‘THE NEW CHINA: WHAT THAI MEDIA NEED TO KNOW”
By Thai Journalist Association
China entered the era of quality growth.
Go ahead with BRI – Made in China 2025
Launching the social credit rating system
Asst. Prof. Dr. Piti Srisangnam, director of the ASEAN Studies Center Chulalongkorn University said that he would divide China into three eras. In 1839, it was the period of the old Chinese known as the century of disgrace, Chinese people become addicted to opium, and the first opium war occurred. From 1949 onwards was a medieval Chinese period. Mao Zedong turned China away from famine to having enough to get by and finally having surpluses and become a successful country in 2007, overwhelmed Japan, became number two in the world and eventually became number one.
Until the new normal era, China must change to the new era of China. It was a reform under the leadership of Xi Zhenping, an identity socialist idea with the Made in China 2025 policy and the Belt and Road Initiative (BRI) which is an ASEAN investment approach, strengthening alliances in the ASEAN region.
“China has made a lot of changes during its entry into the New Normal era. During 1978-2008, China grew like a teenager, with hormones bursting in rapid growth, but sometimes, like a hot-tempered person leading to some scars. However, now China has entered the days of adulthood with foresight. It may not grow as quickly as before, but is a quality growth, but it is the same growth for both industry and environment.”
Asst. Prof. Dr. Piti said when speaking of two major projects. The Made in China 2025’s primary objective is requiring 60% of GDP to be consumed domestically. Thus, it must look back to the demand side to make its citizens rich first because when they are rich, then they can consume domestic goods. Hence, it must make quality items for brand name owners to invest while gaining support from Chinese government but is required to set up a headquarters in China and transfer the technology, causing Donald Trump to response. On the other side, China needs access to resources and markets, resulting in the need to create new alliances through what is known as BRI that connects big cities with roads, trains, ports, connecting the whole world.
Previously, there was talk of Modern Chinese, the Chinese of the future, which was first spoke in the Jiang Zemin period about “Chinese Dream” during 1999-2000 that targets year 2021, on the 100-year anniversary of the Communist Party, for Chinese people have to eat well with an average income of 10,000 yuan per person per year from 5,000 yuan. Additionally, by 2049, 100-year anniversary of the founding of the People’s Republic of China, set a goal to be a developed country with a strong, modern society, and has complete sovereignty over the territory under one Chinese policy.
Asst. Prof. Dr. Piti said that the continuous terms of Xi Jinping have caused Western media to see it as an attempt to reconstruct the emperor system which is preferably by China. Therefore, it has to find a solution by creating a new balance of power system: from five pillars of power, then add the 6th pillar, the National Supervisory Commission. Those who have longevity powers must process for investigating corruption.
In this regard, this committee will have the power to be able to investigate enterprises that are outside of China. For example, a train in Laos that was slow in construction due to problems with ministers being investigated for corruption, which was punishable by death. When the problem was resolved, they were able to kick off in 2013 and completed in two years. The thing that will make the Communist Party of China fall is the Chinese people.
The director of the ASEAN Studies Center said that China has a Great Firewall system that does not allow access to cyber sovereignty. There will be various systems just like the international level but China-owned, including online shopping systems, online finance, watching movies, listening to music, gaming, calling taxi, all under Alibaba that leads to “Social Credit Rating” or Sesame Credit by Alibaba (AFSG) which link history of home payments, car bills, credit cards, and evaluate historical payments, including how much were paid as a minimum amount, is the house in the area of the poor or the rich, and the a person’s purchasing behavior. All of which will be used to evaluate a social credit rating.
For example, with this amount of rating would enables to borrow CNY 5,000 without having to submit documents or rent a car without having to pay deposit. On the other hand, if a person’s behavior does not meet the government standard, a low rating may not be able to access certain services such as using certain types of business services, golf courses, restaurants, insurance, or prohibiting to travel overseas.
China has invested in innovation for a long time and is beginning to see results now.
Mr. Joe Horn Phathanothai, Managing Director of Strategy 613, said that the new China is an opportunity and a challenge where growth is declining. Economic base must change the from exports to domestic consumption. Thus, turning to the development of innovations that have been invested for a long time to see results today, such as quantum physics that he has the budget since 1997 and is seeing results change.
However, China looks like a company in which the margins are forced to sell cheaper and buy more expensive. The solution is to expand the margins to upstream, either in technology, mining or downstream, distribution, that China is strong, capable of constructing the entire railway system, bridges, and tunnels until it became the world’s most contracted of high-speed trains, roads, and motorways. Nonetheless, they are all built in the country and cannot stop those companies from building. Therefore, BRI is a part where it can be extended to other countries.
Mr. Joe Horn said that the Chinese system will have a Chinese delegation, or NPC, that act like our council. More than 200 members of Chinese Communist Party are chosen by an electoral system, consisted of the top elite in which can be foresee even from the county level. They are smart, they work very hard for about 16 hours a day and had a good vision. All of which are considered as strength.
As for the US-China trade war, it is still a problem because of the chips inside the Chinese phone are not manufactured in China. While at the same time, the US chips used are from China. With the two countries blocking each other on high technology, it is difficult to separate both from the system. China must turn to focus on developing innovations that would overcome AI in which the best AI manufacturing industry is the gaming industry and is considered as China’s secret weapon. By focusing only on 5G may not be an important issue as it is just a mechanism to get other technologies like IoT.