Briefings – Page 392

China to Build First Permanent Airport in Antarctica

Science and Technology Daily, an official newspaper of China’s Ministry of Science and Technology, quoted someone familiar with the matter on Sunday and reported that the Chinese government plans to build the first permanent airport in Antarctica within a few years in order to receive tourists and researchers regularly.

“The infrastructure will include the runway and a terminal building. According to the plan, the airport will be built in a selected place. It will take several years before the airport is built.” he said. The source said that the airport will be built directly on the glacier covering the surface of Antarctica.

The source also said that as early as 2009 and 2010, Chinese experts built two runways dedicated to emergency landings and refueling for fixed-wing aircraft. One of them was three kilometers west of the Chinese Kunlun Station in Antarctica. He said that China has a more and more urgent need to build a regular airport at the other end of the earth.

Experts believe that, to this end, China needs to negotiate regular flight issues with countries that can provide support for temporary landings. China’s polar plane, “Snow Eagle 601,” which will fly such a long route, will be forced to stop midway for technical support, fuel, or handling bad weather.

Source: Sputnik News, October 29, 2018
http://sputniknews.cn/china/201810291026682591/

Briefings | | October 30, 2018 | Defense/Military

Lack of Capital Investment Makes Development of New Drugs Difficult

Science and Technology Daily published an article on the challenges that China faces in new drug research and development. The long development cycle, the high investment that is required, and the high failure rate are cited as the three major points of difficulty in the development of new drugs, especially in clinical trials. The article reported that the lack of a long-term investment mechanism, especially the imperfection of the capital market, has made the research and development as well as the marketing of new drugs problematic. Most of the small and medium-sized pharmaceutical companies rely on self-raised funds for R&D. The R&D investment accounts for 4 to 8 percent of the total sales while some investments could be as high or higher than 20 percent. Also, pharmaceutical companies are reluctant to invest due to the imperfect intellectual property protection system. Investors fear either the high risks or the lack of focus in new drug research and development.

The article stated that fundamentally solving the difficulties in the research and development of new drugs in China requires the progress and maturation of China’s pharmaceutical industry at all levels, including the improvement of the company’s own research and development capabilities, the improvement of the regulatory system, a real understanding of the long-term, high-risk new drug development, and long-term capital market support.

Source: Science and Technology Daily, October 29, 2018
http://www.stdaily.com/index/kejixinwen/2018-10/29/content_724931.shtml

Briefings | | October 30, 2018 | Information/Technology

Guangzhou Metro Enabled Facial Recognition, Real-name Authentication, Upgraded Inspection of Carry-on Items, and Body Scanning

On October 26, China News reported that, starting on October 26, Guangzhou Metro has enabled facial recognition and real-name authentication, as well as upgrades in the security inspection of personal carry-on items and body scanners at multiple sites. It includes using Artificial Intelligence to identify dangerous goods, light wave security inspection channels, and facial recognition. Passengers need to download the official APP of the Guangzhou Metro in advance for real-name authentication and face collection, and enable the “Smart Security” function. The “face scanner” can be authenticated through the security check channel. The article claimed that, after the security check channel is activated, it can be implemented without the need for security personnel.

According to Radio Free Asia, the First Research Institute of the Ministry of Public Security of China developed these facial recognition systems that pioneered in Guangzhou. They have been tested for many years. Two years ago, it was reported that “Facial Recognition Technology” has been used in anti-terrorism operations. This technology is a dynamic identification system that recognizes the identity of five people every second. The recognition speed is 200 milliseconds each time. The facial recognition system that the institute developed is called “Future-oriented.” It has high accuracy and builds functional identity management in the network world. An official said that, “facial recognition” technology is only needed when national security and public safety are involved, so it is expected that the “facial recognition system” will be used in the future in airports, subways, bus stations, and railway stations.

Last year, the Chinese authorities launched the “Skynet” monitoring system in urban regions and “Project Dazzling Snow” in rural areas. The tens of millions of monitoring probes cover almost all corners of China and are called “the most advanced monitoring system in the world.” The netizens teased that the official is treating the city like a prison. According to reports, the First Institute of the Ministry of Public Security of China was named the “national team for network security.” It conducted research on facial recognition testing technology as early as 2002. In the same year, it carried out regular evaluations of facial recognition products and created the application model for facial recognition in China.

Sources:
1. China News, October 26, 2018
http://www.chinanews.com/sh/2018/10-26/8660955.shtml
2. Radio Free Asia, October 26, 2018
https://www.rfa.org/mandarin/yataibaodao/renquanfazhi/ql2-10262018094621.html

Briefings | | October 30, 2018 | Social Stability

Peking University Economist Criticizes the “China Model”

On October 23, Zhang Weiying, a professor at Peking University, who is also regarded as a liberal scholar, published an article entitled “Understanding the World and the Chinese Economy” on the official website of the National Development Research Institute of Peking University. The article criticized the touted theory of the “China Model,” which believes that China’s 40-year economic rise has benefited from the unique “China model,” namely, a strong government, a large body of state-owned enterprises, and a smart industrial policy.

Citing the marketization data from the Beijing National Economic Research Institute and the economic growth data from the China Statistical Yearbook, Zhang points out that the changes in the marketization index are always positively correlated to the growth rate of the gross national product. Statistics such as the proportion of the urban state versus the private sector employment, the proportion of state-owned versus foreign and private capital, and their relationship to the per capita GDP growth rate, show that the larger the state sector, the slower the economic growth rate. Regions where “the state retreats while the private advances” show better growth performance.

Zhang concluded that China’s rapid economic growth over the past 40 years has come from marketization and the opportunities offered by the second-mover advantage rather than the so-called “China model.” Second-mover advantage refers to the advantage a nation receives from following others or mimicking an existing model.

Zhang warned that if one blindly uses the “China model” to explain China’s economic development one will “mislead oneself and destroy one’s own future. Moving toward a bigger state sector, expanding the government’s power, and relying on industrial policies will led to the reversal of the reform process, waste all previous efforts, and lead the economy into stagnation.

Externally, the “China model” has set China apart from the common sense market economy that the West has acclaimed, and has led to conflicts between China and the West. According to Zhang the unfriendly international environment China is currently facing is not unrelated to some economists’ misinterpretations of China’s achievements over the past 40 years.

Source: Radio France International, October 25, 2018
http://rfi.my/3FzJ.T

Briefings | | October 28, 2018 | Economy/Resources

Xi Furthers Anti-Corruption Purge in the Military

Media report outlets inside and outside of China suggest that the Chinese military may be going through another “anti-corruption” purge. Sources say 120 military officers are being “investigated.”

On August 1, which is the People’s Liberation Army (PLA) Day, a time when a few military officers are usually promoted to the rank of full general, Xi broke the tradition and did not make any announcement. It was also the first time since Xi became the commander-in-chief of the PLA in 2012 that he did not name any generals. China’s official media kept silent on this and the military officials issued no response of confirmation or clarification.

In one of Xi Jinping’s talks on Aug 9 regarding the military, Xi emphasized “absolute loyalty” from the PLA and the importance of “centralized leadership.” He also talked about the issue of corruption in the PLA.

On Oct 16, the Beijing authority officially announced the “investigation results” of two more military “tigers,” — Fang Fenghui and Zhang Yang. These two former generals have since been expelled from the Communist Party and the Chinese military and their ranks of general have been removed.

Zhang, who once served as Director of the PLA’s Political Work Department, committed suicide last Nov. Fang, former Chief of the Joint Staff and a member of the Central Military Commission, is now facing formal charges in court. The “investigation results” said they were “disloyal, dishonest and had been acting two-faced.” A number of media sources pointed out that more military officials might be involved in this current purge — many of the next targets may be those who have ties with those “big tigers” who have already been purged.

Source: Radio France International, October 24, 2018
http://rfi.my/3Fs3.T

Briefings | | October 28, 2018 | Defense/Military

Government Expert Assesses the Worst Impact of Trade War on China

On October 23, Wang Yiming, the deputy director of China’s Development Research Center of the State Council, the government think tank for policy research and consulting, met with business investors. Wang told them that the impact of the Sino – US trade war is evolving from a psychological expectation to the real economy. In particular, it is affecting trade, investments, the supply chain, and employment. In the future, once the U.S. imposes the 25 percent tariff on all Chinese exports, China’s GDP growth rate will fall by 1.5 percentage points. He predicts that this will be the worst case scenario of the trade war.

Wang Yiming said that 15 manufacturing sectors will be affected greatly and negative growth will occur. The sector that will receive the most severe hit will be that of radio, television equipment, and radar facilities. This sector is expected to fall by 7.8 percentage points.

According to Wang, some enterprises have already taken the upcoming tariff factors into consideration, especially those whose production is oriented toward exporting to the U.S. Some are even considering the cancellation of new investment plans or a delay in hiring. On the technical level, Sino – US cooperation in science and technology and personnel exchanges face growing restrictions.