Symphony

Cadence of Conflict: Asia, December 9, 2019

https://www.youtube.com/watch?v=U53cR3_vHv0

Money doesn't lie; it's in the airline figures. Cathay is reducing its capacity, largely from loss of demand for flights in and out of China. Hong Kong Airlines is dropping long hauls to and from Australia, the US, and Canada. Clearly, both Chinese nationals and Pacific English speakers have lost confidence in Hong Kong. Hong Kong was special—for tourism, culture, lifestyle, trade, finance, and a slough of other things—all because both Chinese and the English-speaking West had easy and overlapping access. They could meet, they could do business, they could speak their own language, and they could enjoy Chinese culture without the oppression of a Confucian-Communist government. But, neither wants to play ball anymore.

In response to the US ending exports of riot-control weapons and defining autonomy as "being autonomous", China banned the US Navy from making port stops in Hong Kong. The port stops had been an encouragement to international business, reassuring investors that everything was alright between the US and China. But, apparently China doesn't want that illusion of reassurance to continue. And, more importantly, China obviously is less fearful of the US Navy making its R&R port calls in Taiwan instead.

Watch for many things to shift to Taiwan. While the first finance leaders in Hong Kong are exiting to Singapore, watch for a swath to relocate in Taipei once Singapore's galore wears off and finance centers discover the difference in real estate prices and cost of living.

China will still be angry enough to blow a few gaskets when the US Navy does make more port calls in Taiwan, it's just that they are less fearful of it for the time being. China's leaders have been had, largely due to their thirst for respect, which blinds their judgement. But, they are incapable of learning, so they are only going to be had more and more.

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Symphony

Cadence of Conflict: Asia, December 2, 2019

https://www.youtube.com/watch?v=HJDDexe-URI

Opinions on Asia aren't just flying, but swarming the Pacific. Hong Kongers vote against China in an unmistakable slap to Beijing's face, then Beijing blames the US—because Beijing still thinks that voters only vote how the government tells them to. And, everything is all America's fault anyway, right?

It took a day of silence for Beijing's media machine to figure out how to spin the election. Beijing accused Hong Kong's dissent on violence. But, that doesn't hold since last week's election went uninterrupted. Yet, Beijing sticks to the same script.

A commentator predicts that Hong Kongers don't want independence—even though they already declared independence on October 4. Perhaps Doris Lam's article on Channel News Asia was an attempt to tell Hong Kongers what they should want. Or, it could have been an attempt to tell Beijing to think that Hong Kongers don't want what they want. Either way, it is a delusional olive branch in the form of a typical long-worded think piece. There is a growing trend of commentators who make their articles longer when they know that few readers will accept their opinions.

After Trump signs two laws about Hong Kong—one to define an autonomous region as autonomous, the other to stop exporting police tools for riot-control—Beijing calls it "interference". Then, Trump drops tariffs on China because good ole Benjamin is hard to argue with. Yet, Beijing wants more. Now, as in Chinese business negotiation, China wants to change the deal after everything has been agreed to. They want even lower tariffs in Phase One.

Great Britain wants UN access to Xinjiang.  China wants the world to believe Xinjiang is happy, an Islamic utopia; new documents prove otherwise. China also faces a food shortage, but a good marketing effort is underway for investment in Chinese farming. Stopping any possible abuse of Uyghurs in Xinjiang is interference in Beijing's opinion, but accepting foreign money to build better farms isn't. Perhaps Beijing will call it interference if the rest of the world does not invest in Chinese farms.

Taiwan's election is fast approaching. Though Tsai Ing-Wen, the pro-democracy incumbent president, leads in the polls, many Taiwanese are scared that there are too many voters in the old, beaten-down generation for her to win a second time. Older Taiwanese, like many Chinese, have been so dominated by East Asia's shame culture that they truly believe that "bigness" always wins and therefore they must vote for politicians who will surrender to China. Younger Taiwanese have seen this older generation get its way so many times, even polls can't keep them from being scared. But, as John Maynard Keynes said, "Men will not always die quietly." Few things drive voters to the polls like fear of dying at the hands of politicians who want to surrender. Tsai Ing-Wen is set to win by an even greater margin than she did in her first term—and everyone has something to say about it.

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