China Beyond the Headlines

Much is made of the contrast between the corruption overlooked in Russia and the crackdown on corruption in China. But other Chinese behaviors and practices deserve examination.

     Stealing is rampant in China; the country's prohibition on tax evasion and gambling is evaded; and a form of discrimination is legal. Foreign companies expect their intellectual property rights to be ignored. Chinese companies contracted to manufacture products for foreign firms readily produce knock-offs of those same products. Even exchange students find they have to keep a sharp eye on their belongings or they will disappear. An engineering student from a U.S. Ivy League college, who planned to stay in China for a couple of months, left after a week when her caliper was stolen.

     China is not exempt from tax dodgers. There is the revenue a company makes, the amount it reports for tax purposes, and the difference deposited in overseas banks or in Khorgos, an out-of-the-way Central Asian Chinese town on the Kazakhstan border. Along with film studios, media outlets, financial services, and over 14,000 other companies, Chinese movie star, Fan Bingbing, who earned $43 million in 2017, registered her company in Khorgos. Ever since China began a probe into tax evasion on June 3, 2018, Miss Bingbing has not been seen in public, and she has been fined $129 million. Her 62 million followers on social media correctly speculated she was caught in the Communist Party's anti-corruption, tax evasion campaign. She also might be a victim of President Xi Jinping's new morality crackdown on culture and behavior not in line with socialist values.

     Gambling is illegal on the Chinese mainland. Beijing stopped approving new gaming apps created by China's Tencent tech leader and  pressured Apple to remove gambling apps in its Chinese App Store. But casinos attract Chinese gamblers to Macau, a Special Administrative Region of China, and Chinese travelers freely gamble on overseas trips. "Justify," the winner of the Kentucky Derby,  Preakness, and Belmont Stakes is owned by the China Horse Club, as is "Audible," the horse that came in third in the Kentucky Derby. No doubt Chinese handicappers won plenty of cash, when "Justify" won all three legs of the Triple Crown.

     Finally, the U.S. State Department's annual report on religious freedom called attention to the million Uighur Muslims China holds in secret re-education camps. In another example of discrimination in China, members of China's poor underclass, unskilled rural transplants earning little in city jobs, find they are victims of the hukou system. They are shut out of health care, housing, and quality educations in state-run schools. They also have been shut out of watching some short-form videos on Douyin, the app Chinese authorities find shallow and addictive and monitor for illegal or morally questionable content contrary to socialist values. Young Chinese viewers say they enjoy watching good-looking amateurs tell jokes, sing, and perform imaginative stunts on Douyin; it's fun and relaxing.

(Also see the earlier posts,"China's Plan for World Domination" and "China Stretches a Napoleon-Style Belt.")