Winners, losers in Xinjiang cotton row

Not many will gain in the current furore over Xinjiang cotton, but the West may end up losing more.

As the soil and climate is ideal for cotton farming, Xinjiang produces one of the best quality cotton crops in the world. 

 

XINJIANG has never left the radar of the United States and its allies in their relentless efforts in recent years to vilify Beijing. They have hurled accusations ranging from human rights violations to baseless claim of “genocide” against the Muslim minority groups.

The most recent blow, which has kicked up a huge international firestorm since March 24, centered on the alleged use of “forced labour” in the huge and vibrant cotton industry in Xinjiang.

Calling these accusations “malicious lies and fabrications”, Beijing has imposed tit-for-tat sanctions on politicians and groups in the US, Britain and the European Union (EU), in retaliation for Western sanctions on Chinese officials over their role in alleged human right violations in Xinjiang.

In its attempt to show the brain and culprits behind these allegations, Beijing has also said there are geopolitical and economic reasons in the conspiracy to “blacken” Xinjiang cotton.

Accusing the US of aiming to destabilise China, Beijing’s foreign ministry on March 26 showed the media a 2018 video that recorded a speech by career US army officer Lawrence Wilkerson, who told the US Central Intelligence Agency to use Uyghurs in Xinjiang to hit China from within.

Beijing has also highlighted the subtle link between US government and Geneva-based NGO Better Cotton Initiative (BCI), which has sanctioned Xinjiang cotton despite being informed by its Shanghai branch there are no signs of forced labour in Xinjiang in the latter’s own investigation.

The BCI, hitherto thought to be an independent trade group to promote better standards, is accused by China to have allegedly taken funding from US Agency for International Development (USAID).

According to USAID’s website, the work of the agency “advances the government’s national security and economic interest”.

The Chinese social media has taken this further. It points out that BCI council chairman Marc Lewkowitz is the president of Supima – the promotion and marketing organisation for American Pima cotton growers.

“The US has no right to accuse China over human rights. It’s time for some US politicians to end the drama they made up, directed and performed themselves, and it’s time for them to wake up from their own Truman Show, ” said Hua Chunying, China’s key foreign ministry spokesperson, at a regular press briefing last Wednesday.

As the history of Xinjiang is marred with bloody terrorism and separatism, which was only put to an end by the central government in 2016, the province populated with 12 million Muslim Uyghurs has become an easy target for anti-China groups to fan up religious and anti-China sentiment.

However, amid allegations against China, leaders from the Muslim world who have visited Xinjiang have not uttered disapproval. In fact, some Middle East nations even voiced support for Beijing’s treatment of the Uyghurs.

A 25-year strategic cooperation agreement signed on March 27 between China and Iran is seen as a stamp of confidence on China by a major Muslim country. The pact, signed at the height of the cotton conflict, covers military, trade, energy and economic cooperation. It has attracted Western media and eyes.

In countering the claim that Xinjiang cotton is tarnished by forced labour, China has questioned why its accusers have persistently refused to visit Xinjiang and do their own fact-finding.

In the past, Beijing has adopted a relatively passive response towards western accusations. Its rebuttals often came in the form of press statements and media interviews to show the good work they have done in Xinjiang, which include eradicating extreme poverty in this arid mountainous north-western province, setting up schools for the young, and creating employment for the jobless.

But this time around, China has dropped its soft approach. It has hit back mercilessly.

For politicians with wide-ranging commercial interest in China, it really hurts. One named person facing China’s sanctions saw his family fortune dwindle by US$1bil as businesses linked to him are hit, according to social media posts.

It is understandable that Beijing has to respond fast as these claims are hurting Xinjiang and undermining China’s economy. It has triggered boycott of Xinjiang cotton by Western brands led by H&M, Nike and Adidas – all members of the BCI.

According to China Daily, the boycott has had an instant impact on Xinjiang’s cotton/textile industry. Textile factories are planning to lay off workers and cutting purchase from local farmers due to cancelled orders.

The cotton/textile industry in Xinjiang has created jobs for 600,000 local people. More than 50% of farmers in Xinjiang grow cotton, with over 70% of these farmers coming from ethnic minority groups – the Uyghurs, Kazaks and Uzbeks, says the daily.

The boycott has had an instant impact on Xinjiang’s cotton/textile industry.

According to commentators on China’s official CCTV television (Channel 4) last Sunday, cotton farming was introduced to help eradicate abject poverty. As the soil and climate is ideal for cotton farming, Xinjiang produces one of the best cotton crops (in terms of quality) in the world.

With an annual output of 5.2 million tonnes, Xinjiang’s cottonco accounts for 87% of China’s output and 23% of world supplies. By end-2019, there were 808 cotton processing plants in Xinjiang, accounting for 84% of China’s total, says a report in Global Times.

These statistics show that cotton farming and textile manufacturing has become a mainstay of Xinjiang’s economy, apart from tourism.

If Xinjiang’s cotton is tarnished, this segment of Chinese economy will be affected. More so will be China’s efforts in poverty eradication, hailed by the World Bank as a great achievement.

Hence, it is no surprise China has had to roar back to stop further damage.

Arguing against the “forced labour” claim, the Global Times noted that over 90% of cotton fields in the northern part of Xinjiang is mechanised.

And interestingly, the cotton-picking machines of Xinjiang are imported from the US. John Deere of the US has sold US$500mil worth of cotton-harvesting equipment to Xinjiang since 2017, according to the South China Morning Post.

But the loss in this row is not just confined to China. Western brands that have dropped Xinjiang cotton are feeling backlash from the mainland’s consumers, who have called for a nationwide boycott by China’s 1.4 billion people.

Sweden’s garment company H&M, reported to have 505 sales outlets in China, saw its stores empty on March 25, shunned by local customers. It was reported that six stores have closed after landlords cancelled their leasing contracts.

As China is a major market for H&M in terms of revenue, H&M last Wednesday posted a statement on its website to defuse tension. It said without mentioning Xinjing: “We are dedicated to regaining the trust and confidence of our customers, colleagues, and business partners in China.”

 Shuttered shops: Sweden's garment company H&M, reported to have 505 sales outlets in China, saw its stores empty recently due to backlash from irate locals - Reuters

But Chinese netizens are not happy with this statement.

The Chinese sentiment is largely reflected by a post by China’s Communist Youth League: “Spreading rumours to boycott Xinjiang cotton, while trying to make a profit in China? Wishful thinking!”

The foreign ministry’s Hua Chunying stated similar stance: “Chinese people will not allow foreigners to eat our rice and break Chinese bowl”.

More than 40 celebrities in the entertainment world have responded to call for boycott by quitting as brand ambassadors for foreign companies.

It was not a surprise when share price of some multinational companies plunged after the public outcry in China.

According to media reports, Germany’s Adidas saw its share price plunge by over 6% on March 25. Adidas and US-based Nike saw their combined market value dissipate by more than 70 billion yuan or US$10.7bil. The market value of H&M slumped by about 4.8bil yuan.

But if these multi-national corporations (MNC) want to continue to operate in China and earn billions from 400 million middle-class consumers, they may have to do soul-searching and research.

Zhang Yi, CEO of Shenzhen-based iiMedia Research, told Global Times these MNCs may find prospects and growth potential in the rapidly-expanding Chinese market dimmed, and their brand value could be reduced by half.

Before this cotton episode, many MNCs had rosy growth projections for 2021 in the Chinese market. For instance, Adidas was expecting 20%-30% growth in China in 2021, Zhang noted.

Apart from growth, MNCs could also face an irreversible loss in the world’s largest market. When an MNC loses its market share in China, another will promptly scramble in to fill the vaccum, according to Zhang.

 According to media reports, Germany’s Adidas saw its share price plunge by over 6% on March 25.

However, not all MNCs are losers. Companies that have aired support for Xinjiang, such as Fila China and Muji China, are enjoying consumer support.

And California-based Skechers has won generous praise for having done its own fact-checking. The footwear firm has said its audits found no evidence its Chinese supplier had used “forced labour”.

Some Chinese brands have also emerged winners in this conflict as consumers turn nationalistic. These include Li Ning and Anta.

Globally, the losers are consumers.

Yang Shu, associate professor of China Agricultural University, said this cotton row would disrupt supply chain and push up costs.

Hence, consumers in EU, the US and Southeast Asia will have to pay more for products with Xinjiang cotton.

For China, this cotton row may be a wake-up call to review its international strategies.

Mei Xinyu, a researcher at the Chinese Academy of International Trade and Economic Cooperation, told Global Times Beijing might have to exert “a far greater say in the global cotton/textile industry and in the formulation of standards and pricing”.

And rightly so, as China is the world’s second biggest cotton producer and largest textile/apparel exporter. Last year, it sold US$291.22bil worth of cotton-linked products to the world.

As US President Joe Biden has declared he will not allow China to overtake the US during his term of office, China can expect to see more blows from the US to contain China and counter President Xi Jinping’s successful Belt and Road Initiative.

But as the Alaska talk last month shows, Beijing is prepared to stand up to the US and the West. It has declared it will not allow China to be bullied and humiliated by the West like 120 years ago.

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Standing his ground: Yang speaking at the opening session of the talks in Alaska. — Photos: AP

【完整版】中美高层战略对话现场全记录 U.S.-China Summit in Alaska [Full Version]

 

Blinken (far right) speaking at the dialogue as Yang (far left) and China’s State Councillor Wang Yi (second from left) listen.

 

 Chinese diplomats’ face-off with their US counterparts at a recent bilateral meet has won applause from many around the globe.

ALTHOUGH the two-day in-person meeting in Alaska between top Chinese and American officials ended last weekend, the fiery exchanges at its opening session have continued to reverberate and it is now a talking point among Chinese globally.

The strong phrases used by the Chinese diplomats on United States soil against their American counterparts have won applause globally, particularly from Chinese nationals and people of Chinese descent.

To the Chinese who remember history, the great humiliation exacted by the West on China in 1901 was avenged by the opening address of Beijing’s foreign policy chief Yang Jiechi at the Washington-initiated dialogue in Anchorage, Alaska.

Soon after the testy opening on March 18, photos of the Protocol of 1901 reminding readers of the unfair and degrading treaty forced on China began circulating widely on social media.

The treaty was signed on Sept 7,1901, by China’s Qing government after it could no longer muster resistance to invading troops sent by Britain, Germany, the United States, France, Tsarist Russia, Japan, Italy and Austria – the grouping was known as the Eight-Power Allied Forces..

The protocol stipulated that “the Qing government shall pay 450 million taels of silver to the Eight-Power Allied Forces for 39 years”. Together with “reparations” from provincial governments, the total sum of indemnity came to one billion taels of silver, equivalent to China’s revenue over 10 years then, says Chinese history..

According to the Global Talk show on TV station CTI Taiwan, the video of the 16-minute opening address by Yang, director of the Office of the Central Leading Group for Foreign Affairs of China, has attracted “explosive hits” all over the world..

“In the past, no country bullied by the US dared to stand up to the US. This is the first time China told them off bluntly and demanded respect. People who are happy with Yang are not only the Chinese but also people from countries invaded by the US or who are suffering from US sanctions, like Iran..

“From now on, Washington must rethink how it should deal with Beijing. Everybody must watch this outstanding speech by Yang Jiechi, ” said commentator Yong See Kuan on the show early last week..

In another Taiwan talk show with opinion leaders, China was voted winner in this “most interesting diplomatic talk in history” and the United States was the loser in diplomacy and legitimacy..

Chinese nationals feel particularly proud, as it is clear that in this first high-level US-China meeting under President Joe Biden administration, the uncompromising and righteous stance adopted by Yang has cast a long shadow over American supremacy and diplomacy..

What was initially meant to be a several-minute photo shoot ended up lasting over an hour as both sides traded barbs. Members of the media were told not to leave so they could listen to rebuttals..

The expected diplomatic niceties were missing when US Secretary of State Antony Blinken and National Security Advisor Jake Sullivan commenced proceedings with sharp criticisms of China on issues ranging from bilateral relations and human rights to cyber attacks and violation of international rules..

In response to that hostile opening, Yang responded to each allegation blow-by-blow, shooting past the time allocated..

On human rights, Yang reminded the United States about the killing of African-Americans, saying: “We do hope the US will do better on human rights. The challenges facing the US in human rights are deep-seated. They did not just emerge over the past four years with Black Lives Matter.”.

On cyber attacks, he said: “Let me say that whether it’s the ability to launch cyber attacks or the technologies that could be deployed, the US is the champion.”.

On international rules, he said: “I don’t think the overwhelming majority of countries in the world would recognise that the universal values advocated by the US or the opinion of the US could represent international public opinion.... And the rules made by a small number of people would not serve as the basis for the international order.”.

With choice barbs, Yang belittled the Americans..

He shocked all by saying: “The US does not have the qualification to speak to us from a position of strength.”.

He told the United States to “stop interfering in China’s internal politics” on Hong Kong, Xinjiang and Taiwan. On this subject, he added in Mandarin emphatically: “China will not buy (accept) the American way.”.

On democracy, he said: “You have your style of democracy and China has its own style.”.

Other phrases that appeared to hit hard at the United States and its Western allies include: “The US does not represent international opinion, and neither does the Western world.”.

Indeed, the 70-year-old veteran diplomat with tertiary British education has become a Chinese hero for showing the United States – and the world – how confident and assertive China can be after rising to become the world’s second largest economy and global power, with technology and military might..

Yang also reminded the United States that China, now led by President Xi Jinping, is not the China of 100 years ago, after saying China has suffered enough..

One of his most notable Mandarin phrase, “Chinese people will not buy the American way” is now appearing on T-shirts, umbrellas and other merchandise that is selling like hot cakes on the Chinese mainland..

Actually, not many observers had high expectations of this dialogue. Ahead of the meeting, top US officials visited regional allies Japan and South Korea and issued statements hostile towards China..

And just before the Chinese diplomats flew to Alaska, the US State Department announced it would impose sanctions on 24 Chinese officials for their role in “eroding” Hong Kong’s electoral system under a new Beijing law..

The timing of the sanctions and anti-China statements caused China’s Foreign Minister Wang Yi to make this pointed remark: “This is not supposed to be the way one welcomes guests”..

Amidst these hostilities from Washington, many people had thought that Beijing might cancel the talks unilaterally..

But the Chinese went. By attending this face-to-face dialogue amid insults, China showed off its confidence to the world, attracting much attention..

China’s confidence stems from its achievements since it opened up to the world, according to Wang Wen, a professor at the Renmin University of China..

“In the past decade, China has become the world’s largest manufacturing country, the world’s largest goods trading country, and the world’s largest consumer market. In the next five to 10 years, China will most likely surpass the US to become the world’s largest economy, ” he wrote..

Wang sees China-US relations at their worst since diplomatic ties were established..

“After taking office, Biden has made it clear that he views China as the ‘most serious competitor’ to the US. He takes Donald Trump’s legacy as a bargaining chip in a new round of games with China.”.

Noting that the balance of power between the two countries has changed, The New York Times said in a commentary: “China today feels far more assured in its ability to challenge the US and push for its own vision of international cooperation. It is a confidence embraced since 2012 when Xi Jinping became the top leader of China..

“For decades, China approached American governments from positions of weakness. That forced it at times to accede to American demands, however grudgingly, whether it was to release detained human rights advocates or to accept Washington’s conditions for joining the World Trade Organisation.”.

The newspaper added that the Alaska dialogue shows that the Biden administration’s strategy to curb Beijing is facing a stiff challenge..

Martin Jacques, a visiting professor at the Institute of Modern International Relations at Beijing’s Tsinghua University, said the United States cannot accept the “painful fact” that China is now its equal..

In his opinion piece, he wrote: “Yang Jiechi gave a bravura performance. He let his American counterparts have it with both barrels, challenging not just the US position but also its very legitimacy. This is not normally the Chinese manner on such occasions. It is a sign that something has changed..

“There is a new sense of confidence on the part of the Chinese. That they are winning – or can win – the argument. That they are at least the equals of America. That they speak from a position of strength and America from a position of weakness. That history is on their side.”.

According to the scholar, the Americans have hitherto always thought of themselves as running the show: “The shock visible in the body language of Blinken and Sullivan was the realisation that this was no longer the case.”.

Jacques added: “America is in the process of coming to the painful realisation that China is now its equal. However, it cannot bring itself to accept what is already an historical reality.”.

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Amid headwinds, China charts a technology-focused future

Economic freedom: Xi leading other Chinese leaders at the fifth plenary session of the 19th Central Committee of the CPC in Beijing on Oct 29. China’s leaders are vowing to make their country a self-reliant “technology power” after a meeting to draft a development blueprint for the state-dominated economy over the next five years. — Xinhua via AP

 WHILE the world was following the US presidential elections closely hoping for a positive change in international dynamics, they did not ignore the most important political meeting taking place in China on Oct 26-29.

The developments in China – the only country showing solid economic recovery after combating the Covid-19 epidemic in Wuhan – are too important to be eclipsed by the drama in Washington led by President Donald Trump.

The Oct 26-29 meeting gave a glimpse of the future plans of China, after Beijing withstood two major challenges: the containment from the US and a major public health crisis caused by the novel coronavirus.

The effective control of the virus has enabled China to revitalise its economy, which it contracted in the first half of the year. In the third quarter, China’s GDP posted a positive growth and is expected to see even stronger expansion this quarter.

It is against this backdrop that China was holding its most important policy meeting this year.

Over the four days, top leaders of the Communist Party of China (CPC) led by President Xi Jinping deliberated China’s 14th Five-Year Plan (2021-2025) to chart the future development path for the world’s second largest economy.

They also endorsed a blueprint to achieve President Xi’s vision of turning China into a “great modern socialist nation” by 2035, which by then is expected to be “prosperous, strong, democratic, culturally advanced and harmonious”.

The Fifth Plenary Session of the 19th CPC Central Committee set goals to spur China’s modernisation drive, pursue self-reliance in science and technology to support its development and modernise defense capabilities, according to a post-plenum press conference live on CCTV4.

A communique summarizing the decisions was released on Oct 29 night to the media.

More than 200 leaders and elite members of CPC met behind closed doors to identify policy priorities for keeping the economy growing in the middle of a pandemic, supply chain disruptions, toxic relations with the West and global economic downturn, according to the South China Morning Post.“This five year plan is China’s most important policy program, which sets goals and directions for the national economic and social development, ” said Professor Wang Wen, who was involved in drafting the plan.

The executive dean of Chongyang Institute for Financial Studies at Renmin University of China added that this plan is a “very comprehensive plan” as public opinion was collected on the Internet and reported to decision-making levels.

And President Xi had personally held frequent symposiums on various fields and sectors ahead of the plenary session.

“The plan takes into account the interests and demands of the whole country, various industries, regions and institutions. It is a design to start a new journey of fully building a modern socialist country after China completes the building of a moderately prosperous society in all respects, ” Wang said in a post-event comment piece emailed to Sunday Star.

At the post-event press conference on Oct 30, the media were told Beijing would actively promote “technological self-reliance” to speed up China’s ambition as a “technology power.”

Self-reliance is the main theme of the five-year plan as China faces the threats of economic decoupling and de-globalisation, as well as other headwinds, the media learnt.

China had to nurture its own microchip producers and high technology in the face of US export curbs that has hurt China’s tech industry.

According to a report, Chinese telecommunications giant Huawei has lost a lot of its supply sources of high-precision chips; and if the US ban continues and Beijing does not act, Huawei may have to stop its high-end smart-phone production.

“We will take scientific and technological self-reliance as a strategic support for national development, ” Han Wenxiu, an adviser to President Xi, said at the Oct 30 news conference.

State-linked Global Times, in its editorial, said Trump’s China policies have awakened the Chinese from complacency.

It said: “If it were not for the US’ suppression, Chinese people may have always built our industries on American semiconductors.

“Over the past four years, the US’ China policy has awakened China. It has made us understand we may be stuck on key technologies and we must make up for technological shortcomings.

“It has also convinced us that the US will not accept China’s rise and will do everything to suppress China. This is a cold reality.”

The CPC plenary session has also endorsed the “dual circulation” economic strategy.

Under this new strategy, China will remain open to foreign investment and trade, while moving its pivot to build up an internal economy. The model looks at the domestic market as the country’s economic mainstay, with domestic and foreign markets complementing each other.

Although there is greater emphasis to create the domestic economy by spurring local spending, China will continue to open more sectors to foreign investors.

The message sent to foreigners is: China will not isolate itself from the global economy while developing its domestic economy to be self-reliant in all aspects.

And in fact, at the opening of Shanghai’s third import expo on Wednesday, Xi announced China wants to import more and be the market of the world. He added China’s 400 million-strong middle class will be ready consumers.

According to Han, the Oct 26-29 meeting also decided that China will continue to pursue reforms and open up as it believes in multilateralism and globalisation.

He said: “We will never waver in our national policy of opening up. China will provide countries around the world with larger markets and more opportunities.”

In the next five years, China will focus on high-quality growth and expansion of domestic markets, as well as increasing its innovation capability.

“As China is no longer a follower but a front-runner, the meeting must have considered how China can lead the global economy. The following five years will not be easy. However, as long as we grasp the law, enhance awareness of risks and opportunities... China will witness a completely new scene of development, ” commented Wang.

As China is facing possible risks of clashes with the US and its allies that are conducting extensive military exercises in waters in South China Sea and nearby waters, military buildup is on the agenda in the next five years.

“China’s necessary military buildup is urgent. Based on the principle of effective defense, besides establishing military advantages in coastal waters, we must consolidate our strategic deterrence based on nuclear capabilities, ” explained Global Times in its editorial.

“We must make Washington realise that it is facing a China that it should be wary of trifling with, and that treating China as a friend rather than a foe much better fits US national interests, ” added Global Times.

Despite this, the communiqué released said the party plans to promote peaceful reunification of Taiwan.

In the four-day intense meeting, the welfare and interests of the people were not left out.

After eradicating the last of extreme poverty this year and lifting 700 million out of abject poverty in the past 40 years, the next goal for the CPC leaders is to hit its target of building a “moderately prosperous society” in 2021.

In fact, the goal to become “a moderately prosperous society” in by 2021 has been achieved, according to state media.

Acknowledging that the Covid-19 pandemic has affected many people, the plenary session discussed employment, income disparity, the quality of life and education, health issues and elderly care, the media were told on Oct 30. While the plenary session deliberated a lot on economic issues, foreign media are keen to scrutinise it from a political angle. To Japan’s Nikkei, the “2035”

figure is a magical figure that could provide indication on the leadership tenure of Xi, who became president in 2013.

“The long-running speculation that Xi is considering staying in power way past 2022 was in effect confirmed as China put in motion an ultralong 15-year vision promising new levels of prosperity by 2035, ” reported Nikkei.

But whether outsiders love CPC or not, China’s 1.4 billion Chinese have the final say.

According to a nationwide survey, about 95% of Chinese nationals polled said they support the CPC leaders and are satisfied with the manner they govern the country and overcome the Covid-19 crisis.

“History has selected the CPC to lead China and its people. The CPC, under the strong and excellent leadership of President Xi, will continue to rule China, ” declared one of four spokesmen at the Oct 30 live press conference.

He added: “The plenary session believes that under the leadership of Xi Jinping, China will be able to face risks and tackle challenges ahead and advance a socialist economy with Chinese characteristics.”

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As Malaysia tackles a RM1 trillion national debt, it may be wise for Lim Guan Eng to focus on revitalising the economy than to whip up a confrontation with his own community over a RM30mil grant

WHEN Finance Minister Lim Guan Eng, in his Budget 2019 presented early this month, removed the RM30mil matching grant for Tunku Abdul Rahman University College (TAR UC), it hurt not just the MCA but also the Chinese community.

The government will provide a mere RM5.5mil as development fund to TAR UC. The fuming Chinese community is now taking up the issue as TAR UC, along with Universiti Tunku Abdul Rahman (UTAR), another institution of higher learning linked to MCA, has provided affordable education to many Chinese students over the past 50 years.

The removal of the matching grant to TAR UC – an annual amount given by the Barisan Nasional government to the university college previously to match the funds it raised – will negatively impact its continued survival.

Hence, emotive comments against Lim have been dominating the vernacular media since the grant issue emerged.

A petition against the Finance Ministry has also been launched.

Notably, though they are two non-profit institutions set up by MCA – TAR UC in 1969 and UTAR in 2001 – they are now seen as part and parcel of the Chinese community, which has been supporting their operation and expansion with billions in cash donations and land.

The late philanthropist of Penang, Tan Sri Loh Boon Siew, told me in an interview in 1991 that he had contributed land and cash to TAR UC. Other Chinese tycoons, too, have privately shared such information with me.

Together with the matching grants from the government totalling RM1.353bil over the last 50 years, MCA was able to expand the reach of the university college, from Setapak to Penang, Sabah and Pahang.

In the last 17 years, MCA also built UTAR campuses in Sungai Long (Selangor) and Kampar (Perak).

In the five decades since TAR UC started, children from poor Chinese families and other ethnic groups, regardless of political leanings, have benefitted from the education offered by it due to its affordable fees.

In fact, TAR UC and UTAR are two of MCA’s best non-political projects which have contributed tremendously to the Chinese society, to compensate for its past failure to safeguard Chinese rights in the Umno-dominated Barisan regime.

Putting into historical context, TAR UC – which started as TAR College before being upgraded to university college status in 2013 – was a product of political compromise when non-­bumiputra student intake into the five public universities then was limited by the introduction of the bumiputra quota. The one-to-one matching grant enabled TAR UC to provide an avenue for higher education for those from the lower-income group as well as performing students denied entry into public universities by the quota system.

Hence on Sept 15, 1972, Datuk Hussein Onn, the then-Education Minister, handed over the Instrument of Government to the institution.

A 77ha plot in Setapak was allocated for the construction of TAR College’s main campus.

Later, UTAR was set up and officially launched on Aug 13, 2002, by then Prime Minister Datuk Seri Dr Mahathir Mohamad after higher education in the private sector was liberalised.

According to MCA president Datuk Seri Dr Wee Ka Siong, some 200,000 students have graduated from TAR UC/UTAR over the past 50 years.

Currently, the student population in the two institutions totals 28,000. Employees stand at 1,500 (60% Chinese, 40% non-Chinese).

These figures show that not just the Chinese have benefitted from the existence of UTAR and TAR UC but the Malays and Indians as well. Among the Pakatan Harapan leaders who were beneficiaries of the TAR affordable education are Cabinet ministers Teresa Kok, Datuk Salahuddin Ayub and Datuk Seri Saifuddin Nasution Ismail as well as Penang Chief Minister Chow Kon Yeow and exco member Chong Eng.

As these two institutions have become integral to the Chinese community, it is natural that vernacular newspapers are following closely the developments in this issue.

From the writing in the Chinese media, it can be seen that this issue is threatening to become a “Chinese community vs LGE/DAP” confrontation. This may not augur well for Lim.

While there are people who agree with Lim’s argument to separate education from politics, and that MCA must cut its links with these institutions, they form a miserable minority.

In a strongly worded comment piece “Play-killing UTAR”, Sin Chew Daily deputy editor-in-chief Tay Tian Yan points out that in speaking up on the grant issue, it is not meant to support MCA, but to show concern for the future generations of the Chinese community, particularly those from the poorer classes.

In response to Lim’s warning to MCA that the two institutions cannot raise tuition fees, Tay concludes: “UTAR will die an eventual death if it cannot raise fees and is not given a grant. What will be the future of our Chinese youth?”

Generally, Lim is seen as abusing his power to punish his political rivals and in the process undermine the interest of his very own community. Such political gimmicks should be stopped when dealing with taxpayers’ money, given that 80% of the country’s revenue is contributed by Chinese businesses and individuals in the form of taxes.

For many people, it is particularly repugnant when Lim threatened to “take action” against MCA if the institutions raise tuition fees.

In a China Press editorial yesterday, Lim was reminded that last year when he was Penang Chief Minister, he had said education allocations to schools should be given regardless of political backgrounds. And he acted fairly.

“But after LGE became Finance Minister, his statement last year on equality dissipated. Shouldn’t the former Penang CM give a big scolding to the current Finance Minister?” asks the writer mockingly.

The Pakatan government has also been reminded that 95% of Chinese voted them in to oust the previous administration in the May 9 general election. Their support should not be taken for granted and forgotten.

In short, TAR UC and UTAR should not be penalised just because of their parental link with MCA.

Looking at national development, these two institutions have nurtured much talent to serve the country, particularly in the field of accountancy.

File photo of UTAR's Faculty of Business and Finance in Kampar, Perak.

In fact, from my own observations, these institutions are more professionally run than many other private colleges and universities.

For this reason, and for their affordable fees, my husband and I sent our daughter to study in UTAR. She graduated last June.

As the country is confronted with a slowing economy and has to tackle a national debt of over RM1 trillion, it may be wiser for Lim to focus on revitalising the economy and other bigger national issues than to whip up a confrontation with his own community over a RM30mil grant.

By  Ho Wah Foon, The Star


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Rocky times ahead for China FDI in Malaysia

Li: ‘Malaysia must remember that by targeting Chinese investors in an unreasonable way, this will scare away not only FDI from China, but also from other countries.’ - credit: Malaysia Today

Great wall of controversy: Dr Mahathir’s criticism of Alliance Steel’s barricade for its RM6bil integrated steel complex has upset some Chinese investors.

A series of attacks on China-funded projects in Malaysia by the Prime Minister is causing anxiety not only to Chinese nationals but also locals.

INVESTMENTS and mega contracts linked to China will have to brace for rocky times ahead if Prime Minister Tun Dr Mahathir Mohamad continues unchecked with his incessant tirade against Chinese endeavours in Malaysia.

The golden era for Chinese investments, which possibly peaked during the rule of former prime minister Datuk Seri Najib Razak, seems to have come to an unceremonious end.

The future of foreign direct investment (FDI) from China is now seen as unpredictable – at least for the next 3-5 years – under the new government of Dr Mahathir, according to Datuk Keith Li, president of China Entrepreneurs Association in Malaysia.

Li: ‘Malaysia must remember that by targeting Chinese investors in an unreasonable way, this will scare away not only FDI from China, but also from other countries.’

“The series of comments made on Chinese investments by the PM have affected the confidence of Chinese investors. Those who originally wanted to come are adopting a wait-and-see attitude, while those already in are careful about their expansion plans,” says Li in an interview with Sunday Star.

The outspoken leader of Chinese firms notes that businessmen from the mainland are “worried”, although some comments of the Prime Minister were later “clarified” by other Cabinet Ministers or the PM’s Office.

“Malaysia must remember that by targeting Chinese investors in an unreasonable way, this will scare away not only FDI from China, but also from other countries as well,” adds Li.

Since his five-day official visit to China that ended on Aug 21, the 93-year-old Malaysian leader has caused anxiety to all by making shocking announcements.

While summing up his China trip on Aug 21, he declared he would cancel the RM55bil East Coast Rail Link (ECRL) and two gas pipelines being built by Chinese firms.

As the ECRL is of strategic importance to China’s Belt and Road Initiative – the policy which Dr Mahathir has repeatedly voiced his support for, Beijing would expect a renegotiation of the contract terms rather than an outright cancellation.

Dr Mahathir had reasoned that with national debt of over RM1 trillion, Malaysia could not afford these projects. In addition, these contracts are tainted with unfair terms and smacked of high corruption.


Although the Prime Minister said Chinese leaders understood Malaysia’s situation, reactions of Chinese nationals on social media were unforgiving with many suspecting Dr Mahathir “has other motives”.

Many see Dr Mahathir as attempting to raise Malaysia’s bargaining power in the negotiation for compensation for the cancelled projects. China, according to social media talk, is asking for RMB50bil as compensation.

On social media, there are also suggestions that Dr Mahathir is aiming at his predecessor as most China-linked projects were launched during the rule of Najib.

During the rule of Najib, Malaysia-China relations were intimate.

This has resulted in the influx of major construction and property companies from the mainland, followed by banks and industries.

But on May 9, Dr Mahathir’s Pakatan Harapan coalition toppled the Barisan Nasional government of Najib after the most bitterly fought general election in local history.

The second-time premier has put the blame on Najib for the massive 1MDB financial scandal, which Najib has denied, and mismanagement of the country’s finance.

And while the Chinese nationals are all riled up by the cancellation of ECRL, Dr Mahathir came up with an ill-advised statement.

Last week he ordered a wall surrounding Alliance Steel, which is investing US$1.4bil (RM6bil) for a massive steel complex, to be demolished. This was seen as unreasonably targeting a genuine FDI.

Although the foreign ministry later clarified that the leader had mistaken the wall to be built around the Malaysia-China Kuantan Industrial Park (MCKIP), the anger of Chinese nationals lingers on.

The industrial park is a G-to-G project to jointly promote bilateral investments. There is an even bigger sister industrial park in China that houses many Malaysian firms. All these were built during Najib’s reign.

Dr Mahathir’s statement has also caught the attention of China’s Global Times, the mouthpiece of the Communist Party of China.

In an editorial on Aug 28, the news portal warned: “Many words of Kuala Lumpur can spread to China via the Internet, causing different reactions. How the Chinese public sees China-Malaysia cooperation is by no means inconsequential to Malaysia’s interests.”

It noted “while Dr Mahathir advocates pursuing a policy of expanding friendly cooperation with China ... but when it comes to specific China-funded projects, his remarks gave rise to confusion. Like this time, it is startling to equate the controversy surrounding a factory wall with state sovereignty.”

Global Times added: “When such remarks are heard by Chinese people, the latter find it piercing. They will definitely make Chinese investors worry about Malaysian public opinion and whether such an atmosphere will affect investment in the country.”

In fact, it would be unwise for the government to disrupt MCKIP. Co-owned by Chinese, IJM Corporation and Pahang government, this industrial park has lured in Chinese FDI of over RM20bil.

It is an important economic driver in the East Coast and has aimed to create 19,000 jobs by 2020.

While the “wall” statement might be seen as a minor mistake, Dr Mahathir’s flawed announcement last Monday that foreigners would be barred from buying residential units in the US$100bil (RM410bil) Forest City stirred another uproar.

On Aug 27, Reuters quoted Dr Mahathir as saying: “That city that is going to be built cannot be sold to foreigners. Our objection is because it was built for foreigners, not built for Malaysians. Most Malaysians are unable to buy those flats.”

Currently being developed by Country Garden Holdings of China, this 20-year long project, built on reclaimed land in Johor Bahru, aims to house 700,000 people. As about 70% of the house buyers are Chinese, some locals fear this could turn into a China town.

Unlike Alliance Steel that has stayed silent, Country Garden fought back by seeking clarifications from the PM’s Office.

In a statement, the major Chinese developer said all its property transactions had complied with Malaysian laws.

Citing Section 433B of the National Land Code, it added a foreign citizen or a foreign company may acquire land in Malaysia subject to the prior approval of the State Authority.

In addition, it said Dr Mahathir’s comment did not correspond with the content of the meeting he had with Country Garden founder and chairman Yeung Kwok Keung on Aug 16.

During the meeting, Dr Mahathir said he welcomed foreign investments which could create job opportunities, promote technology transfer and innovations.

In fact, this forest city project – along with ECRL – were the main targets of attack by Dr Mahathir before the May 9 election.

Opposition to these projects had helped drive Dr Mahathir’s election campaign, during which he said was evidence of Najib selling Malaysia’s sovereignty to China.

These projects, together with major construction contracts won by Chinese and the inflow of industrial investments, place the total value of Chinese deals at more than RM600bil in Malaysia.

But few would expect Dr Mahathir to use his powerful position to resume his attacks on China-linked projects so soon after his so-called “fruitful visit” to Beijing.

During his official visit to Beijing, the Malaysian leader was accorded the highest honour by China, due mainly to respect for “China’s old friend” and strong Malaysia-China relations built since 1975.

Dr Mahathir was chauffeured in Hongqi L5 limousine, reserved for the most honourable leaders, and greeted in an official welcome ceremony by Premier Li Keqiang. He was also guest of honour at a banquet at Diaoyutai State Guesthouse hosted by President Xi Jinping.

But beneath these glamorous receptions, there were reservations exuded by the Chinese for this leader whose premiership is scheduled to end in two years.

There were no exciting business deals signed in Beijing. There was absence of high diplomatic rhetoric that “Malaysia-China ties have been elevated to another historic high”, oft-repeated during Najib’s past visits.

Many even notice that Premier Li and Dr Mahathir had a cool handshake after their short joint press conference in Beijing.

And although China promised to buy Malaysian palm oil, the statement was qualified with “price sensitivity”, which means it will not buy above market price.

In addition, there was no mention of “buying palm oil without upper limit”, which was promised to Najib last year.

If Dr Mahathir’s original intention was to target Forest City and its owners, his move has certainly backfired. The country will have to pay a price for his off-the-cuff statement.

The “new policy” will have serious ramifications as it would hit the value of the properties not only in Forest City but also in other China-linked and non-Chinese projects.

Country Garden’s Danga Bay project will also be hit. It now faces a more daunting task of selling the balance of about 2,000 units in Danga Bay, according to a Starbiz report.

Other Chinese developers like R&F Princess Cove and Greenland Group will be affected.

VPC Alliance Malaysia managing director James Wong told Starbiz there may be legal suits against the government.

“That may force Country Garden to scale down because it has invested a lot with its industrial building systems factory and an international school, among other investments. It will impact Country Garden and Malaysia’s property sector negatively,” Wong said.

“Foreign buyers and other foreign companies will shy away,” Wong added.

The change in government and the insensitive comments on China-funded projects have turned Malaysia into a high-risk investment destination for the Chinese, according to Li.

“We don’t know which China projects will be targeted next. Looking back, it’s a blessing in disguise that we were pushed out of the RM200bil Bandar Malaysia project. It is also lucky that Chinese money has not gone into the RM30bil Melaka Gateway project,” says Li, who owns a travel agency in Malaysia.

“In the immediate future, more tourists from China are likely to shy away from Malaysia.

“Malaysia may not hit the target of having three million visits from China this year,” Li adds.

Credit: Ho Wah Foon The Star

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