"The mouthpiece newspaper of China’s Communist Party has blasted Hong Kong tycoon Li Ka-shing as “ungrateful” for selling assets on the mainland with the world’s second-largest economy facing headwinds..." Ridiculous, this Chinese media. If someone thinks a ship is sinking, what's wrong with getting off?
Don’t let Li Ka Shing run away: “Everyone understands that, in China, the real estate business is closely entwined with power, and it has no way to succeed without the backing of political connections. Therefore, wealth generated from real estate is not wealth generated completely from the market economy. [He] can’t exit just because he wants to.”
4. When Deng Xiaoping came to power in the late 1970s, he introduced his economic reforms with the slogan "to get rich is glorious." To achieve that end, he had to move China onto the international markets. The isolationism of the former regime, however, handicapped the Chinese leadership. It therefore turned to the richest Chinese business people of Hong Kong, including, among many others, Li Ka-Shing, Henry Fok Ying-Tung, Wang Foon-Shing, Stanley Ho and the man who would eventually be chosen by Beijing to head Hong Kong after the departure of the British, Tung Chee-Wa (C.H. Tung).On 23 May 1982, Li Ka-Shing and Henry Fok met with Deng Xiaoping and Zhao Ziyang in Beijing to discuss the future of the peninsula. Their task would be to advise and educate the Chinese authorities about the basic rules of capitalism. In return, Beijing gave them privileged access to the vast Chinese economic basin. These powerful international financiers played an important role in the preparations for the transfer of Hong Kong. ~ 19 May 2003
"What we have is something perilously close to a dictatorship of the Fed and the Treasury, acting in the interests of Wall Street." ~ Robert Kuttner
Washington’s moves, in other words, represent something old, even if on a previously unimaginable scale. But the rise of China as the world’s largest economy, inconceivable a century ago, represents something new and so threatens to overturn the maritime geopolitics that have shaped world power for the past 400 years. Instead of focusing purely on building a blue-water navy like the British or a global aerospace armada akin to America’s, China is reaching deep within the world island in an attempt to thoroughly reshape the geopolitical fundamentals of global power. It is using a subtle strategy that has so far eluded Washington’s power elites.
After decades of quiet preparation, Beijing has recently begun revealing its grand strategy for global power, move by careful move. Its two-step plan is designed to build a transcontinental infrastructure for the economic integration of the world island from within, while mobilizing military forces to surgically slice through Washington’s encircling containment.
The initial step has involved a breathtaking project to put in place an infrastructure for the continent’s economic integration. By laying down an elaborate and enormously expensive network of high-speed, high-volume railroads as well as oil and natural gas pipelines across the vast breadth of Eurasia, China may realize Mackinder’s vision in a new way. For the first time in history, the rapid transcontinental movement of critical cargo — oil, minerals, and manufactured goods — will be possible on a massive scale, thereby potentially unifying that vast landmass into a single economic zone stretching 6,500 miles from Shanghai to Madrid. In this way, the leadership in Beijing hopes to shift the locus of geopolitical power away from the maritime periphery and deep into the continent’s heartland.
“Trans-continental railways are now transmuting the conditions of land power,” wrote Mackinder back in 1904 as the “precarious” single track of the Trans-Siberian Railway, the world’s longest, reached across the continent for 5,700 miles from Moscow toward Vladivostok. “But the century will not be old before all Asia is covered with railways,” he added. “The spaces within the Russian Empire and Mongolia are so vast, and their potentialities in… fuel and metals so incalculably great that a vast economic world, more or less apart, will there develop inaccessible to oceanic commerce.”
Mackinder was a bit premature in his prediction. The Russian revolution of 1917, the Chinese revolution of 1949, and the subsequent 40 years of the Cold War slowed any real development for decades. In this way, the Euro-Asian “heartland” was denied economic growth and integration, thanks in part to artificial ideological barriers — the Iron Curtain and then the Sino-Soviet split — that stalled any infrastructure construction across the vast Eurasian land mass. No longer.
Only a few years after the Cold War ended, former National Security Adviser Brzezinski, by then a contrarian sharply critical of the global views of both Republican and Democratic policy elites, began raising warning flags about Washington’s inept style of geopolitics. “Ever since the continents started interacting politically, some five hundred years ago,” he wrote in 1998, essentially paraphrasing Mackinder, “Eurasia has been the center of world power. A power that dominates ‘Eurasia’ would control two of the world’s three most advanced and economically productive regions… rendering the Western Hemisphere and Oceania geopolitically peripheral to the world’s central continent.”
While such a geopolitical logic has eluded Washington, it’s been well understood in Beijing. Indeed, in the last decade China has launched the world’s largest burst of infrastructure investment, already a trillion dollars and counting, since Washington started the U.S. Interstate Highway System back in the 1950s. The numbers for the rails and pipelines it’s been building are mind numbing. Between 2007 and 2014, China criss-crossed its countryside with 9,000 miles of new high-speed rail, more than the rest of the world combined. The system now carries 2.5 million passengers daily at top speeds of 240 miles per hour. By the time the system is complete in 2030, it will have added up to 16,000 miles of high-speed track at a cost of $300 billion, linking all of China’s major cities.