China's cybersphere defies the Party line in scandal exposé



There are many reasons why the rest of the world has been riveted by the political scandal engulfing the Chinese Communist Party these days. The recent purge of Bo Xilai, the party boss of Chongqing, normally should have merited little media attention. But instead, the plot of the story gets thicker, if not more morbid, by the day.

We now know, according to the official version and credible press reports at least, that the Bo scandal involved treason, corruption, alleged adultery, murder by poison and an attempted cover-up. As a case of life imitating art, the story should have Hollywood script writers salivating.

But the last thing China's most powerful rulers want to see is a political thriller about one of their own. Given a choice, they would rather keep Mr Bo's political skeleton in the closet. What forced the Party to reluctantly air its dirty secrets in the open is a combination of accidents and fundamental changes in Chinese society.

Had Mr Bo's wife, Gu Kailai, not been allegedly involved in the murder of a westerner, things could have been different. (Many ordinary Chinese citizens have died at the hands of corrupt and murderous officials without triggering investigations.) If Mr Bo's police chief had not gone to the Americans and created an international incident, Beijing would have covered up the scandal. These two incidental factors doubtlessly helped to seal Mr Bo's fate.

Yet, another, perhaps more powerful, force was at play as well. That is the revolutionary change brought by economic modernisation and technological progress. For the first time in the history of the People's Republic, ordinary people can get details of top-level power struggles, some of which are just rumours, practically in real time through the internet, micro-blogs (the Chinese Twitter), and mobile phone messages.

In retrospect, the outrage of Chinese people, incensed by the exposed corruption, treason, arrogance and lawlessness of their rulers, must have forced the Party leaders to cashier Mr Bo even though he had powerful patrons at the very top of the government.

Two interrelated lessons emerge from the Bo scandal that have a bearing on the prospects of the rule for the world's largest one-party state.

First, for all the investments, ingenuity and efforts the Communist Party has devoted to censoring the internet and countering the information revolution, the unravelling of its damage control after the scandal broke showed that the Party is really no match for a citizenry empowered with modern information technologies.

This does not mean that the Party did not try hard enough. Indeed, it did everything imaginable to keep the lid on the Chinese internet and mobile-messaging services by blocking references to words and phrases related to the scandal. But Chinese citizens found clever ways of bypassing the censors. For example, instead of using Bo (which means thin in Chinese), many Chinese chose two characters, buhou (or not thick), to refer to Mr Bo.

It has now become quite clear that the Party's internet censorship strategy has three fundamental flaws. One is that, unlike the traditional media, such as print newspapers and magazines, the internet cannot be pre-emptively censored. The Party has to react to events and impose censorship after the fact. In a political crisis, such as the Bo scandal, it loses valuable time in containing the outbreak of news and rumours and suffers the consequences, such as the spread of the truth undermining the Party's legitimacy. By the time the Party manages to restore order on the internet (it never succeeded in doing so this time), the damage to its image and authority is already done.

Another flaw is that the Party has underestimated the ingenuity of millions of tech-savvy Chinese who derive enormous, although not necessarily politically inspired, satisfaction from beating the censors. Their collective brain power overwhelms whatever capacity the Party's censorship machine may have in managing information flows.

The third insurmountable obstacle for the Party is that modern information technology, such as micro-blogging and texting, has become such a part of an average Chinese citizen's economic and social life that pulling the plug on the internet would throw the entire society into chaos and, instead of saving the regime in a crisis, would only hasten its fall.

The second lesson of this scandal is that the current regime is actually far more fragile than commonly perceived. For years, the Communist Party has carefully crafted an image of effectiveness, control and stability. Aided by three decades of rapid economic growth and a powerful internal security apparatus, the Party seems to have an unchallengeable hold on power.

The Bo scandal and the Party's clumsy handling of the aftermath suggest otherwise. There are deep cracks in the regime's foundations. Its top leaders are split in a crisis; a meticulously planned succession has been derailed; the rot of corruption has reached the core of the system; the loyalty of its elites is suspect; unfounded rumours of military coups cast doubt on the Party's authority. The list goes on.

For now, of course, the Party will do everything possible to put Humpty Dumpty back together. One can imagine that the Party will simply double-down by investing more in internet censorship and tightening control over Chinese society. This would be a great tragedy for China - and for the Party as well - if Beijing's rulers believe that they can continue to govern China as if the Bo scandal had never happened. If anything, the Bo affair shows that they cannot.

Dr Minxin Pei is a professor of government at Claremont McKenna College in California

The biog

Favourite food: Tabbouleh, greek salad and sushi

Favourite TV show: That 70s Show

Favourite animal: Ferrets, they are smart, sensitive, playful and loving

Favourite holiday destination: Seychelles, my resolution for 2020 is to visit as many spiritual retreats and animal shelters across the world as I can

Name of first pet: Eddy, a Persian cat that showed up at our home

Favourite dog breed: I love them all - if I had to pick Yorkshire terrier for small dogs and St Bernard's for big

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Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

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How to play the stock market recovery in 2021?

If you are looking to build your long-term wealth in 2021 and beyond, the stock market is still the best place to do it as equities powered on despite the pandemic.

Investing in individual stocks is not for everyone and most private investors should stick to mutual funds and ETFs, but there are some thrilling opportunities for those who understand the risks.

Peter Garnry, head of equity strategy at Saxo Bank, says the 20 best-performing US and European stocks have delivered an average return year-to-date of 148 per cent, measured in local currency terms.

Online marketplace Etsy was the best performer with a return of 330.6 per cent, followed by communications software company Sinch (315.4 per cent), online supermarket HelloFresh (232.8 per cent) and fuel cells specialist NEL (191.7 per cent).

Mr Garnry says digital companies benefited from the lockdown, while green energy firms flew as efforts to combat climate change were ramped up, helped in part by the European Union’s green deal. 

Electric car company Tesla would be on the list if it had been part of the S&P 500 Index, but it only joined on December 21. “Tesla has become one of the most valuable companies in the world this year as demand for electric vehicles has grown dramatically,” Mr Garnry says.

By contrast, the 20 worst-performing European stocks fell 54 per cent on average, with European banks hit by the economic fallout from the pandemic, while cruise liners and airline stocks suffered due to travel restrictions.

As demand for energy fell, the oil and gas industry had a tough year, too.

Mr Garnry says the biggest story this year was the “absolute crunch” in so-called value stocks, companies that trade at low valuations compared to their earnings and growth potential.

He says they are “heavily tilted towards financials, miners, energy, utilities and industrials, which have all been hit hard by the Covid-19 pandemic”. “The last year saw these cheap stocks become cheaper and expensive stocks have become more expensive.” 

This has triggered excited talk about the “great value rotation” but Mr Garnry remains sceptical. “We need to see a breakout of interest rates combined with higher inflation before we join the crowd.”

Always remember that past performance is not a guarantee of future returns. Last year’s winners often turn out to be this year’s losers, and vice-versa.

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Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

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Group E: River Plate, Urawa, Monterrey, Inter Milan.

Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.

Group G: Manchester City, Wydad, Al Ain, Juventus.

Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.

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Four out of five stars 

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Honeymoonish
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The Sky Is Pink

Director: Shonali Bose

Cast: Priyanka Chopra Jonas, Farhan Akhtar, Zaira Wasim, Rohit Saraf

Three stars

The specs

Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
Torque: 250Nm
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