Growing exports

Tuesday, January 10th, 2012 at 12:00 pm

Stuff reports:

New Zealand First leader Winston Peters has warned that planned Foreign Affairs job losses and the closure of overseas posts will cost more in the long run than they save.

A State Services Commission report last year said the ministry was looking at slashing 200 jobs out of almost 1000.

An announcement on the details is expected soon.

Peters, a former minister of foreign affairs who negotiated a big increase in funding for the portfolio, said a “slash and burn exercise” would seriously affect this country’s overseas trade.

He said the move was a “serious, retrograde step” at a time New Zealand was desperately trying to increase its export trade.

Phil Goff has also joined in the bleating, arguing that more bureaucrats in MFAT will increase exports. If only, it was so simple.

As it happens exports have been growing quite nicely. In the last three years, they have increased 15.1% to $46.1b. That’s pretty good considering the wobbly global economy. Why have they increased?

Well exports to China have increased 169.5% to $5.6b. The dollar increase of $3.5b makes up 59% of the overall increase in exports.

It was three years ago we signed a Free Trade Agreement with China. An agreement that Peters as Foreign Minister not only refused to vote for, but actively campaigned against with a newspaper ad campaign urging people to sign up in opposition to the FTA.

So Peters’ record is having opposed the China FTA which saw exports to China increase 170%, and instead his solution is more bureaucrats in MFAT.  I doubt I have seen a more moronic economic prescription in recent times.

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What the Greens and Winston voted against

Monday, November 21st, 2011 at 12:00 pm

This is the annual trade deficit with China over the last decade. Both the Greens and Winston rail against imports and say we need to export more and reduce the trade deficit.

They also both voted against the China-NZ Free Trade Agreement in 2008. They both still maintain it was a mistake, and a bad thing to do.

The results speak for themselves. After the trade deficit rose from $1b to almost $4b, it has reduced to $1.5b in just three years.

The Greens, like all of us, care deeply about the environment. But on economic policy, they and Winston are consistently wrong. They are skilled at talking about problems, but their solutions are toxic.

Exports to China in the three years prior to the FTA were $5.7b. In the three years since, they have been $13.1b. Those exports have helped keep kiwis in jobs, have grown the economy and provided billions more in tax revenue to help pay for schools, hospitals and welfare. And if the Greens and Winston had their way, it would not have happened (unless you wish to argue the massive unprecedented growth in exports was a coincidence).

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US v China

Friday, October 28th, 2011 at 12:00 pm

A comment in the PREFU about our relative trade with China and the US got me curious, so I downloaded the export data from Stats NZ. This is purely how much we export to each country. The years are June years.

  • In 1990 we exported 12 times as much to the US than China – $1.9b v $0.16b
  • In 2000 we exported 5 times as much to the US than China – $3.7b v $0.77b
  • In 2008 we exported twice as much to the US than China – $$4.0b v $2.1b
  • In 2011 we exported 7/10ths as much to the US than – $3.9b v $5.6b
  • From 2000 to 2011 the level of exports to the US has increased only 5% (and these are nominal dollars)
  • From 2000 to 2011 the level of exports to China have increased 635%
  • Since the FTA was signed in 2008, exports to China have increased a massive 170% in just three years
  • In actual dollar terms, that is $3.6b more exports to China in 2011 than 2008
  • Comparing three year periods, 2009-11 saw $13.1b of exports compared to $5.7b the previous three years

I suggest people ask candidates of parties that opposed the NZ-China Free Trade Agreement, why? The Foreign Minister in the last Government campaigned against it. The Greens voted against it.

I regard the China/FTA as the best achievement of the 5th Labour Government, and a probably the best legacy from both Clark and Goff who should be very proud of making it happen. If we had not had that extra $13b of exports in the last three years, we’d be a lot worse off.

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No extra compensation for Chinese nationals

Tuesday, March 15th, 2011 at 8:20 am

Kate Chapman at Stuff reports:

The families of Chinese students killed in the Christchurch earthquake will not get extra compensation, despite claims that they need it because of China’s one-child policy.

At least 24 Chinese nationals, mainly students studying in the CTV building, were believed to have been killed in last month’s quake, though only seven have been formally identified so far. Most were aged between 15 and 30.

Cheng Lei, co-ordinator of the Chinese embassy’s disaster relief centre, told Radio New Zealand that the one-child policy meant the victims’ families had lost their source of economic assistance for retirement. He called on the New Zealand Government to increase the ACC compensation available to them. …

Prime Minister John Key said the Government felt great sympathy for the families but would not change its policy.

It was never going to happen of course. Could you imagine the outcry if the Government approved higher payouts to foreigners, than to its own citizens. You’d be more popular selling steaks to vegans.

The request from the Chinese Embassy is I am sure made in good faith. Losing your only child must be a massive blow to a family, and they’ll never recover from it.

However even if one accepted that parents who have lost their only child should get more compensation than those with multiple children (and I don’t – children are not like tyres, where you just replaced the broken one with a spare), the question might arise about whether the compensation should come from the country where the earthquake happened – or from the Chinese Government which has implemented the one child policy.

It is worth noting that the Chinese Embassy were passing on requests from the families of the dead students, rather than making an official request.

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The Nobel Prize winner

Tuesday, October 12th, 2010 at 12:00 pm

I was delighted to see Liu Xiaobo win the Nobel Peace Prize. A much better pick than 2009, and what was especially pleasing is that it was granted despite the threats from China.

We need a bit more of this fortitude back home, as reported by NZPA:

New Zealand’s opposition MPs have congratulated the jailed Chinese winner of the Nobel Peace Prize, but Prime Minister John Key will not yet comment.

The Prime Minister should comment, should congratulate Liu Xiaobo, and should use the opportunity to politely state that our desire is for China to continue its path towards more freedom. Yes it will annoy the Chinese Government, and it may even lead to some sort of temporary sanction against NZ, but we must not let that prevent us from sticking up for what is right.

Opposition MPs can of course say what they want, without fear of adverse consequences for the country. I say this not to defend the lack of comment from the PM, but to point out a different PM could well do the same thing.

Mr Key said yesterday he would not comment about Mr Liu until he received more advice.

“I’m not aware of why he’s in jail and it’s not appropriate for me to comment on what is appropriate in terms of other countries putting people in those facilities.”

With all respect MFAT should have immediately given Ministers a briefing, once the winner was known. And it is entirely appropriate for the Prime Minister to comment on the jailing of political dissidents in other countries.

[DPF: The PM has now congratulated Mr Liu, and in fact did so before this post apppeared. It was time delayed from this morning, and Key congratulated him on the way into Caucus. Of course Liu won't know this as he is in jail.]

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Otago Foreign Policy School

Tuesday, June 22nd, 2010 at 3:00 pm

The 45th Otago Foreign Policy School is on from Friday 25 to Sunday 27 June.

China’s rise and future role on the world stage will go under the spotlight at the University of Otago’s 45th Foreign Policy School later this month. The event gathers together leading national and international China scholars and New Zealand diplomats, policymakers, business people and members of the public.

Titled “China’s Ascent: New Superpower or New Global System?” the School is being held in association with the New Zealand Contemporary China Research Centre at Victoria University of Wellington. The gathering takes place at Dunedin’s Salmond College from 25-27 June. …

“Among the key questions to be tackled at the School is ‘will a new China fundamentally change the rules of the game in the global system, or will China simply become another great power using the traditional tools of money, force and diplomacy’?,” Professor Patman says.

New Zealand-China relations are the focus of a roundtable composed of leading Chinese academics and New Zealand figures including Wellington Regional Chamber of Commerce CEO Charles Finny and journalist and analyst Colin James.

The School’s opening address will be given on the Friday evening by Minister of Foreign Affairs Hon. Murray McCully.

The keynote address, ‘China’s Global Identities: the Schizophrenic Superpower’, is being presented by Professor David Shambaugh of George Washington University. Professor Shambaugh is an internationally recognised authority on contemporary Chinese affairs and the international politics and security of the Asia-Pacific region.

How very timely.

The full programme is here and you can register here.

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Sense from Goff

Tuesday, June 22nd, 2010 at 2:59 pm

Some common sense from Phil Goff on the China protest issue:

Labour leader Phil Goff said there mistakes on both sides.

“The Chinese security guard had no right to seize the flag from Russel Norman. There is an absolute right of peaceful protest in this country that we must uphold.”

And I agree. They had a right to stop Norman from advancing any closer, but they had no right to try and hide his flag. They were clearly wrong to do so.

But Mr Goff said Dr Norman could have acted with more restraint.

“Did Russel Norman behave with the dignity you might have expected of an MP? I think he might have learned from (former Greens leader) Rod Donald’s lesson of standing back, giving a bit of space, making the point, but not being confrontational.”

Exactly. He was advancing on the Vice-President and got very very close to him. If he had done what Rod Donald did, then the fracas would never have happened. The suspicion is that maybe he did it deliberately.

Mr Goff said there needed to be a clear protocol allowing peaceful protest but at the same time giving space and dignity to visitors.

Yep. If MPs wish to protest on the forecourt they have every right to. But they don’t have the right to impede the right of overseas leaders from entering buildings, or to be so close to them they represent a threat to their dignity (such as having a flag thrown over them) – NZ in fact has an obligation under Article 29 of the Vienna Convention:

The person of a diplomatic agent shall be inviolable. He shall not be liable to any form of arrest or detention. The receiving State shall treat him with due respect and shall take all appropriate steps to prevent any attack on his person, freedom or dignity.

This is why John Key apologised – not for the protest by Norman, but the failure in security that allowed him to get within spitting or throwing distance.

He said there was some confusion which could have been avoided on Friday.

“A quiet word beforehand between Russel Norman and the diplomatic police could have set a situation where a protest could have been made without the incident occurring.”

Exactly. Bravo to Phil Goff for taking a fair approach on this.

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More on China incident

Monday, June 21st, 2010 at 11:10 am

The Herald reports:

Prime Minister John Key telephoned the most senior minister in the visiting Chinese delegation to apologise for the scuffle during the arrival of Vice-President Xi Jingping at Parliament.

I can understand why the PM felt it was necessary – because the screaming yelling protester was not just a member of the public, but a leader of a parliamentary party.

But having said that, I don’t think it was appropriate for the PM to apologise. He is not responsible for Norman, and by doing so may confuse the difference between the Government and the Parliament.

Foreign Affairs Minister Murray McCully has also called for a full report on the incident from his ministry and he would like to see a protocol developed between the Speaker and protesting MPs for future visits.

This I think is a very good idea. The right to protest must be protected, but this doesn’t mean you allow protesters to get within a couple of metres of visiting VIPs – even if an MP.

If Norman had not been advancing on the Vice-President, this incident probably would not have happened. As a contrast Chris Trotter remembers Rod Donald:

My abiding memory of this remarkable man – my friend – Rod Donald, will be of him standing alone at the foot of the parliamentary steps, his face a mixture of sadness and defiance, holding up the forbidden Tibetan flag. It was a noble protest – and all the more effective for being conducted not by some raggle-taggle band of New Age anarchists, but by a senior Member of Parliament and party leader, dressed proudly and patriotically in his best, New Zealand-made, suit.

No advancing on the Vice-President, no shouting, no scruffling. That is the way to do it if you want to be an MP making a protest.

I am no fan of China’s repression. I think there should be protests when their VIPs visit. If the Greens had organised a Free Tibet protest outside Parliament, I might have even gone along to it.

Now having said that, it is clear that engagement with China is the only sane course of action. Refusing to trade or talk to them would be stupid. The trick is getting the balance of engagement and protest right.  And broadly you expect the Government to engage and civil society to protest. There is a time when Governments also protest – but that tends to be in response to specific events.

UPDATE: Colin Espiner blogs:

I know it’s fashionable to hate the Chinese, and everyone wants a free Tibet.

So much so you’d think they were handing them out in Weetbix packets.

But while I’ll probably get into trouble with the Left for saying this, I’m sorry, but Green Party co-leader Russel Norman was an embarrassment to himself, Parliament, and New Zealand with his protest against the Chinese vice-president’s visit last week. …

When I heard that Norman’s flag had been “trampled” I thought that was a bit on the nose, too, so I took a look at the video.

Strange how none of the many cameras there – both still and TV – managed to capture the so-called attack, or the flag trampling.

What they did capture, though, was an MP behaving in a way that no self-respecting member of Parliament with any dignity should behave.

Don’t get me wrong. I fully support Russel Norman’s right to have his say. This is a free country, unlike China.

But sometimes, I think the RIGHT to free speech and EXERCISING it are confused.

For example, I can walk down the street and tell someone I don’t know that they’re fat. I have that right. But to do so would be impolite and irresponsible.

One of the deals of having freedom is the responsibility that comes with it over how you use it.

A point well made.

If Russel Norman was a private citizen he’d be banned from the steps of Parliament as a protester. He’d be behind the gates further down, where he could yell and scream to his heart’s content.

But he’s not a private citizen. He’s a member of Parliament. An employee and a representative of the people.

That meant Norman got to go right up to the Chinese VP, yell in his face, and wave a flag at him.

Unless the video I saw has been doctored, I saw Norman lunging at the VP and then yelling “give me my flag back” after one of his security guards grabbed it.

Colin makes the same point I have made – it was a long way removed from what Rod Donald did.

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Dim Post on McCully and China

Sunday, June 20th, 2010 at 4:14 pm

Superb as usual:

Foreign Minister Murray McCully has been severely reprimanded by Chinese Ambassador Zhang Limin for exercising poor judgement when using his Ministerial credit card, the Chinese Embassy announced today.

Previously Prime Minister John Key has defended McCully’s $2000 laundry bill and high alcohol expenditure but the Chinese Ambassador has overruled Key’s position, calling McCully’s spending ‘unseemly and non-magnificent’, and issuing a formal reprimand of the Foreign Minister.

‘We feel the Minister’s level of decadence is inappropriate and counter-revolutionary,’ the Ambassador announced. ‘This behaviour is not acceptable from Party functionaries and will not be tolerated.’

McCully has accepted the censure and thanked the Ambassador for his criticism. ‘Only through the wisdom of his Excellency can I reform my thoughts and become a better servant,’ McCully told reporters, speaking from a pool of mud outside his home where he has kneeled prostrate since receiving the rebuke yesterday. ‘I am chastened but also joyful and eternally grateful.’ …

… ‘We thank McCully for his good and faithful assistance in enlightening Dr Norman’s speech,’ the Ambassador said in his statement. ‘With great perseverance and skillful self-discipline the Snail will once again enjoy the favor of the Dragon.’

To ensure widespread coverage of the censure Chinese Embassy officials decreed that publication of the statement was mandatory for all media outlets. The Dim-Post is joyful to be of service in this matter.

I trust all blogs will comply with the mandatory reporting.

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The difference between Donald and Norman

Saturday, June 19th, 2010 at 9:00 am

The Herald reports:

Dr Norman’s protest was in contrast to that of the late former co-leader of the Greens, Rod Donald, in 2005 against Wu Bangguo, chairman of the National People’s Congress.

Mr Donald’s was a silent protest and he sought advice from the Speaker at the time about where to stand – some distance from his target.

New Zealand security and police stood with Mr Donald and refused to let Chinese security stand in front of him and the Tibetan flag he was holding.

Dr Norman was jostled as he held the flag aloft and moved chanting towards Mr Xi, arriving at Parliament’s Beehive entrance.

He was a metre or two from him.

One of at least two dozen officials travelling with Mr Xi covered the flag with his umbrella.

Seconds later someone grabbed the flag from him and dropped it.

Dr Norman stopped chanting “Freedom for the people of Tibet!” and started yelling “Give me my flag back” and “Don’t bring your undemocratic practices to our country”.

I think Rod Donald showed how to do a protest with dignity.

The Chinese officials should still have not touched Norman’s flag or person, but you do wonder if Norman was trying to get them to do exactly that by advancing on the Vice-President.

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Police should consider assault charges

Friday, June 18th, 2010 at 1:17 pm

Stuff reports:

Green MP Russel Norman had a Tibetan flag torn from his hands by a member of Chinese Vice-President Xi Jinping’s entourage when he arrived at Parliament today.

Dr Norman said he believed it was one of the vice president’s security guards.

Arriving in a convoy of around six vehicles with a police escort, the guards initially tried to shield the flag with their bodies and umbrellas before it was torn from Dr Norman’s hand with a member of the vice president’s entourage standing on it as the VIP was rushed through the front entrance of Parliament.

“I think it’s pretty outrageous that Chinese security can come to our country and push around an elected Member of Parliament simply because you’re standing up for democracy and freedom in our own country on our own parliamentary grounds,” Dr Norman said afterwards.

“I mean, the Chinese security guards, they elbowed me out of the way, they put an umbrella over the top of me and they took the flag out of my hands and trampled on it.”

With some blood on his hand following the scuffle, Dr Norman said he had never experienced such treatment on Parliament’s grounds, he said.

“We were roughed up, they grabbed us and pushed us around.”

The Chinese security guards obviously exceeded their brief, and there should be consequences for that. Unless Dr Norman was a physical threat to the Vice-President, they had no right to manhandle him. Keeping an embarrassing sign out of sight is not a legitimate reason.

We had much the same in Dunedin in 2008 when Pete Hodgson manhandled a protester who was holding a sign up behind Helen Clark, which the cameras could see. Hodgson was investigated for assault in that incident, and the Chinese security should also be investigated for assault.

Personally I think Dr Norman looks like a prize idiot when he acts as a lone protester rather than a party leader – but he has the right to do so.

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Update to story on media access for visit from Chinese VP

Thursday, June 17th, 2010 at 1:12 pm

I blogged on Monday about complaints local Chinese media had not been able to get access to the visit of the VP of China.

DIA sent me on Tuesday an e-mail which I have attached to the original post. The key part is:

We can assure you there is no attempt to block the local Chinese media from attending various activities during the Vice President Xi JinPing’s visit or adopt any form of censorship. Invitations have been issued today to local media including Auckland and Wellington based Chinese media.

Better later than never!

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Is the Government blocking local Chinese media?

Tuesday, June 15th, 2010 at 10:31 am

A reader writes:

The local Chinese media are saying that the NZ government is blocking their accreditation to cover the visit of the vice president Jinping this week. According to them no local Chinese media allowed at any function or press conference. …

Surely there’s a way to security check the local Chinese media to see if any are crazed Falung Gong and exclude them rather than them all?
The NZ Government should not adopt the censorship policies of the Chinese Government, just because the Chinese Government is visiting. If no local Chinese media have been allowed accreditation, then questions need to be asked and answered.
UPDATE: The DIA has sent me the following:
This blog entry was brought to the attention of the Department of Internal Affairs.

The Department has responsibility for the overall management and coordination of media activity for the official visit by the Mr Xi Jinping, Vice President of the People’s Republic of China. There are a series of media opportunities over the period of the visit.

We can assure you there is no attempt to block the local Chinese media from attending various activities during the Vice President Xi JinPing’s visit or adopt any form of censorship. Invitations have been issued today to local media including Auckland and Wellington based Chinese media. We have also extended invitations to Press Gallery journalists and local Auckland and Wellington media. The only media restrictions that will apply are camera pool arrangements where there are space constraints. In such situations both the official Chinese media and local New Zealand media will have an equal opportunity to participate in the pool.

Enquiries are welcomed from all interested Chinese local media and we encourage them to contact us if they are interested in attending events during the Vice President’s visit or have concerns. We will endeavour to accommodate their needs within the space and security constraints. These are the same considerations that would apply for any official overseas government visit to New Zealand.

Internal Affairs operates an open, responsive media policy and is committed to ensuring that news media has reasonable access to information about the activities of the Department.

The media advisory outlining media opportunities is available from the Department of Internal Affairs.

Thank you for the opportunity to clarify the concerns that have been raised.

The DIA sent this to me on Tuesday, after the original post appeared on Monday. It is good local Chinese media are being given access. One could be suspicious of why it happened so late in the piece, but better late than never.
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Copenhagen is worthless

Tuesday, February 2nd, 2010 at 2:00 pm

Reuters reports:

Fifty-five countries, accounting for almost 80 percent of world greenhouse gas emissions, have pledged varying goals for fighting climate change under a deadline in the Copenhagen Accord.

“This represents an important invigoration of the UN climate change talks,” Yvo de Boer, head of the UN Climate Change Secretariat, said of the national targets for curbs on emissions until 2020 submitted by January 31.

It represents no such thing. As I said in NBR on Friday, the political tide has turned. Regardless of your views on the science, there is no chance of meaningful reductions in emissions. Even if the EU and Australia and NZ manage some reductions, 50% of the global total is basically China, India and the US.

What does India say:

Indian officials said they want the 1992 UN Climate Change Convention to remain the blueprint for global action, not the Copenhagen Accord.

That means they do not want to commit to any reductions at all for India.

And China:

China said it will “endeavour” to cut the amount of carbon produced per unit of economic output by 40 to 45 percent by 2020 from 2005. The “carbon intensity” goal would let emissions keep rising, but more slowly than economic growth.

Now even putting aside the fact China won’t agree to any verification of their emissions (ie they can simply make up their figures), what does their pledge mean.

Let us assume that their business as usual case is that emissions will increase in line with economic growth.

Now their GDP in 2005 was US$2.24 trillion. In 2020 it is estimated to be around US14.6 trillion. That is a 640% increase in GDP.

Now if their emissions intensity is 40% less, then the increase in emissions will be 385%.

So China’s pledge is they will only increase emissions by 385% by 2020.

Now their level of emissions in 2006 was 6,103 million tons. So China’s projected increase in emissions is around 23,000 million tons.

New Zealand’s total level of emissions is 30 million tons.

So we could go totally carbon neutral, and it would barely compensate for 0.1% of the increase from China.

In fact China’s pledge to reduce intensity by 40% means their total level of emissions in 2020 could be as high as 33,000 million tons.

And you know what. That is more than the rest of the world produces today. The world, excluding China, produces 22,000 million tons. With China it is 28 million tons

So the entire world could go carbon neutral, and China would still push world emissions up 20% from 2006.

As I have said before, you need to get an agreement between the major emitters first, and the rest of the world will then make sure they pick up their fair share.

And I would say there is no way China is going to agree to reductions beyond what they indicated at Copenhagen.

So regardless of what you think about the science, the fact is there will be no reduction in global emissions. Doesn’t matter what we do, what the US does, what the EU does.

Now I am not an advocate of New Zealand breaking away from the rest of the OECD, and saying we refuse to do anything, unless China comes to the party. We are too small to do that, without the risk of repercussions. But we should shy away from any emission reduction measures that significantly reduce economic growth, and focus mainly on improving technology.

China may change its stance over time – perhaps in ten years or so, if there has been clear evidence of rapidly rising sea levels for example. But for the next decade, global emissions will increase beyond doubt.

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Net censorship

Saturday, January 23rd, 2010 at 12:00 pm

Reuters reports:

China has attacked Washington’s call to lift internet censorship and warned the Obama administration to heed alarm bells over trade, Taiwan and Tibet.

China said that US calls for greater internet freedom were harmful to bilateral ties and that the Chinese government banned any form of hacking, in response to a speech by the US Secretary of State.

The US Secretary of State Hillary Clinton called for China and other authoritarian governments to lift their curbs on citizens’ use of the internet in a speech on Thursday (Friday NZ time).

It was a good speech which is in full here.Also an interesting Q&A.

This is not just about what China do behind their own borders, but the threat they may pose to the greater Internet with state sanctioned cyber attacks.

“A new information curtain is descending across much of the world,” said Clinton, calling growing internet curbs the present-day equivalent of the Berlin Wall, contravening international commitments to free expression.

Clinton also urged Beijing to investigate the complaint about cyber spying from China that Google said targeted it and dozens of other companies, as well as Chinese dissidents.

One of the best parts of the speech was:

As I speak to you today, government censors somewhere are working furiously to erase my words from the records of history. But history itself has already condemned these tactics. Two months ago, I was in Germany to celebrate the 20th anniversary of the fall of the Berlin Wall. The leaders gathered at that ceremony paid tribute to the courageous men and women on the far side of that barrier who made the case against oppression by circulating small pamphlets called samizdat. Now, these leaflets questioned the claims and intentions of dictatorships in the Eastern Bloc and many people paid dearly for distributing them. But their words helped pierce the concrete and concertina wire of the Iron Curtain.

The Berlin Wall symbolized a world divided and it defined an entire era. Today, remnants of that wall sit inside this museum where they belong, and the new iconic infrastructure of our age is the internet. Instead of division, it stands for connection. But even as networks spread to nations around the globe, virtual walls are cropping up in place of visible walls.Some countries have erected electronic barriers that prevent their people from accessing portions of the world’s networks. They’ve expunged words, names, and phrases from search engine results. They have violated the privacy of citizens who engage in non-violent political speech. These actions contravene the Universal Declaration on Human Rights, which tells us that all people have the right “to seek, receive and impart information and ideas through any media and regardless of frontiers.” With the spread of these restrictive practices, a new information curtain is descending across much of the world. And beyond this partition, viral videos and blog posts are becoming the samizdat of our day.

A speech by itself won’t change anything, but the focus of the US Government at the highest levels is a good thing.

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Well done Google

Friday, January 15th, 2010 at 10:33 am

I was hugely disappointed in Google when they started censoring google.cn. It was the first time they really broke their motto of do no evil.

So I am equally pleased to see this story:

Google, the internet search engine, has set itself at odds with the authorities in China by declaring that it will stop censoring search results on its Chinese website.

This is going to be a fascinating battle between two giants.

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Young Labour Summer School

Wednesday, January 6th, 2010 at 8:11 am

My spies in Young Labour report that they will be hosting at their upcoming summer school a representative of the Communist Youth League of China – the youth wing of the Chinese Communist Party.

I think this is an excellent move. The Chinese Communist party is far more capitalist than the average member of Young Labour. Hopefully they will learn something about the importance of economic growth!

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Blame China

Wednesday, December 23rd, 2009 at 8:15 pm

A fascinating article in The Guardian, which I saw tweeted by Public Address. It is from someone in the room with the Heads of Govt, and makes it very clear China went out of their way to sabotage the Copenhagen conference. The title is:

How do I know China wrecked the Copenhagen deal? I was in the room

As recriminations fly post-Copenhagen, one writer offers a fly-on-the-wall account of how talks failed

And then the article:

Copenhagen was a disaster. That much is agreed. But the truth about what actually happened is in danger of being lost amid the spin and inevitable mutual recriminations. The truth is this: China wrecked the talks, intentionally humiliated Barack Obama, and insisted on an awful “deal” so western leaders would walk away carrying the blame. How do I know this? Because I was in the room and saw it happen.

China’s strategy was simple: block the open negotiations for two weeks, and then ensure that the closed-door deal made it look as if the west had failed the world’s poor once again. And sure enough, the aid agencies, civil society movements and environmental groups all took the bait. The failure was “the inevitable result of rich countries refusing adequately and fairly to shoulder their overwhelming responsibility”, said Christian Aid. “Rich countries have bullied developing nations,” fumed Friends of the Earth International.

This says a lot about the so called environmental NGOs that fell for China’s trick hook line and sinker. They are so anti-west that they don’t know what to do, when it is not the West’s fault.

All very predictable, but the complete opposite of the truth. Even George Monbiot, writing in yesterday’s Guardian, made the mistake of singly blaming Obama. But I saw Obama fighting desperately to salvage a deal, and the Chinese delegate saying “no”, over and over again. Monbiot even approvingly quoted the Sudanese delegate Lumumba Di-Aping, who denounced the Copenhagen accord as “a suicide pact, an incineration pact, in order to maintain the economic dominance of a few countries”.

Sudan behaves at the talks as a puppet of China; one of a number of countries that relieves the Chinese delegation of having to fight its battles in open sessions. It was a perfect stitch-up. China gutted the deal behind the scenes, and then left its proxies to savage it in public.

Yes China controls a few Governments by blocking UN Security Council action against them.

What I saw was profoundly shocking. The Chinese premier, Wen Jinbao, did not deign to attend the meetings personally, instead sending a second-tier official in the country’s foreign ministry to sit opposite Obama himself. The diplomatic snub was obvious and brutal, as was the practical implication: several times during the session, the world’s most powerful heads of state were forced to wait around as the Chinese delegate went off to make telephone calls to his “superiors”.

This wasn’t even the Minister of Foreign Affairs. It was someone with no ability to decide anything at all.

To those who would blame Obama and rich countries in general, know this: it was China’s representative who insisted that industrialised country targets, previously agreed as an 80% cut by 2050, be taken out of the deal. “Why can’t we even mention our own targets?” demanded a furious Angela Merkel. Australia’s prime minister, Kevin Rudd, was annoyed enough to bang his microphone. Brazil’s representative too pointed out the illogicality of China’s position. Why should rich countries not announce even this unilateral cut? The Chinese delegate said no, and I watched, aghast, as Merkel threw up her hands in despair and conceded the point. Now we know why – because China bet, correctly, that Obama would get the blame for the Copenhagen accord’s lack of ambition.

China, backed at times by India, then proceeded to take out all the numbers that mattered. A 2020 peaking year in global emissions, essential to restrain temperatures to 2C, was removed and replaced by woolly language suggesting that emissions should peak “as soon as possible”. The long-term target, of global 50% cuts by 2050, was also excised. No one else, perhaps with the exceptions of India and Saudi Arabia, wanted this to happen. I am certain that had the Chinese not been in the room, we would have left Copenhagen with a deal that had environmentalists popping champagne corks popping in every corner of the world.

Now will we hear this from Greenpeace, or even the Greens? Of course one could do a deal without China, but it would be pointless as their emissions growth would dwarf any reductions the rest of the world manages.

Obama needed to be able to demonstrate to the Senate that he could deliver China in any global climate regulation framework, so conservative senators could not argue that US carbon cuts would further advantage Chinese industry. With midterm elections looming, Obama and his staff also knew that Copenhagen would be probably their only opportunity to go to climate change talks with a strong mandate. This further strengthened China’s negotiating hand, as did the complete lack of civil society political pressure on either China or India. Campaign groups never blame developing countries for failure; this is an iron rule that is never broken. The Indians, in particular, have become past masters at co-opting the language of equity (“equal rights to the atmosphere”) in the service of planetary suicide – and leftish campaigners and commentators are hoist with their own petard.

This article from Mark Lynas, should be carried in every newspaper that has covered Copenhagen.

Copenhagen was much worse than just another bad deal, because it illustrated a profound shift in global geopolitics. This is fast becoming China’s century, yet its leadership has displayed that multilateral environmental governance is not only not a priority, but is viewed as a hindrance to the new superpower’s freedom of action. I left Copenhagen more despondent than I have felt in a long time. After all the hope and all the hype, the mobilisation of thousands, a wave of optimism crashed against the rock of global power politics, fell back, and drained away.

I suspect this article is going to be quite catalytic, and may lead to a trade backlash against China. Time will tell.

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Well done Goff

Saturday, December 5th, 2009 at 1:53 pm

The Dom Post reports:

The Dalai Lama met with opposition leader Phil Goff after arriving in New Zealand with a flurry of diplomatic protocol hanging over him.

It is disappointing that John Key would not meet with the Dalai Llama, just to keep China happy. I think we should trade with China but not let them decide who we allow into New Zealand and meet with.

Mr Goff said that, if he was prime minister, he would still meet the Dalai Lama.

“I met with him when I was foreign minister, I don’t see any difference whether I’m a member of the executive or a leader of the Opposition. I’m meeting with him in his capacity as a spiritual and cultural leader and as a very nice person.”

Full credit to Goff for doing the right thing, and may it continue if he does ever achieve the top job.

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Bravo the Greens

Tuesday, October 13th, 2009 at 7:25 am

I don’t agree with a huge amount of what the Greens do, but one thing they do that deserves praise is their constant willingness to invite and host in New Zealand dissidents from countries who try and pressure us to lower our own standards of freedom of speech, to meet their own.

The Herald reports:

Exiled Chinese Muslim leader Rebiya Kadeer says she wants to “meet with the enemy” during her New Zealand visit.

“Change can only happen when you change the hearts and minds of those who oppose you,” she said as she arrived in Auckland yesterday for a four-day visit. …

China tried to stop Maori TV from screening a Kadeer biopic last month, and despite talks among some Chinese students about staging a protest at the airport yesterday, no one turned up.

“If the Chinese here learn that it is okay to protest peacefully, then they would have learned a valuable lesson about living in a democracy,” Ms Kadeer said.

Meanwhile, following “internal messages of protest” by university staff on the administration’s stopping Ms Kadeer from holding a public meeting on campus, law professor David Williams has invited her to speak at the law faculty at midday instead.

“I hope that university security personnel will not be called upon to prevent the exercise of free speech,” Professor Williams said. “Rebiya Kadeer is the sort of person whose voice needs to be listened to. Her voice should not be silenced in a university.”

Ms Kadeer was once a successful businesswoman in the northwest Xinjiang region but spent six years in jail after speaking out against Beijing.

China regards her as a criminal who orchestrated the ethnic violence in Xinjiang in July that left nearly 200 dead.

It is opposed to countries providing her with a platform to engage in anti-China separatist activities, a charge she rejects.

Her visit, as a guest of the Green Party, will include meetings with human rights groups, a visit to Parliament and meetings with MPs.

I hope that over time, China will realise it should just accept dissidents will criticise them, and stop trying to pressure other countries to silence them. It just results in their message getting more attention – not less.

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Turei on Trade

Sunday, October 4th, 2009 at 1:48 pm

Green co-leader was on Q+A this morning, and it was a pretty lamentable performance. While there were a couple of tough topics, she just didn’t cope with the scrutiny, and appeared very flustered and evasive.

I backed Turei as their best choice for co-leader (not that I get a vote!) as she has generally been a strong MP. But today showed up the gap between her and someone like Fitzsimons, who would have handled things much more calmly.

Of course part of the problem was that on the trade issue, Turei had a nonsensical position to defend. Every country on earth supports the move to freer trade, apart from pretty much just North Korea. The Green view on trade is very much a fringe view, and it got exposed today.

From the transcript (not yet online:

GUYON Okay let’s look at an economic idea that you are opposed to, and that is free trade largely.   In your maiden speech in 2002 you said that, and I quote you, ‘the acceptance of free trade agreements threatens our economy, our environment, our people and our sovereignty.’  Do you not believe in any free trade agreements at all?

METIRIA Well our position is that you need to have systems of fair trade, that make sure that New Zealand can retain its economic sovereignty, and free trade deals tend to undermine the economic sovereignty.

GUYON All the free trade deals, I mean the free trade deal that we have with Australia for example that we’ve had for 20 years, has that undermined our sovereignty?

METIRIA It prevents New Zealand from being able to make the economic decisions around our manufacturing, around job retention, all of those issues that are best for New Zealand, and we want New Zealand to be a prosperous and sustainable economy, that means we have to move … we need to be able to make those decisions for ourselves.

GUYON Does that mean all free trade agreements, for example the CER agreement that we’ve had with Australia since 1982, does that cover that?

METIRIA Look the key issue for us…

GUYON No, can I get a straight answer for our viewers on this question please, because it’s all very well to give a speech about free trade.

Yet she still could not state whether or not the Green Party thought CER was a good or a bad thing.

I wonder why the Greens are so inconsistent on the issues of national sovereignty. They correctly point out climate change affects everyone regardless of national borders. They support surrendering sovereignty to the UN on every treaty there is. Yet on economic issues, they cite national sovereignty as a reason to prevent people freely trading with each other.

GUYON Okay with respect, let’s look at one of those countries, China.  Now on Thursday it was the first anniversary of our Free Trade Agreement with China, our exports have climbed 61% over that year to 3.3 billion.  I mean wouldn’t we all be the poorer if we’d listened to you and not gone ahead with that agreement?

METIRIA Oh look Guyon, I mean you can make that kind of accusation and I think it’s just silly, the truth is that so much of New Zealand’s economy at the moment is under serious threat if  you like from the fact that we’re having to borrow hundreds of millions of dollars every week actually in order to just pay the interest on our current borrowing.  We’re having a housing bubble at the moment which is going to also impact seriously on our economy and there are other kinds of tools that we can use to deal with economic issues that are affecting New Zealand, like increasing the ability for banks for example to lend ….

The stupidity of Metiria’s response is the China FTA means we are borrowing less. Exports rose 60% in the middle of a recession!! That is a huge sucess. She just had no answer at all to this.

GUYON Can we return to this agreement though because there are some real Green issues here in this China Free Trade Agreement and I want to talk to you about one of them, because the New Zealand Trade and Enterprise says areas like the health supplements in Manuka Honey are a great area for expansion of our exports, and in fact your own Super Fund has quite a large shareholding on Konvita New Zealand which has 18 branded stores in China and is actually doing very very well out of this China Free Trade Agreement, would you deny them that opportunity, because you opposed that agreement.

You have to love the irony. Their super fund is personally profiting from the China FTA that they battled against.

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This is what Winston and the Greens oppossed

Thursday, October 1st, 2009 at 5:45 am

The Herald reports:

A year ago today New Zealand’s free trade agreement with China came into effect.

The results so far show it to be a big success, says New Zealand Trade and Enterprise’s general manager for North Asia, Rod McKenzie.

New Zealand exports to China climbed to more than $3.3 billion in the year to June 30 – an increase of 61 per cent on the previous year.

Clark and Goff did very very well with the China FTA. I regard it as their finest foreign policy achievement, even though their own Foreign Minister campaigned against it.

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US goes more protectionist

Sunday, September 13th, 2009 at 11:20 am

Sad to read in the HoS:

President Barack Obama slapped punitive tariffs on all car and light truck tyres entering the United States from China in a decision that could anger the strategically important Asian powerhouse but placate union supporters important to his health-care push at home. …

The federal trade panel recommended a 55 per cent tariff in the first year, decreasing 10 per cent in each of the next two years. Obama settled on an extra 35 per cent in the first year, reducing by 5 per cent for two years. Beijing yesterday sharply condemned the US move: “China strongly opposes this serious act of trade protectionism by the US.

“This act not only violates the rules of the World Trade Organisation but also violates the relevant commitments made by the US Government at the G-20 financial summit.”

Protectionism may sometimes deliver short-term gain, but at the expense of long-term pain. NZ is a sterling example of this as we got rid of almost all tariffs and subsidies, yet up until the global recession had the lowest unemployment rate in the OECD. Protectionism doesn’t save jobs in the long-term, it merely keeps capital locked up in relatively inefficient industries.

To be fair to Obama, Bush was also a protectionist despite his rhetoric. He slapped tariffs on regularly, against WTO rules. They know they will lose at the WTO eventually, but do it to get through the election.

It is a pity, in terms of trade policy, that John McCain did not win. He was a very sincere and dedicated free trade supporter – his policy was to remove barriers to trade with every country on Earth, except those they have security issues with.

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Curing web addicts

Wednesday, July 15th, 2009 at 8:15 am

AP reports:

China’s Health Ministry has ordered a hospital to stop using electric shock therapy to cure youths of Internet addiction, saying there was no scientific evidence it worked.

No kidding.

Chinese psychologists say symptoms of Internet addiction include being online more than six hours a day – playing games and looking at pornography rather than working or studying – and getting angry when unable to get online.

Well I’d say most Kiwiblog commenters fit that definition :-)

Shuyun said it was only part of the overall program to treat patients, which also included medicine and psychological counseling. Patients are charged 5,500 yuan ($NZ1290) a month.

You pay $1,290 a month to get electrocuted? Man that is the best cyber scam yet.

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NZ – China links strong

Saturday, April 18th, 2009 at 10:46 am

I almost didn’t blog these, because they are so positive, but it is probably worth doing so, as Key is new to Foreign Affairs. First we have Fran O’Sullivan:

The Prime Minister’s diplomatic team skilfully orchestrated the visit so that New Zealand’s vital business interests in China were enhanced.

Wen made clear that China has drawn a line under the tainted milk affair at Fonterra’s now bankrupt Sanlu joint venture and welcomed increased participation in its fledgling agriculture industry.

Air New Zealand has also won a departure slot at Beijing International Airport that will help it encourage more Chinese visitors to come to Auckland, arriving at around 6am rather than just before 3am.

Key’s meetings with the prime Chinese customers of some of New Zealand’s major firms will also help in easing some barriers to doing business.

Clark’s own high-level political skills and feel for international affairs enabled New Zealand to secure last year’s historic free trade deal with China. But now the FTA is into the “implementation phase”, Key’s business skill-set is proving valuable.

It is good Key is continuing Clark’s fine work with China.

And the NZ Herald Editorial:

John Key’s state visit to China was a potentially tricky one. The 12 months after the signing of a momentous free trade deal have not been plain sailing. Most notably, New Zealand was implicated in the contaminated milk scandal that swept through China, thanks to Fonterra’s involvement in the now-bankrupt Sanlu joint venture. It is a feather in the cap of the Prime Minister and this country’s diplomats that the Chinese say they see no reason to allow this issue to undermine relations. …

Premier Wen Jiabao told Mr Key he regarded China’s relationship with New Zealand as the “very, very best” it had been. It is reassuring that a tie skilfully built by the previous government continues to flourish despite some unforeseen hiccups.

As the US buckles under the weight of Obama’s spending, the Chinese economy will become much more important to us.

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