Yesterday Reuters reported that a big urbanization push in China, once thought essential to the country's economic growth model, may be in jeopardy:
China's plan to spend $6.5 trillion on urbanization to bolster the economy is running into snags, sources close to the government said, as top leaders fear another spending binge could push up local debt levels and inflate a property bubble.
Premier Li Keqiang has rejected an urbanization proposal drafted by the National Development and Reform Commission (NDRC), seeking changes to put more emphasis on economic reform, according to the sources, who are familiar with the matter.
First, let's stop and think a minute about the number quoted here: $6.5 trillion. That's "trillion" with a "t". To put this number in perspective, it's higher than the GDP of every country in the world, except for the United States and, of course, China. This was no modest little plan.
But the figure is more than just yet another gaudy number in a country famous for mind-blowing statistics. In fact, the sum earmarked for investment -- and Premier Li's skittishness about it -- neatly encapsulate the dilemma at the core of China's economic future.
In China, economic growth and urbanization have gone hand in hand. When Deng Xiaoping initiated Reform and Opening in 1978, the vast majority of the population lived and worked in the countryside -- just as Chinese people had for centuries. But over the past three and a half decades, as special economic zones churned out exports and China modernized its cities, hundreds of millions of people migrated to urban areas seeking work in the manufacturing and service sectors. This has, in short, has made China -- and the Chinese -- much wealthier.
(This trend, by the way, is hardly unique to China: urbanization has accompanied wealth generation practically everywhere in the world, from India to Turkey to Brazil. There's a pervasive myth -- call it the Slumdog Millionaire effect -- that people living in urban slums have the lowest standard of living in the world. In fact, it's rural poverty that is really the problem. But back to China.)
China now has a lot of huge cities, with more on the way: the management consultancy McKinsey & Company estimated in 2009 that by 2025, the country will boast 221 cities with over a million people. But there's still a lot of room for more; in 2010, for instance, 36 percent of the Chinese population worked in agriculture, compared to just 2 percent for the more developed United States. If historical patterns repeat themselves, most of the hundreds of millions of people still working in the countryside will eventually migrate to cities, and China will grow even wealthier.
At least that's the plan. But while urbanization serves as an engine for China's economy, migration to the cities has spread worry that the country's boom is unsustainable.
That's because the problems with urbanization are numerous. China's municipal governments, which financed the fixed-asset infrastructure that enabled the economy to grow, now sit on a mountain of bad debt, which won't be easy to untangle. The construction of so many houses has led, in many cities, to a housing bubble no less troubling than the one plaguing the United States pre-Lehman Brothers.
Then there's income inequality. China's Gini coefficient eclipsed that of the United States, and the difference between rich and poor are likely even greater than the reported figures indicate. This is an economic program with the potential to destabilize the whole of Chinese society. And, of course, there are China's famous environmental woes. Each of these problems grow worse with economic growth -- and with urbanization.
So what can China's leaders do to resolve this thorny dilemma? Tweaking the hukou -- a household registration system that prevents rural migrants from obtaining social services in cities -- would be a start, as this would help bring China's migrant workers in from the shadows of the country's urban areas. The government has also established new regulations intended to cool the housing market, understandably fearful of how a burst bubble would wreak havoc throughout Chinese society.
Will these moves work? This is the big question in China, and given how quickly things change in the country it'd be foolish making a prediction one way or another. But Li's apparent refusal of the NDRC urbanization proposal at least signals Beijing's unwillingness to plow forward with its usual spending binge and brings hope that the Xi Jinping administration may be more willing than its predecessor to launch needed reforms.
The Washington Post reports that the president’s son-in-law suggested using Russian diplomatic facilities to create a secret channel to Moscow.
Jared Kushner, a senior adviser to President Trump and his son-in-law, suggested to Russian Ambassador Sergei Kislyak that he be allowed to use Russian diplomatic facilities to communicate securely with Moscow, The Washington Postreported on Friday.
The request reportedly came in a meeting in Trump Tower at the beginning of December that included Kushner, Kislyak, and former National-Security Adviser Michael Flynn. It came to the attention of American officials through intercepts of Russian communications in which Kislyak relayed the request to his superiors in Moscow; the officials who spoke to the Post specified that they were not monitoring either the meeting or the communications of the Americans who were present.
The permissiveness of Republican leaders who acquiesce to violence, collusion, and corruption is encouraging more of the same.
In the annals of the Trump era, May 25, 2017, will deserve a special mark. Four remarkable things happened on Thursday, each of which marks a way that this presidency is changing the nation.
The first remarkable thing was President Trump’s speech at the NATO summit in Brussels. Many European governments had hoped—which is a polite way to say that they had suggested and expected—that Trump would reaffirm the American commitment to defend NATO members if attacked. This is the point of the whole enterprise after all! Here’s how it was done by President Obama at the NATO summit after the Russian invasion of Crimea:
First and foremost, we have reaffirmed the central mission of the Alliance. Article 5 enshrines our solemn duty to each other—“an armed attack against one … shall be considered an attack against them all.” This is a binding, treaty obligation. It is non-negotiable. And here in Wales, we’ve left absolutely no doubt—we will defend every Ally.
She lived with us for 56 years. She raised me and my siblings without pay. I was 11, a typical American kid, before I realized who she was.
The ashes filled a black plastic box about the size of a toaster. It weighed three and a half pounds. I put it in a canvas tote bag and packed it in my suitcase this past July for the transpacific flight to Manila. From there I would travel by car to a rural village. When I arrived, I would hand over all that was left of the woman who had spent 56 years as a slave in my family’s household.
The condition has long been considered untreatable. Experts can spot it in a child as young as 3 or 4. But a new clinical approach offers hope.
This is a good day, Samantha tells me: 10 on a scale of 10. We’re sitting in a conference room at the San Marcos Treatment Center, just south of Austin, Texas, a space that has witnessed countless difficult conversations between troubled children, their worried parents, and clinical therapists. But today promises unalloyed joy. Samantha’s mother is visiting from Idaho, as she does every six weeks, which means lunch off campus and an excursion to Target. The girl needs supplies: new jeans, yoga pants, nail polish.
Listen to the audio version of this article:Download the Audm app for your iPhone to listen to more titles.
At 11, Samantha is just over 5 feet tall and has wavy black hair and a steady gaze. She flashes a smile when I ask about her favorite subject (history), and grimaces when I ask about her least favorite (math). She seems poised and cheerful, a normal preteen. But when we steer into uncomfortable territory—the events that led her to this juvenile-treatment facility nearly 2,000 miles from her family—Samantha hesitates and looks down at her hands. “I wanted the whole world to myself,” she says. “So I made a whole entire book about how to hurt people.”
Preston Brooks, Greg Gianforte, and the American tradition of disguising cowardice as bravery.
You wouldn’t say that Preston Brooks sucker-punched Charles Sumner in the Senate chamber in 1856—but only because he used a cane. Brooks, a South Carolina congressman, began bludgeoning Sumner, the anti-slavery Massachusetts Senator, while Sumner wasn’t looking, and beat him unconscious as Sumner was still bent under his desk trying to stand up.
Brooks and his supporters in the South saw the incident as an act of great valor, as the historian Manisha Shinha writes. Brooks bragged that “for the first five or six licks he offered to make fight but I plied him so rapidly that he did not touch me. Towards the last he bellowed like a calf.” The pro-slavery Richmond Enquirer wrote that it considered the act “good in conception, better in execution, and best of all in consequence.” Other “southern defenders of Brooks,” Sinha writes, praised Brooks for his “manly spirit” and mocked Sumner for his “unmanly submission.” It would have been manlier for the unarmed Sumner not to have been ambushed.
The president’s business tells lawmakers it is too difficult to track all its foreign revenue in accordance with constitutional requirements, and it hasn’t asked Congress for a permission slip.
Days before taking office, Donald Trump said his company would donate all profits from foreign governments to the U.S. Treasury, part of an effort to avoid even the appearance of a conflict with the Constitution’s emoluments clause.
Now, however, the Trump Organization is telling Congress that determining exactly how much of its profits come from foreign governments is simply more trouble than it’s worth.
In response to a document request from the House Oversight Committee, Trump’s company sent a copy of an eight-page pamphlet detailing how it plans to track payments it receives from foreign governments at the firm’s many hotels, golf courses, and restaurants across the globe. But while the Trump Organization said it would set aside all money it collects from customers that identify themselves as representing a foreign government, it would not undertake a more intensive effort to determine if a payment would violate the Constitution’s prohibition on public office holders accepting an “emolument” from a foreign state.
Is it that they take art so seriously, they don’t think of it as money?
Two weeks ago, Ivanka Trump caught some alone time in Yayoi Kusama’s Obliteration Room. Staged at the Hirshhorn Museum and Sculpture Garden in Washington, D.C., the piece is a living room en blanc, a white-out room filled with all-white furniture and personal effects, that visitors are invited to cover over with tiny colorful dot stickers. The piece is mesmerizing, an Instagram sensation; a contemporary art lover like Trump wasn’t likely to miss out on the hottest ticket (and snap) in town.
Trump is an art lover, that much is plain. Her own Instagram feed is chock full of images of contemporary art from the Park Avenue condo she and husband Jared Kushner share. Her affection for art—not normally something even her detractors would likely begrudge her—may have worked against her family this week. As reporters at Artnet discovered, Kushner, a senior White House advisor, failed to report the couple’s extensive art collection in required financial disclosures.
Isabel Caliva and her husband, Frank, had already “kicked the can down the road.” The can, in their case, was the kid conversation; the road was Caliva’s fertile years. Frank had always said he wanted lots of kids. Caliva, who was in her early 30s, thought maybe one or two would be nice, but she was mostly undecided. They had a nice life, with plenty of free time that allowed for trips to Portugal, Paris, and Hawaii.
“I wasn’t feeling the pull the same way my friends were describing,” she told me recently. “I thought, maybe this isn’t gonna be the thing for me. Maybe it’s just going to be the two of us.”
At times, she wondered if her lack of baby fever should be cause for concern. She took her worries to the Internet, where she came across a post on the Rumpus’ “Dear Sugar” advice column titled, “The Ghost Ship that Didn’t Carry Us.” The letter was from a 41-year-old man who was also on the fence about kids: “Things like quiet, free time, spontaneous travel, pockets of non-obligation,” he wrote. “I really value them.”
The president urged Muslims to “reject violence” in a statement that contrasted sharply with those issued by Bill Clinton, George W. Bush, and Barack Obama.
President Trump wished all Muslims a “joyful Ramadan” in a statement Friday, just hours before the start of the month-long Islamic holiday during which those observing fast from sunrise to sunset.
Though such statements are commonplace among American presidents, Trump’s remarks took on a markedly different tone than did those of his predecessors. While the statement, like those of presidents past, noted the “acts of charity and meditation” that define the holy month, it went on to focus on a topic that has been at the forefront of Trump’s first trip overseas as president: terrorism.
“This year, the holiday begins as the world mourns the innocent victims of barbaric terrorist attacks in the United Kingdom and Egypt, acts of depravity that are directly contrary to the spirit of Ramadan,” the White House statement reads, adding that “such acts only steel our resolve to defeat the terrorists and their perverted ideology.”