling out Shiite politicians for questioning and blame. Below is our original piece on the Beirut port explosions published on August 5, 2020.


The twin explosions at Beirut's port on Tuesday were so powerful that the aftershocks reverberated as far as the Eastern Mediterranean island of Cyprus, 150 miles away. The specter of fire and smoke was such that many suggested on social media that Beirut had experienced a nuclear blast.

In the days ahead, more details will come to light about why a deadly cache of materials was haphazardly stashed at a port warehouse, and why Lebanon's government failed to secure the site. So, what comes next for crisis-ridden Lebanon?

More Show less

Jon Lieber, head of Eurasia Group's coverage of political and policy developments in Washington, shares insights on US politics:

What does it actually mean to cut $1 trillion from the Democrats' $3.5 trillion social spending bill?

President Biden has proposed one of the most ambitious expansions of federal spending in recent memory. If he gets everything he wants, it would probably be the largest expansion of government since the Great Society, but he's not going to get everything he wants. Democrats have basically said they cannot do all $3.5 trillion in spending. They're probably going to end up around $2 trillion. So what gets cut? Well, we don't know yet. There's kind of two ways to go about this. They could either cut the number of programs that have been proposed, doing fewer things with more money on a permanent basis, or they could try to do more things, each program getting less money and potentially doing them on a temporary basis. So, a future Congress would have to extend it. What does this mean for you? Well, a lot of the money in here is designed to go directly to families, either in the form of cash payments, through the tax code, the Child Tax Credit and the Earned Income Tax Credit, or subsidies for things like child care, early childhood education, and community college. And if you cut these things back, it means less money is going to go out the door to the American people. It also means less tax increases to finance it. So the implications of what's being proposed could actually end up being a big deal for a lot of Americans who would qualify for benefits under these new programs.

More Show less

How will artificial intelligence change the world and especially the job market by 2041? AI scientist Kai-fu Lee just wrote a book about precisely that, and he predicts it'll shake up almost every major industry. AI, he explains, will be most disruptive to many so-called "routine" occupations, but the damage may be reduced by shifting "empathetic" workers to jobs that require human empathy. Watch his interview on GZERO World with Ian Bremmer.

Watch this episode of GZERO World with Ian Bremmer: Is a robot coming for your job? Kai-fu Lee explains AI

The Atlantic CEO Nick Thompson believes in tech firms doing business in China because connecting with people there is a huge social good for the world. But in demanding LinkedIn de-platform certain people, he says, the Chinese government crossed a line, and "you can't justify that."

Watch Ian Bremmer's interview with Nicholas Thompson in an upcoming episode of GZERO World, airing on US public television.

Sectarian clashes in Lebanon: As Lebanese supporters of Hezbollah and Amal, both Shiite political parties, were on their way to a protest in Beirut Thursday, gunfire broke out, evidently between Hezbollah militants and those of the Christian, far-right Lebanese Forces. The protesters were rallying against the ongoing state probe into last year's devastating twin blasts at a Beirut port, saying that state authorities were singling out Shiite politicians for questioning and blame. They have called for the dismissal of Judge Tarek Bitar — who is leading the probe and on Monday issued an arrest warrant for a prominent Shiite parliamentarian linked to Amal. Each side has blamed the other for starting the violence Thursday, which killed at least six people, injured dozens more, and threw the entire city into a panic. In a grim omen, the clashes, which are among the worst in recent years, erupted along one of the old front lines (dividing Muslim and Christian neighborhoods) of the 15-year sectarian civil war that devastated the country up until 1990. With the country mired in economic and political crises, the people of Lebanon can't seem to catch a break: just last week the country was plunged into complete darkness when its decrepit power grid ran out of fuel. Meanwhile, Najib Mikati, who became prime minister designate in July after months of political deadlock, declared a "day of mourning," but civil strife continues.

More Show less

35.4: The US has overtaken China as the country with the largest share of the world's Bitcoin mining networks, now accounting for 35.4 of the global mining presence. This comes after the Chinese government banned domestic cryptocurrency mining operations to promote its own digital yuan that would track every single transaction.

More Show less

Subscribe to GZERO Media's newsletter, Signal

GZEROMEDIA

Subscribe to GZERO Media's newsletter: Signal

GZEROMEDIA

Subscribe to GZERO Media's newsletter: Signal