Note: September 14th 2023: “Hurting the feelings of the Chinese nation” could be punished by up to two weeks in detention without trial, according to a proposed legal amendment that has triggered a backlash amid widespread concerns of abuse.
The draft amendment to the Public Security Administration Punishments Law was submitted to China’s top legislature the National People’s Congress (NPC) and released for public comment last Friday, attracting more than 70,000 comments in a week with a September 30th 2023 deadline.
Clause 34 stipulates six acts that could attract up to 15 days in detention, including “wearing or forcing another person to wear clothing or symbols that are harmful to the spirit … or the feelings of the Chinese nation in a public place”.
“Producing, disseminating, propagating or spreading articles or remarks” regarded as harmful would also be liable for punishment under the proposed amendment to the 2006 law that targets minor offences and is generally enforced by grass roots police.
Note: July 2023: "Conformity is the jailor of freedom and the enemy of growth." JFK
Notes Saturday, February 2023
Mark Mobius can't transfer money from his HSBC account in Shanghai.
ZeroCovid lifted in December after "A4" protests. People standing around with blank papers.
Xi working on new policy...
Business going well. Alibaba buying back American ADS shares.
We limited China exposure to 16%. Shares prices have increased >50% since October 2022.
Notes Monday, October 24th 2022
"When the facts change, I change my mind. What do you do?" John Maynard Keynes
This weekend the 20th Communist Party Congress of China took place. Xi was installed for a third time, his thinking was put into law. He threatened Taiwan, did not mention repealing ZerCovid policies, removed ex-Premier Hu Jingtao, did not stick to the 67 in, 68 years old out rule for the Politburo. Had the first row and himself not wear masks and everyone else wore a mask (muzzle). All votes were unanimous... GDP apparently grew 3,9%.
We should not I think sell shares just because the share price has fallen. Sales, earnings and what the companies do with their earnings, should guide us.
Brad Slingerland March 7 2022
“Innovation requires free expression of creativity without fear”
As Russia Becomes North Korea, Will China Become the Next Russia?In “How I Learned to Stop Worrying About China” (#226, and more detailed follow-up thoughts in #307), I wrote: “Innovation requires free expression of creativity without fear”. As investors at NZS Capital, we focus on adaptable companies that create the most non-zero-sum outcomes and drive the digital transformation of the economy. We, therefore, have to focus our research efforts on regions where innovation and progress can thrive. As a result, it should come as no surprise that we spend no time researching companies in Russia for direct investments. And, we have not owned a company headquartered in China since we launched our investment products over two years ago (we were very active investors in China during the country's innovation renaissance earlier this century). ---
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
- 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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