Tuesday, January 11, 2022

China notes and questions

Personal notes open on Internet/blogger. Question: Can this be read on the other side of the Great Chinese Firewall? 

One country, one system. Freedom in Hong Kong seems over in 2022 with the removal of the Tiananmen monument.

Coronavirus seems to be isolating the country. Currently January 2022 no omicron variant cases in China, huge cities in lockdowns and camps. How and when will they "give up" are the current low numbers anywhere near real?

Fangkong in Bloomberg and "Snake Oil"book by Michael P. Senger

Chinese leaders have fused the concepts of public health and national security. This effort, in Chinese Communist Party-speak, is known as “fangkong,” or “prevent and control.” Local public security bureaus have been helping companies develop health-monitoring apps, and then making use of the data these apps spew out—everything from body temperatures to social contacts—to profile citizens in minute detail.

State capacity of this kind is growing around the world, in large part thanks to China’s efforts to export surveillance technology to countries from Central Asia to Africa that have signed up to its “Belt and Road” infrastructure-building project.

“Democracies must develop a clear and distinct vision for the future relationship between health and security so that China’s approach does not become the world’s,” write Greitens and Gewirtz.

Religions (memes) are considered mental viruses to be treated with the same measures? Like Falung Gong...

For investing the culture of Alibaba circle of "trust" innovation is interesting. as well as innovation and invention for example "new retail" and international expansion.

Common Prosperity

Good overview September 2021:  https://www.brookings.edu/blog/order-from-chaos/2021/09/09/assessing-chinas-common-prosperity-campaign/

Also "Common Prosperity" under Xi Jinping "we do not kill the rich to help the poor" At Alibaba a $15,5b investment in "Common Prosperity" closing divide rural and urban incomes, internet access, etc.  Investment with returns albeit it maybe low? As opposed to 

  1. Establishment of a RMB 20 billion ($3,1b USD) Common Prosperity Development Fund dedicated to the common prosperity pilot zone in Zhejiang province.   Basically a donation/extra tax?

We follow Li Lu who works with Charlie Munger and was trained as a value investor after fleeing China after helping organize student protests: He wrote this book shortly after arriving in the US at Columbia University (home of value investing): https://www.goodreads.com/book/show/99196.Moving_The_Mountain  

At ValueMachinesFund we currently (2022) limit direct China exposure to 20% of the fund. 

To do: Reread Art of War 
Read The Analects of Confucius 

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