Commentary: China wants the private sector to drive growth again, but trust can’t be rebuilt overnight

After years of cracking down on “barbaric growth of capital" in the private sector, China is wooing entrepreneurs again. Is it too little too late? Former SCMP editor-in-chief Wang Xiangwei weighs in.

HONG KONG: At the start of 2019, Chinese President Xi Jinping convened senior officials in Beijing for a workshop to discuss and prepare for “black swan” and “grey rhino” events amid a slowing economy and rising international uncertainties.

This meeting followed then US President Donald Trump’s initiation of a trade war against China in July 2018, which sent bilateral ties into a downward spiral.

Mr Xi urged officials to remain vigilant and address “major risks” across various fields, including politics, ideology, economy, society, technology and the external environment.

A black swan refers to an unpredictable market event with extreme financial consequences, while a grey rhino is a highly probable and impactful threat that is often ignored.

Since then, China’s leadership has taken decisive steps to tackle perceived grey rhinos, such as ballooning local government debts, struggling city and community banks, and the “irrational and barbaric growth of capital” in the private sector, particularly targeting big tech firms like Alibaba, which owns the South China Morning Post.

However, Beijing’s harsh campaign against the private sector has inadvertently unleashed another grey rhino: A lack of confidence among private entrepreneurs.

STIFLING INNOVATION

This lack of confidence, known in China as “lying flat” or "tang ping”, initially caught on among the country’s overworked youth who sought to do the minimum and take a break from relentless work.

During the three years of the COVID-19 pandemic, this malaise spread nationwide, affecting not only bureaucrats but also entrepreneurs.

It was also partially fed by fear that success in private business could come with political risks: In 2020, Beijing abruptly halted the US$34 billion IPO of fintech giant Ant Group, controlled by Jack Ma, after he reportedly criticised regulators for stifling innovation.

What ensued was a multi-year crackdown on the so-called “excesses” and “barbaric growth of capital” in the private sector, which has since driven entrepreneurs’ confidence to historic lows.

Mr Ma largely disappeared from the public eye following those events, reinforcing concerns that China’s business climate had become too unpredictable.

Within this context, Mr Xi’s high-profile meeting with selected private entrepreneurs, including Mr Ma, at the Great Hall of the People in Beijing on Feb 17 is significant - his first such meeting in nearly seven years.

ARE XI’S ASSURANCES ENOUGH?

According to Xinhua, Mr Xi reportedly told entrepreneurs, also including Mr Ma, Ren Zhengfei of Huawei and Wang Chuanfu of BYD, that it was "prime time for private enterprises and entrepreneurs to give full play to their capabilities”.

He assured them that the current difficulties and challenges facing the private sector could be overcome and called for renewed confidence in the future.

Mr Xi also vowed to create equal treatment for the private sector and pledged to ensure access to bank loans while addressing widespread illicit law enforcement and administrative actions, including arbitrary fees, fines, inspections and asset seizures.

Mr Xi’s remarks represent the strongest signal of support for private enterprises at a time when China’s economy is in a deflationary cycle, weighed down by falling property prices and low consumer confidence. Meanwhile, Mr Trump in his second term has threatened additional tariffs on Chinese products, and China’s exports, one of its traditional growth engines, remain bleak.

Beijing recently announced an economic growth target of “around 5 per cent” for this year, but revitalising the private sector is crucial to achieving this goal, especially since the private sector contributes about 60 per cent to China’s gross domestic product and over 80 per cent of employment.

Will Mr Xi’s words be enough? After all, China had already been unwinding its crackdown on the private sector starting in 2023, with officials increasing pro-business rhetoric and referring to private entrepreneurs as "one of us”.

Yet in many cash-strapped localities, illicit actions against the private sector, including arbitrary fees, fines, and asset seizures, have continued unabated.

Mr Xi’s remarks are expected to curb these illicit actions, but whether they will spark optimism among private businessmen remains to be seen.

the rest of the article

A REAL TURNING POINT?

Sensing scepticism, official media has ramped up efforts to reassure the private sector.

Notably, the People’s Daily, the Chinese Communist Party’s newspaper of record, recently published a long article titled I Have Always Supported Private Enterprises, highlighting Mr Xi’s support for the private sector and countering scepticism that he favours the state sector.

China’s latest efforts to reassure the private sector are a step in the right direction, but more needs to be done to restore confidence. The global success of DeepSeek’s AI language model and the popular animated film Ne Zha 2, both funded and developed by private entrepreneurs, offers significant insights.

More than anything, the rise of DeepSeek demonstrates that the private sector has elevated itself to drive China’s innovation and cutting-edge technologies, moving beyond its traditional role of job creation and playing second fiddle to the state sector.

The fact that the Hangzhou-based company was under the official radar until its sudden rise to fame suggests that if the government allows the private sector to operate without political, ideological and regulatory straitjackets, it can produce global winners.

This is likely the best way to restore confidence and tame the charging grey rhino.

For those paying attention to the “two sessions” in China, it shouldn’t surprise you that private capital has indeed made a come back with Jack Ma’s reappearance a few weeks earlier.

I am increasingly losing faith in Xi’s ability to curb private capital. Since Li Qiang (Shanghai lib) became the Premier in early 2023, from abandoning Zero Covid policy to opening up China’s capital markets, all indications are pointing to what I have suspecting all these while, that the liberals have indeed succeeded in their coup and have been having the upper hand since 2023.

Yemen has BANNED the import of BURGERS. We salute the People of Yemen and Ansar Allah in their brave campaign against treatlerism.

https://bsky.app/profile/atrupar.com/post/3lk7377cm2i2r Trump: “Schumer is a Palestinian as far as I’m concerned. He’s become a Palestinian. He used to be Jewish. He’s not Jewish anymore. He’s a Palestinian.”

Next thread here.

Latest statement by the Yemeni Armed Forces Brigadier General Yahya Sare’e, on last night’s attack on Yemen and the response to it.

full text

The American enemy launched a blatant aggression against our country in the past hours with more than 47 airstrikes, targeting several areas in the governorates of Sana’a, Sa’dah, Al Bayda, Hajjah, Dhamar, Ma’rib, and Al Jawf, in which The American enemy committed a number of massacres, resulting in the martyrdom and injury of dozens, In a preliminary toll.

In response to this aggression, the Armed Forces carried out a specific military operation targeting the American aircraft carrier USS Harry S. Truman and its warships in the northern Red Sea with 18 ballistic and cruise missiles and a drone. This operation was jointly carried out by the missile force, the UAV force, and the naval forces.

The Yemeni Armed Forces wil not hesitate to target all American warships in the Red Sea and in the Arabian Sea in retaliation to the aggression against our country. With the help of Allah Almighty, the Yemeni Armed Forces will continue to impose a naval blockade on the lsraeli enemy and ban its ships in the declared zone of operations until aid and basic needs are delivered to the Gaza Strip.

This American aggression will only increase the steadfastness, faith, and resilience of beloved Yemen and its steadfast, faithful, and struggling people.

Twitter source

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The Anti Ship Ballistic Missiles are back finally, but as suspected/known already, no hits/impacts on the US Navy warships. Apparently one of the projectiles (ballistic missile, cruise missile or drone) hit the Sinai Peninsula, likely after missing the US Navy warships.

In the past hour their has been more movements by the US Air Force reconnaissance aircraft and RAF refueling aircraft on FlightRadar24 similar to last night, highly likely we’ll see more US airstrikes on Yemen tonight… Also the USS Harry Truman is being resupplied by two C-2 Greyhound aircraft out of Bahrain.

Only airstrikes reported so far were targeting the captured ship “Galaxy Leader”, docked in Yemen.

More airstrikes reported, I’ll continue on in a seperate comment.

AP Exclusive: US and Israel look to Africa for moving Palestinians uprooted from Gaza - AP News

Article

The U.S. and Israel have reached out to officials of three East African governments to discuss using their territories as potential destinations for moving Palestinians uprooted from the Gaza Strip under President Donald Trump’s proposed postwar plan, American and Israeli officials told The Associated Press.

The contacts with Sudan, Somalia and the breakaway region of Somalia known as Somaliland reflect the determination by the U.S. and Israel to press ahead with a plan that has been widely condemned and raised serious legal and moral issues. Because all three places are poor, and in some cases wracked by violence, the proposal also casts doubt on Trump’s stated goal of resettling Gaza’s Palestinians in a “beautiful area.”

Officials from Sudan said they have rejected overtures from the U.S., while officials from Somalia and Somaliland told The Associated Press that they were not aware of any contacts.

Under Trump’s plan, Gaza’s more than 2 million people would be permanently sent elsewhere. He has proposed the U.S. would take ownership of the territory, oversee a lengthy cleanup process and develop it as a real estate project.

The idea of a mass transfer of Palestinians was once considered a fantasy of Israel’s ultranationalist fringe. But since Trump presented the idea at a White House meeting last month, Israeli Prime Minister Benjamin Netanyahu has hailed it as a “ bold vision.”

Palestinians in Gaza have rejected the proposal and dismiss Israeli claims that the departures would be voluntary. Arab nations have expressed vehement opposition and offered an alternative reconstruction plan that would leave the Palestinians in place. Rights groups have said forcing or pressuring the Palestinians to leave could be a potential war crime. Still, the White House says Trump “stands by his vision.”

Speaking on condition of anonymity to discuss a secret diplomatic initiative, U.S. and Israeli officials confirmed the contacts with Somalia and Somaliland, while the Americans confirmed Sudan as well. They said it was unclear how much progress the efforts made or at what level the discussions took place.

Separate outreach from the U.S. and Israel to the three potential destinations began last month, days after Trump floated the Gaza plan alongside Netanyahu, according to the U.S. officials, who said that Israel was taking the lead in the discussions.

Israel and the U.S. have a variety of incentives — financial, diplomatic and security — to offer these potential partners. It is a formula that Trump used five years ago when he brokered the Abraham Accords — a series of mutually beneficial diplomatic accords between Israel and four Arab countries.

The White House declined to comment on the outreach efforts.

The offices of Netanyahu and Ron Dermer, the Israeli Cabinet minister and Netanyahu confidant who has been leading Israel’s postwar planning, also had no comment.

But Finance Minister Bezalel Smotrich, a longtime advocate of what he calls “voluntary” emigration of Palestinians, said this week that Israel is working to identify countries to take in Palestinians. He also said Israel is preparing a “very large emigration department” within its Defense Ministry.

Sudan

The North African country was among the four Abraham Accord nations that agreed to normalize diplomatic relations with Israel in 2020.

As part of the deal, the U.S. removed Sudan from its list of state supporters of terrorism, a move that gave the country access to international loans and global legitimacy. But relations with Israel never took off as Sudan plunged into civil war between government forces and the RSF paramilitary group.

The conflict has been marked by atrocities, including ethnically motivated killing andremoved, according to the U.N. and rights groups. The International Criminal Court is investigating alleged war crimes and crimes against humanity, and then-President Joe Biden’s administration in January said the RSF and its proxies were committing genocide.

The U.S. and Israel would be hard-pressed to persuade Palestinians to leave Gaza, particularly to such a troubled country. But they could offer incentives to the Khartoum government, including debt relief, weapons, technology and diplomatic support.

Two Sudanese officials, speaking on condition of anonymity to discuss a sensitive diplomatic matter, confirmed that the Trump administration has approached the military-led government about accepting Palestinians.

One of them said the contacts began even before Trump’s inauguration with offers of military assistance against the RSF, assistance with postwar reconstruction and other incentives.

Both officials said the Sudanese government rejected the idea. “This suggestion was immediately rebuffed,” said one official. ”No one opened this matter again.”

Military chief Gen. Abdel-Fattah Burhan told an Arab leaders’ summit last week in Cairo that his country “categorically rejects” any plan that aims to transfer “the brotherly Palestinians from their land under whatever justification or name.”

Somaliland

Somaliland, a territory of over 3 million people in the Horn of Africa, seceded from Somalia over 30 years ago, but it is not internationally recognized as an independent state. Somalia considers Somaliland part of its territory.

Somaliland’s new president, Abdirahman Mohamed Abdullahi, has made international recognition a priority.

An American official involved in the efforts confirmed that the U.S. was “having a quiet conversation with Somaliland about a range of areas where they can be helpful to the U.S. in exchange for recognition.”

The possibility of U.S. recognition could provide an incentive for Abdullahi to back away from the territory’s solidarity with the Palestinians.

The United Arab Emirates, another Abraham Accord country that has developed strong ties with Israel, once had a military base in Somaliland and maintains commercial interests there, including a port. The territory’s strategic location, in the Gulf of Aden waterway near Yemen, home to the Houthi rebel group, could also make it a valuable ally.

Over the years, Somaliland has been lauded for its relatively stable political environment, contrasting sharply with Somalia’s ongoing struggles amid deadly attacks by al-Qaida-linked militant group al-Shabab. Since 1991, Somaliland has maintained its own government, currency and security structures. Still, it has one of the lowest income levels in the world.

An official in Somaliland, speaking on condition of anonymity because he was not authorized to talk to the media, said his government has not been approached and is not in talks about taking in Palestinians.

Somalia

Somalia has been a vocal supporter of the Palestinians, often hosting peaceful protests on its streets in support of them. The country joined the recent Arab summit that rejected Trump’s plan and seems like an unlikely destination for Palestinians, even if they did agree to move.

Sambu Chepkorir, a lawyer and conflict researcher in Nairobi, Kenya, said it is difficult to understand why Somalia would want to host Palestinians given the country’s strong support for Palestinian self-rule.

“The realignments keep changing, and so maybe there is a hidden agenda,” Chepkorir said.

A Somali official, speaking on condition of anonymity because he was not authorized to talk to the media, said the country had not been approached about taking in Palestinians from Gaza and there had been no discussions about it.

I missed this until now but there was a major tailings dam failure at a mine in Zambia last month. This is a really poor one, it sounds like there was a lot of acidic, heavy metal laden waste that went into the downstream environment.

archive - https://archive.is/Te73M

The spill happened on Feb. 18 when a tailings dam that holds acidic waste from a copper mine in the north of the country collapsed, according to investigators from the Engineering Institution of Zambia.

The collapse allowed some 50 million liters of waste containing concentrated acid, dissolved solids and heavy metals to flow into a stream that links to the Kafue River, Zambia’s most important waterway, the engineering institution said.

Here is a more technical discussion with before and after pics: https://eos.org/thelandslideblog/chambishi-tsf-1

I don’t know the history of sino metals and this particular mine, like whether the mine existed and was bought by them or if sino metals designed it and started it themselves, but in any case this was absolutely the fault of the engineers and staff running the facility. Safe water storage is a critical aspect of dam operation and by running the system without it, this failure was way worse than it could have been. Regardless of who pays the price in dollars, it’s the people, animals and environment of the kafue river that pays the real price.

the headline of this article is accurate - copper is a bigger bottleneck for electrification than rare earths: https://www.npr.org/2025/03/16/nx-s1-5327095/copper-rare-earth-minerals-mining-electronics

New Canadian Prime Minister Carney orders review of F-35 purchase plans. This comes along with a whole lot of public comments about wanting much closer ties to Europe in general, and especially the EU. I really really really hate to say it, but given his experience in the European business world, he’s probably going to be well-received by the European ruling class as a reasonably-trustworthy “one of us”.

I felt dirty typing that. I wonder if he’s bound for a Churchill-like role. A despicable scumbag for the his whole life, except for a brief period where his cutthroat instincts and his rabid nationalism were applied to fight a greater enemy.

Schumer says he will vote for the GOP Continuing Resolution that keeps the government funded and also gives the Trump admin further discretionary powers to redirect some of the funding and budget. Also, it includes the usual stuff like;

Overall, the measure would boost defense spending by $6 billion compared to fiscal year 2024 and decrease nondefense spending by $13 billion.

Duterte got arrested I believe. ICC warrant for arrest for human rights abuses on his war on drugs that left thousands dead

Resumption of Ansarallah naval blockade on isntreal

Statement in Arabic

بيانٌ صادرٌ عنِ القواتِ المسلحةِ اليمنية

بسمِ اللهِ الرحمنِ الرحيمِ قال تعالى: { وَإِنۡ عُدتُّمۡ عُدۡنَاۚ وَجَعَلۡنَا جَهَنَّمَ لِلۡكَـٰفِرِینَ حَصِیرًا } صدق الله العظيم

إسناداً وانتصاراً لمظلوميةِ الشعبِ الفلسطينيِّ ومجاهديهِ الأعزاءِ وبعدَ انتهاءِ المدةِ المحددةِ للمهلةِ التي منحها السيدُ القائدُ عبدُالملك بدرِالدين الحوثي يحفظه الله للوسطاءِ لدفعِ العدوِّ الإسرائيليِّ والضغط عليه لإعادةِ فتحِ المعابرِ وإدخالِ المساعداتِ إلى قطاعِ غزةَ ونظرا لعدمِ تمكنِ الوسطاءِ من تحقيقِ ذلك فإنَّ القواتِ المسلحةَ اليمنيةَ تؤكدُ على ما يلي:

أولاً: استئنافُ حظرِ عبورِ كافةِ السُّفُنِ الإسرائيليةِ في منطقةِ العملياتِ المحددةِ بـالبحرينِ الأحمرِ والعربيِّ وكذلك بابُ المندبِ وخليجُ عدن.

ثانياً: يبدأُ سريانُ هذا الحظرِ من ساعةِ إعلانِ هذا البيان.

ثالثاً : إنَّ أيَّ سفينةٍ إسرائيليةٍ تحاولُ كسرَ هذا الحظرِ سوفَ تتعرضُ للاستهدافِ في منطقةِ العملياتِ المعلنِ عنها.

رابعاً: يستمرُّ هذا الحظرُ حتى إعادةِ فتحِ المعابرِ إلى قطاعِ غزةَ ودخولِ المساعداتِ والاحتياجاتِ من الغذاءِ والدواءِ.

تحيي القواتُ المسلحةُ اليمنية الشعبَ الفلسطينيَّ الصامدَ في قطاعِ غزةَ وكذلكَ في الضفةِ الغربيةِ وتؤكدُ أنَّها بعونِ اللهِ ستكونُ إلى جانبِ المقاومةِ الفلسطينيةِ الباسلة.

واللهُ حسبُنا ونعمَ الوكيل، نعمَ المولى ونعمَ النصير

عاشَ اليمنُ حراً عزيزاً مستقلاً والنصرُ لليمنِ ولكلِّ أحرارِ الأمة

صنعاء 11 من رمضان 1446للهجرة الموافق للـ 11 مارس 2025م

صادرٌ عنِ القواتِ المسلحةِ اليمنية

In support of and triumphing for the oppressed Palestinian people and their Mujahideen, and following the expiration of the deadline granted by Sayyid Abdulmalik Badr al-Din al-Houthi (may Allah protect him) to mediators to pressure and persuade the Israeli enemy in order to reopen the crossings and allow back the entry of aid into the Gaza Strip, and given the mediators’ inability to achieve this, the Yemeni Armed Forces affirm the following:

First: Resuming the ban on the passage of all Israeli ships in the designated operations zone in both Red and Arabian Seas, as well as Bab al-mandab strait and the Gulf of Aden.

Second: This ban shall take effect from the time this statement is issued.

Third: Any Israeli ship attempting to violate this ban shall be targeted in the declared zone of ​​operations.

Fourth: This ban shall continue until the crossings to the Gaza Strip are reopened and aid, food, and medicine are allowed in.

The Yemeni Armed Forces salute the steadfast Palestinian people in the Gaza Strip and the West Bank and affirm that, with Allah’s help, they will stand by the valiant Palestinian resistance.

Sanaa, Ramadan 11, 1446 AH March 11, 2025 AD

Issued by the Yemeni Armed Forces.

http://t.me/army21ye

Putin is a hell of a troll after all. First, he responds to Trump’s proposal for a truce with the words of a famous joke about “there is a nuance” (everyone knows it, we won’t repeat it). I wonder if Trump’s translators are that advanced.

Then he keeps Witkoff in the anteroom for eight hours, forcing him to wait out his meeting with Lukashenko, a press conference with Lukashenko, and lunch with Lukashenko. While Witkoff marinates in the waiting room, Kremlin websites publish the menu for lunch with Batka, all these veal cheeks and cucumber rolls. All this time, the Americans wait, dangling their legs.

Then Putin suddenly pulls Zelensky, hanging him in a dilemma: Russia agrees to spare the soldiers slammed in Kursk, if Zelensky gives the order to surrender (he orders to surrender = shamefully screwed up, caved in to Putin, he doesn’t order = a murderer, condemning thousands of people to death and the hardships of captivity, take your pick).

Beautiful, huh.

From the news yesterday:

“We are for it. But there is a nuance,” Putin said of a 30-day ceasefire during a press briefing. “First, what are we going to do with the encirclement in the Kursk region?”

For those who are unaware, “but there is a nuance” was a very popular Soviet joke about Vasily Ivanovich Chapaev.

Popularized by the 1934 film Chapaev by the Vasilyev brothers, which followed a fictionalized account of Chapaev’s story alongside his aide Petka, and his girlfriend Anka the Machine Gunner, these three characters had since been elevated into folk figures in the Soviet culture and spawned an entire collection of Soviet/Russian jokes, often about the absurdities of everyday life. According to the wikipedia article, Putin said in 2014 that Chapaev is his favorite film of all time.

obscene and possibly inappropriate

Petka asks Chapaev: “Vasily Ivanovich, what is this nuance?”

Chapaev: - Take off your pants, Petka, I’ll show you.

Petka, somewhat perplexed, takes off his pants.

Chapaev comes up from behind and shoves it in, clearly what, clearly where, and explains: - Look, Petka, - it seems like you have a dick in your ass, and I have a dick in my ass… But! There is one nuance…

I legitimately don’t understand how libs are mad at Continuing Resolution and seething at Chuck Schumer, other than calling for Chuck to retire and calling for him to be primaried, which admittedly is quite fun. Back in December we had Continuing Resolution as well to continue funding the govt. Continuing Resolution means govt budget stays the same, and this one is a Continuing Resolution from December, so this is essentially a Biden budget. What am I missing? Why libs happy in December but mad now, is it because Orange man president? Or is there any provision that made December bill GOOD but March bill bad? What’s the difference?

Fun article in the FT this weekend about Germany’s military recruitment failures. Highlights:

As a podcaster and freelance journalist, Ole Nymoen admits he enjoys freedom of expression and other democratic rights in his home country of GERMANY. But he would not want to die for THEM. In a book published this week, Why I Would Never Fight for My Country, the 27-year-old argues ordinary people should not be sent into battle on behalf of nation states and their rulers — even to fend off an invasion. Occupation by a foreign power might lead to a “shitty” life, he told the Financial Times. “But I’d rather be occupied than dead.” Nymoen, a self-described Marxist, does not claim to be representative of Generation Z in Germany. But his stance — and his striking honesty about it — taps into a wider questions facing Europe as it re-arms on a scale not seen since the end of the cold war.

But, while those funds are helping to plug gaps in arms and equipment, one of the biggest remaining issues is manpower. Germany’s armed forces commissioner, Eva Högl, this week warned the country was not closer to its goal of having 203,000 active troops by 2031, as the overall size of the armed forces slightly declined last year, partly because of a high number of dropouts. A quarter of the 18,810 men and women who signed up in 2023 left the armed forces within six months.

Christian Mölling, Europe director at the Bertelsmann Foundation, estimates that German troop numbers need to rise from 181,000 today to 270,000 in the years ahead in order to reach Nato targets — and fill gaps left if American forces stationed in Europe withdraw.

While a recent survey by the pollster YouGov found 58 per cent of Germans would support a return to conscription, only a third of those aged between 18 and 29 felt the same way. Nymoen, himself a Die Linke voter, is deeply suspicious of Europe’s race to re-arm. It was all very well for European leaders to sound belligerent, he said. “The thing is that, in the end, it’s going to be me in the trenches.”