Three years ago, China was set for a green auto revolution. But the country's electricity-powered car industry is in stasis.
When Warren Buffett in 2008 bought 10% of Chinese car and battery maker BYD (acronym stands for Build Your Dreams), many thought it was the dawning of the Chinese electric vehicles (EVs) age. That "golden era" may yet arrive. Eventually. But in the interim, that dream has mutated into something of a nightmare ensnared in interest group politics and lack of clear strategies.
Take BYD, whose current fate--because it is considered a private sector leader in the EV game--reflects conditions of the embryonic industry at large. A string of negative press has not helped its prospects. For example, Bloomberg reported in September that the Shenzhen-based company is planning to issue nearly $1 billion of bonds as it comes under pressure to pay back debt and as sales of its sedans dwindle. Then in late October, BusinessWeek followed with a piece that said BYD America has not only delayed opening its operations, it has also under-delivered in the number of jobs it claimed it will create in Los Angeles. (The subtext here: "see, Chinese investment in the US does not create 'green-collar' jobs!") Of course, BYD's troubles in the U.S. are linked to its sub-optimal performance in the domestic Chinese market.
Indeed, BYD has likely sold more of its fully electric and hybrid vehicles to government entities than to actual Chinese consumers. Even with limited consumer subsidies, the E6 all-electric model will still cost around 250,000 yuan, or nearly $40,000--sticker shock for the average Chinese consumer in the market for a car that gets you from point A to B. And that's all on top of percolating questions over the soundness of its battery technology.
Beyond BYD, the rest of the industry appears to remain more or less in stasis, with more talk than action. In the department of exaggerated/misleading headlines, this China Dailypiece trumpets "Electric taxis to triple in Beijing next year". But what does that actually mean?
Beijing will increase the number of its fleet of electric taxis from 50 to 150 by May 2012, said an official from Yanqing, a county in northwestern Beijing where an electric car pilot operation is underway.
The program in Yanqing is the biggest of its kind in North China, said Wu Shijiang, vice director of the transportation bureau of the county. The 50 electric taxis in operation were developed by Beiqi Foton Motor Co Ltd, the biggest commercial vehicle manufacturer in China in terms of production and sales.
So that's 150 taxis among how many tens of thousands in Beijing? And reading between the lines, this "county official" is clearly promoting local business interests to garner the attention of higher-level officials. In the absence of an official nod from the Beijing government, it is not entirely clear whether these taxis will even be used at all.
The state of EV development in China is hardly solely the fault of industry or technology. The central government shares a large part of the blame, as it has sent confusing and vacillating signals that confound industry and confuse the market. Despite what initially appeared to be fervent support for EVs, the top leadership has poured some cold water on the sector with recent comments. Premier Wen Jiabao, speaking at a national science and technology association conference in May, all but admitted that the leadership itself is unsure about the future direction of the EV industry and that issues ranging from strategy to core technology still need to be resolved.
Wen's comments explain why the ten-year plan on alternative energy vehicles development, which was intended to be released this year, has remained under wraps. That plan was supposed to be one major pillar of China's 21st century industrial policy through 2020 and considered a "strategic emerging industry". It appears that major disagreements at the top are driven by a generous helping of bureaucratic interest conflicts. According to the Economic Observer, the Ministry of Industry and Information Technology is pushing for the simultaneous development of fuel efficient cars and EVs; the Ministry of Science and Technology is obsessed with promoting EVs from a narrow technological standpoint; and the National Development and Reform Commission seems to support hybrids as a transitional phase toward singular focus on EVs.
Industry is complicit in complicating an already complex situation. Given Beijing's incessant touting of the trillions of investment that will flow to new strategic sectors over the next five years, including EVs, automakers and even major state-owned enterprises (SOEs) do not want to be denied a piece of the money pie. The auto industry already formed its own EV association, only to be followed by the formation of an SOE-dominated EV group that includes the likes of State Grid and the national oil companies. Why the oil companies? Because the "big two"--CNPC and Sinopec--control the vast majority of downstream gas stations, they believe there is profit to be made in retrofitting gas stations to EV charging stations. No one wants to cede ground in case the money spigot starts flowing RMBs.
The government, in essence, is stuck. Walking back on the entire EV program is impossible. But full-throttle ahead at this point seems unrealistic given that no one can decide on a clear path forward. Moreover, the government is most likely correct in assessing that blind pursuit of this program with little foresight can lead to irrational exuberance like what happened with the wind industry.
I have not been particularly bullish on the Chinese EV sector's near-term prospects, and it's unclear to me whether developing an auto industry on par with Japan, Germany, or the US even makes sense from China's macro development standpoint. (In this respect, I agree with Zhu Rongji's harsh assessment of creating a domestic auto industry.) Introducing EVs into the Beijing taxi fleet may help mitigate horrendous and unpredictable air pollution, but they won't alleviate the worsening traffic bottlenecks that now regularly choke the city. Even if EVs reduce air pollution, charging them could mean more coal usage--since China is primarily a coal-powered economy--that offset whatever carbon reduction benefits derived from less gasoline consumption in the transport sector. But wait, there's also "indigenous innovation", and wouldn't leading battery technology go a long way toward that goal? Paradoxical objectives, pulled along by powerful interests in different directions, explain much of China's story these days.
Whatever the outcome of this uncertainty, one thing is clear: what was once hailed as a potential EV revolution in China is turning out to be more akin to an incremental evolution.
Damien Ma is a fellow at the Paulson Institute, where he focuses on investment and policy programs, and on the Institute's research and think-tank activities. Previously, he was a lead China analyst at Eurasia Group, a political risk research and advisory firm.
“Look, Sessions gets the job. Right after he gets the job, he recuses himself,” Trump said. “So Jeff Sessions takes the job, gets into the job, recuses himself. I then have—which, frankly, I think is very unfair to the president. How do you take a job and then recuse yourself? If he would have recused himself before the job, I would have said, ‘Thanks, Jeff, but I can’t, you know, I’m not going to take you.’ It’s extremely unfair, and that’s a mild word, to the president.”
When it comes to health care and entitlements, the party’s policies don't always align with its coalition’s beliefs.
The Senate Republican health-care bill has been repeatedly crushed in a slow-motion collision between the party’s historic ideology and the interests of its modern electoral coalition. Yet congressional Republicans appear determined to plow right through the wreckage.
Even as the Senate’s latest effort to repeal the Affordable Care Act collapsed on Tuesday, the House Republican leadership released a 10-year federal-budget blueprint that points them toward a similar confrontation, between their dominant small-government dogma and the economic needs of their increasingly blue-collar and older white base.
John F. Kennedy famously said that failure is an orphan. But the failure, at least for now, of the GOP drive against the ACA has many parents. One was a distracted and ineffectual President Trump. Even higher on the list sits Senate Majority Leader Mitch McConnell, who displayed a blinding hubris that will forever cloud his previous reputation for legislative wizardry. Operating with unprecedented secrecy and insularity, McConnell degraded Senate tradition by refusing to hold any public hearings or committee votes on the legislation. His closed-door process provoked not only unified opposition from Democrats, but also every major medical stakeholder. He sought to pressure dissenting senators with unrealistic vote deadlines—then retreated as they repeatedly called his bluff.
A new study explores why the latter are far more likely to opt for an elite college where they'd struggle than a so-so one where they'd excel.
There’s a saying in China that it’s better to be the head of a chicken than the tail of a phoenix. The premise of the aphorism—it’s better to be over-qualified than under-qualified relative to one’s surroundings—is so widely accepted that similar versions of it exist across cultures. In Japan, they tend to say that it’s better to be the head of a sardine than the tail of a whale. Americans and Brits often declare that it’s better to be a big frog (or fish) in a small pond than a little frog in a big pond.
Extensive research supports these axioms, particularly in the realm of education. Longitudinal studies have consistently shown that high-performing students at less-selective schools feel more competent, have higher GPAs, and have more ambitious career aspirations than low-performing students at more-selective schools.
Paul Behrends, a controversial staffer associated with the California congressman’s pro-Russia stances, was pushed out of his role on a subcommittee after questions were raised about a recent trip to Moscow.
Paul Behrends, a top aide to Representative Dana Rohrabacher, has been ousted from his role as staff director for the House Foreign Affairs subcommittee that Rohrabacher chairs, after stories appeared in the press highlighting his relationships with pro-Russia lobbyists.
“Paul Behrends no longer works at the committee,” a House Foreign Affairs Committee spokesperson said on Wednesday evening.
Behrends accompanied Rohrabacher on a 2016 trip to Moscow in which Rohrabacher said he received anti-Magnitsky Act materials from prosecutors. The Magnitsky Act is a 2012 bill that imposes sanctions on Russian officials associated with the 2009 death in prison of lawyer Sergei Magnitsky, who had been investigating tax fraud. Natalia Veselnitskaya, the Russian attorney and lobbyist who met with Donald Trump Jr. at Trump Tower last year, reportedly brought up the Magintsky Act during the meeting.
The story of a duel between two men, one who dies, and the nature of the quest to build artificial intelligence
Marion Tinsley—math professor, minister, and the best checkers player in the world—sat across a game board from a computer, dying.
Tinsley had been the world’s best for 40 years, a time during which he'd lost a handful of games to humans, but never a match. It's possible no single person had ever dominated a competitive pursuit the way Tinsley dominated checkers. But this was a different sort of competition, the Man-Machine World Championship.
His opponent was Chinook, a checkers-playing program programmed by Jonathan Schaeffer, a round, frizzy-haired professor from the University of Alberta, who operated the machine. Through obsessive work, Chinook had become very good. It hadn't lost a game in its last 125—and since they’d come close to defeating Tinsley in 1992, Schaeffer’s team had spent thousands of hours perfecting his machine.
Senator John McCain’s glioblastoma diagnosis revives a longstanding debate over the safety of wireless technology.
Senator John McCain’s brain cancer diagnosis is likely to revive a persistent and complex question about the safety of wireless technologies, like cellphones, that emit electromagnetic radiation.
For years, researchers have explored whether cellphone use can increase a person’s likelihood of getting cancer. And for years their findings have been mixed—and in many cases controversial. The consensus, if there is one, is that the health risks of regular cellphone usage are probably quite small, if they exist at all. But it’s hard to prove a negative, so the question remains open-ended.
Doctors discovered McCain’s glioblastoma after the 80-year-old senator underwent a procedure to remove a blood clot, his office announced in a statement from the Mayo Clinic Wednesday night. Glioblastoma is one of the most common and also one of the most aggressive kinds of brain tumor. Senator Ted Kennedy received a similar diagnosis in the spring of 2008. He died from the disease about 15 months later, in August 2009. Could there be a connection between the aggressive form of cancer in Kennedy’s brain and his cellphone usage? U.S. senators tend to do a good deal of business by phone, especially when they're in Washington and away from their constituencies.
Some focus on the largest figures, like total student debt ($1.3 trillion) and average debt ($30,000.) So why is the most dangerous student loan number less than $5,000?
"I feel I kind of ruined my life by going to college," Jackie Krowen said. She first took out student loans at 19, to go to community college in Oregon. She borrowed more when she transferred to Portland State University, and even more to go to nursing school at the University of Rochester in New York. Now, more than $150,000 in debt, Krowen toldConsumer Reports that she cannot buy a house and fears the specter of her non-dischargeable debt will follow her for the rest of her life.
I read Jackie’s story earlier this summer, and I thought about it constantly while reading the student debt report from the White House's Council of Economic Advisers, which was released today. There’s no doubt that Jackie’s situation is disturbing and sad. It’s not unique: There are many students for whom college is not that promised ticket to the middle class, but rather an albatross that punishes their early adulthood. They are tens of thousands of dollars in debt, in jobs paying half what they expected to earn after college. They cannot buy a home, start a business. They are even afraid to get married and have a kid.
Many point to unromantic 20-somethings and women’s entry into the workforce, but an overlooked factor is the trouble young men have in finding steady, well-paid jobs.
TOKYO—Japan’s population is shrinking. For the first time since the government started keeping track more than a century ago, there were fewer than 1 million births last year, as the country’s population fell by more than 300,000 people. The blame has long been put on Japan’s young people, who are accused of not having enough sex, and on women, who, the narrative goes, put their careers before thoughts of getting married and having a family.
But there’s another, simpler explanation for the country’s low birth rate, one that has implications for the U.S.: Japan’s birth rate may be falling because there are fewer good opportunities for young people, and especially men, in the country’s economy. In a country where men are still widely expected to be breadwinners and support families, a lack of good jobs may be creating a class of men who don’t marry and have children because they—and their potential partners—know they can’t afford to.
Most of the country understands that when it comes to government, you pay for what you get.
When I was a young kid growing up in Montreal, our annual family trips to my grandparents’ Florida condo in the 1970s and ‘80s offered glimpses of a better life. Not just Bubbie and Zadie’s miniature, sun-bronzed world of Del Boca Vista, but the whole sprawling infrastructural colossus of Cold War America itself, with its famed interstate highway system and suburban sprawl. Many Canadians then saw themselves as America’s poor cousins, and our inferiority complex asserted itself the moment we got off the plane.
Decades later, the United States presents visitors from the north with a different impression. There hasn’t been a new major airport constructed in the United States since 1995. And the existing stock of terminals is badly in need of upgrades. Much of the surrounding road and rail infrastructure is in even worse shape (the trip from LaGuardia Airport to midtown Manhattan being particularly appalling). Washington, D.C.’s semi-functional subway system feels like a World’s Fair exhibit that someone forgot to close down. Detroit’s 90-year-old Ambassador Bridge—which carries close to $200 billion worth of goods across the Canada-U.S. border annually—has been operating beyond its engineering capacity for years. In 2015, the Canadian government announced it would be paying virtually the entire bill for a new bridge (including, amazingly, the U.S. customs plaza on the Detroit side), after Michigan’s government pled poverty. “We are unable to build bridges, we're unable to build airports, our inner city school kids are not graduating,” is how JPMorgan Chase CEO Jamie Dimon summarized the state of things during an earnings conference call last week. “It’s almost embarrassing being an American citizen.”
Twenty years ago, Luc Besson’s visually stunning film hinged its story not on action or violence, but on love.
The most radical element of Luc Besson’s 1997 space opera The Fifth Element is not the absurdly opulent future-costumes designed by Jean Paul Gaultier. It isn’t the bizarre Southern twang of the Hitler haircut-sporting villain Zorg (Gary Oldman), nor is it Chris Tucker’s performance as an intergalactic sex symbol who hosts a radio show. It’s that Bruce Willis cries at the opera. In budget, in scale, and in casting, The Fifth Element feels like any other big Hollywood sci-fi movie, featuring popular English-speaking actors running around a high-concept world, complete with lavish sets and CGI effects. But not many blockbusters would let its male star weep at a musical performance.
That set piece comes in the middle of the film as Willis’s character, Korben Dallas, a gun-wielding space cowboy with spiked, peroxide-blonde hair, takes in a show by the blue alien singer Diva Plavalaguna (Maïwenn). Besson’s film has, up until now, been a relentless blitz of action, as Korben follows the mysterious Leeloo (Milla Jovovich) across the galaxy to help retrieve mystical stones that will help her save the world from a great, encroaching evil. But for a second, the movie grinds to a halt, letting Korben take in the extraterrestrial songstress’s solo with tears in his eyes.