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Thursday, June 30, 2016

Terror Hits Istanbul & Saudis Start Rumors

June 29, 2016


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The measles vaccines which massacred more than 50 Syrian children in 2014, were poisoned in Turkey

Terror hit the Istanbul Ataturk Airport yesterday.  Same suicide bomber method, same terrible terror that has been exported to Syria via the same country, Turkey.
Turkey has used such bombings — which were false flags, many times — to increase its aggression against Syria, under a pretext of fighting the same terrorists in reality backed by Turkey, itself.  However, this time seems to be a true bombing, with 49 dead and more than 200 injured.
Who knows who is behind this incident?
Is it the Turkey backed terrorists themselves, who got a secret order from Erdogan, to gain world sympathy?
If Edogan was responsible or not, he is involved in these crimes, by one way or another, as he made his country the main terminal of foreign fighters to cross into Syria.
Syrians has been living this hell, of bombings add to missiles and starvation, since more than five years, Syrians are still patient.  Moreover they still resisting.
Would any other nation’ citizen stand such hell life?
The answer is no.  Thus Turkey president  Erdogan rushed  to apologize to  Russia president Putin, over the shooting down of Russian SU-24 in the sky over Syria, killing one of its pilots.
Erdogan, sudden political turn, just to mend ties with Russia, to save theTurkish  economy and tourism.
Syria will be present, in such relation, as Syria is the big ally of Russia.
However, at this same moment, Turkey opened another front against Syria:  Turkey which has a dream to annex Aleppo, the Syrian province to its territory.   Turkey has increased its support and supply lines to terrorists onto countryside of Lattakia, to confuse the SAA, with two simultaneous fronts, Aleppo and Lattakia.
At the same time, the US is using  its mercenary tools on the Syrian ground to attempt achieve its agenda of partitioning Syria.
A Saudi magazine now reports about a call from President Erdogan to his counterpart President Assad, to discuss the historical relation between the two countries, and the necessity of working together to face terrorists, immediately after terror hit Istanbul Airport.  It is difficult to imagine that Erdogan dares to call our president directly.
Saudi news has consistently tried to harm the reputation of our leader.
If that was true, it would be clear, that because of a Russian pressure on Turkey, as an condition to tie the relation between both countries; however this news was not confirmed yet. Moreover as I said above, Turkish opened another war front in countryside of Lattakia, with many martyrs and wounded since yesterday.
The ironic point is the shameful comment of Saudi magazine, about this alleged call, which is not confirmed yet: Saudi magazine described it by Turkish betrayal of Arabs.
Erdogan has apologized to Russia.   However this is not an apology to Syria (the Russian pilot was shot down in Syrian airspace) and to the Syrians;
we  will not allow this Ottoman to pray in Damascus mosque, he cannot clean the Syrian blood from his guilty hands in Aleppo, Lattakia, and every spot.
We have witnessed massacres because of his terrorists.
Syrians have paid the highest price in this war.  It is a global war between evil and right.
We Syrians trust our president; his policy, his brilliance, and we are step by step with him,  in any step he does. Thus if President Assad received such call or not, we trust whatever decision he makes.

Nigel Farage in EuroParl on Brexit, MEPs not laughing now!

June 29, 2016


NATO DISASTER! SYRIAN ARMY KILLS OVER 100 JAYSH AL-FATH RODENTS IN AL-MALLAAH FARMS IN FINAL PUSH TO CASTILLO

Update: According to Al mayadeen over 500 terrorist killed

جيش
ALEPPO:  The Syrian Army is now in full control of the Castillo Highway as it settles its artillery 1km from the access route into the city.  It’s under complete artillery control and the Turks can’t do anything to help, probably because they’re busy trying to explain how they got this whole thing started from the beginning.  I told you yesterday that the SAA was in control of over 75% of Al-Mallaah Farms.  It’s now over 90% with the rodents staggering in disbelief as reinforcements they brought up for this battle melted away.  They came from Khaan Toomaan and Zaytaan, with scores of suicide drivers to buttress the walls of defense they thought they could put up.  But, the SAA’s tactics anticipated exactly that and the SAAF coupled with brand new rocket systems pummeled away at groups of collecting vermin and wiped them out.

The major terrorist force here is Jaysh Al-Fath which is liaised with Nusra/Alqaeda, Harakat Noor-Al-Deen Al-Zangi, Ahraar Al-Shaam Al-Islaamiyya, Hizb Al-Islaami Al-Turkistaani, Jaysh Al-‘Izza, Ansaar Al-Shaam, First and Second Coastal Divisions, Jaysh Al-Nasr, Jaysh Al-Tahreer and Jaysh Al-Nusra.  All these groups sent their most prideful nihilists to fight the Syrian Army, but, when it came to surprising our forces, their tactics proved woefully inadequate as their over 40 trucks laden with explosions were all destroyed either by the Air Force or by our roaming rangers armed with Kornets, Milans or RPG anti-tank rockets.
This morning, the SAA positioned artillery at Dhahrat Al-Farraam facing the CastilloHighway and all access routes.   We are also but a 2km distance from Huraytaan. Here are the names of the carcasses which have been collected by the SAA-MI people and the names confirmed:
‘Abdul-Lateef ‘Abdul-Rahmaan Darweesh (Jaysh Al-Fath field commander and career criminal)
Marwaan Khalaf Al-Beedaywi
Mahmoud ‘Abdul-Qaadir Sanaadeeqi
Muhsin Mabrook ‘Arfaan
Shaadi Muhammad Taweel
Wajeeh Ahmad Al-‘Ali Al-Yusuf
Ameen Mahmoud ‘Ali-Bayk
Nabeel Al-Khaalid Ayman Al-Taqi
Khaalid ‘Abdul-Haqq
Ghassaan Abu-Rashaad
Mahdi Hassan Al-Hakeem
Falaah Jaabir ‘Ajlaani
Scores of others were not identified.

In a vain attempt to re-conquer areas lost to the army over the last 6 days, the Jaysh Al-Fath criminals mounted a ferocious attack on SAA positions in the center of the Farms.  If you think ISIS is the only group capable of using over 10 suicide trucks, you’re wrong.  In what might be a record for this war, JF used 13 separate suicide trucks driven by, evidently, a veritable cocktail of Uzbkis, Bangla Deshis, Azerbayjaanis and other simian excrement to break the SAA’s fortified perimeter walls.  Because of superb intelligence, the trucks were picked out by drones and helicopters equipped with night-vision lenses provided by the Russian Federation allowing our air force to swoop down on the miserable insects and render them into crispy chitlin’s.  Huge disaster for rats and cockroaches.
بكمائن سلاح الجو و المدفعية 100 قتيل لـ”جيش الفتح” في مزارع الملاح بريف حلب
____________________________________________________
NEWS AND COMMENT:
If you don’t believe the Western Media is changing colors, read this one.  It’s Fox News and it don’t get no better than this:
Afraa Dagher sends this article about Turkey’s volte face in the wake of the Istanbul attacks:
More about Erdoghan’s telephone call to the Prez from Dimitri:
____________________________________________________
WILE E. COYOTE MOMENT from Murf the Surf:


Read more

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International Military Review – Syria, June 28/29, 2016


The situation remains tense in and around Aleppo City. After the liberation of the Mallah Farms, the Syrian Army troops are now deployed in only 1,5 km from the militants’ last supply line to Aleppo City – the Castello road. This poses a significant threat to Al Nusra and its allies in Aleppo. If pro-government forces are able to cut off the Castello road, the militants will be besieged in the northeastern part of the city without any supplies.
Nonetheless, the recent attempts of pro-government forces, supported by Russian fighter jets, to develop momentum have not lead to any gains yet. In turn, militants are consolidating efforts for a large counter-offensive in to recapture the strategic area and defend the strategic supply line.
In East Ghouta, the SAA has secured Beit Naem, Mohammadiya, Jasreen and nearby areas. Last week, pro-government forces managed to liberate Al-Bahariyah, Tal-Bahariyah and Borja-al-Bahariyah. Clashes were observed at Mayda’a.
The SAA’s gains came amid the ongoing between different militant groups – Al Nusra, Jaysh al-Islam, Failaq al-Rahman and others – that have erupted after the death of Zahran Alloush
The Syrian Democratic Forces, supported by US-led coalition warplanes, are advancing in the northern and southwestern suburbs of Syria’s Manbiij amid heavy clashes with ISIS militants. SDF units have seized the Hawatima neighborhood in the western part of the city and engaged in clashes in the Hazawani neigborhood. Separately, SDF units seized the Madfaa traffic circle near western gates of the city.
The coalition’s warplanes have been conducting air strikes near and in the city. Some 6 ISIS tactical units and 3 fighting positions were reportedly hit by them.
The ISIS terrorist group has launched an advance towards the Kurdish-controlled town of Ayn Issa in the Raqqa province, capturing Al Habsawi, Mughar and As Suwaidan. Heavy clashes are ongoing there.

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Clashes are ongoing in Damascus’ East Ghouta as the Syrian Arab Army and its allies are advancing towards the village of Nashabiyah after the liberation of Al-Bahariyah last week.
On Monday, Al Nusra and its Turkmen allies launched an offensive in the Latakia province hitting SAA position at Jabal Al-Akrad and Jabal Turkmen. Pro-government forces, supported by Russian warplanes, were able to repel the advance, reportedly killing some 20 Jihadists.
The SAA has recaptured the village of Tal Sawwan in the western part of Homs province from ISIS. This move indicates that pro-government forces had regrouped in the area and now, they are ready to counter attack. In turn, ISIS units can not exploit the recent advances in the province because any further movement will stretch their ways of communication, making them vulnerable for attacks.
Weapons — including Kalashnikov assault rifles, mortars and rocket-propelled grenades —shipped into Jordan by the Central Intelligence Agency and Saudi Arabia intended for the so-called “Syrian moderate rebels” have been systematically stolen by Jordanian intelligence operatives and sold to arms merchants on the black market, according to a joint investigation by the New York Times and al-Jazeera. The theft, involving millions of dollars of weapons, highlights the messy, unplanned consequences of US-supported programs to arm and train rebels. There are no doubts that the stolen weapons have appeared, at least partly, in hands of Syrian Jihadi groups such Al Nusra.
Turkish President Recep Tayyip Erdogan has apologized for the death of the Russian pilot who was killed when a Russian jet was downed over the Syrian-Turkish border last November. In a letter to Vladimir Putin, Erdogan expressed “his deep sympathy and condolences to the relatives of the deceased Russian pilot”, argued that Ankara never had a desire “to down an aircraft belonging to Russia” and called Russia “a friend and a strategic partner”. In addition, Erdogan said he’s ready to fight terrorism together with Moscow. A half year of the sanctions has pushed Erdogan to send a love letter to Putin. What should we wait if the sanctions remain for a year?

Imam Khamenei Urges Muslims to Raise Voice in Support of Palestine in Quds Day

Leader of the Islamic Revolution in Iran Imam Sayyed Ali Khamenei called for wide participation in Al-Quds Day rallies all over the world, as he slammed the United Nations for turning a blind eye to Saudi Arabia’s violations in Yemen.
In a meeting with the Judiciary officials on Wednesday evening, Imam Khameneni called for a high turnout in the Quds Day, which falls on Friday.
The Leader said that the Iranian nation and Muslims all around the world will once again raise their voice in support of the Palestinian people on Friday.
The International Quds Day is an annual event during which demonstrators across the world express their solidarity with the oppressed Palestinian people and opposition to the occupation of the Palestinian territories by the Zionist entity.
The day, which falls on the last Friday of the holy month of Ramadan, was named by the late Founder of the Islamic Revolution, Imam Khomeini.
UN’s ‘Blind Eye’
Meanwhile, Imam Khamenei slammed UN over Saudis’ child killing in Yemen.
“The UN’s turning a blind eye to the ongoing crimes and child killing in Yemen in exchange for money from some countries” is a disgrace to humanity, with which the Islamic Republic “must deal legally and judicially across the globe.”
Earlier this month, the United Nations briefly blacklisted Saudi Arabia for children’s rights violations in Yemen based on the results of a report which stated the monarchy was responsible for 60 percent of the 785 underage deaths in Yemen last year. But on June 6, United Nations Secretary General Ban Ki-moon removed the kingdom from the list.
Following the U-turn by the UN, Ban admitted that the Saudis were temporarily removed from the list after they administered “undue pressure” on the world body by threatening to cut off funding to humanitarian programs.
The Leader also stressed that the West’s definition of human rights is established on “false foundations”, therefore “Islamic human rights based on firm and rational foundations have to be defined and pursued” at global legal bodies.
Pursuing Violated Iran’s Rights
On the other hand, Imam Khamenei said the judiciary system in the Islamic Republic should pursue the case of Iran’s violated rights during the sanctions.
“Violation of the Iranian people’s rights as a result of sanctions must be pursued judicially on a global scale,” the Leader said.
After Iran and the five permanent members of the UN Security Council – the United States, France, Britain, China and Russia – plus Germany started implementing the Joint Comprehensive Plan of Action on January 16, all nuclear-related sanctions imposed on Iran by the European Union, the Security Council and the US were lifted. Iran, in return, has put some limitations on its nuclear activities.
In April, the US Supreme Court ruled that around $2 billion of Iran’s frozen assets blocked under US sanctions be turned over to the American families of the victims of a 1983 bombing in the Lebanese capital Beirut and other attacks allegedly blamed on Iran. The Islamic Republic has denied any role in the attacks.
Source: Agencies
30-06-2016 – 11:11 Last updated 30-06-2016 – 11:11

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Lebanese Army Foils Two Terrorist Plots Planned by ISIL



The Lebanese army foiled two terrorist plots planned by the Takfiri ISIL group to attack a tourist site and a crowded residential area.
In a statement released on Thursday, the army said that the  Intelligence Directorate foiled two major terrorist operations planned by ISIL.Lebanese Army
“The targeting a large tourist facility and second targeting a densely populated area,” the statement said, according to National News Agency.
“Five terrorists have been arrested, on top of them the mastermind behind the operations,” the statement said, adding that the terrorists confessed to carrying out terrorist acts against the army in the past.”
The army command added that investigations were underway under the supervision of the competent court.
Source: NNA
30-06-2016 – 14:28 Last updated 30-06-2016 – 14:28

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Brexit: how the British people have forfeited the confidence of their government (a quick commentary)

Brexit: how the British people have forfeited the confidence of their government (a quick commentary)
After the uprising of the 17th of June
The Secretary of the Writers’ Union
Had leaflets distributed in the Stalinallee
Stating that the people
Had forfeited the confidence of the government
And could win it back only
By redoubled efforts. Would it not be easier
In that case for the government
To dissolve the people
And elect another?
The SolutionBertolt Brecht
To say that the Brexit was a historical event is an understatement, not because of the political or economic consequences of this vote, but because first and foremost it is a loud, painful and most humiliated smack in the collective face of the ruling “elites”which run the AngloZionist Empire All of them, not just Cameron, Merkel and Obama, but also and most importantly, their puppeteers.  This is also a slap in the face of the AngloZionist comprador class which administers theEU colony on behalf of the USA.   That is not to say that those who voted to leave the EU did that with the intention to make a political statement against the “elites”s, though some undoubtedly did, but because this is how the 1% class of plutocrats which run the Empire will perceive it.  For them, this is something like a peasant insurrection, aJacquerie if you want, and the normal reaction of feudal overlords threatened by their serfs it to put it down, not to negotiate with the serfs or, even less so, “reform” any of their ways.
Over and over again, we have seen that each time the referendums in Europe did not go the Empire’s way, or when the Empire was defeated in its policies (as in Syria, for ex.), the reaction was not to change course or engage in a lessons learned exercise, but to double-down and engage in what the French call “une fuite en avant” (to flee forward).
And that is what they will do next.
Because this is much bigger than Britain or the EU.  It’s first and foremost about racism.  Not the alleged racism of the “leave” voters, of course, but the very real racism of the AngloZionist “elites” who can mentally cope with the “slothful southerners” in Greece being unhappy about the EU and who can, when needed, remind the Turks their place in the pecking order of the Empire (servant quarters), but who cannot, and will not, accept that members of their own kind, the people of Britain, would dare to reject them in such a public and humiliating fashion.
Europe is run by what the French philosopher Alain Soral so aptly called “an aristocracy without nobility”, a gang of feudal lords whose only loyalty is to their masters across the Atlantic.  These masters, by the way, have their own enforcement force, NATO, which will make darn sure that the Europeans don’t get any ideas about freedom, sovereignty or people power.
I don’t mean the above figuratively at all: this is the reality of Europe today, and the British people are putting it a risk and that is something nobody in the ruling class can, or will, accept.
There are already talks about a 2nd referendum with a few cosmetic changes, that was already done in Ireland, while others are suggesting that the British Parliament could simply ignore the vote, something which Holland is trying right now.  And should there be protests or demonstrations, a state of emergency to “protect democracy against the racist mobs” (or something similar) can be decreed, as was the case in Russia in 1993.  What is certain is that now that the the British people have “forfeited the confidence of the government” (that is how the ruling class will understand what happened), the British people will have to be taught once and for all not to rise up against their masters.
Finally, now that the real systemic, political and even moral crisis of the EU has become apparent to all, an obvious “solution” will be to to ratchet up international tensions with Russia, Syria and Libya.  After all, the Guardian was already stupid enough to accuse the Kremlin of using football hooligans as a part of a Russian “hybrid war” against Europe:
Selection_263
That kind of nonsense will not only continue, but will be sharply expanded.  Oh, and as we know, Putin is the one who orchestrated the Brexit or, at the very least, benefited most from it, right?
The Brexit situation is exactly the same as 9/11: the ruling classes are all dependent on maintaining the myth because they all put their full political weight behind that myth.
To admit that 9/11 was a controlled demolition or to admit that the EU project is a failure rejected by the people of Europe in many referendums would be a political suicide for thousands of politicians, experts, journalists, commentators, etc.  There is simply no way that is going to happen.
Brexit is similar to 9/11 in another manner too: the popular reaction to the 9/11 fairly tale was the first shot in a quasi overt war of the American people against their US ruling “elites” which eventually resulted in the adoption by the public of the concept of “1%” which is the result of a realization that the USA is not a democracy any more.  In the same way, the Brexit is clearly a vote of no-confidence of the British people against their rulers and a sign that the legitimacy of the entire political system is now openly questioned.  You think I am exaggerating?
Think again: to vote for the Brexit you needed to reject not only the alarmist voices of the political class, but also all the ugly innuendos of the corporate media, the threats for the likes of Soros, the dire warnings of doom and gloom coming out of NATO, etc.  So if you still voted “leave” after that, you were rejecting the authority and credibility of the entire political structure and once the credibility is in question, so is the legitimacy.
By the way, something similar is now happening in the USA were people express a very strong support for Trump even though the ruling “elites” have engaged in a huge hate campaign against him.
The “elites” in the US and UK know that their position and legitimacy is being questioned and they have to take action to stop this process of political disintegration.   In the words of Brecht, will they now try to”dissolve the people and elect another”?
Things are going to get ugly now.

Downing of Russia’s Warplane: Turkey’s “Apology” to be Tested on Syria’s Border


Turkey’s “Apology” to be Tested on Syria’s Border

Putin - Erdogan, RIA Novosti
Global Research, June 29, 2016
The Washington Post summarizes the recent apology offered to Russia by Turkey’s President Recep Tayyip Erdogan in its article, “Turkish president apologizes for downing of Russian warplane last year.” It reports:
Turkish President Recep Tayyip Erdogan apologized Monday for the downing of a Russian warplane in November and called for Russia and Turkey to mend a bilateral relationship that has become openly hostile over the incident. 

One Russian pilot was killed last year when two Turkish F-16s shot down a Russian Su-24 warplane over Turkey’s border with Syria in an unexpected clash that Russian President Vladi­mir Putin called a “stab in the back administered by the accomplices of terrorists.”
Additionally, the Washington Post would note:
In a statement, Erdogan’s press secretary said Russia and Turkey “have agreed to take necessary steps without delay to improve bilateral relations,” specifically noting regional crises and the fight against terrorism. 
Indeed, the fight against terrorism does truly require Turkey’s aid. And its aid in this fight, particularly along the Turkish-Syrian border will serve as the true measure of Ankara’s sincerity regarding its apology and regret for Russia’s downed SU-24 warplane.
Turkey Has Enabled this Conflict, It Can Prove It’s Sorry by Ending It  
As revealed by Turkey’s own foreign minister in a Washington Times article titled, “Turkey offers joint ops with U.S. forces in Syria, wants Kurds cut out,” it was admitted that:
Joint operations between Washington and Ankara in Manbji, a well-known waypoint for Islamic State fighters, weapons and equipment coming from Turkey bound for Raqqa,would effectively open “a second front” in the ongoing fight to drive the Islamic State, also known as ISIS or ISIL, from Syria’s borders, [Turkish Foreign Minister Mevlut Cavusoglu] said.
In other words, Turkey’s own government admits that Islamic State (IS) fighters, weapons and equipment are coming from Turkey, bound for Raqqa, which should make pundits, the press, politicians and the general public alike wonder why then Turkey along with its partners in the Persian Gulf, Europe and North America are fighting the Islamic State in Syria, rather than simply interdicting them within what is essentially NATO territory before they even reach Syria to begin with.
One must also wonder how it is possible for the Islamic State to move enough men and materiel through NATO territory undetected, on a scale so large it can sustain full-scale war in Syria and Iraq and even beyond for years now.The answers bring with them uncomfortable implications, and also reveal that the solution to ending the conflict in which Russia’s warplane was shot down, and in which several of its soldiers have now died fighting in against IS, lies not within Syria, but along its borders over which the logistical lifelines keeping the terrorist organization alive flow.
Should Turkey sincerely regret the downing of Russia’s SU-24 warplane, it must also sincerely regret the Russian soldiers losing their lives in Syria fighting the Islamic State, who, admittedly, is being rearmed, reinforced and resupplied from Turkey. This regret, articulated in President Erdogan’s recent apology, one must expect, manifests itself with a clear strategy along Turkey’s border to close down logistical hubs, training and recruiting as well as weapon depots serving the Islamic State just over the border with Syria.
Saying Sorry is Easy, Proving You’re Sorry is Not 
It is never enough to merely apologize. One must also commit to ending their offensive behavior, and take steps to reform themselves particularly when such behavior is systemic. It can only be when Ankara’s “regret” is turned into concrete actions to reform its role from facilitator of terror, to obstruction to terror, that Ankara’s apology can be truly accepted.
Until then, the world has every right to believe Anakra merely seeks to avoid the negative consequences of its actions, including sanctions and strained political ties with Moscow, without any commitment toward taking responsibility for what it has done, and what it is still doing regarding Syria and Russia’s struggle against terrorism, terrorism that is clearly being fed by Turkey itself.
Ulson Gunnar, a New York-based geopolitical analyst and writer especially for the online magazine “New Eastern Outlook”.

The Pearl River Delta showcases the Chinese Dream



Buildings are seen through thick haze at the central business district in Guangzhou, Guangdong province © Alex Lee
As President Putin, post-Brexit, rushed to discuss all matters pertaining to Eurasia integration with President Xi Jinping in Beijing, I embarked on a connected, parallel southern China journey.
From my base in Hong Kong, I set out on a Pearl River Delta loop, hitting Shenzhen and Dongguan and then Guangzhou, Zhuhai and Macau.
Why? Because this unprecedented, interconnected story of breakneck urbanization, technological innovation and post-modern megacity sprawl showcases no less than the future dreamed up by the collective leadership in Beijing. And it doesn’t hurt that southern China is the starting point of the Maritime Silk Road.
I was very privileged to visit Shenzhen and Guangzhou only a few days after the Little Helmsman Deng Xiaoping, then 88, embarked on his legendary six-week “southern tour” in January-February 1992. His target at the time was to turbo-charge the “get rich is glorious” Chinese manufacturing miracle, still in its infancy.
In the early 1990s, agriculture, mining and fishing were responsible for 27 percent of the Chinese economy, while manufacturing and construction accounted for 40 percent, and services for 30 percent, according to Hong Kong banking sources. At the start of the 2010s, agriculture was already down to only 10 percent, with manufacturing at 46 percent and services at 44 percent. A generation of business leaders often referred to as the “Gang of 92” – when many of them started – were imprinting their mark on a new China.
Now the Pearl River Delta – China’s number one hub of labor-intensive manufacturing – is in the process of replacing workers with robots on a large scale, a further sign that China is about to take off technologically, big time. And that’s all part of a “Made in China 2025” strategy announced only two months ago by Beijing, centered on relentless innovation – and commercialization. The China 2.0 new industrial revolution is a go – with a bang.
Read more
Russia's President Vladimir Putin (R) shakes hands with China's President Xi Jinping © Sergey Karpukhin

The megacity confederation

China today, on the ground, looks and feels like a confederation of megacities fiercely competing with each other for everything; investment (internal and foreign), industries, tech talent, global visibility. Beijing does support provinces and regions – much as the Song dynasty did – but up to a point. China, de facto, is already federalized. It’s up to each province to determine its own economic strategy.
That’s a long and winding road since the 1960s – when China was under the yoke of the Cultural Revolution (to seize the seismic shift, check out The Cultural Revolution: A People’s History 1962-1976, by University of Hong Kong professor Frank Dikotter, based on previously classified party documents). It’s also enlightening to compare it with the fact that the UN, during the 1960s, was starting to promote the concept of the Special Economic Zone (SEZ) as an infrastructure and growth template.
Now there are more than 4,000 SEZs scattered all across the world – living and breathing experiments of strategic investment bound to absorb working masses and turbo-charge modernity. And Shenzhen, of course, is the mother of all SEZs.
In 1979 Deng designated Shenzhen, then a mere sleepy fishing village north of Hong Kong, as China’s first SEZ. Now it’s home to up to 18 million people – and counting. Shenzhen started as a somewhat unregulated hub for low-cost labor, very handy for a China that badly needed foreign investment to create jobs, train a massive workforce, and import skills and technology. It turned out as a major win-win. What took the West 200 years to accomplish China did in only 20.
Between them, Greater Shanghai and Guangdong province – home of the Pearl River Delta – account for 80 percent of China’s exports. Now China’s new “urbanization drive” strategy reaches beyond Shenzhen, aiming to decentralize into new megacities or even brand new cities, all self-sustaining. The emphasis is to create a vicious circle; up and up in the value chain; more productivity; more consumption; higher wages. Both Hong Kong and Singapore– key models for Beijing – neatly graduated from a vicious trade circle to first-class global cities. Now it’s up to places inside China, from Shenzhen to the Suzhou Industrial Park near Shanghai, to show the way.
It’s this urbanization drive that is at the heart of the Chinese Dream. And the lab where the idea was conceived is the Pearl River Delta – with its confluence of capital, technology and knowledge industries.

Knowledge is power

Guangzhou, less than two hours north of Hong Kong, is the capital of the Pearl River Delta manufacturing miracle. Way beyond the free trade zone set up in 1992, the Guangzhou Nansha Export Processing Zone (automotive assembly, biotech, heavy machinery) seamlessly connects in only a few minutes to the airport as well as Shenzhen’s ultra-modern port.
Being close to Hong Kong was always a Guangzhou plus – even before the 1997 handover. As much as Hong Kong was the seminal source for all foreign direct investment (FDI) in China, the Delta export machine progressively harnessed all this investment to build ultra-modern infrastructure in competition with Hong Kong. Shenzhen for all practical purposes may now be overtaking Hong Kong in many aspects – but officially it’s all about the emergence of a world-class Hong Kong-Shenzhen megalopolis.
And it’s not only about Foxconn. The “factory of the world” churns out a non-stop electronic tsunami, essentially assembled in Shenzhen, from Apple to Microsoft, from Sony to Samsung. Chinese tech giants Huawei and Tencent are Shenzhen-based. The stock exchange is among the worlds’ busiest – boasting heavy trading on both state-owned enterprises (SOEs) and tech start-ups.
Guangzhou, meanwhile, excels as a major knowledge center, via Knowledge City, managed by Singaporeans, and especially the Guangzhou Science City – which rivals Samsung Digital City in Suwon, South Korea; they are a sort of Chinese version of Silicon Valley. Singapore also contributed to what is taught at the South China University of Technology, which feeds China’s top digital start-ups in everything from cloud computing to materials engineering, renewable energy and biotechnology.
People cross a street at Nanshan district focusing on technology sectors in Shenzhen, China © Bobby Yip


Ma versus Ma


One of China’s top secrets lies with a small army of savvy businessmen redefining the boundaries of innovation not only in China but across the world. And this is not driven by Beijing; on the contrary, the seat of power cannot control – and really does not want to control – all this very rational exuberance. The story of Shenzhen-based Haier embodies the process of private, world-class companies as drivers of China’s economy.
China’s biggest companies – banks, insurance, energy, telecom, airlines, leading steel, auto and construction firms – are all state-owned or controlled. But that’s not the major story. It is private business leaders who are transforming their industries, with little government control. By now China boasts over 12 million privately held companies and 24 million so-called “proprietorships” – companies owned by individuals or a family.
As I learned at Science City, the private sector accounts for over 75 percent of China’s economic output, and privately controlled companies now offer no less than two-thirds of all urban employment in China.
These business people are really tough cookies – from Alibaba’s Jack Ma to Tencent’s Pony Ma, from Baidu’s Robin Li to Huawei’s Ren Zhengfei, from Xiaomi’s Lei Jun to Yihaodian’s Yu Gang. They survived virtually everything: the Asian financial crisis of 1997-1998; the fierce competition from the flood of foreign actors after China was admitted in the WTO in the 2000s; and last but not least the Wall Street-generated 2008 global financial crisis. Their “secret” is very simple; faultless consumer service.
Alibaba is the most notorious of them all largely because of its 2014 IPO, which netted a cool $25 billion. But Tencent, China’s top internet portal, founded by Pony Ma in 1998, is even bigger, in revenue and profits.

Education meets infrastructure


The Pearl River Delta is also a story of top-class education flowing through top-notch infrastructure – from high-speed rail to impeccable highways to fast hovercraft connections. It puts anything available in the US to shame – configuring, in every detail, a seamless megacity corridor that will boast a population of 80 million and a GDP of $2 trillion by 2030.
Once the Pearl River Delta’s strategic role in the global division of labor was configured, now we’ve come to the point where Alibaba, for instance, is partially delocalizing to Hainan Island to boost cloud computing and an e-government platform plus a branch of Taobao University focused on e-commerce.
Investment in higher education has always been key. In China, out of seven million students graduating from college annually 1.2 million have science degrees, or in engineering-related subjects. China’s colleges and universities constantly churn out an army of hyper-connected, fluent English speakers. As Edward Tse observes in China’s Disruptors, by 2020 they will be part of a total graduate workforce of an astonishing 200 million – more than the entire US workforce.
Global expansion, of course, comes with the territory. Chicago, for instance, has branded itself as the top American city for Chinese business. The Chinese are building Shenzhen-style final assembly lines of industrial supply chains inside the US to avoid import tariffs. China’s Minsheng Investment and Advance Business Park are overhauling the Royal Albert Dock in east London, conveniently near London City airport, as a tax-free hub for Chinese business. Huawei is building an R&D center in Thailand.
Financially, the Shenzhen-Hong Kong Stock Connect – the equities trading link between both bourses – has already been through a system-wide test run earlier this week. The target, as excited Hong Kong traders tell it, is to “pump liquidity into the cross-border equity markets and serve as a steppingstone for the further opening up of the capital markets on the Chinese mainland.”
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© Martin Petty


So what about the pivot to Asia?


China’s e-commerce giants are now moving into finance – offering money-market products with higher interest rates than banks. Telecom equipment giant Huawei wants to become a major global smartphone player. BYD, which makes batteries for mobile phones, is getting into the auto business. It’s a business cross-pollination frenzy. Bets can be made that Chinese companies will come up with the $50 iPhone, cost-effective solar energy, mass-produced, affordable electric cars and, why not, your own personal robot; China is already the world’s biggest industrial robot market, although most work in the auto industry.
China’s obsession with innovation, to a large extent nurtured in the Pearl River Delta, coupled with the urbanization drive, is leading to a new socioeconomic paradigm, a nation of several hundred cities housing from one million to tens of millions of people – nothing the world has even seen, except for Deng Xiaoping in his vision of “a thousand Singapores”.
As 25 percent of US exports and 40 percent of US imports involve Asia, a case could be made that the “pivoting to Asia” so dear to the Obama administration and the Pentagon is basically about protecting the US supply chain. But the same also applies to China. The question is whether the Beltway will ever admit that supply chain geopolitics is much more important than humanitarian imperialism.
Access to natural resources and infrastructure are now geostrategic conditions. And Beijing knows it better than anyone – thus the Eurasian reach of the New Silk Roads, a.k.a. One Belt, One Road (OBOR). A pivot to Asia to deter “Chinese aggression” is thus meaningless. Expanding the Pearl River Delta model, China is building massive infrastructure with its neighbors – and beyond. Infrastructure trumps “security”.
So building a Eurasian resource corridor must run in parallel with all the Chinese action in the East and South China Seas, where the master game plan is to build massive Indian Ocean and Pacific infrastructure to avoid the bottleneck of the Strait of Malacca. The Trans-Eurasia high speed rail, maritime canals in Southeast Asia, the Maritime Silk Road, they all hark back to that day in 1979 when Deng Xiaoping invented Shenzhen. No question; the 21st century Chinese Dream did start as a Pearl River Delta dream.