Major shifts in U.S. trade policy make it vitally important to study global business and China’s role in it

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Some of the top international students from the 2016 graduating class.

The global economic order is rapidly changing, and China, with the world’s second-largest economy, is becoming an increasingly important player. As U.S. international and trade policies shift dramatically under a new administration, China is aggressively seeking to bolster its leadership role in the world’s interconnected global economy on trade and other business issues.

If you are interested in pursuing a career in business journalism, now is a great time to study global business in China in the Global Business Journalism Master’s Program at Tsinghua University in Beijing. (Of course, your blog author has a personal stake in this program: I’m co-director.) The deadline to apply for admission to the GBJ program is February 28, 2017.

Tsinghua University is the most prestigious university in China, providing a genuine international environment to students from around the world. The Global Business Journalism Program at Tsinghua, founded in 2007, has won international acclaim for teaching global best practices in business journalism and the technical skills needed to succeed in today’s digital news environment.

The program, a partnership between Tsinghua, the International Center for Journalists and Bloomberg News, trains future journalists who can help the public understand the complexities of global business and the economy. Students in the program benefit from a faculty that includes award-winning journalists from prominent media organizations such as Bloomberg News, the National Press Club of Washington and Business Week, as well as renowned Chinese scholars with degrees from prestigious international institutions.

The two-year program is fully taught in English. Enrollment in the courses is about half international, half Chinese. The program provides internship opportunities at major media organizations and offers summer reporting programs in New York and Washington.

Scholarships are available to top applicants. The deadline to apply for scholarships, as well as admission, is February 28.

Graduates of the intensive program emerge with a network of valuable connections that can enrich their careers. You can contact GBJ or ICFJ with any questions.

To share the mini-documentary on GBJ, send your friends this link: https://www.youtube.com/watch?v=VQ6kr_rUeI8&feature=youtu.be

To apply, please visit the application site:
http://gbj.tsjc.tsinghua.edu.cn/publish/jcgbj/370/index.html

For more of the program, please visit the program’s official website:
http://gbj.tsjc.tsinghua.edu.cn/publish/jcgbj/index.html

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2016 GBJ grads Jordyn Dahl and Jade Ladal

Contact at Tsinghua School of Journalism and Communication:
Ms. Ma Chengcheng (Sarah)
The GBJ Office
Room 302, Omnicom Building,
School of Journalism and Communication
Tsinghua University,
Beijing 100084, P. R. China
Tel: +86 10 6279 6842
Fax: +86 10 6277 1410
E-mail: tsjcws@mail.tsinghua.edu.cn


16 bold predictions for 2016 (including ‘Cruz schlongs Trump’)

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The bromance is headed for a rocky break-up in 2016.

The pundits were soooooo wrong in 2015 that it seems silly for anyone to pull out the crystal ball again. Especially in the midst of the most unpredictable Republican presidential nominating process in … what, four years? (President Gingrich, President Santorum, President Perry, we hardly knew ye.)

But since so many pundits make good salaries predicting things that don’t come true, I’m going to let you in on some things that are as solid as Sears. (OK, if you’re under 50 years old, you probably don’t understand that line.)

Here are my 16 bold predictions for 2016:

      1. The New York Daily News headline on Feb. 2, 2016 (the day after the Iowa caucuses): CRUZ SCHLONGS TRUMP
      2. Former Arkansas Gov. Mike Huckabee, the winner of the 2008 Iowa Republican caucuses, drops out of the 2016 race on Feb. 3 after finishing eighth in the previous evening’s Iowa caucuses. Nobody outside of the Huckabee family notices.
      3. Donald Trump continues his slide from frontrunner status on Feb. 23 with a stinging defeat in the Nevada caucuses when fellow gambling mogul Sheldon Adelson pulls out all the stops in support of [Editor’s note: He hasn’t yet decided which non-Trump candidate he will support]. Front page editorials in the Adelson family’s Las Vegas Review-Journal strongly support [candidate to be decided upon later]. Adelson tells close friends that Trump eliminated himself from contention when he didn’t know he was supposed to say that Jerusalem is and always will be the indivisible capital of Israel — and then canceled his meeting with Israeli Prime Minister Bibi Netanyahu in a fit of pique after Adelson buddy Bibi bashed Trump for saying he’d bar all non-citizen Muslims from the U.S. — and then used “schlong” as a verb.

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        Larry David got more attention from the mainstream media when he played Bernie Sanders on Saturday Night Live than the real candidate got when playing himself on the campaign trail.

      4. Bernie Sanders will be the Mo Udall of 2016. Without the wicked sense of humor. Favorite of the liberal liberals. String of second-place finishes. His last stand will be in the Vermont primary on March 1. But while Bernie battles for his home state’s 15 delegates chosen in the primary, Hillary Clinton will take something like 207 of the 208 Texas delegates up for grabs that day.
      5. The Republican Party in the United States will remain the only conservative party in the entire world to dispute the fact that humans contribute to climate change. Not a good strategy to win the support of young Americans, who wonder why so many old fogies can’t accept global scientific consensus.

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        Just saying no.

      6. The Democratic Party in the United States will continue to argue for protectionism and managed trade. The Tea Party will continue to argue for protectionism and managed trade. The rest of the world will wonder why America continues to have such a robust, resilient economy when its politicians seem to be trying so hard to destroy its competitiveness.
      7. America will make history again — by electing the first female president ever, the first candidate with a Spanish surname and/or the first U.S. president ever born in Canada.
      8. The next vice president’s last name will end in an “o.” Leading possibilities are Castro, Rubio or uh-oh.
      9. Ratings on MSNBC will continue to slip-slide toward oblivion. Morning Joe’s audience will be limited to the DC Beltway, Manhattan and Joe Scarborough’s family’s homes. More than 95 percent of Chris Matthews’ audience will be aged 65 and above.
      10. The Washington Post website, having passed the New York Times in online audience in 2015, will rocket ahead of CNN through a combination of good, solid, old-fashioned reporting and analysis and an understanding of viral-news marketing.
      11. The Huffington Post, having reached the limits of page views through click-bait, rewrites and journalistic trolling, reassesses its business strategy amid general stagnation.
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“Mister Hearst, tear down that wall.”

12. American newspapers continue to reassess the ill-fated paywall fad amid mounting evidence that they are destroying any potential for long-term community-building in a misguided attempt to increase short-term revenues.

13. No pro team from Philadelphia or Austin will make the playoffs in any sport.

14. Dan Snyder will continue to top the lists of “worst sports team owner,” despite his mediocre team’s miraculous 2015 run in the NFC Least division.

15. The Pyongyang Marathon will continue to be the least popular marathon in any nation’s capital. It’s on April 10, if you’re interested in signing up.

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Have you signed up yet? One-way airfare not included.

16. American newspapers and news networks will feature stories about the poisonous air in Beijing with frightening regularity, causing the Chinese government to (a) condemn the negative news coverage and (b) develop a new and improved strategy for dealing with a problem that’s not going away, despite the occasional blasts of fresh air from Siberia.

Happy New Year to all!

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Red Alert in Beijing


Analysis: Why Xi Jinping’s summit with Barack Obama is more important than you may think

Analyzing the summit for CCTV.

Analyzing the summit for CCTV. You can watch the entire Dialogue program here.

This week’s summit meeting between Chinese President Xi Jinping and U.S. President Barack Obama has been overshadowed in the United States by the historic visit by Pope Francis — and then the sudden resignation of U.S. House Speaker John Boehner. But the China-U.S. summit is likely to have broader and longer-lasting implications on both the global economy and geopolitical matters.

Here is my analysis of the high stakes and — at least for leaders in China — high hopes for the summit. It is in a Q&A format based on questions formulated by China Radio International designed to stimulate a roundtable discussion on its Today program.

Q: Xi Jinping’s first speech upon arriving in Seattle was peppered with U.S. cultural references, including the film Sleepless in Seattle and the television series House of Cards. He also shared some personal experiences, like his life as a visiting student in Iowa. Do you think the personal touches went down well with his American audience?

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A: It’s always good to drop a few cultural references — though I will say that House of Cards may be more popular in China than it is in the U.S. At Tsinghua University, where I work in the Global Business Journalism program, everyone wants to know if it’s an accurate depiction of American politics and journalism.

More seriously, President Xi definitely connected with his business audience of leaders of major technology companies — and I think that is a big win for future partnerships with the tech and aerospace industries.

Q: Since China and the U.S. established diplomatic ties, only four Chinese presidents have paid state visits to the U.S.: Li Xianian in 1985, Jiang Zemin in 1997, and Hu Jintao in 2006 and 2011. We now have the fifth. How different is this one: what has changed and what remains the same in bilateral relations?

A: The biggest visit from a Chinese leader was not even a state visit, it was from Deng Xiaoping, who was vice chairman, not president.

What is the same? The desire of the leaders of both countries to deepen economic and cultural ties. The differences: the end of the Cold War, the rise of China’s economy (even with current uncertainties) and the increasing importance of China on the global diplomatic and military front. Also, for much of the relationship, China and the U.S. used each other as a wedge against the Soviet Union and then Russia. Now China and Russia are closer in a geopolitical sense than China and the U.S.

Presidents Obama and Xi walk from the White House to Blair House for dinner on Sept. 24.

Presidents Obama and Xi walk from the White House to Blair House for dinner on Sept. 24.

Q: Apart from political rhetoric and media outcries, what really makes the two giants like each other and what turns them apart?

A: The leaders like each other. The countries share mutual respect, win-win economic ties and a concern for future of the world economy. The issues that drive them apart include economic competition, Taiwan, U.S. criticism about human rights issues and U.S. military alliances (particularly with Japan).

Q: Is there anything special about the personal relationship between Obama and Xi Jinping? They twice have discussed ideologies and history. The pictures of them walking on the Sunnylands Ranch in 2013 and their late evening stroll indicates some mutual understanding of the top jobs.

A: They have definitely connected on an intellectual level and it’s clear from the body language that they like and respect each other. You don’t see the same thing when President Obama and Russian President Putin get together.

Q: Xi Jinping’s visit comes at a time when geopolitical conditions in East Asia have evolved to a very subtle point. The Obama administration declared to its “Pivot-to-Asia” diplomacy shift in 2012. Tensions have been growing in the region with Shinzo Abe seeking to expand Japan’s overseas military role and several Southeast Asian nations embroiling themselves into a territorial dispute with Beijing. Is the timing of the trip too tough?

A: There’s never a perfect time for a trip. Japanese assertiveness on military matters, issues in the South and East China Seas, cyberspying all have created some tensions. The slowdown of China’s growth also has created some uncertainty on the economic side. But there are many important things the two countries can do to benefit each other and the world situation, economically and geopolitically.

Q: How does China fit into the current global strategy of the United States? And vice versa?

A: That’s a complicated pair of questions. The U.S. has not taken part in the AIIB — the Asia Infrastructure Investment Bank — and tried, thus far unsuccessfully, to launch a Trans-Pacific Partnership anchored by the U.S., Japan and Korea. But despite those problems, both countries are eager to welcome investment from the other nation to help grow jobs in their countries. And both are interested in improving the economies of Africa, where both have invested a substantial amount of soft-power capital.

In terms of geopolitics, the U.S. believes that China is a key player in resolving almost all of the most difficult international issues of the day, from the Korean Peninsula to the Middle East. The U.S. wants China as a leading player and not a marginalized actor.

Q: China has been very active in recent years on both political and economic fronts. Despite a global economic slowdown, China still manages to maintain a GDP growth at around 7 percent over the years and is now the world’s second largest economy, right after the U.S. Since Xi Jinping came to power, China has proposed several international cooperation mechanisms such as the AIIB, the New Development Bank, the Land and Maritime Silk Road Initiative and so on, taking more responsibility in regional and international affairs. What do you make of the U.S. reaction to this?

A: I think the U.S. should be more welcoming and more cooperative — while realizing that some tension and competition is natural. I’m not sure how much of this reflects the concerns of Japan about China’s growing influence and how much is Washington policymakers’ policy concerns. The world economy should allow for both nations to grow — it’s not a zero-sum game.

The two presidents take questions from the U.S. and Chinese media on Sept. 25.

The two presidents take questions from the U.S. and Chinese media on Sept. 25.

Q: How much damage has been caused by conflicts between the two?

A: There have always been tensions and there still are. Taiwan was and will be a continuing strain, but the strain has been handled by both nations with mutual effort. Both nations have accused the other of spying, and they have had strong words about military actions in the South China and seas. But they have kept their disagreements civil and kept them in perspective. The shared goals of the two nations are much more important than the continuing differences.

Q: What’s the way to bring China-U.S. relations to a new level while properly handling these conflicts?

A: Agree to disagree about some things and work on the issues where progress can be made. A bilateral investment treaty is good for both countries and should not be blocked because of American fears about cybersecurity. However, international companies need to reach a comfort level that their trade secrets would not be compromised if they do business in China.

Q: China and the U.S. both shoulder responsibilities in dealing with major international issues, like the Iran nuclear issue, the North Korean nuclear issue, climate change and so on. What’s a more constructive way for the two sides to cooperate in order to solve these difficult problems?

A: I would hope that we hear more about this from President Xi at the United Nations. The key thing is more and higher-profile Chinese involvement alongside the U.S. and Russia. Korea is a very difficult problem and can only be resolved if China and the U.S. are in complete agreement about the future of the peninsula.

Q: Leaders from both countries have been exchanging visits regularly in history. When people reflect back in the future, how do you think they will think about this visit?

A: To use President Xi’s words, it was the first summit of the major-power relationship era. In my view, the most important meetings between the nation’s leaders were in 1972, when President Nixon came to Beijing, 1979, with Deng Xiaoping, when China was beginning to reshape its economy, and 1998, when Bill Clinton visited China as China was emerging as a global economic power. To me, this is the logical fourth leg of the chair — and could steady the relationship for the decade to come, whoever is elected president of the U.S. next year.

Photo opp with CRI crew and fellow guests after the Today program on Sept. 25.

Photo op with CRI crew and fellow guests after the Today program on Sept. 25. You can listen here.

Q: Several economic deals are being announced this week during the visit, including companies such as Boeing and Cisco. How significant are these deals? Can economic and trade links still function as the main stabilizer of the overall China-U.S. relations?

A: Yes. Economic ties and trade not only will help the two nations but the global economy. The world economy may be more dependent on Chinese economic growth than U.S., particularly nations of Africa and Central and East Asia.

Q: Moody’s Analytics’ chief economist has calculated that every 1 percentage point drop in Chinese growth reduces U.S. economic growth by 0.2 percent. This is equal to the price of oil going up $20 a barrel. How interrelated and interdependent are the two economies?

A: I agree with Moody’s. Of course, the Chinese people are hurt more than the American people by any slump in the Chinese economy, but there is a ripple effect in this interdependent world. I think that the African and East Asian economies would suffer more by a prolonged slump in China, but the U.S. would feel it.

Q: China has been on a path towards reforming its economy. How important are China’s economic reforms to the U.S. economy and that of the world?

A: Internal reform in China is important to the U.S. — not reform for reform’s sake, but reform that makes the Chinese economy more efficient and reform that creates more disposable income in China and more markets for global goods. Also, reforms in rule of law and protection of intellectual property are very important to the U.S. and the rest of the world.

Q: Given the moves last month on the value of the RMB, how much of an issue is that in the relationship now?

A: Although some Republican presidential candidates have criticized China’s devaluation of the RMB as currency manipulation, most global economists do not believe that, and neither does the Obama administration. This was a legitimate issue in 1999, but times have changed. The IMF has stated that the RMB has shown signs of floating with the market, and I think the U.S. administration appreciates that.

The first families wave from the Truman Balcony at the White House.

The first families wave from the Truman Balcony at the White House.

Q: China and the U.S. respectively have proposed different international economic entities. China proposed the AIIB and the New Development Bank, while the U.S. is pushing forward with the Trans-Pacific Partnership. In what ways can these two countries and these different entities cooperate, especially in terms of global financial institutions reform?

A: It would be ideal to unify these partnerships, and I think that is likely at some time. But it might take a decade or more. International financial institutions are in serious need of reform. I’m not optimistic that such reform is coming in the near term, but it is inevitable in the long term.

Q: The U.S. Federal Reserve recently made a decision to delay an interest rate rise. How much did China’s current economic situation factor into the decision?

A: It played a role — along with the continuing economic softness in Europe. The Fed is ready to raise rates, but it remembers when its rate increases in previous decades created panic in Mexico and other emerging markets. So it is acting more cautious now. However, rate hikes are a near certainty over the next year.

Q: How does the decision affect the Chinese economy? How much should the Fed take such affects into account when making these decisions about the U.S. economy?

A: The impact should be minor, more psychological than real, more based on speculation than reality.

Q: In recent times, U.S. companies and business associations have mentioned issues of market access, national security and cyber-security laws, and potential requirements to hand over corporate security materials. Chinese tech companies like Huawei faces similar problems in the U.S. What can be done about this?

A: Talk about it honestly and openly, as has been going on. Agreeing on a treaty that would provide “rules of the road” for cybersecurity. That’s a first step. The agreement may not be unveiled this week, but a framework for future action is possible.

Q: Another on-going item is the bilateral investment treaty, or BIT, between the two nations. What are the main challenges, and how should they be overcome?

A: The main challenges are rule of law, cybersecurity, openness of U.S. markets to Chinese companies and openness of Chinese markets, particularly financial, to U.S. companies. Prolonged negotiations will be needed to resolve them, but both sides want to achieve results, so I’d be optimistic.

Q: In terms of a compromise, might we see a type of “cyber arms deal” being reached, which would help establish which kinds of cyber attacks could be outlawed – attacks on civilian infrastructure, for example?

A: Yes, that’s exactly right. Government on government spying has always existed. But companies want assurances that they will be able to do business without fear of corporate espionage.

XI Jinping is honored in Iowa, where he lived several decades ago.

Before becoming China’s president, Xi Jinping visited Iowa, where he lived several decades ago.

Q: One of China’s most wanted economic fugitives – Yang Jinyun – was returned to the country by the U.S. last week. This marked the first time China has succeeded in repatriating a wanted corruption suspect from the U.S., with whom it has no extradition treaty. Has Yang Jinyun’s repatriation laid an important foundation for bilateral cooperation, or is it just a separate move done only as an olive branch for a presidential trip?

A: It is symbolic but it also is part of a series of concrete actions by the United States to help China in cases of corruption-related fugitives. The U.S. Justice Department has shown a willingness to help China deal with corruption cases, which are different than political cases.

Q: Beyond all specifics, the fundamental question has always been: What does the rise of China mean to the USA, and vice versa? What should Xi Jinping say to Obama? “I have no intention to challenge the existing world order.” What should Obama say to Xi Jinping? “Play the second fiddle.”

A: No, there is no need to talk about who is number one and who is number two. It is the most important bilateral relationship in the world. The leaders must show each other and their nation’s respect. I think that exists. Xi Jinping doesn’t have to make any assurances about the existing world order. The new world order is emerging — and everyone knows it. There is no reason for irrational concern on either nation’s part. The leadership of both countries — economic, diplomatic and moral — is vital.

>> Link to CCTV Dialogue program: http://english.cntv.cn/2015/09/24/VIDE1443041881178448.shtml

>> Link to CRI Today program: http://english.cri.cn/7146/2015/09/25/3641s897467.htm