Getting rich in China is getting expensive
The China Letter: April 14, 2012
Jack Ma has made more news from China, due to the government disliking his honesty about building businesses there. Taiwan is also receiving the wrath of Beijing, which could escalate. But it seems the country has to be more truthful when it comes to the efficacy of vaccines. All this and more in the latest roundup of news you need to know.
Reined in by the boss
Beijing showed it holds power over internet giants by slapping a 18.2 billion yuan fine on Alibaba. The sum was based on 4 per cent of the company’s 2019 domestic revenue, and comes along with an order for “thorough rectifications.” The company was founded by Jack Ma, who was recently censured after he blasted China’s strict regulatory system.
Shots across the globe
China issued a warning at Taiwan for talking to other countries about sending COVID-19 vaccines to Paraguay, after the South American nation said it was promised millions of doses if it changed allegiances to the mainland. The prospect of military aggression has raised more concern while bringing a different storyline to Canada:
The Halifax International Security Forum wanted to give its John McCain Prize for Leadership in Public Service to Taiwan president Tsai Ing-wen—until it heard from Ottawa. Politico reported on a standstill surrounding the threat of funding being pulled from the forum if it risked being seen as promoting provocations toward Beijing.
An unusual dose of reality
China’s top disease control official Gao Fu admitted the effectiveness of COVID-19 vaccines made in the country isn’t very high and raised the prospect of mixing them in order to boost the protection rate. Vaccines made by Sinovac were found to barely cross the 50 per cent efficiency rate, compared to 95 per cent success of Moderna and Pfizer.
Supercomputer shot down
The U.S. Department of Commerce issued its blacklist of companies found to be “involved with building supercomputers used by China’s military actors, its destabilizing military modernization efforts, and/or weapons of mass destruction programs.” The national security concerns relate to the aspirations in a new global arms race:
The last words, for now
China slapping duties of up to 218 per cent on Australian wine for five years might play into a grievance taken to the World Trade Organization. But it’s also opened a window of opportunity for the he family of Baron Philippe de Rothschild, which plans to bring 25 per cent of its Bordeaux output to a market with a thirst for entry-level prices:
The China Letter is produced by the Canadian Freedom Institute, a think tank based in Canada. We produce the China Letter every week to keep you informed and to press the ideas of free markets and free people not only in China but around the world. Please consider donating to keep this newsletter running!