D.卡尔顿 罗西
D. Carlton Rossi

China Affairs


                                       


 

                                         





                                   



              Shanghai closes international maternity hospital
              over ‘illegal construction’ on military land

Denise Hruby


September 5, 2017


The Shanghai government has ordered the closure of one of the city’s top maternity hospitals saying that it was illegally built on land owned by the armed forces, according to an official notice.

Founded by Canadian investors, Shanghai Redleaf International Women’s and Children’s Hospital had signed a 20-year lease for a prime real estate owned by the military on central Shanghai’s Huaihai Road and started catering to foreigners and wealthy Chinese more than four years ago.


https://www.hongkongfp.com/2017/09/05/shanghai-closes-international-maternity-hospital-illegal-construction-military-land/


More brutish, thuggish tactics that trample on the rights of the defenceless. If you don't agree then conduct free-trade with China and ignore how Shanghai Redleaf International Women’s and Children’s Hospital was established by Canadian investors. Educate us and explain to us how free-trade with China will advance women's rights and the rights of the unborn child.

It was said that Alchemy was a false science which claimed to be able to convert lead to gold. How, however, were we to know that we would enter a new golden age in our relations with the Communist Party?  Show us how we shouldn't have listened to Issac Newton the scientist, but rather Issac Newton the alchemist.





                      Ministry of China Affairs


China Affairs would be a strange sounding name for a ministry of the federal government. It sounds more like a department at a university such as East Asian Studies in the U of T. The strangeness of the name though reflects our government's misjudgement, misunderstanding and mistakeness of the most populous country on the face of the Earth. We need a separate and independent ministry apart from Foreign Affairs to deal with the challenges and opportunities presented by one leader, one party and One Belt One Road.               

Our modern impression of China, one might say, began with Pierre Trudeau. As a young man he visited China in the tumultuous period of 1948--just prior to the establishment of the People's Republic of China. One would have difficulty separating revolution and war at that time.


                   


Then, in 1960, he toured the country. His experiences were chronicled in a book called Two Innocents in Red China. That title says everything because the Chinese organized the tour as a propaganda exercise extolling the revolution. The Canadians were dupes.


                  

           Peasants eat grass during Great Leap Forward


As China moved from an agriculture society to an industrial one it undertook mandatory agricultural collectivization in The Great Leap Forward from 1958 to 1962. In this process, the government gained a monopoly on food so it could buy low and sell high to finance industrialization. The result was a famine that killed tens of millions. Yet, Trudeau wrote "Who was it that vanquished this implacable enemy [famine]? Mao."

In the next decade, Trudeau was instrumental in the opening of China. It is well known that he initiated talks regarding normalization of Canada-China relations in 1968. Those talks bore fruition on October 13, 1970 when diplomatic relations were established. Let us not forget though that the period in China from 1966-1976 was the Cultural Revolution. Millions more were killed.


                  

               Military stands guard on Parliament Hill


What is not recognized so easily is the juxtaposition of the normalization of relations with the October crisis of 1970 in Canada. James Cross was kidnapped on October 5th. This began the crisis. Then, Pierre Laporte who was Quebec Minister of Labour was kidnapped on October 15th. A day later and only three days after the normalization with China, the War Measures Act suspended basic rights and liberties. The FLQ had switched its tactics from bombings to kidnapping to achieve their goal of separation.

Of course, it is a coincidence that normalization and the FLQ crisis occurred at the same time. It does though show that Trudeau naively misunderstood how the Cultural Revolution was conducted through mass terror and also underestimated how a Quiet Revolution in Quebec could degenerate quickly into chaos. Generally speaking, it might be said that in the abstract he was not opposed to revolutionary spirit, but he was shocked to see how quickly law and order could be thrown aside in a nasty, real way.




                 


Canada-China FIPA Agreement   (Sold down the Yangtze)


One might say that subsequent politicians have been similarly naive. They have concentrated on trade with China rather than human and civil rights. There has been a deficit in trade and a dearth of support for rights--in other words, a lose-lose scenario. More recently, a FIPA agreement with China under the Harper Government gave up some of our economic independence because decisions would be made by an arbitration panel. Free-trade with China means that our basic infrastructure would be controlled by Chinese SOE's. An extradition agreement with China would see an erosion of our Charter of Rights and Freedoms.


             



Sun Yat-sen overthrows Ming Dynasty in Xinhai Revolution


Generally speaking, there has been a revolution every ten years from the Xinhai Revolution (辛亥革命) in 1911 to the Cultural Revolution (无产阶级文化大革命). However, in 1978, Socialism with Chinese characteristics was introduced by Deng Xiaoping. This was reform rather than revolution. However, he called the reform a "second revolution". In a system described as "Socialism with Chinese Characteristics" (中国特色社会主义) the middle-class grew through profits of private enterprise and poverty was reduced. The SOE's did not contribute to the growth through the generation of profits.




                   


             China's Fourth Industrial Revolution--AI


Canada is unprepared for the next revolution in China. It is called a "reform", but make no mistake, it is a revolution with a dark side. It is the AI revolution which is spearheaded by Huawei. Its technology will be used to monitor, control and subjugate the Chinese people. Already its technology is being tested in the Xinjiang region. When this technology is combined with the Social Credit system which mines data it will go beyond the Orwellian state envisioned in 1984.

It is nonsensical for Justin Trudeau to strive for a Free-Trade agreement with China by dealing with Chinese state-owned or controlled corporations. For example, in the takeover of Aecon or Canada's third largest construction firm, the SOE was taking over a profitable corporation. Yet, SOE's do not make profits. This has been said time and again by Mao Yushi who is a respected economist of the Unirule Institute. They are run for state reasons and for the benefit of party members.



                   



            Finance Minister Bill Morneau and the AIIB


One might argue that our Minister of Finance had contributed funds to the Beijing based Asian Infrastructure Investment Bank (AIIB) with the hopes of financing the overseas operations of companies like Aecon. However, the 1.5 billion Canadian takeover of Aecon by the world's largest engineering and construction firm (CCCC) was stopped on the grounds of national security. No one is suggesting that Canada was indirectly and unawaredly funding the takeover of its own company.

Is Canada able to get out of the AIIB? The answer is yes with six months notice. However, getting back the funds is a slow process. While only about 20% of the paid in capital will go to the bank it will be part of the total contribution of about 2.9 billion Canadian according to Trevor Tombe in a Maclean's article dated on September 8, 2016.

In a more up-to-date article of November 22, 2018, Marie Danielle Smith of The National Post comments that despite the government's rosy promises no Canadian investor or business has benefited by the involvement with AIIB. According to Conservative MP Ron Liepert there has been no Canadian investor engagement in the 32 projects to date. Why therefore is Canada contributing to a bank that has provided no benefits to date and where bids could be made on procurement contracts without membership in the bank?

If there were a Ministry of China Affairs then this inconsistency might be prevented or eliminated. Why are we driving up interest rates in Canada by making funds scarcer as we provide loans to the AIIB? Why don't we provide these funds for our own infrastructure rather than the infrastructure of One Belt One Road somewhere else? Get something straight. Our Canadian policy is not One Belt One Road whether it is here or on the Moon. That policy is Looney. We make our own destiny as a sovereign nation.

A Ministry of China Affairs would have a more realistic understanding of China with regard to a rule based system. China does not play by the rules. It bends and twists the rules. If you thought rules of the WTO would gradually bring China to an international standard then you misjudged. If you believed that China would follow the United Nations rules of the sea in the South China Sea then you misunderstand the island building program. If you turned a blind eye to the arrests of lawyers and civil rights activists in China as a precursor to the re-education camps in Xinjiang Province then you are mistaken. Do you need any more evidence than the statement of the head prosecutor in China who declared publically before a possible trial that the Kovrig and Spavor are endangering National Security?

The author was not able to speak out about civil rights in China as an employee of the state or as a resident. If he had done so he would have been sent on the first plane back to Canada. Instead, he endeavored to teach creative thinking rather than English out of outdated textbooks which talked of social injustices in the United States rather than China. He did take a stand in support of the peasant class beginning with his arrest in 2003. The two Sun cases or Sun Dawu and Sun Zhejiang were the beginning of the civil rights movement in China. Today, that movement has been crushed as was the demonstration for democracy (六四事件) at Tiananmen in 1989.

Since his return to Canada the author has been an observer of Chinese affairs on the mainland. He can't do much about the situation. What he can do something about is to ensure that Canada's rule of law, democracy and national security is protected at all costs from actions of Chinese party members through SOE's, state sponsored companies, Confucius Institutes, universities, takeovers, drugs, bitcoin mining, money laundering, property speculation, immigration, thefts of intellectual property, cyber theft, corruption, campaign contributions and gifts to foundations etc. National security must take precedence over rule of law and democracy. However, it has to be done within a coherent policy of the government which employs sensible strategies under a Ministry which understands the situation. The situation is serious enough to employ the Emergency Measures Act. These affairs are now our internal affairs in Canada. They are China Affairs in Canada.


               

                   CFO Meng Wanzhou of Huawei

Mdme Meng is Huawei. No decision can be made for or against Huawei's involvement in 5G technology in Canada until she is released. Canada's national security and economic stability may be threatened in the meantime. It is imperative to immediately resolve her issue even at the expense of an extradition obligation with the US tainted by political interference. The best way is not Huawei, the American way, but our way. Trade her for seven Canadian hostages.

The author has spoken out about how our Immigration Department has farmed out investigative procedures for a Canadian visa to a Chinese company. They seem rather proud of it because Canada is the first western country to do it. Is anyone asking the basic question of why Canada is doing so and why it is the only one?



                    


                         Chinese Ten Year Tourist Visa


There has been an issue with 10 year visas. In 2012, the Chinese were given the right to apply for 10 year visas. Yet, it took three years for Canadians to get reciprocity. In that period, this Canadian was leaving China every two months so that he could re-enter on a visitor's visa. If our freedom of information law was not the weakest in the western world this author would ask just how many 10 year visas have been granted to Chinese since 2012 and how many to Canadians since 2015? The difference would probably astound you, but the figure is unknown. Perhaps the new People's Party of Canada will take up the issue.

The author suspects that Canada is being overwhelmed with tourists on 10 year visas from China. Why would they apply for a single visa when a 10 year visa is about the same cost? However, a proportionate number of Canadians do not get Chinese 10 year visas. Canada has lost control of the situation. Someone in a Ministry of China Affairs might ask why the numbers were not equal and would not be satisfied by the response that China has a much greater population. That someone would point out that the citizens of Hong Kong are complaining about the influx of Chinese tourists which drive up prices and create shortages while the promises made to them of self rule are vacuous.

If Canadians are not very careful then Canada will become a vassal state of China. You have already paid tribute in the form of Norsat and loans to the Asian Bank. You will have a semblance of rule of law and democracy as they do in Hong Kong, but you will be ruled by a Party on the mainland that uses the constitution as a prop of propaganda to rule by law enforced by intimidation, fear and terror. China is now touting the Hong Kong example as a model for Taiwan. They will take Taiwan as a sacred duty of an officially atheistic state.


D.卡尔顿 罗西
D. Carlton Rossi

2018年1月4日








               


      David Mulroney (Former Canadian Ambassador to China)


The NBA’s China crisis is proof that economic diplomacy is no slam dunk


David Mulroney

Special to The Globe and Mail

Published 3 days ago


This is leading to increasing interest in what some in the U.S. are calling “decoupling” – that is, replacing our across-the-board engagement with an idealized vision of China, and instead approaching the communist state as a formidable rising power that’s as much a competitor as it is a customer. Proponents of decoupling argue that focusing exclusively on deepening economic ties with China is backfiring precisely because Beijing so effectively weaponizes trade, turning market access into a dangerous dependency.

But we’re not hearing much talk about decoupling here in Canada. Even after a year of brutal treatment by Beijing, the government seems wedded to the same comprehensive engagement strategy that corporations such as the NBA stubbornly embrace. We’ve even dispatched senior people to Beijing on what seem, bizarrely, like apology tours. In their visits to China, federal Small Business Minister Mary Ng and Canadian senator and Canada-China Legislative Association co-chair Joseph Day sounded an awful lot like Mr. Silver as they meekly offered Chinese audiences bromides about not letting small differences disrupt our fundamental friendship.

We do need to manage our messaging while Canadians Michael Kovrig and Michael Spavor continue to languish in Chinese detention. But that doesn’t oblige us to say things that are foolish or untrue, or to put off serious thinking about a smart decoupling from a China that is, from abundant evidence, far from friendly. This isn’t about abandoning the relationship – it’s about ending a failed, anything-goes approach to engagement.

excerpts


https://www.theglobeandmail.com/opinion/article-the-nbas-china-crisis-is-proof-that-economic-diplomacy-is-no-slam/






                              


            D. Carlton Rossi at Hong Kong Court of Last Appeal



Canada does not have a China policy. The only sensible thing to do therefore is to decouple from China. I prefer to use the term "disengage". The disengagement would be external. For example, trade with China should be reduced (as it has already been accomplished by China) and FIPA abolished (which may even now be used by China with reference to the extradition case).

My views on disengagement using that actual term were expressed privately to a "China expert" about six months ago. They have been reinforced to a great degree with Chinese responses to the peaceful demonstrations in the streets of Hong Kong. However, where the young people of Hong Kong are outwardly expressing their views it is equally apparent that politicians in this country are expressing next to no views about either Hong Kong or China in this election. Most are putting domestic politics (with little emphasis on substantive issues) ahead of national interests and security while trying to buy votes in the most debased way.

It is evident that China has used economic blackmail by cutting purchases of canola in order to influence a decision on Meng Wanzhou as David Mulroney has said and in a wider sense on the establishment of Huawei's 5G network. However, Canada got itself into this predicament by concentrating too much on the export of one crop as the US emphasized soybean exports to China. This made both Canada and the US vulnerable from a trade perspective from many angles.

The West is not in a New Cold War with China. Rather, China is currently conducting Guerrilla Warfare. Its principles were laid out in Mao Tsetung's On Guerrilla Warfare (游击战) written in 1937. These principles are being followed by today's leadership in China. When confronted by a stronger enemy then use irregular warfare. They are applying this principle internationally.

Our approach to China should be two pronged. Disengage externally, but engage internally. Chinese agents should be engaged or confronted domestically within Canada to defend our national interests and security. There are many security issues in multiple areas which must be addressed and eliminated with respect to money laundering, fentynal and espionage to name several.

The latest episode involving an independent contractor who had high level access to information within the RCMP, for example, does not inspire my confidence in that organization to defend Canada against the Chinese espionage threat along with its use of guerrilla tactics in other areas. A new organization is required to deal specifically with Chinese clandestine threats within Canada. If Canada really wants to get serious in confronting the domestic Chinese threat then I would suggest hiring the former Defense Secretary James Mattis to head the organization. He resigned from POTUS.




                                
                              

Our Foreign Policy about China is an Unmitigated Disaster

With COVID-19 Canadians are finally waking up to the extent of the failure and its repercussions


Since 2003 the author has warned the Chinese people of the dangers posed to them by an authoritarian government in China. Since 2012 the author has warned the Canadian people of the dangers posed to them by an authoritarian government in China. He has joined the chorus of critics knowledgeable about China who are very concerned about our foreign policy (if you can call it that) with China. Our policy is not only non-productive, but destructive to everything that is Canadian. It took the COVID-19 crisis beginning at the end of 2019 to turn an existential threat to Canadians to a real threat. Ground zero for the virus was Wuhan. The virus spread very quickly to Canada where it has killed almost twice as many Canadians as Chinese.

Recently, therefore, he reviewed what took place at the meeting of the Special Committee on China-Canada relations to which Ambassador Barton was invited. As a background, the government under Justin Trudeau sent Michael Kovrig to China to discuss the Meng case without seemingly confirming that he had diplomatic immunity. At the time, our ambassador was John McCallum—at least until he was fired several weeks later. It is evident that Trudeau had not been informed of Kovrig’s diplomatic status or was unaware of it. Trudeau said "It is unfortunate that China has arbitrarily and unfairly detained two Canadian citizens, and indeed, in one of the cases, is not respecting the principles of diplomatic immunity." It is a fact though that Kovrig was on leave from Global Affairs Canada. He did not have diplomatic immunity and did not carry a diplomatic passport. Today, Kovrig remains in a Chinese prison on terms which are much more harsh and less humane than Mdme Meng who is under house arrest in her Vancouver mansion.

Fast forward to a year later. Ambassador Barton appeared before the Special Committee on Canada-China Relations on February 5, 2020. Again, the author commends him for his sense of accountability to Parliament. He talked about four key issues in the China-Canada relationship. They were the detained Canadians, his mandate, strained relations between Canada and China and Canada’s leverage with regard to food.

Brief mention will be made on two of the issues. While it is true that Canada has leverage over China in terms of food there is little to no evidence to suggest that Canada has actually applied that leverage. If you recall, the author wanted all future shipments of food to China suspended for 25 years after the pork embargo which followed the canola embargo—both for spurious reasons. With respect to Spavor and Kovrig it is again commendable that Ambassador Barton visits the prisoners on every occasion allowed by the Chinese government. Nevertheless, the fact is that the two Michaels continue to be in prison after 600 days.

At the time of the Special Committee meeting Prime Minister Trudeau was on his way to Ethiopia. He was to meet Prime Minister Ably Ahmed and President Sahle-Work Zewde in order to get Ethiopia’s vote for Canada’s seat on the UN Security Council. The date of the trip had been planned well in advance. Wasn’t it an extreme coincidence though that Ambassador Barton’s appearance before the Special Committee was on February 5, 2020 when Trudeau was on his way away?

As has been previously mentioned by the author on several occasions Trudeau did not discuss the outbreak of coronavirus in China to the Africans as far as we know. Nor did Trudeau seem concerned about its inevitable spread to Canada. Did Trudeau and Barton talk about the full implications of a possible spread of novel coronavirus to Canada on Barton’s return from China to the United States and then Canada? Who would know better than Barton what was going on in China? There isn’t any public information to answer these questions. Did Barton voluntarily quarantine himself in either the United States or Canada after his return from China. Probably not, as Foreign Affairs usually would be responsible for warning Canadians to take such precautions. Well, the Head of Foreign Affairs went along on the African junket. Novel coronavirus was the last thing on his mind.

The point of all this explanation is that novel coronavirus which later became COVID-19 was not one of the six concerns of the Special Committee. Why didn’t the Special Committee realize there was the strong possibility of a Chinese epidemic transforming into a global pandemic as of this date? Did Ambassador Barton not inform the Committee of this possibility?

It was known at that time the virus was highly infectious. It was more infectious than SARS which hit Beijing and Toronto particularly hard in 2003. COVID-19 is actually designated SARS-CoV-2. It is less deadly than that from which it was derived, but more infectious. At the start of February, it was estimated the mortality rate was about 2.4%. That estimate was later revised downward, but even at 1% the mortality rates are very high because so many people were being infected so quickly on an exponential basis.

It was also known that Wuhan which was a major hub for rail and air transport was locked down on January 23rd in what is called the (“Wuhan lockdown”: 武汉封城) at the beginning of China’s major, human migration during the Spring Festival. Hours later, lockdowns were applied to Huanggang and Ezhou. By February 2nd, a seven-day lock-down applied to Wenzhou, Zhejiang. It was also known that 5 million Wuhan citizens had escaped the lockdown before it was implemented of whom some left on planes for destinations abroad such as Canada.

February 5, 202O was a fateful day for another reason. Ambassador Barton said some of the 650 embassy staff in Beijing “were aware of a potential problem [in Wuhan] well before it hit headlines.” "A number of people in our Beijing embassy...were identifying this as a potential issue. Really, the author knew about it in mid-January before the Wuhan lockdown! The United States knew about the issue at the beginning of January; although, at this early time, important details were not disclosed by the Chinese.

It was no longer a potential problem or issue on February 5th, but an actual one. It was actually a disaster more than a problem. To his credit we are told that Ambassador Barton wanted to rush back to Beijing to help staff serve Canadians in China.

We did not though see Trudeau or his Foreign Affairs Minister rush back to Canada to serve Canadians with regard to COVID-19. We did not see them initiate planning and emergency, control measures in Canada after February 6th. Rather, they were off to Senegal from Ethiopia to kill two birds with one stone to secure member votes so Canada could vote on the Security Council. They forgot in Canada that a bird in the hand was worth more than two in the African bush.



https://www.cbc.ca/news/politics/trudeau-diplomatic-immunity-michael-kovrig-1.4975759

https://www.cbc.ca/news/politics/dominic-barton-china-committee-1.5453779

https://en.wikipedia.org/wiki/COVID-19_pandemic_lockdown_in_Hubei




                               A Typical Day


The author's poetry and prose would be even more prolific and qualitatively better if he wasn't constantly distracted by security issues on-line. There is no rule of law on-line. There is no privacy, but only piracy. It is the wild, wild west. While the government says that it is doing its best to protect citizens, the bald truth is that it is behind most of the invasion of privacy or at the very least countenances it for its own purposes.

It is like a giant vacuum cleaner that illegally sucks up information for its own sake to hold for an unknown purpose. The very premise of the Five Eyes network is to spy on citizens without repercussion or culpability for dubious security reasons on an extra territorial basis. For example, if Canada cannot get information legally about a Canadian citizen then it asks the United States to acquire it and vice versa. The emphasis is on vice.

Today, was a typical day. My computer was hit by a Hypervisor which hijacks through an alternative operating system. It's a rather nasty virus that takes control of everything and mines data. First, it dismantles your anti-virus program. Second, it shuts down your VPN. Third, it holds your files and programs hostage. Fourth, it acquires passwords and data on forms. Finally, it modifies browsers in ways that are not friendly.

It is not as if the author doesn't have experience with these things. He has lived in authoritarian regimes for two decades and now he lives in Canada. As a result, he spends about 30% of his time on security issues. It goes with the territory so to speak. If he spent any more time then he would have to change his profession to cyber security.

Solving the Hypervisor issue was rather routine. First, one has to identify the problem. The Windows 10 program has been temporarily replaced with an outdated Windows 8.1. Without going into boring detail one must go to the Run Command and make some changes. Next, enter Powershell with administrative privileges and submit a command. The third step is to reboot. Determine if the net 472 developer pack was damaged or altered. Ensure Hypervisor Program is turned off in Windows Features. Lastly, re-establish apps through Defender. The problem is solved until Windows updates.

The author has relinquished his Smartphone. A short demonstration was given to him by someone who is in the know in the intelligence community. He now uses a flip flop. From a digital specialist in 1985 to a "flip flopper" in 2019.

The same kind of trend has become imposed on him with regard to his websites. He was able to adapt the program a decade ago to do something it was not designed to do; namely, handle multiple languages--even within a phrase. With regard to security he used multiple blocks so that if one were knocked down the others would survive. This meant that he might have 50 blocks on one page. Those innovations could not be migrated to the dumbed down version of the program. If the medium is the message then it has been reduced to the lowest kind of denominator. It is all ease and please or easy pleasy.

It is not surprising that most people in the West do not spend 30% of their time on security issues. They have more important things to do. What is surprising though is that they go out of their way to surrender their freedom, privacy and security to Google, Instagram, Facebook, Twitter, Skype, Yahoo, Amazon, Spotify, Statistics Canada, Royal Bank etc. Someday they may realize that the most important things in their lives are freedom, privacy and security.



D.卡尔顿 罗西
D. Carlton Rossi

2018年12月19日






Eight Days a Week


Monday:      Lowered encryption level on secure socket layer site.

Tuesday:     Removal of password to anti-virus program

Wednesday: Early termination of programs requiring re-registration

Thursday:    Publication of all images is blocked.

Friday:        Password confirmation by phone signals are delayed by 15 minutes

Saturday:    Activated camera when accessing website

Sunday:       Dismantled anti-virus software

Monday:      Twitter blocked through browser manipulation

These are not covert, political attacks by Chinese in Canada or abroad on a Canadian. These are covert, political attacks through cyber espionage by Canadians in Canada on a Canadian citizen.






                             


Instead of Eight Day's a Week maybe the title should read Baby's in Black from the same album. Baby's in Black what can I do"


https://www.youtube.com/watch?v=TJFpUb7JGYo








    It was the best of times, it was the worst of times


The quote comes from Charles Dickens' A Tale of Two Cities. It is referenced here with respect to SNC and Lavalin which might have been called companies in the worst of times to SNC-Lavalin which might be called a company in the best of times with respect to power infrastructure projects in China. The reader is quite familiar with the recent SNC-Lavalin scandal where Attorney General Wilson-Raybould claimed she was pressured by Trudeau's inner circle to settle charges against SNC-Lavalin through a plea deal. This analysis does not cover this affair except in passing. Rather, it pertains to the Three Gorges Dam project where SNC and Lavalin (which were separate companies prior to 1991 and part of a consortium) had taken part in a three year study to examine environmental and resettlement issues. The study was financed by the Canada Investment Development Agency or CIDA and completed in 1988. In recent times, SNC-Lavalin is providing an engineering service to provide a mixture of depleted and recycled uranium to Qinshan’s CANDU® reactors Units 1 and 2. This analysis contrasts the past study at Three Gorges Dam which involved SNC and Lavalin and the recent engineering service provided by SNC-Lavalin at the Qinshan reactors along with prospects.

The author concedes that he was not familiar with the negative reaction to the feasibility study of Three Gorges Dam at the time. The reason was that he was in China where negative news was censored on the biggest construction project since the building of the Great Wall. Also, there was a cover-up in Canada and China on the grounds of trade secrets, but revealed under freedom of information requests by Probe International. However, he did get a chance to view the project on a couple of occasions in the initial stages of construction.

Basically speaking, there was a conflict of interest between those who participated in the environment and resettlement study and those Canadian companies that would benefit from the building of the dam. The Canadian consortium called the Canadian International Project Managers-Yangtze Joint Venture, included five Canadian engineering companies: Lavalin International, SNC, Acres International, Hydro-Quebec International and B.C. Hydro International. It seems the companies gave too much preference to the thirty years' of Chinese studies and China's determination to go ahead on the project come hell or high water. Astonishingly, the study concluded that the dam could solve seemingly irreconcilable problems of flooding, hydro-electric generation and resettlement while the Chinese added a fourth or water to the North. Ultimately, the Canadian feasibility study helped finance the project on a world-wide basis.

The criticism of the study was acerbic. For example, in an article entitled "Who's Behind China's Three Gorges Dam", University of Manitoba professor Vaclav Smil (an expert on Chinese energy and the environment) commented that "This is not engineering and science, merely an expert prostitution, paid for by Canadian taxpayers". Based on the findings of independent experts, Probe International accused engineers who contributed to the study of "professional negligence, incompetence and professional misconduct." As a result of the controversy CIDA backed out of its support for the study.

Phase 3 of the Qinshan Nuclear Power Plant in Zhejiang Province involved the construction of two 728MW CANDU-6 power plants. The reactor design was supplied by Atomic Energy of Canada Ltd. which is a Canadian crown corporation. A contract was awarded to Atomic Energy as a result of two years of negotiations between Atomic Energy and China National Nuclear Corporation. The Qinshan project came online in 2003. It was both ahead of schedule and under budget.

The following is a timeline of SNC-Lavalin's involvement with Candu Energy which became a wholly owned subsidiary. As early as March 2010 AECL had announced that a bundle of recycled recovered uranium from light water reactors had been successfully inserted into Qinshan CANDU Unit 1. In June 2011, SNC-Lavalin purchased the commercial reactor division of AECL from the Government of Canada for 15 million Cdn (including 15 years of royalties). A subsidiary was established called Candu Energy Inc. In October 2011, AECL licensed this technology to Candu Energy. It would market the design and supply of CANDU reactors.

The year 2011 will be remembered, too, by many Canadians with respect to SNC-Lavalin because the RCMP began investigating corruption, money laundering and fraud with respect to its Libyan operations. Under Project Assistance the RCMP co-operated with Swiss authorities who in March 2011 had uncovered issues in Libya and Tunisia. Incidentally, SNC-Lavalin Group Inc. announced its results for its first quarter ended March 31, 2011 would be the first period in which the Company’s financial statements had been prepared in accordance with International Financial Reporting Standards (“IFRS”). However, its nuclear business should be looked at quite separately and appears above board in all respects.

SNC-Lavalin’s Nuclear business unit saw many achievements in 2014. In November, the Advanced Fuel CANDU Reactor (AFCR) technology received a positive endorsement from a Chinese Expert Panel. Candu Energy Inc. signed a Framework Joint Venture Agreement with CNNC. It would negotiate and finalize the terms of a proposed joint company that would work toward the development and construction of the AFCR technology in China and around the world. Each advanced fuel Candu reactor can use the spent fuel from four light water reactors. China currently has 46 light water reactors and twelve under construction.

What immediately comes to mind is how these agreements are of technical sophistication and benefit to both sides thus providing the foundation for a greener environment. They contrast to the approach taken by the government at the end of 2015 which became much more political. They linked China-Canada Free Trade with an Extradition Treaty. Both Free-Trade and an Extradition Treaty would benefit China much more than Canada. With respect to Canada the premise of talks was flawed from the beginning. Today, Free-Trade talks have ended, there is no Extradition Treaty and the Extradition Treaty with Hong Kong has been terminated.

The latest news concerning SNC-Lavalin's Candu Energy Inc. subsidiary regarding China is that it has been awarded a contract by China National Nuclear Power Co Ltd (CNNP) for pre-project work on a proposed two-unit Advanced Heavy Water Reactor (AHWR) plant in China. The construction is expected to start in or around 2021. Shanghai Nuclear Engineering Research & Design Institute serves as the general design institute of the project.

The future is bright for the CANDU nuclear deuterium reactor in China. It can use recycled and recoverable nuclear material from China's other reactors for fuel. In addition, it can use thorium. According to Moir and Teller "the possible advantages of thorium include "utilization of an abundant fuel, inaccessibility of that fuel to terrorists or for diversion to weapons use, together with good economics and safety features". Both the United States and China have many buried tonnes of thorium with the mining of rare earths. For example, at Baotou, Inner Mongolia there are over 220,000 tonnes. Thorium as a fuel for nuclear reactors is not something far off in the future because its development is already underway. In September 2009, CNNFC, TQNPC, NPIC and AECL signed an agreement for Advanced CANDU Fuel Development and Demonstration leading to the development, supply and fabrication of two ThO2 bundles.


D.卡尔顿 罗西
D. Carlton Rossi

2020年10月06日




https://www.cbc.ca/news/canada/snc-lavalin-international-used-secret-code-for-bribery-payments-1.1386670

https://www.ctvnews.ca/canada/jury-finds-former-snc-lavalin-executive-sami-bebawi-guilty-on-all-charges-1.4730922

https://www.culturalsurvival.org/publications/cultural-survival-quarterly/chinas-three-gorges-project-whose-dam-business-it

https://doi.org/10.1080/07349165.1994.9725849

https://en.wikipedia.org/wiki/List_of_power_stations_in_China

https://en.wikipedia.org/wiki/Qinshan_Nuclear_Power_Plant

https://en.wikipedia.org/wiki/SNC-Lavalin

https://en.wikipedia.org/wiki/Thorium-based_nuclear_power

https://www.mtholyoke.edu/~lpohara/Pol%20116/funding.html

http://www.probeinternational.org/catalog/content_fullstory.php?contentId=1610&cat_id= http://probeinternational.org/library/wp-content/uploads/2011/12/Behind3GInternational.pdf

https://www.snclavalin.com/en/media/press-releases/2018/07-08-2018

https://www.tandfonline.com/doi/pdf/10.1080/07349165.1994.9725849

https://www.thestar.com/news/canada/2020/09/28/is-canadas-investment-pact-with-china-putting-us-at-risk-this-former-beijing-ambassador-thinks-it-could.html

http://www.thoriumenergyworld.com/candu.html
http://www.thoriumenergyworld.com/uploads/6/9/8/7/69878937/thorium_in_baotou_candu-6_by_guo_hong_from_cnnc_-_thec12.pdf


https://visiontimes.com/2020/09/21/is-chinas-three-gorges-dam-worth-it.html

https://www.wsj.com/articles/SB119906431204358677







                       



The African Swine Fever (Flu) Crisis in China


The current strain of African Swine Fever (H1N1) in China resembles the one which emerged in the Caucasus Region of Georgia in 2007.The disease is quite prevalent in Africa. As a matter of fact, it was first observed by RE Montgomery in British East Africa (Kenya) in 1921. The Canadian government is blissfully unaware in their sunny ways clouded by self-inflicted legal and moral issues what exactly is going on in the People's Republic of China regarding swine flu or for that matter on any other issue since we do not have an ambassador to China. In 2017, 700 million pigs were slaughtered in China because of AFS. (Patton & Gu, Reuters, 1-15,2019) It may be said that the only thing that can be certain with regard to the current ASF crisis in China is that there is little known about it mainly due to government cover-up which has financial motivations.

The ASF crisis is very similar to the SARS epidemic in 2003 which began in China. The author lived through that crisis in Beijing and in the countryside at a time when officials of the Canadian Embassy and other embassies left in droves. It was not as if the author was unaware of the severity of the matter because a restaurant across the road from his apartment building was converted to a make-shift SARS hospital.

At the time, the author was teaching at the graduate school of CASS and then left temporarily to set-up a college at Dawu Village in the countryside of Hebei in May 2003. He was given a full battery of tests for SARS before he entered the gates of the village. Fear was palpable in the air as vinegar was sprayed on the entrances to buildings.





                 



                                                            May 09, 2003




                    

                                  May 27, 2003


The city dwellers and peasants of the countryside were afraid of rumours of deaths attributed to SARS. Those rumours turned out to be true. The government was afraid of social unrest of both migrant workers and peasants as the government tried to tap down the truth. It may be speculated that the main reason they arrested SUN Dawu was that he was the self-appointed leader of the downtrodden. The author was placed under house arrest.

The one positive thing to come out of the crisis was the beginning of the civil rights movement across China. The legal cases surrounding SUN Dawu and SUN Zhigang (who was arrested because he did not have a temporary residence permit and beaten to death in prison) set the stage for advancement of human rights and the private constitutional system of Dawu Group. This movement though was checked in 2015 with the arrest of lawyers and activists. The Liberal think-tank called Unirule is fighting for its existence.

Most recently, an article appeared on Reuters called "Piles of pigs: Swine fever outbreaks go unreported in rural China". It concerns the first outbreak of swine flu in Hebei Province. Specifically, it occured at the Dawu Group. Its farm may be considered a modern one which specializes in breeder sows. However, something somewhat unusual caught the reader's attention in the article.





                 


                                               a_012




                   


                                                   a_005




There were two pictures which illustrated the report. In the first picture labelled "a_012" there was only one policeman. He was in the far background of the image. In the second picture labelled "a_005" there were no policemen. However, if the reader magnified the picture then he could see police out of sight behind the barred window of the shack. Why were the police keeping such a low profile at this inspection site?




               

                                           a_008



This reader decided to download the contents of the entire page. He found both "a_12" and "a_005". However, he also found another picture. That picture was labelled "a_008". It did not appear for public viewing. The reader speculates that it was censored by a Chinese hacker. The hacker wished to downplay the police presence at the inspection station and minimize the seriousness of the situation--in other words, there was a cover-up. Basically, it is a health cover-up to mitigate financial loss to the government.

The Dawu Group had set up a sow breeding operation called Xinda Husbandry Co. Ltd as part of its integrated, agricultural conglomerate. In one sense, it mirrored their chick operation which supplied chicks to China and the world. The idea is to sell chicks and piglets to farmers and then follow-up with corn feed. The sow breeding company is actually a joint venture between Hebei Dawu Agriculture and Animal Husbandry Group Co., Ltd. which owns 90% and New Hope Liuhe Co., Ltd., which owns 10%.



                    



                    



                    
                 



ASF was detected on February 26, 2019 by China's Ministry of Agriculture and Rural Affairs on the Xinda farm in Xushui, Baoding. This was the first announcement of the ASF in the province of Hebei. This was four days after Sun Dawu had published suspicion of the outbreak on Weibo on February 22, 2019. The company had also alerted local authorities about seven weeks before the official notification was made by the Ministry.

Basically speaking, 700-800 pigs were dying a day. Yet, the Ministry did not officially announce that there was ASF until 15,000 pigs had already died. There are a total of 20,000 pigs on the farm. The delayed announcement by the Ministry meant that thousands of pigs had already been sold--potentially spreading the disease further. Besides, questions were asked by Sun Dawu as to where exactly the purchased pigs came from and by inference what would ensure that new purchases would not come from the same location?

Legally speaking, regulations prohibit the sale of a test kit for ASF; although, many farmers are buying them. Furthermore, swine flu can only be confirmed by an officially credited laboratory under the Ministry of Agriculture. The first Ministry test at the Xinda farm turned up negative. However, that may be because they tested live pigs and not dead ones.




                        





                         






                                       



Situation report: 15,000 dead pigs in Dawu New Big Pig Farm, and nearly 6,000 live pigs. We think it is African swine fever, but the government will not confirm it and will kill it tomorrow. New big company: Dai Yingchun, February 22 18:08

情况汇报:大午新大猪场死猪15000头,还有近6000头活猪,我们认为是非洲猪瘟,但政府不给确认,明天要捕杀。 新大公司:代迎春, 2月22日 18:08 ​​​​




           


My Weibo is 11:30 in the morning and can be forwarded again! It’s dangerous, we are safe! Sun Dawu, February 24 我的微博上午11点半,又可以转发了!好危险,我们平安落地了! 孙大午, 2月24日



Normally, Sun's Weibo account has readership of 100,000+. However, during Sun's first public disclosure of the epidemic his site was viewed a million times and interactions numbered 76,000. He has caught the public's attention during this crisis with his call for disclosure and accountability. One of his critics though says he doesn't understand politics. That actually may be Sun's greatest strength. He is not a politician. When politicians say "look" no one "listens".

According to Reuters, Sun's case is not unique. At one location in northern China local officials declined to carry out a test. With respect to a case in Shandong Province it is said that test results came back negative despite clinical symptoms that pointed to ASF.

Chinese law says that farmers should be paid 1,200 yuan ($180) per pig culled. However, the Group had breeding sows whose cost was much higher. A portion of the 1,200 yuan is paid by the state and some paid by local authorities. Generally speaking, there is a tendency by local authorities to balk at payment. It is difficult to assess the actual loss to the Dawu Group, but it is somewhere between 10 and 30 million yuan.

The Group has been offered subsidies for farm buildings and other investments.This approach though presupposes Dawu Group will rebuild its swine operation. It is understandable that the Group may be hesitant to reinvest in a swine breeding operation with so many uncertainties regarding the spread of swine flu. Would the government compensate them a second time if swine flu was detected six months from now or it became a chronic disease at that location?

Just how serious is the spread of swine flu in China? Officially speaking, there have been 112 outbreaks in 28 provinces since August 2018. However, Dirk Pfeiffer who is a professor of veterinary epidemiology suspects the situation may be more serious. He is baffled by the "spatial randomness" of the reported outbreaks which normally develop in clusters. For example, how could the outbreak at Xushui, Hebei be the first one in that province. Xushui is not on the border of other provinces which have been infected. Pfeiffer is not saying directly that there is a cover-up, but he seems to imply it.

There are 26 million farms with less than 500 pigs each. It appears that many of the cases on small farms have gone unreported. They are either unreported by the Ministry of Health or by the farmer. Many farmers have just buried the problem so that they don't encounter the ire of the government.

On large pig farms, the government is introducing facial recognition of swine to try to detect symptoms of sickness. This pseudo-scientific method is unproven. They are grasping at straws.

One may suspect that large farms have large numbers of infected animals. "Qin Yinglin, chairman of China’s No.2 producer, Muyuan Foods Co Ltd, which raised 11 million pigs for slaughter last year, said most large companies were likely to be infected." He says nothing else, but that word "likely" speaks volumes.

A typical Canadian might say "I'm not going to worrry about ASF in 2018-19 because I'm not going to China". What Canadians have to worry about are pork products coming to Canada from China. The swine virus can survive in frozen form for years. The virus can survive boiling for an hour. It can be present in smoked sausage brought by a little old lady as a present to her daughter. Why do you think that the fines for bringing meat from China are much more heavy than the first-time fines for exceeding the currency limit of $10,000 for a Chinese traveller to Canada. It's because we don't have ASF in Canada and we don't want it in our pork industry. It would devastate it.

In fact, there have been dozens of confiscations of pork products from Chinese travellers in Japan, South Korea and Australia. Let's not forget Taiwan. It reports that 7.5% of pork products taken from Chinese travellers tested positive for the ASF virus gene. The point to remember is that it is not the movement of live pigs that is a concern, but the movement of people carrying pork products or for that matter raw poultry meat.



              


Then, there is smuggling on a much larger scale. At the port of Newark, NJ, customs officials seized one million pounds of pork products from China. They were found in 50 shipping containers. The pork was smuggled in various ways from ramen noodle bowls to Tide detergent. The Department of Agriculture will now test the pork to determine if it is infected with ASF. "Whether for personal consumption, for profits, or even for purposes of agro-terrorism - the threats from the illegal importation of illegal food products, agricultural diseases, and/or invasive species are very real - and when successful - could prove disastrous to agricultural interests."

The SARS crisis of 2003 and the ASF crisis in China are similar in terms of cover-up. With respect to the SARS crisis it was a matter of governments which suppressed the extent and severity of the health problem affecting people in order to avoid social unrest. SARS then became a world-wide pandemic. There is evidence to suggest in the ASF crisis of 2018-19 that governments again were not transparent nor did they take full responsibility for the swine epidemic in terms of testing, disclosure and compensation. The major reason for the cover-up is financial. The result is that ASF has spread rapidly throughout China and has crossed the borders into neighboring countries.

The major difference between the two crises though was that SARS or Severe Acute Respiratory Syndrome is caused by a cornonavirus which infected the lungs of chickens and then was transmitted to people. The main symptom in people was a high fever. With regard to the ASF crisis it generally does not affect humans except those who may be in close contact to the animals such as butchers or veterinarians. ASF is hemorraghic in nature meaning that it causes bleeding of internal organs of the pigs. One finds the mortality rates quite different. SARS causes death in people between 0%-50% of the time while the rate for pigs is 100%. There is no treatment or cure. So much for the year of the pig.

While SARS is devasting to pigs the main consequence to humans is economic. It may be said that China could face devastating economic losses to its swine industry. It was officially announced in February that almost 1,000,000 pigs have been culled. However, it is suspected that the actual rate of culled pigs is much higher. Statistics show that China had 433 million animals in 2018 or more than one-half of the pigs world-wide. The latest herd size estimate comes from the Chinese Ministry of Agriculture and Rural Affairs showing that in February the hog herd had declined by 16.7% YoY. The sow herd contracted by an estimated 19% YoY. The entire inventory of Chinese pigs is at risk as the disease spreads.

Normally, a strong economy can weather weakness in a particular sector such as swine. Officially, the Chinese economy grew at 6.6% for 2018. This seems like respectable growth. However, this growth was the lowest pace in 28 years. Third quarter GDP came in at 6.5%, but final quarter growth slowed to 6.4%. However, no one really believes in the official statistics for GDP growth. It is estimated that the real GDP growth may be around 5%.

The problem with the economy is debt. Officially, the debt to GDP ratio is 47.60%. Unofficial estimates peg the ratio much higher. For example, the Institute of International Finance (IIF) recently placed China’s debt to GDP at 300%.

If the economy were strong then it could shrug off losses in the swine industry. However, these losses may be too much for a struggling economy. It might be like the proverbial straw that broke the camel's back or more likely just another symptom of general economic decline.

When a pig is buried without record kept by the farmer or by the Ministry of Health then one can say there is both a literal and figurative cover up. No compensation is paid and there is a financial loss sustained by the farmer. However, what if a government overestimates GDP and underestimates the debt to GDP ratio. Can one not say there is a financial cover-up on a much grander scale?

In conclusion, SARS was a new disease that emerged in China during the year 2003. It was caused by avian influenza. Its main symptom was fever and it affected people in terms of bacterial pneumonia. It induced mass hysteria in the population. The various levels of government covered-up the crisis in order to avoid social disorder and to maintain control. The result was that the disease became a world-wide pandemic.

The ASF crisis of 2018-19 affects swine. It induced hemorrhages in the internal organs, but did not affect people. Genetically speaking, it showed a similarity to the Georgia outbreak in 2007. H1N1 found fertile environment in China due to the close proximity of swine and humans. It has spread rapidly throughout China on both large and small farms which hold more than one half of the world's swine population. It is spreading to other nearby countries. The government has covered up information and data of the disease. It is suspected that the problem is much more widespread than admitted because of the lack of clustering cases. The reason for the cover-up is financial; although, it is also said the government has stopped reporting of ASF because of a fear of panic.

Real financial losses to farmers are hidden while losses to the government with respect to compensation are mitigated. There is a lack of confidence in the government by the farmers because of transparency issues and uncertainty of the magnitude of the crisis. This sectoral problem reflects the more general problem with the economy which is almost impossible to measure correctly with respect to GDP and the GDP to debt ratio. It may be that the economy is much more weak than officially indicated.



D.卡尔顿 罗西 D. Carlton Rossi

2019年3月25日







References



DURDEN, Tyler, Big Trouble in Shrinking China, February 02, 2019

https://www.zerohedge.com/news/2019-02-01/big-trouble-shrinking-china




FANG, Di, African Swine Flu Hits Hebei, en People.cn, February 25, 2019

http://en.people.cn/n3/2019/0225/c90882-9549272.html



HIRTZER, Michael, US seizes one million pounds of smuggle Chinese pork, March 15, 2019

http://afludiary.blogspot.com/2019/03/feds-sieze-1-million-pounds-of-illegal.html



https://www.bloomberg.com/news/articles/2019-03-15/u-s-seizes-1-million-pounds-of-smuggled-chinese-pork



MULVANY, Lydia and and Michael Hirtzer, China Is Back in the Market for Hogs, and So Are Hedge Funds, Bloomberg, March 22, 2019

https://www.bloomberg.com/news/articles/2019-03-22/china-s-back-in-the-market-for-hogs-and-so-are-hedge-funds




MOURDOUKOUTAS, Panos, Debt, Not Trade War, Is China's Biggest Problem, November 24, 2018

https://www.forbes.com/sites/panosmourdoukoutas/2018/11/24/debt-not-trade-war-is-chinas-biggest-problem/#2cc537bc4c4d




PATTON, Dominique, GU Hallie, China Has Culled More Than 900,000 Pigs Due to African Swine Fever, Reuters, Successful Farming, January 15, 2019

https://www.agriculture.com/markets/newswire/update-2-china-has-culled-more-than-900000-pigs-due-to-african-swine-fever




PATTON, Dominique (reporter) China Urges Subsidies to help disease-hit pig farms to restock, Reuters, March 21, 2019

https://www.reuters.com/article/us-china-swinefever-supply/china-urges-subsidies-to-help-disease-hit-pig-farms-restock-idUSKCN1R305C




PATTON, Dominique, Piles of pigs: Swine fever outbreaks go unreported in rural China, Reuters, March 20, 2019

https://www.reuters.com/article/us-china-swinefever-reporting-insight-idUSKCN1R10VQ




Radio Free Asia, China Clamps Down on Public Discussion of ASF Outbreaks, September 09, 2018




SUN Dawu, 情况汇报:大午新大猪场死猪15000头, 情况汇报:大午新大猪场死猪15000头, Weibo

https://www.weibo.com/p/1005052646367831/home?from=page_100505_profile&wvr=6&mod=data



https://www.weibo.com/p/1005052646367831/home?from=page_100505_profile&wvr=6&mod=data#_rnd1553454392946




SARS virus




Swine Flu (H1N1)

https://www.mayoclinic.org/diseases-conditions/swine-flu/symptoms-causes/syc-20378103




Swin Flu spreads across Georgia




2009 Flu Pandemic in Asia

https://en.wikipedia.org/wiki/2009 _flu_pandemic_in_Asia#China_(People%27s_Republic_of_China)




XIE Echo, ELMER, Keegan, WANG, Orange, China declares victory over African swine fever but cover-up claims call success into question, March 22, 2019



WELSHANS, Krissa, Chinese Hog Herd Declines, Feed & Grain, March 18, 2019



WELSHANS, Krissa, China’s hog herd down nearly 17% in February, March 23, 2019

https://www.feedstuffs.com/markets/china-s-hog-herd-down-nearly-17-february






Addresses


https://www.bannedbook.org/bnews/cbnews/20190224/1086435.html


https://twitter.com/gaoyu200812/status/1099187736735436800



https://twitter.com/oubiaofeng/status/1098969226105184256



https://www.aboluowang.com/2019/0225/1251487.html




明镜焦点|河北大午自曝死猪破万,政府不确认非洲猪瘟急扑杀, Mirror focus: Hebei Dawu self-exposure dead pigs broke, the government does not confirm the African pigs rushed to kill, 明鏡火拍 Published on Feb 22, 2019, Video 3.48 minutes




河北大午集团自曝死猪过万 政府不确认疫情, 2019年2月24日星期日, Hebei Dawu Group has exposed more than 10,000 dead pigs. The government does not confirm the epidemic, Sunday, February 24, 2019.

http://www.bannednews.org/2019/02/blog-post_354.html




王中 河北的脸皮那么厚,是怎么被“炸”开的?Wang Zhong, Hebei’s face is so thick, how was it “fried”? 2019-02-24 19:43

http://www.sohu.com/a/297356970_305991



STRONG, Matthew, Chinese farmer accuses authorities of African swine fever cover-up Hebei still officially free of African swine fever, Taiwan News, 2019/02/23 19:33

https://www.taiwannews.com.tw/en/news/3644574




DU Caicai and TENG Jing Xuan, Farmer Accuses Province of Dragging Feet on Swine Fever Outbreak, Caixin, Feb 25, 2019








                     




Dawu Animal Husbandry


2019-11-18 14:52:03 Browse times: 520 times

Dawu Animal Husbandry is a modern and high-tech breeding company invested by the well-known domestic enterprise Hebei Dawu Agriculture and Animal Husbandry Group Co., Ltd. It currently includes: Xushui, Dingzhou, Yi County, and three pig farms. The company plans to invest 225 million yuan and plan to use 1,500 acres of land. It will conduct in-depth cooperation with Canada’s world-renowned breeding companies, set up a core ancestor breeding farm, and 3,000 parent farms to create a safe and secure meat for 300,000 fattening pigs. Production base.

The first-phase project of the company has been completed and put into production, with a total investment of 80 million yuan and 3,000 sows. It can provide 5,000 pure-bred sows, 15,000 dual sows, 50,000 commercial piglets, and new original breeding pigs and dual sows. It has the characteristics of fast growth rate, strong disease resistance and anti-stress ability, high feed conversion rate, thin backfat, and more litters (the average litter size of live litters is more than 14.8).

The second-phase project covers an area of 500 mu. Two production lines are planned. Each 1200 sows has a total of 2400 heads. The infrastructure investment is expected to be 50 million. The follow-up production investment is 35 million. After completion, it can provide 20,000 breeding pigs and 30,000 heads to the society. A total of 50,000 piglets.

The company employs the famous and famous genetic breeding experts in the domestic animal husbandry industry, and uses the animal model BLUP (Best Linear Unbiased Prediction) breeding technology for breeding. The new original breeding pigs and dual sows selected by the company have been tested to have fast growth and resistance. It has the characteristics of disease ability, strong anti-stress ability, high feed conversion rate, thin backfat, and more litters (the average litter size is more than 14.8 live pigs).


http://www.dawu.com.cn/subsidiary/subsidiary282.html



If I recall during the African Swine Flu Crisis (ASF) in China the Dawu Group was uncertain from where it got its sows. I believe the speculation was that it was from Russia. Dawu Group is now very certain of the origin of its swine and Canada has no cases of swine flu.


https://sundawu.ca/ASF_in_China.html







                         
From SARS to Swine Flu


It may be useful if the author begins by providing a perspective of the food industry in China and then Canada. During 2003 he was in Beijing during the SARS crisis. A large restaurant had just opened for business. They had two larger than life floral displays at the front of their store. The displays must each have been more than his monthly salary. However, with SARS they had absolutely no customers. After two months those flowers wilted and the restaurant was out of business.

The author then moved to Dawu Group in the countryside to set-up a college. Normally, he ate at the student cafeteria. That cafeteria remained open during the SARS crisis. He was actually given the privilege of visiting the kitchen and picking out his own food which was paid for through tickets. All of that sense of normality ended the day Sun Dawu, his brothers and his executive were placed under formal arrest. The author was placed under house arrest for three days. During that time the hotel staff brought restaurant meals to his room. He left them uneaten outside of the door. He had gone on a hunger strike. It was in protest of the arrest of the key employees at the Dawu Group.

Later, at the beginning of 2019, he was in Canada at the time of the African Swine Flu crisis in China. Hemorrhagic fever infected millions of pigs in China and a few people. While restaurants in China were not serving pork there was no restriction of sales at Chinese restaurants in Canada; so, he was trying out the menu of a Chinese restaurant. He ordered pork. The problem was it didn't taste like pork. He can't report here what it tasted like, but it wasn't pork with which he was familiar. By the way, that was the same restaurant that had had a mysterious kitchen fire about a month earlier. He never visited the restaurant again after the pork incident.

A few days passed and he went to the supermarket. There on the shelf, for the first time, he saw Chinese pork. All writing on the packages was in Mandarin. At first, he thought it was strange. There is a swine flu crisis in China and here on a Canadian shelf is a Chinese pork product. It must be okay because it must have passed Canadian inspection at the border. Then, the story became even stranger.

Into the store pranced three young men. The leader looked as if he owned the store. The second was his henchman. The younger one looked guilty. It was just as if the author was in China. They were definitely not customers as they walked through the store as if on parade. And there they were behind him as the author was looking at the Chinese pork!

The author's belief is that the pork was planted there. They hoped he would pick up one or two packages because the pork was at a discounted price. He believes it was contaminated pork. He did not purchase it.

It is the author's opinion, that these thugs were sent by someone who did not like his report on the Swine Flu Crisis in China. It talked about the abnormal situation in Hebei Province where the Dawu Group farming enterprise was hit by swine flu. The Group buried 15,000 swine. Yet, swine flu usually is transmitted in clusters. The swine flu at Dawu Group was the first instance in Hebei Province and seemingly an isolated incident. SUN Dawu accused the Chinese government of being silent on the outbreak of swine flu at his farm. His blog was silenced on February 22, 2019 after his views were published in the New York Times.

And who is currently giving the author threatening calls? There have been roughly 10 calls to date. He claims he is a Chinese restaurant owner. He claims I had a meal for $250 and ate Canadian crab (a bottom scavenger). He wants compensation for the meal. He is trying to extort money from me and threatening me in the same instance. The author doesn't record his calls nor report them because there is no need to do so.

The author knows everyone else is listening to his calls. That knowledge comes from surviving in authoritarian China for twenty years over a thirty year period and over two years in authoritarian Saudi Arabia. He knows that they know. They all know--if not, they are incompetent.

In conclusion, the author doesn't eat any food from China. He simply doesn't know what it is. He doesn't trust it. Maybe it's pangolin from the Wuhan Seafood Market. He has ceased eating at Chinese restaurants. You might say that he has Chinese Restaurant Syndrome.










                     

                         Public Safety Minister Ralph Goodale




The absurdity of the Liberal Government's China Policy and Strategy as it pertains to Canola


Some critics have commented on Goodale's mission to Beijing with regard to the canola issue as being absurd. They say the real issue is the arrest of MENG Wanzhou who is an executive of Huawei. It seems the Canadian government understands all of this, too; but, nevertheless, sticks to the point of demanding scientific proof of pests. Goodale goes to Beijing (at the same time as Lighthizer and Mnuchin who are negotiating a complex trade deal of immense proportions with Vice-Premier LIU He). Goodale delivers a speech to the cameras about hammering away on the pest issue. Might he be unaware of who is the hammer and who is the nail? He might even have a dialogue with someone in the Chinese agriculture department about pests in the following vein. "We have no pests." "Yes, you have pests." This might go on as argumentum ad infinitum. He may consult with the ex-ambassador to China whose chosen Chinese name means honourable head of the family who gives wheat. All of these would be examples of the definition of the word "absurd" through exemplification. The absurdity of the Liberal government's China policy and strategy as it pertains to canola is an echo of the past which means a pattern has been established.

It may be said in criticism about the author that he is trying to use reason to understand what is really absurd. There is some degree of truth in that accusation. He is reminded of the character Don Quixote who in his moments of sanity tried to understand his own madness. The errant-knight saw brilliance in the subleties of what appear to most of us as illogical gibberish. For example, he would ponder over the significance of the following sentence. "The reason for the unreason to which my reason is subjected , so weakens my reason that I have reason to complain of your beauty". It is clear that Quixote doesn't quite have all of his mental faculties since he takes the absurd so seriously and therein lies the comedy. It is quite understandable if a critic finds the theme of this essay to be rather absurd and laughable, but perhaps the author is not so sillily insensible as he may seem.

One needs to put the present into perspective by examining the past. On June 28, 2014, SU Bin--who was a permanent resident of Canada--was arrested for cyberespionage against Amercian military contractors with the theft of hundreds of thousands of files. Kevin Garratt who is a Canadian was arrested in China on August 4, 2014 in a tit-for-tat response and later charged with espionage. There was no foundation for the charges against Garratt. One might even call them absurd. Garratt didn't report to CSIS, but rather to God. He was held as a bargaining chip.

The Chinese did not want Canada to extradite SU Bin to the United States according to the Canada-United States Extradition Treaty. However, the extradition did take place. SU Bin admitted his role in the theft, paid a fine and was offered a plea deal with regard to sentence. He was sentenced on July 13, 2016. Garratt was treated in a similar way. He was charged with "suspicion of stealing and spying to obtain state secrets". The operative word there is "suspicion". No real evidence was presented at a closed kangaroo trial. He plead guilty to the charge, paid a fine and then was deported in September 2016.

That happened to be the time that China was offering and Canada was seeking a free-trade deal. To put it another way, Canada wanted free-trade and China wanted an extradition treaty with Canada so that Chinese would not be extradited to the United States, but rather be sent to China. In other words, the Chinese wanted their claim to take precedence over the American claim with respect to extradition in serious espionage cases. Of course, they couched the issue in other terms such as fighting corruption and recovery of illegal proceeds.

The first time that canola came to the forefront was actually in 2016. It was on February 22, 2016 that China's quarantine agency said it wanted to cut dockage. Basically, dockage is anything that is not canola seed as determined by a series of three sieves in the Carter tester. The reduction was to have been from 2.5% to 1% in order to reduce chances of potential blackleg disease. One might link this new change in policy to both the prospects of a free-trade agreement and extradition treaty as well as the charges laid against Garratt on January 28, 2016. These issues became prominent in September 2016 as they were negotiated.

There was an absurdity in the Canadian position regarding dockage reduction. The reason is that many producers had actually reduced dockage to lower transportation costs by rail to the port of export. Dockage was then added at the shipping terminal to meet the 2.5% requirement. It may very well be that the Chinese knew of this circumstance.

While exploratory talks on free-trade and an extradition treaty began in 2016 they did not mature into active talks. Trudeau himself has been blamed because of the approach he has taken. At a four day trip to China around December 04, 2017, he insisted to Premier LI Keqiang that the Chinese listen to his "progressive agenda" which involved protecting women, labour laws and the environment. China's response was to tell Trudeau to take back his garbage.

While Trudeau's approach was seen by the Chinese as arrogant, it might also be interpreted to be absurd. Why was he mixing social issues with trade? The more general question though is "Why does he want free-trade and an extradition treaty with an authoritarian regime which favours SOE's and represses human rights? It is also absurd for Trudeau if he thinks he can get a free-trade deal without an extradition treaty. They go hand-in-hand.

While the finishing touches on a new NAFTA Agreement designated as USMCA were being negotiated it was announced that Article 32.10 had been inserted at the insistence of the United States. This article states that "any one of the three USMCA partners must inform the other two in advance about starting free-trade negotiations with a non-market economy and that the other partners can terminate the USMCA if those negotiations result in a free-trade agreement." Finance Minister Morneau said that this was similar to the existing situation.

Morneau's assessment is not accurate since NAFTA went from a general prohibition to a specific one under USMCA  Article 32.10 which undoubtedly refers to what might be a free-trade agreement between Canada and China which is a non-market economy. A week later, on October 11, 2018, Morneau seemed to mock the clause when he said at the Greater Vancouver Board of Trade “if your largest client is Telus, and you are about to sign a deal with Bell Canada, you might think about that and make sure they are OK with it”.

It was not long before the Liberal government sent four, high-level, negotiators to China in order to discuss canola and other agricultural products. It was announced on November 12, 2019 that the government's aim was to double agricultural exports to China by 2025. However, the door still remained closed due to both tariff and non-tariff barriers imposed by China.

When Trudeau was at the ASEAN summit in Singapore on November 14, 2018 he said that Canada and China will continue to work together towards an “eventual” free trade deal. The Canadian Press also reported that "Trudeau and LI Keqiang met at a key gathering of Asia-Pacific leaders, hoping to push ahead on talks toward a free trade agreement". One can deduce from these statements that both Canada and China were concerned with the non-market economy issue with respect to their sovereignty and were looking with renewed interest in free trade. Both countries returned to the canola agenda.

An important key to opening the Chinese door to a non-tariff barrier of canola was the approval by the Chinese of two seed traits on January 09, 2019; although, one trait has still to pass the test. All three had met Canadian requirements in 2012, but awaited Chinese approval for export. The Canada Canola Council estimates that approval of these traits will allow growers to increase productivity using the same amount of land.

The Chinese approval of canola traits was directly tied to the arrest of MENG Wanzhou on December 1, 2018. This was an incentive (carrot) for Canada to release her. However, the Chinese also brandished a stick by slowing down customs approval as canola arrived at Chinese ports. WSAU News reported that "one Chinese crusher that had a cargo which arrived at the end of December said it took more than 20 days to clear customs, about twice the usual time, as authorities carried out more thorough inspections related to GMOs."

The author was well aware that there was a high probability that China would retaliate for Ms. Meng's arrest with regard to Canada's canola exports. He proposed shortly after her arrest that Ms. Meng be traded for the five Canadians who were already in Chinese custody. He saw it as an issue of morality rather than legality. It was a doable solution because the US justice department had not yet laid formal legal charges. He did not explicitly associate probable retaliation on canola exports because he did not want to link morality with commerce in regard to the arrest of Ms Meng. It seems that this was the exact kind of error that Prime Minister Trudeau made with regard to the SNC-Lavalin affair when he linked legality with commerce and then tried to short-circuit the legal issues through interference in the judicial system.

The author continued to press the issue of a trade of prisoners based on morality as it involved family reunification at the time of the upcoming Spring Festival. The Chinese then added Kovrig and Spavor to the list of hostages and retried Schellenberg. In the first week of January the author warned that there was a high probability that canola sales would be targeted; although, he still did not link it with a moral imperative. On two different occasions, in open letters, he volunteered to meet the Chinese ambassador in Ottawa to discuss a trade of prisoners on the condition that it met the approval of the Canadian government. If he could have facilitated a trade of prisoners it is almost assured that Canada today would be on the road to doubling agricultural exports to China.

One has to go back to the initial premise. There has been an unstated and unspoken association among negotiators on both sides between canola exports and an extradition treaty since late summer 2016 if not from the earlier time when charges were laid against Garratt. It is not surprising then that the Chinese were upset with the possible extradition of Ms Meng to the US which was based on the US-Canada Extradition Treaty. It was almost inevitable from the Chinese point of view that canola exports would be hurt--especially since our Minister of Foreign Affairs has a personal interest in canola. The issue for the Chinese was no longer a hypothetical China-Canada extradition treaty, but the arrest of a top executive of Huawei who might be extradited to the US.

In conclusion, it is said that China-Canada relations are the worst they have been since the recognition of China by Pierre Elliott Trudeau in 1970. The Chinese nicknamed Justin Trudeau "small potato". Only an arrogant Trudeau could take that as a compliment because it is derisive. It is equivalent to the "small Bush" nickname given by the Chinese to George W. Bush. The Trudeau policy of talking exploratory free-trade with China while listening to extradition treaty arguments is absurd. China is not a free-market economy and is an authoritarian political regime. Furthermore, a China-Canada extradition treaty could only undermine the Charter of Rights and Freedoms which was the main achievement of Pierre Elliott Trudeau. Finally, canola was actually genetically modified in the early 1970's by public sector scientists. This period coincided with the first term of the government of Pierre Elliott Trudeau. By 2018, China accounted for 40 percent of Canada's canola seed, oil and meal exports. Today, Canada may stand to lose 2.7 billion dollars per year at the end of the first term of Justin Trudeau's government if China permanently blocks Canadian canola products. Isn't that just about as absurd as it can get?


D.卡尔顿 罗西
D. Carlton Rossi

2019年4月03日




REFERENCES

BLAKE, Andrew, Chinese national gets nearly four years in prison for hacking plot aimed at Boeing, Washington Times, July 14, 2016.

https://www.washingtontimes.com/news/2016/jul/14/su-bin-chinese-businessman-sentenced-over-hacking-/



CANOLA COUNCIL OF CANADA, Canada and China pledged to double agricultural trade by 2025 at the Economic and Financial Strategic Dialogue in Beijing on Nov. 12, co-chaired by Canadian Minister of Finance Bill Morneau and Minister of International Trade Diversification Jim Carr, November 14, 2018.




CHIANG, Chuck, Alarm bells ring over non-market economy clause USMCA’s U.S. veto on future China deals signals realities of global trade fragmentation, Business Vancouver, October 11, 2018.



COLE, Michael J., It starts with canola: How China could weaponize Canada’s federal election, Special to The Globe and Mail, March 28, 2019.

https://www.theglobeandmail.com/opinion/article-it-starts-with-canola-how-china-could-weaponize-canadas-federal/

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/790270/HCSEC_OversightBoardReport-2019.pdf




HANEY, Shawn and INNES, Brian, Canada commits to double agriculture trade to China by 2025 Humboldt RealAgriculture News Team, November 12, 2018.

https://www.realagriculture.com/2018/11/canada-commits-to-double-agriculture-trade-to-china-by-2025/




LAWDER, David, Trade pact clause seen deterring China trade deal with Canada, Mexico, Business News, Reuters, October 2, 2018.

https://www.reuters.com/article/us-trade-nafta-china-idUSKCN1MC305




LJUNGGREN, David, Canada takes tougher line with China over canola ban, demands evidence, Reuters, March 28th, 2019.

https://www.agcanada.com/daily/canada-takes-tougher-line-with-china-over-canola-ban-demands-evidence




NICKEL Rod, PATTON Dominique, GU Hallie, Canadian canola runs into Chinese delays after Huawei arrest, WSAU Wisconsin Morning, February 05, 2019.

https://wsau.com/news/articles/2019/feb/05/canadian-canola-runs-into-chinese-delays-after-huawei-arrest/




PRATT, Shaun, China may delay new canola dockage rules, The Western Producer, March 24, 2016.

https://www.producer.com/2016/03/china-may-delay-new-canola-dockage-rules/




SCHULZE, Elizabeth, Huawei’s equipment poses ‘significant’ security risks, UK says, March 28 2019.

https://www.cnbc.com/2019/03/28/huawei-equipment-poses-significant-security-risks-uk-says.html




THE CANADIAN PRESS, CBC News, China charges Canadian with spying, stealing state secrets, January 28, 2016.

https://www.cbc.ca/news/canada/british-columbia/kevingarratt-china-charged-spying-1.3423931




THE CANADIAN PRESS, CTV News, Trudeau sits down with China's premier at Asian summit over free trade future, November 14, 2018.

https://windsor.ctvnews.ca/trudeau-sits-down-with-China-s-premier-at-asian-summit-over-free-trade-future-1.4176766




TOP CROP MANAGER, China grants regulatory approval of TruFlex canola with Roundup Ready technology, January 09, 2019.

https://www.topcropmanager.com/china-grants-regulatory-approval-of-truflex-canola-with-roundup-ready-technology-21601/




UNGKU, Fathin, Trudeau says Canada to work with China on eventual free trade deal despite NAFTA clause, Reuters, Business News, November 14, 2018.

https://www.reuters.com/article/us-asean-summit-trudeau/trudeau-says-canada-to-work-with-china-on-eventual-free-trade-deal-idUSKCN1NK0CU











                       





           The Restriction of Food Imports and Exports


The main issue which Canadian farmers are now concerned with was the restriction on March 1, 2019 of "some" Chinese imports of canola amounting to billions of dollars of lost sales and what to do about spring planting. If it is recalled correctly it was on January 3rd that the author expressed the view that it was probable that canola exports to China would be restricted based on his assessment of the Huawei situation and other considerations. He continued to recommend that the Huawei issue be treated as one of morality rather than legality and the only free-trade was ironically one of prisoners whose families were waiting for them. The PMO with its sunny ways pooh poohed the Winnie the Pooh scenario citing its emphemeral optimism of win-win.

Of course, there is no scientific basis for the Chinese claim that Canadian canola is infested with emphemerae or insect pests lasting transitorily. The Chinese were indicating to Minister Freeland that officials of the PMO and others were regarded as "pests" with their insistence on an absolute interpretation of rule of law. They have linked their ban on imports of canola and the arrests of Kovrig and Spavor with the arrest of MENG Wanzhou.

A parallel situation reared its ugly head in 2016 when canola "dockage" was the excuse and Garratt was accused of espionage. The Chinese were retaliating because of the arrest of Su BIN for his admitted role in a conspiracy of hackers from the PLA's Air Force to illegally access and steal US military information. At that time, the author uniquely interpreted the dockage issue to be the Chinese dissatisfaction with the Canadian view of human rights. In his opinion, the Chinese were saying indirectly that it was impossible to eliminate all human rights abuses in any society as it was to scientifically and completely eliminate dockage. They were also saying that rule of law is what a rule by law government says it is.

The author encountered a situation about 10 years ago which reminded him of the restrictions placed on canola. He had visited Wilfred Laurier University to solicit donations of books which were to be sent to the middle school of Dawu Group. The university agreed to donate used surplus books to the school. In turn, the author would use his import/export contacts and expertise to facilitate the matter and pay for transportation costs.

He acquired wooden shipping crates provided free of charge from a Canadian tobacco company. These bulky crates had been sent to China and then had been returned to Canada from China. They were in excellent shape, looked almost new. and were properly stored. They had been treated chemically so that they would not be infested with insect pests and been imprinted accordingly. However, the Chinese shipper refused to send them as they were. The shipper said with bald face that the containers did not meet the standards for shipment because they had not been chemically treated. It appeared to the author that the company had been instructed not to accept the shipment because it would be sent to Dawu School. It had nothing to do with chemical designation, but rested soley on the particular destination. In other words, the author was regarded as a "pest" for wanting to help Dawu students who now number over 5000.

Before one proceeds one must add a cautionary note. If one is involved in the decision-making process within government then personal issues must be placed aside. One must not let potential conflict of interest or the appearance of it affect one's judgement. Chinese negotiators will take advantage of the situation as they have done in the past. Harden your shell and you will be invincible. Steel yourself and you will be victorious.

The author will not offer any more solutions to problems of dockage or pests which are ultimately politically oriented. It is though a matter of economics. Canada should not put up with this nonsense of arbitrary or non-scientific restrictions regarding agricultural exports. If a country like Saudi Arabia arbitrarily bans imports of wheat and barley from Canada because of Canada's views on human rights then Canada should reciprocate the ban by extending it to 25 years on wheat and barley exports to Saudi Arabia. Give it back to them in spades.

If a country like China--on two separate occasions-- restricts imports of all or some Canadian canola because of Canada's views on human rights and rule of law then Canada should extend the ban, based on economic considerations, to all canola exports over a 25 year period. Why must we constantly be on the defensive? If China doesn't want Canadian canola then it doesn't want Canadian canola. Give it what it wants on Canada's terms of 25 years. If China wishes to switch from canola to soy oil while it has a shortage in vegetable oil supplies of 20 million tonnes then why try to argue with their logic? Let's see how happy their state planning will make 1.2 billion Chinese who have placed an emphasis on food and family by eating mustard seed as far back as the Han Dynasty (206 BC-AD 221).

If governments of these countries wish to regard food (which is ultimately the import of water) in a political context then Canada should respond economically. Canada should not bend, scrape and ultimately make costly concessions to win back these contracts. The Party used food as a politcal weapon against its own people during the period of the Cultural Revolution. Forty million Chinese farmers starved to death. The Party now thinks it can apply this political standard outside China to economically hurt our farmers. No way. This Canadian refuses to be continually blackmailed by illegal exaction.

Climate change is a fact. It is happening right now. In the last summer, smoke from B.C wildfires drifted across Canada. This smoke delayed the maturation process of canola by 10 days in some areas. While our climate is getting warmer; so, too, the unpredicatability of our weather is increasing with extremes being the new norm. It is uncertain how these factors will affect future crops. At the moment, Canada has surpluses of crops which we can export. These surpluses may dwindle as time passes with warmer climate and uncertain weather. Canola seed requires cold weather in a temperate climate to germinate.

Our customers depend on our agricultural exports. They rely on our high quality products. They rely on our guaranteed delivery. They rely on our supplies meeting their demand. They trust us. It is a balanced relationship.

However, Canadians cannot serve our loyal and steadfast customers if a few are playing political games. Every shopkeeper has the right to sell or not to sell product or services to whomever they want. If a shopkeeper is not satisfied with how a customer conducts business then he has the right to say to that customer--don't come back. Our obligation is to those who respect contracts and not to those who break them for political reasons. There is enough uncertainty with regard to climate and weather in terms of the economics of agriculture. We do not also need political uncertainty in the equation.

With respect to China it will be very difficult for Canada to find other customers to replace the loss of "some" substantial sales. It is highly probable that canola farmers will ask for financial compensation from the Canadian government. And they deserve it. Before any compensation is paid, though, a 25 year ban on "all" canola exports to China must be put in place. Since it is the second time we have been extorted then we double down. If you are mistreated once then you are a victim. If you are mistreated twice then you are a fool. If you are mistreated three times then you are mad. We would be fools to resume sales at any time in the next 25 years and jeopardize our reputation with our loyal customers of being a secure export supplier in the agriculture industry. If so, so long--lóng.

With climate change and with weather variability our loyal and reliable customers will appreciate a secure supply of the highest quality food. If there happens to be a food shortage in the next twenty-five years in either the Kingdom of Saudi Arabia which is without enough fresh water or the People's Republic of China which is without enough arable land and potentially fresh water then it will not be our political concern. Those governments will be accountable to their own people who do not have benefit of a vote to remove their governments.



D.卡尔顿 罗西
D. Carlton Rossi

2019年3月20日







                                 From Me to You


For those of you who like a less disciplined approach to subject matter then this may be your cup of “oolong cha”. The Liberals barely mentioned China in their last election campaign. Since then they have silently and stealthily pursued an improbably odd strategy of Free-Trade talks with an authoritarian regime with a non-market economy. Doesn’t this strike you as disingenuous? Indeed, there has been NO China policy per se. It is no wonder that they have been led astray.

In the New Year, one can reasonably expect the following developments which will center on China.

1. Meng Wanzhou will contest extradition to the US.

2. Bains will either have to cancel of postpone the 5G bandwidth auctions in March since Huawei might be expected to bid.

3. Freeland will continue to “campaign” for the release of two Canadian prisoners. It is beginning to resemble the beginning of an election campaign.

4. Goodale will continue to “review” the National Security threat that Huawei may pose.

5. China may cut canola imports from Canada and switch to US imports as a result of upcoming US-China trade negotiations

6. Canadians may come to the realization that China will not buy its heavy oil. As well, Canada has underestimated China’s push to develop a green industry and reduce pollution.

All of this means that the China issue which was not expected to be on the ballot will be top of the ballot in the Fall. If you vote for the Liberal candidate then you are in favor of China’s one party system with its Core Leader. In the meantime, all the faults and foibles of the current government will be revealed. One cannot deal surreptitiously and clandestinely with an authoritarian government and expect to hide your duplicity forever.

Whether or not one looks at a benign or bellicose China one sees a country that has a consistent policy of One Belt One Road and strategies to implement it. It may be the dominant superpower in the next 30 years; but, it is said by some experts that Canada may need 30 years to develop a China policy. If Canada is to interact in a meaningful way with China then we need more than a Department of Foreign Affairs. We need an independent Ministry of Chinese Affairs. This was recommended by the author about two years ago. If we had had such a ministry we might have avoided many of today’s travails (from the Latin trepalium meaning instrument of torture).

In the days of Pierre Trudeau, Canada went to China. Now, under Justin Trudeau, China comes to Canada. Foreign Affairs are now becoming domestic affairs. For example, the Aecon affair was a domestic affair. Domestically, Canadians didn’t want a Chinese SOE takeover of Canada’s third largest infrastructure company. We need a cogent and coherent China policy and set of strategies focused through an independent ministry that understands China and the Chinese.

Few Canadians will argue that “rule of law” is not a central tenet of our judicial system. However, if one says that it “must” be followed “absolutely” then one is imposing a kind of absolute authority which is not characteristic of our democracy. There were times in Canada’s history during the FLQ crisis that martial law was imposed. One may argue that the Emergency Measures Act should be imposed today to fight the fentanyl crisis brought to us by the Chinese state. Furthermore, the death penalty should be introduced for anyone importing fentanyl into Canada or selling it.

Under normal circumstances, though, the law should be flexible. In a strong wind it should bend like a willow. The law should be flexible and open to interpretation. Deals are made every day both inside and outside the courtroom. The colloquial phrase is “to cut a deal”. So, why is Canada so inflexible in the situation involving Meng Wanzhou?

Mdme Meng didn’t have either Canada or the US as a final destination. She was travelling to Mexico from Japan. Have you asked yourself why the US didn’t call for her extradition when she arrived in Mexico? Basically, the answer is two-fold. Mexico has an extradition treaty with China, but Canada does not. The second reason is that she is deputy chairwoman and CFO of Huawei. The US believes that Huawei is a threat to its National Security with regard to 5G telecommunications or at least a competitive threat. Therefore, her arrest sent a strong signal to Canada to disallow Huawei’s encroachment in the 5G area. The writing has been on the wall for the last year.

The reality is that Mdme Meng is now on our shores due to a politicized order by US authorities to extradite her. Isn’t it the height of hypocrisy that Canadian negotiators listened to overtures from the Chinese about an Extradition Treaty for over two years without any real intention of accepting it? This is double-dealing. However, it is double-double dealing to pursue an FTA with the Chinese when China had no need for an FTA and Canadians did not want it nor an extradition treaty.

Canadians were never given an opportunity through vote or referendum to express their view of an FTA with China. All other FTA’s with the United States (which is a democracy and free-market economy) have passed the litmus test of an election going back to the time it was called reciprocity. Yet, as late as the G20 meeting in Singapore, Trudeau has stated that his long term goal was an FTA with China which is not a democracy nor does it have a free-market economy. He seems to represent himself and a diaspora rather than the majority of Canadians, but we won’t know for sure because an election has not settled the issue.

The best course to deal with the situation of Mdme Meng is to undertake a trade of her for the 5 + 2 Canadians in Chinese custody. That is the common ground between the Chinese absolute unconditional demand of her release and the Canadian absolute reliance on the sanctity of rule of law. If a trade can be arranged then Canada does not have to worry about the fall-out of unintended consequences from the Chinese state. Furthermore, it can then address the Huawei issue in a reasonable way.

However, if the Liberal government thinks it can prioritize the issue of the two Canadians recently arrested and ignore the arrest of five Canadian-Chinese arrested some time ago it is manifestly mistaken. The issues are interlinked and interwoven. The Ad Lib government will be unable to meaningfully facilitate and negotiate any trade with China in the future as long as five or seven prisoners are held.

Mdme Meng has accepted the terms of bail. There is every indication she will follow the terms to the letter. However, she may not have a choice. The Party has not accepted her confinement or the prospect of her being extradited to the US. It would represent a terrible loss of face.

What course might the Party take? It might rely on an erratic Trump to relent if technology concessions were made. It could hope for successful trade negotiations which are extremely complex and the outcome uncertain. Finally, it might plan to liberate the detainee through a rescue mission.

However, a simple prisoner swap—now—will yield the best results before the Spring Festival. An exchange involves eight prisoners which is a lucky number for the Chinese. An absolute interpretation of “rule of law” through an extradition tainted by political motives or an absolute interpretation of “rule by law” involving arbitrary detention which may end in extraterritorial extraction should be thrown in the recycle bin.

Take the lead and make a deal!



D.卡尔顿 罗西
D. Carlton Rossi

2018年12月28日














                                How many is a million?


To answer this question is simple. Without being facetious or flippant it is one more than 999,999. If you lived in a city of 999,999 you wouldn't say that your city had 999,999 people or was one less than a million. Rather, you would round it up and say that your city had one million residents. Once a city reaches the million mark then it becomes important. However, can we really understand the concept of a million people in the abstract when they are spread out at different locations? That is the exact issue we face when we try to understand that a million Uighurs look like who are incarcerated in "education" centers.









The Chinese government classifies Uighurs as either terrorists or potential terrorists. The Uighurs within the razor-barbed wire are terrorists. It is easier to understand how many terrorists are in this pen because they are but a small sample. They are also in rows and columns. Perhaps one might guess there are about 3000 Uighurs imprisoned in the photo.

There is a systematic abuse of Turkic Muslims in Xinjiang Province of northwestern China. "Since May 2014, the Chinese government has waged what it calls the “Strike Hard Campaign against Violent Terrorism” (严厉打击暴力恐怖活动专项行动) in Xinjiang.1 Of course, China doesn't understand how they may be creating terrorists by repressing what it regards as terrorism.

The abuse of human rights in these prisons is of a scale and scope unheard of since the time of the Cultural Revolution from 1966-1977. Abuses during the Cultural Revolution in China were covered up by the Chinese government. They may be therefore repeated in a revival of Maoism in a Second Cultural Revolution--just as the Party's mistakes in the Tiananmen Square massacre which were covered up may be repeated in Hong Kong.

One can imagine that there are roughly 3000 Uighur prisoners in the photo. Since the Uighur prisons are spread out with different numbers in each prison then what would a million prisoners look like if they were together? To comphrehend this number one might look at the recent demonstrations in Hong Kong.

A critic might argue that this is an unfair comparison because the Uighurs are in prison, but the Hong Kongers who demonstrate are not in prison. It seems though that the demonstators feel like they are in a prison where restrictions are increasing daily and that they may be extradited to a prison in the mainland under the proposed Extradition Bill. The Chinese government has already hinted that the actions of the demonstrators exhibit some characteristics of terrorism.

There has been a demonstration of actually 2 million Hong Kongers on the streets. The demonstrators filed down Arsenal Street and captured Hennessy Road, Admiralty. To see it in fast motion speed in unbelievable. However, you will not see the one million mainlanders who have emigrated to Hong Kong. Almost all of them do not participate in the demonstrations for various reasons. The Hong Kongers are concerned about this "invasion" of their territory by mainlanders who speak Mandarin rather than Canonese. The Hong Kong government is insisting at the demand of the Chinese government that Hong Kongers speak Mandarin. The best jobs and positions are being allocated to those who speak Mandarin and have Party connections. Is it any wonder then that 2 million Hong Kongers have turned out to demonstrate from a total population of over 7.3 million?


     

     

                     Anti Extradition Bill Rally of 1 million





                   June 09 Rally from different perspective


Therefore, if you want to see what one million Uighur prisoners would look like if they were together in one place and protesting their circumstances and condition then all you have to do is to view the pictures of the demonstration on June 09, 2019. That was the day that one million Hong Kongers turned out to protest. They turned out to oppose the Extradition Bill which the Hong Kong government proposed, later declared was dead and which could be reinstated in the future.

With regard to the more general picture the repression of minorities on the Chinese borders began in Tibet. There was an influx of Han to the region so that the Han now outnumber Tibetans who have become a minority. Then, the repression moved to Xinjiang where there was an influx of Han to northern regions of Xinjiang whose purpose was to contain the Uighurs on the northern boundary. Turkic Muslim Uighurs were then sent to detention centers which are prisons by any other name. The repression has now moved to the southern border. Rights of Hong Kongers have systematically decreased since territory reverted to China. Hong Kongers are being overwhelmed with the influx of migrating mainlanders and visitors.

The plans of the Beijing government have been temporarily set back because of the resistance of Hong Kongers to loss of their freedom. The government though in a step-by-step fashion plans to quell the resistence and rebellion on the southern boundary before it moves on to Taiwan or the eastern border. Because Taiwan is an island it will require an invasion. If the eastern border is secured then China will be in a position to undertake a blockade of the Malacca Strait of the South China Sea. Then, the countries bordering an expanded China will fall like dominoes.

However, the attempt to secure all four borders is not just outward looking, but inward oriented. China wants to contain the mainland. It will try to do this by eliminating resistance at the exterior borders. Then, it will be in a position to quell any possible rebellions or revolutions in the interior that threaten the Party.

The Party has embraced revolution since its inception, but it wants revolution on its own terms of AI, surveillance, Social Credit System and One Belt One Road--not the nasty kind which might overthrow it. However, mainland citizens are now becoming aware of the resistance to Communist rule and Neo-Maosim on the southern border. They see that there is another option to passivity. They are starting to remember the devastating effects of the Cultural Revolution where 40 million died of starvation. They wonder why people are comparing the anniversary of Tiananmen Square to the demonstrations on the streets of Hong Kong with troop carriers based in Shenzhen on a moment's ready notice.

One million Hong Kong demonstrators is a large number. One million mainlanders who have migrated to Hong Kong, but who do not participate in the demonstrations is a large number. It is not difficult to see what one million Uighurs would look like if they had the opportunity to peacefully demonstrate either in Hong Kong or Xinjiang Province. Finally, twice one million or two million demonstrators give a new meaning to Double Unhappiness.




1. https://www.hrw.org/report/2018/09/09/eradicating-ideological-viruses/chinas-campaign-repression-against-xinjiangs

2. https://www.voacantonese.com/a/hk-march-against-fugutive-law-amendment/4951689.html


D.卡尔顿 罗西
D. Carlton Rossi

2019年08月25日




                             Walk and Chew Gum 


It seems that Ambassador McCallum has a predeliction to use the expression "Walking and chewing gum at the same time". This particular expression is used in a non-standard way. What exactly though are its connotations?

The idiom is a variation of "Can't walk and chew gum at the same time". This is an idiom or popular saying which is quite outdated. Generally speaking, it means someone of low intelligence who can't perform two simple tasks which do not require thinking at the same time.

Since idioms tend to be overused they lose their meaning over long periods of time. In that case one must resort to using a similar idiom to define them. For example, it might be one can't "pat one's head and rub one's tummy at the same time" or "juggle two balls at the same time".

However, the expression "Walk and chew gum at the same time" connotes a person of intelligence who can competently handle two tasks. It is difficult to understand why this expression is used rather than the more modern multitasking. The expression somewhat contradicts his "political" slogan of more, more, more which is said almost at the same time. He wants more trade, more in­vest­ment, more tourists, and more co-op­er­a­tion in many ar­eas. This implies multitasking. Does he wish to undertake two tasks at the same time or to multitask? Perhaps he wishes to walk and chew gum while promoting more trade, more investments, more tourists and more co-operation.

However, walking and chewing gum are not equal tasks. We have walked for millions of years when we first came out of the trees, but have chewed gum for far less time. Walking is critical for us and gets us to where we are going, but chewing gum, at best, might be considered to help reduce stress.

Ambassador McCallum has said that "one qualification for being a Canadian ambassador in China is knowing how to walk and chew gum at the same time, because a big part of the job is seeing the huge opportunity for Canada, but also not agreeing with China on everything — including human right issues — which are issues of great importance to our mission." However, if seeing the huge opportunity for Canada is equivalent to walking and the counterpart of human rights is chewing gum then it may be inferred that seeing the huge opportunity is more important than human rights. In other words, trade is viewed growing dynamically while human rights are seen statically preserved.

Notice something else. Seeing the huge opportunity is expressed positively while not agreeing with China on human rights issues is expressed negatively thus implying lesser importance. In other words, McCallum uses his deviation in a positive sense, but his derivation of the original version of the idiom in the negative sense. In addition, seeing is more important than not agreeing. In the past, politicians used to say "listen"; however, today they do not say "Listen." but rather "Look".

"As I say we can walk and chew gum at the same time," Ambassador McCallum said. "The United States relationship is by far and away the most important, and the prime minister is actively pursuing that along with his cabinet, but meanwhile over in China, I am pursuing Canadian interests and values". Of course, Prime Minister Trudeau is mainly involved in trade talks with the United States and there is no criticism of Trump's preference for the Second Amendment over the First Amendment, his disdain for judges, or his denigration of former President Obama who is a constitutional expert.

Doesn't this quote also mean that Trudeau is walking in North America and the ambassador is chewing gum in China? With respect to China the ambassador is walking in regard to interests sympathetic to concerns of the Chinese government and chewing gum with respect to values. He does not say "I am pursuing Canadian values and interests" thus putting values first and foremost. Professor Charles Burton has said that "he couldn't recall the former minister ever broaching the subject of human rights in the country.

There is another nuance though conveyed in the expression "Walking and chewing gum at the same time". Chewing gum is a consistent habit. It doesn't change nor does it improve, but rather it is maintained. While there can be a huge opportunity or improvement in trade; nevertheless, only occasional individual cases of human rights violations are addressed and not collective instances. This is a consistent and unchanging attitude despite the fact that individual and collective rights have rapidly deteriorated in China with arrests of lawyers beginning with 709. One never hears that Canada needs more, more, and more of human rights or qualitative issues, but rather more, more and more of quantitative issues.

As Defence Minister, McCallum said "So it's like walking and chewing gum at the same time, we're doing practical things to protect the lives of Canadians and Americans, which I think is the highest duty of government, while at the same time safeguarding our sovereignty. It is clear here that protection as the highest duty is more important than safeguarding. It is also implied that practical things are more important than what may be considered symbolic things. One might conclude with respect to China that a practical thing like trade is more important than a symbolic thing like sovereignty.

Ambassador McCallum had indicated that Canada may use the China-Australia Free-Trade Agreement as a template. However, this treaty treats Australia's sovereignty in a very different manner from China's sovereignty. Chinese territory is defined as:

"the entire customs territory of the People’s Republic of China, including land, airspace, internal waters, territorial sea, and areas beyond the territorial sea within which China exercises sovereign rights or jurisdiction in accordance with international law and its domestic law".

This general definition as opposed to Australia's more specific definition is a very, important distinction. Whose territory is the port of Darwin purchased by the Chinese? Whose territory will be the port of Churchill in Canada if the Chinese were to purchase it? The definition of territory reflects the general and specific definitions of territory in the China-Canada FIPA agreement where Canada's are spelled out specifically and China's generally. Is Canada going to make a similar mistake in its Free-Trade agreement? Will it sacrifice sovereignty for free-trade while limiting trade protection?

As Minister of Immigration, Citizenship and Refugees, John McCallum was asked an important question. “What do you say to Canadians who say to you (as you welcome 25,000+ Syrian refugees) what about our homeless people, our young people without jobs, our native population, our sick and our elderly? How do you keep that up”?

I say you can walk and chew gum at the same time. There are always going to be poor people in Canada. I think one of the greatest things on which we’re mandated to make progress is First Nations people, aboriginal people, indigenous people....

 “I think that is a good thing and I think when you think that this is the worst refugee crisis the world has known in decades. There are literally millions of people displaced. It is causing huge problems in the European Union which we hear about every day.

 “So I believe we are doing the absolute right thing in taking 25,000 people from the horrors of a civil war across the ocean and welcoming them here at home and most Canadians agree with that.


Note: The author has highlighted words of the text of several excerpts in order to deconstruct them.


It is a good thing to welcome Syrian refugees to Canada. It is admirable to come to the aid of First Nations, aboriginal and indigenous people. However, the author takes issue with expression of absolutes. By saying that there are "always going to be poor people in Canada implies that no change is ever possible. In other words, one can never walk and chew gum at the same time to solve the problem of poverty in Canada. "According to Raising the Roof, an organization that seeks long-term solutions to homelessness, over 235,000 Canadians experience homelessness each year."

With regard to the Syrian refugees McCallum begins by saying that it "is a good thing"; however, he then strengthens his argument by saying it is "the absolute right thing" to bring the refugees to Canada. One should also be aware or beware of how "think" becomes "believe" and an indefinite article becomes the definite article in a matter of seconds. Finally, there is another transition which seems a case of sophistry. The question asked of him which begins "What do you say" is transformed in the answer by McCallum to "I say you can". "I think that is a good thing" morphs in the same sentence to "I think when you think that this is the worse". You and you then magically transitions to "we".

Perhaps it would be helpful to look at the scientific evidence from a leading Canadian scientist regarding how we walk and chew gum at the same time. Philippe Kolta of the Université de Montréal says that simple rhythmic behaviour (such as walking or chewing) are executed automatically. However, Ambassador McCallum has said one qualification for being a Canadian ambassador in China is knowing how to walk and chew gum at the same time. Isn't the ability to breath, walk and chew gum at the same time better? Indeed, isn't it best if one can breathe, walk, talk and chew gum at the same time?

Finally, one may ask if the processes of walking and chewing gum at the same time are independent of each other. It appears the Honourable John McCallum believes they are. However, there is an argument made by Christopher Findlay regarding Australia's Free-Trade Area Strategy Policy that they are not entirely independent. He refers to Australia's trade strategy of pursuing FTA's and participating in the WTO. Findlay concludes the following: "The use of the preferential arrangements is a weak form of international commitment. Their use produces a series of agreements, perhaps in a hub and spoke formation, which are difficult to add together to make real free trade but which add to the costs of doing business. Furthermore, it can undermine higher level cooperation in the multilateral process."





Canada can manage relationships with China and U.S. at same time,
says John McCallum


New ambassador to China says Canada is pressing for consular access to Huseyin Celil By Catharine Tunney,

CBC News January 26, 2017


http://www.cbc.ca/news/politics/john-mccallum-trump-china-1.3951818




ARCHIVED - Speaking Notes for the Honourable John McCallum Minister of National Defence To the Toronto Board of Trade Minister's Speeches Archive/

October 25, 2002

http://www.forces.gc.ca/en/news/article.page?doc=speaking-notes-for-the-honourable-john-mccallum-minister-of-national-defence-to-the-toronto-board-of-trade/hnmx1bjd



Minister of Immigration: “no apology” to homeless Canadians for taking in 25,000 Syrian refugees

Posted by: Ilana Shneider

April 15, 2016


https://elifesciences.org/content/3/e03235



Université de Montréal, Canada Published June 3, 2014 Cite as eLife 2014;3:e03235
DOI: http://dx.doi.org/10.7554/eLife.03235

The Australian Journal of Agricultural and Resource Economics, 46:4, pp. 605–617 Walking and chewing gum at the same time: Australia’s free trade area strategy Christopher Findlay 1467-8489.00195.pdf





            
                  







                        The School of Hard Knocks


The author has tried an experiment by creating a CHINA NEWS page. He added a counter to determine the interest in its content. Unfortunately, there is almost no interest in the page. Therefore, it will be discontinued. The hits on my homepage though indicate to me that my readers expect something today or December 1, 2019 to be said. You will not be disappointed.

Today is not just another day. It is one day and one year from the anniversary of the signing of the USMCA in Buenos Aires with its 32.10 clause called the China clause preventing free-trade with China. It is one year from the arrest of Mdme Meng in Vancouver on her way to Mexico to talk with its new president about Huawei's 5G network. Today, is the anniversary of the day that the airways died and the levee was dry. Its the demise of Miss Canadian Pie and there is simply noise left. The first day of December is also the day on which China mandates facial scanning of registrants of new mobile devices of Huawei and other Chinese phones. Finally, December 1, 2019 approaches the anniversary of the arrest of Spavor and Kovrig who were arrested and held incommunicado or a state of no communication in response to the arrest of Mdme Meng.

The author includes one last story about the requirement by the Chinese government for citizens--mainly young people--to have their faces scanned before being allowed to register a new mobile service. There are a couple of reasons given in the article for the introduction of this requirement. However, they do not include the government's disapproval and dissatisfaction with the ability of the young people of Hong Kong to wear masks in their peaceful protest.

In the author's opinion the Hong Kong mask issue was the key reason for the introduction of the new registration process on the mainland. Whether or not it will be extended to Hong Kong and become another thorn of contention for the young people of Hong Kong is another matter. If Chinese young people on the mainland are required to have their faces scanned it is in effect like removing their mask of anonymity.

It may also come to fruition that all Chinese citizens will not be allowed to wear masks in their normal, everyday activities. Citizens wear face masks because of high pollution levels. They also wear face masks so that they don't transmit diseases to other citizens. In other words, they wear face masks for their own health and for the health considerations of their fellow citizens.

One might assume that many readers just don't care about what goes on in China. It is far removed from their lives. However, the author contends this approach may be short-sighted because China is coming to them whether they like it or not. If one doesn't understand China then one won't know what the "social credit system" is, how our government can now rely on it to screen Chinese for Canadian visas and how in the future China may require Canadians applying for Chinese visas to go through a screening process by the same social credit system.

The author appreciates that most Canadian citizens do not have the same interest in China as he has. His roommate at university was not a Canadian from Glace Bay, Nova Scotia but a Chinese  from Beijing. In fact, he met his Chinese roommate before Justin Trudeau was born. His acquaintance with the Chinese did not start with his arrest in 2003 as he was attempting to start a college at Dawu Group, but began a decade earlier in Beijing when he was employed as a "foreign expert" of the Chinese government at the Graduate School of the Chinese Academy of Sciences. He has lived and worked throughout China and has seen more cities than most Chinese who were restricted due to the "Hukou system".

As a result, he has tried to educate Canadian citizens about China. Since 2014 he has diligently attempted to warn them about developments in China which pertain particularly to "rule of law". Our government has been blissfully and willfully ignorant of what is happening in China as our government has in turn been governed by Chinese-Canadian business interests. Our citizens need to know this.

It is understandable that Canadian citizens know Canada better than China. They are getting an education though about China the hard way not from a former teacher in China, but from the total collapse of the China-Canada relationship. They understand what the imprisonment of Kovrig and Spavor means. They understand what the imprisonment of Mdme Meng means. They see how a dream of free-trade with China has become a nightmare of curtailment of trade through reprisals by the Chinese government. They see how the Canadian government's tolerance for exploring an extradition treaty with China is manifested in the total collapse of Hong Kong (which has 300,000 Canadian ex-pats) and whose students rejected an extradition treaty between Hong Kong and China. Maybe Canadian citizens will listen to the whisper of their own intuition and common sense which reveals that the Huawei 5G decision should not be left up to the Canadian government and their governing body called the China-Canada Business Council but by themselves through a binding national referendum.


Updated December 03, 2019






 
                           



                Clarion Call to Release John Chang
 

Justin Trudeau is set to visit China. The exact purpose of the trip has not been specified. This means that the purpose of the trip is not transparent. There has been no transparency about preparatory (predatory) closed-trade talks since the beginning. Coincidentally, the purpose and plans of the Canada Infrastructure Bank have been equally opaque. Isn't it obvious that preparations for the CIB fit like a glove on the trade slight of hand?

Amy Chang who is the daughter of Canadian farmer, family entrepreneur John Chang has called for the delay of free-trade talks with mainland China until her father is released. Naturally, this request is from the heart, but it is also from the intellect. It makes eminent sense to delay indefinitely free-trade talks until John Chang is released. His civil case has transformed into a criminal case--as some suspect-- because he did not pay a bribe. Are bribes necessary to conduct free-trade with China? If so then it is not free-trade nor will it ever be. Canadians will never be able to trade freely under the threat of imprisonment where there is no recourse to rule of law. It appears rather that the Liberal government is trying to serve the interests of big corporations and ignore the interests of entrepreneurs who create the bulk of middle-class jobs in Canada.

There is only one logical, ethical and legal reason for Justin Trudeau to go to China in the coming week. It is to free John Chang. If Trudeau and his entourage go to to China for any other reason then it is misguided and misinformed. If they are not able to free John Chang then a lawsuit under the FIFA agreement would be in order. Why is Trudeau so vigorously trying to preserve one of the dispute resolution mechanisms of NAFTA and also request a panel review of countervailing duty of softwood lumber from Canada when it has not pursued the dispute resolution process of the China-Canada FIFA during the entire incarceration of John Chang, trumped up charges and kangaroo court conviction? Chinese authorities exercise the FIFA resolution process with impunity while Canada negligently neglects to exercise its rights to resolve disputes because they wish to pacify Chinese bullies. John Chang is not smiling. Why is Justin Trudeau smiling?


D.卡尔顿 罗西
D. Carlton Rossi

2017年12月04日



                                                     

                                    

                                                           John Chang


Daughter of Canadians detained in China
‘hopeful’ for meeting with PM


Steven Chase and Robert Fife

OTTAWA — The Globe and Mail

Last updated May 30, 2017 11:55PM EDT

The daughter of two Canadians detained in China over a customs dispute is keeping a vigil in Ottawa this week, waiting for Prime Minister Justin Trudeau to respond to her request for a meeting on the plight of her parents.

The case has raised new questions about Canada’s pursuit of a trade deal with China after the couple’s daughter, Amy Chang, petitioned Ottawa for help. Lawyers for the couple say their clients have been victimized by a country where commercial disputes can catapult the unwary into an abuse-prone criminal justice system controlled by the ruling Communist Party.

She said Canadians should not be jailed over a commercial dispute. “This is a trade issue. I would like him to turn his attention to this file because my parents … shouldn’t be detained overseas,” Ms. Chang said. “I am hopeful he will give me 10 minutes of his time to meet with me on this.”


https://www.theglobeandmail.com/news/politics/daughter-of-canadians-detained-in-china-hopeful-for-meeting-with-pm/article35159878/



It is the opinion of the author that the Liberal government has mishandled this case from day one. It has done little to put pressure on the Chinese government for a resolution of the case. It lacks firm commitment to human rights. While the Prime Minister visits the NATO meeting and wants Trump to affirm the one for all and all for one principle for mutual security; yet, all the Liberal government is not behind the one John Chang. It is bedazzled by the illusion of riches from free-trade while it ignores the rights and freedoms of John Chang.

D. Carlton Rossi will continue to support the Chang family until they are reunited in Canada. The author supports the farmer, family private entrepreneur as he did so in the Sun Dawu case in 2003. At that time, he set up fifty websites, talked to a human rights lawyer in New York and went on a hunger strike among other things.

D.卡尔顿 罗西

2017年5月31日







                                     


Former Federal Agricultural Minister Gerry Ritz visits the Lulu Island Winery in 2015 and talks with John Chang



The Private Family Farmer Entrepreneur--John Chang


The year was 2003. Sun Dawu had been arrested for illegal fund-raising. He faced ten years in prison for this crime. However, he was treated rather leniently by the court as he received probation and a fine in November of that year. However, his business had suffered substantially during his imprisonment along with the incarceration of his brothers who were management figures. This case proved to be a landmark one constitutionally in that it showed how it behooved the Chinese government to put in a management team to run the business during the period in which his innocence or guilt was established. Follwoing the court decision the company was forced to uproot its grapevines so it could plant corn for its cash strapped business.

Mr Sun complained that the system forced many private businesses to take either what he called the “red road” (red denoting the mandarinate since the time of the Qing dynasty) of bribing officials for loans and other benefits, or the illicit “black road” of producing fake or shoddy goods. Sun did not want to do either, but rather ran his business on Confucian principles.

On November 28, 2003 Ted Lipman, executive director of the Canadian Trade Office in Taipei (CTOT), pointed out that six different kinds of "Canadian ice wine" were found in Taiwan earlier this year which did not bear the VQA (Vintners Quality Alliance) certification seal. Lab analysis in Canada later showed that five of the six ice wine brands were fake.

At that time, John Chang represented the Canadian Vintners Association. He was visiting Taiwan where he had been born as part of a trade delegation. Chang's company produced a high quality icewine in British Columbia. This icewine was competing against fake icewine or "shoddy goods" on the store shelves of wine shops in Taiwan. The fake product was ruining the reputation of what Chang called "golden nectar," referring to its crystal gold and amber coloring.

In 2009, John Pilliteri who also owned a icewine winery in British Columbia went to Shanghai. "He visited 14 stores in Shanghai, and in every one he found fake Icewine. Not only are Canadian vintners losing revenue, but the quality of the knock-offs is harming the reputation of the wine." Pilliteri and Chang were among a group of reputable entrepreneurs who produced a first-class product. Yet they faced off (in the Canadian hockey sense) against counterfeit products.

John Chang was invited by Prime Minister Harper to join the trade delegation to China in November 2014. By all indications it was a successful trip. Chang was called the ambassador of icewine. As one of the most successful immigrant entrepreneurs he showed how jobs could be created through the private sector and exports increased.

However, prior to the trip the Harper Government agreed to ratify the contentious Foreign Investment Protection Agreement known as FIPA. "The government had failed to ratify FIPA amid a series of recent tensions in Canada-China relations. Earlier this summer, Harper accused the Chinese of a cyberattack on the National Research Council, while the Chinese claimed a Canadian couple living in China were spies." Critics decried the agreement--especially in the area of the environment and energy. For example, Green Party Leader Elizabeth May said “I am certain no Canadian company will ever benefit from this agreement”.

Canadians are also concerned about FIPA because its ISDS mechanism gives extra leverage to foreign corporations. The FIPA allows Chinese companies to have their claims decided by an international trade tribunal. In FIPA agreements with other countries it is usually the Chinese who resort to these lawsuits. However, it is conceivable that a Canadian company could launch its own lawsuit or threaten to launch a suit against the Chinese government as a means to achieve its own ends.

Let us fast forward to March 2016. John Chang and his wife Lan-Fed Lu are accused of submitting "fake" customs documents at the port of Shanghai. Don't you find this to be ironically conniving ? They produce and promote a high quality product competing with fake products in Shanghai and yet they are accused of submitting fake custom forms. Today, it is estimated that 50% of the icewine found on the wine shelves in China are fake or counterfeit products. This is an offence against one of the best known Canadian symbols. Those fake bottles call it "ice wine", but its intellectually property-right protected name is "Icewine". The authenticity of the golden nectar can be verified with an instrument called a GC/IR/MS – Gas Chromatograph interfaced to an Isotopic Ratio Mass Spectrometer.

Normally, this case would fall under trade law. Customs would hold the wine and release Chang and Lu so that they could return to Canada, run their business and handle matters according to commercial law. However, there is an anomaly and abnormality here. A customs case transforms into a smuggling case in order to put pressure on a defendant who claims innocence. Whether or not the forms are filled out correctly this cannot be construed as a smuggling case. Business has been done since 2013 in full view of customs with their approval until March 2016. Smuggling goods though is a criminal offence and carries a sentence of anywhere between ten years and life.

As a result, Amy Chang who is the daughter of the couple has been forced to run the business. While she is a business graduate; nevertheless, she is forced to run the business without the help of her parents who are experienced entrepreneurs. She has been forced to run the business for over a year by herself. She also cannot visit China for fear of arrest nor talk with her father. The reputation of the company has been harmed and her father's health has deteriorated.

This situation is reminiscent to the author of the Sun case. His son was forced to cancel his entrance into an Australian university in order to run the business. However, Sun Meng did not have the experience to run a complicated business. He was not allowed to visit his father or uncles in prison nor to talk with them. His mother was in hiding because she feared arrest. As a result, in a matter of six months, Dawu Group lost over 5 million yuan.

This case illustrates a basic contradiction in how private family entrepreneurs who sell a high quality product and believe the forms have been correctly filled out at customs are treated and how knock-off scammers who produce shoddy products are handled. The private family entrepreneurs are arrested and charged in Shanghai with a smuggling crime of faking forms that is punishable up to life in prison. However, the scammers who sell fake products on the wine shelves a few miles away in Shanghai are ignored and flourish in a kind of wild west atmosphere where they are forgiven for their original sins because the economy is rapidly changing. It reminds the author of the song called Sympathy for the Devil by the Rolling Stones which was played at a live concert in Shanghai in 2014 with the lyrics "All the cops are criminals and all the sinners saints".

Gerry Ritz, Conservative international trade critic, raised the case during question period in the House of Commons. He said "The arrest of Mr. Chang and Ms. Lu for a fabricated customs violation is an assault on their basic rights, a breach of China's international trade obligations and China's own customs laws". Earlier, as a former Federal Agricultural Minister, the Honourable Gerry Ritz stressed on January 22, 2015 that the Lulu Island Winery was one of the standard bearers of exports to China. Ritz added that one of the reasons why Canadian products do well in markets such as China is this country’s reputation as a trusted supplier of quality goods, including wine.

D.卡尔顿 罗西

2017年6月10日




                      

Conservative’s Ritz implores PM Trudeau to help Canadians detained in China

Conservative MP Gerry Ritz asked the Liberals during Question Period on Thursday, to aid Canadian winery owners John Chang and Allison Lu who were detained in China for 15 months for a customs valuation dispute.

Global News

June 01, 2017

0:00/1:59


http://globalnews.ca/video/3496414/conservatives-ritz-implores-pm-trudeau-to-help-canadians-detained-in-china






References


B.C. winery owners facing life in Chinese prison for alleged smuggling

May 21, 2017


http://ca.pressfrom.com/news/canada/-28708-b-c-winery-owners-facing-life-in-chinese-prison-for-alleged-smuggling/



B.C. winery owners facing life in Chinese prison for alleged smuggling

Canada ratifies investment deal with China

Lee-Anne Goodman

The Canadian Press

Sept. 12, 2014


https://www.thestar.com/news/canada/2014/09/12/canada_finally_set_to_ratify_investment_deal_with_china.html



Detention of John Chang and Allison Lu described as 'outrageous and unconscionable'

Eric Rankin

CBC News

May 19, 2017


http://www.cbc.ca/news/canada/british-columbia/b-c-winery-owners-facing-life-in-chinese-prison-for-alleged-smuggling-1.4125177



Counterfeit hooch hurts Icewine rep

Tony Aspler

December 2009 issue of Post City Magazines


http://www.peterigel.com/counterfeit-hooch-hurts-icewine-rep/




Document seeks forgiveness for 'original sin'

By Meng Yan (China Daily)

February 09, 2002


http://www.chinadaily.com.cn/english/doc/2004-02/09/content_304318.htm



Knocking Off Icewine

Tony Aspler

November 11, 2004


http://www.chinapost.com.tw/news/2003/11/28/43587/officials-warn.htm



Officials warn against bogus Canadian ice wine in Taiwan

The China Post

Amber Wang, Taipei Taiwan

November 28, 2003


http://www.chinapost.com.tw/news/2003/11/28/43587/officials-warn.htm



Private entrepreneurs Gexin the shore!

Papers Category:Marketing

August 19, 2003


http://eng.hi138.com/marketing/200308/196379_private-entrepreneurs-gexin-the-shore.asp



Speaking out

Businessmen are starting to challenge the authorities

Dec 30th 2003 | beijing and xushui



http://www.economist.com/node/2313388




                                   

                                                         Amy Chang


Amy Chang on trial

Daughter of winery owners jailed in China seeking Trudeau's help

Megan Devlin, CTV Vancouver

May 25, 2017

Chang maintains that her family’s winery did not undervalue their wine, and says she has receipts from trade officials in Shanghai to prove it. She’s frustrated that her parents are being detained criminally for what she says is a trade dispute.

"They've done nothing wrong, and [Trudeau] needs to have his attention on this,” she said. “Especially when you're talking about a free trade agreement [with China] in the future.”

She added: “Is Canada saying it’s okay to detain someone for a year?”

Chang says she’s been working with her local MP to get the government to do something. So far, no ministers have agreed to meet with her.

Her parents face trial in China starting on Friday. Meanwhile, she’s travelling to Ottawa next week with the hopes of arranging a face-to-face meeting with Trudeau.

“The role of the Canadian government is to protect your citizens at home and abroad,” Chang said. “And right now I don’t see that happening.”


http://bc.ctvnews.ca/daughter-of-winery-owners-jailed-in-china-seeking-trudeau-s-help-1.3429539





 

                                                         


               
          Sun Dawu and D. Carlton Rossi in 2003


The Dawu Group had a thriving wine industry in 2003. They grew both red and white grapes. However, everything changed on May 27, 2003 with the arrest of Sun Dawu and his brothers. The author himself was put under house arrest at Dawu Village. At the time of interrogation by police officers as a host he asked if they cared to drink Tibetan barley or Dawu white. Six months later Sun Dawu was released on four years' probation.

One of the major problems though was because three executives of the company had been arrested there was no one competent enough left to run the company while they awaited trial. The company lost millions of yuan. As a result, all grapevines were torn out and corn planted in order to pay bills.







                                     


                                 D. Carlton Rossi


                       Free-trade or Freeze-Trade?

The author has received a threat presumably for his defence of family, farmer entrepreneur John CHANG [Zhang]. It must worry the issuers of the author's insurance policy who are burning the midnight oil recalculating the risks. However, the threat does not deter the author from continuing to defend a man he has never met. In fact, he was unaware of Chang's existence until a few weeks ago despite extensive research on the topic of China. John Chang and his wife Ms. Lu fell under the radar predominantly because they received minimal support in terms of defence of their rights and freedoms as Canadian citizens.

Instead, the Liberal government in their exploratory talks have delinked free-trade from human rights and put free-trade first and foremost. They fail to understand that it is not trade that is free, but rather individuals who are free. Individuals in corporations or as entrepreneurs are those who may conduct trade. Those individuals are free to conduct business under rule of law; however, they are not free if they are arrested on trumped-up-charges intended to intimidate or are concerned that at any time they might be arbitrarily arrested.

In addition, there is currently consideration of a new intelligence law wherein China's spies have a duty to "guard against and dispel state security threats" to major national interests. They may also investigate any foreign or Chinese citizens who are seen as a threat to national security--whatever that is. Indeed, the entire population would be put on alert to inform authorities of any suspicious activities or persons. If this law is enacted then foreign executives or entrepreneurs as individuals may not wish to visit China let alone do business in the country.

However, as was said nine months ago, the author's concerns are no longer what goes on in China be it lack of rule of law, a new intelligence law or other concerns. The extensive arrests of civil rights activists in a program to stifle opponents and what is called an anti-corruption program as power is concentrated in one man does not portend well for China and for that matter the world. In the author's opinion, liberal economics died in China when the website of Mao Yushi who is a liberal economist was shuttered and more recently his house arrest. This circumstance is just a symptom of an economy that is resisting market reform while it props up state-run monopolies. It is not a market economy under rule of law. As a result, the author now concentrates on Canada and its relation to China rather than on the Middle Kingdom.

The author cannot understand how a Canadian liberal government has any interest in an illiberal, autocratic China with regard to free-trade or extradition treaty. As was said directly to a member of Parliament the government prefers to deal with autocrats and plutocrats as opposed to family entrepreneurs. Strangely enough though it prefers Chinese autocrats and plutocrats over Russian.


The term "freeze-trade" is copyright D. Carlton Rossi




D.卡尔顿 罗西  

2017年5月28日






                                                                                  


                                    Family, Farmer, Entrepreur Sun Dawu



                                   Trust

The wine industry in the Xushui region has a long history. It began 5000 years about the time of Xūnyù. However, today, the region is plagued by counterfeit products.

Sun Dawu speaks of one of those companies that sold fake wine. The fake wine was produced by a company that no longer exits. It was not able to develop its brand. Its customers lost trust in it. It had no currency so to speak.

The wine cost 18 yuan a bottle. It was luxuriously packaged. Almost unbelievably, the packaging and bottle cost 15 yuan a bottle. That left two to three yuan in profits; whereas, the actual cost of the wine was only .05 yuan.

On one occasion, the author remembers a Fujian peasant who brought out his best wine to offer as a toast to D. Carlton Rossi It too was elaborately packaged and pored from an expensive bottle. It was supposed to be from a famous wine growing region of France. While the author was no connoisseur of wine he did recognize that he was offered red vinegar instead of wine. The author was also able to read the English label on the bottle. It said “piss on peon”. He regretted having to tell the truth to his friend. One doesn’t lie to one’s friend nor withhold the truth.


                   


Sun Dawu began the liquor company of Dawu Group in 2009. It is managed by his son. It was not established for profit. Rather, it was set-up to ensure that his workers and the local population would not be plagued by adulterated alcohol.

The roasting time of competitive brands of liquor vary. A poor quality liquor can be made in as little as 3 to 7 days. A medium quality liquor can last 40 to 60 days while a high quality liquor takes 80 to 90 days. These liquors vary in price, but are generally expensive. They are sold through expensive and extensive TV advertising.

In contrast, Sun Dawu took a different approach. He concluded that things can not deviate from their original purpose. He proposed that the liquor company use a slow flavor brewing method to produce a low price product of good quality in a mid-range package. The liquor ages two to three years depending on the brand. Basically, they are sold through word of mouth. They are then offered through the Group’s hotel, restaurant and spa.



                              

                         
Copper Coin of the Tang Dynasty


The coin of the Tang Dynasty (618-907 A.D.) was made of gold, silver, copper and lead. It was called the Kai Yuan Tong Bao or Kai Tong Yuan Bao. The coin lasted throughout the Tang Dynasty without discontinuity when China was the commercial center of Asia through the Silk Road. Businessmen could cash them in at any time for a paper receipt in more than 40 offices throughout the kingdom. The dynasty reached its zenith during the reign of Emperor Xuanzong. During this period of 44 years the inflation rate was low.

The calligraphy of the Kai yuan was written by Ouyang Xun. He was the lead calligrapher of his age. Therefore, his style was praised by poets. Two of the most famous Chinese poets were Li Bai and Du Fu. The poem of D. Carlton Rossi called 無 was inspired by the form of Du Fu’s poems; although, it was modified in a unique way.

However, paper currency at the time of the Mongolian Empire undid it. Marco Polo writes how Chinese alchemists produced paper money with as much form and ceremony as if it were actually of pure gold and silver. Large quantities were printed. The system lasted only 100 years. In other words, barbarians introduced a counterfeit currency which bankrupted the dynasty.

Today, China’s central bank is in a very different situation. It holds a large reserve of gold which might be used to establish the remnimbi as an international reserve currency. It is obvious that China did not purchase this vast store of gold so that it wouldn’t earn interest. One wonders how they will react with Japan’s introduction of an unconventional monetary program called “negative interest rates” after the failure of the Bank of Japan’s unconventional quantitative easing.

If China should back its currency with gold or for that matter include it within its trade-weighted basket of currencies then what might its implication be for countries which do not have a gold reserve and yet are part of the basket? Fortunately, the number of these countries is minuscule. The most negative consequences might be experienced by any of these countries which do not have a gold reserve and yet introduces negative interest rates. The result might be a flight to safety of gold. It is not gold that is a barbaric relic, but rather the neo-barbarism of fiat and virtual currency coupled with negative interest rates.








                                             
                                  

                                D. Carlton Rossi
                   


                               Fake Monopolies


John CHANG [ZHANG] was making great inroads in the icewine business in British Columbia with sales to China. However, perhaps the straw that broke the camel's back was when he aggressively expanded his business into the Niagara Region in 2015 with a brilliant stroke of entrepreneurship by freeing up land for icewine vines. However, he may have angered members of the fake icewine monopoly. It wasn't long afterwards in March 2016 that he was charged with smuggling icewine into the port of Shanghai.

One could claim with credulity that the monopoly which the mainland Chinese icewine interests wish to protect is the counterfeit, icewine market. It has enormous profits as its costs are low and there are no custom fees if manufactured in China. In addition, it doesn't have to worry about misleading advertisements which imply its origin is Canada.

The author would like to put the monopoly issue into an historical context in terms of parliamentary democracy. In 1587, Leicester persuaded Elizabeth I to make Robert Essex or his grandson Master of the Horse. The Queen agreed to give Essex, in exchange for a manor, the right to all sweet wines imported into England during the next ten years, "which would bring a sizable income at public expense. (p.403)

In this particular case, the sweet wines were real. They were imported, for example, from the Anjou region. However, it was the importer who was fake. He was given one of the largest armies to quell rebellion in Ireland, but he contrived with the rebel Tyrone and later led a rebellion to overthrow the Queen.

A fake monopoly produces a knock-off of lesser quality by minimizing costs and maximizing profits. Most times it produces a product or service which is harmless. Sometimes though it produces a product which is harmful. For example, it was probably the case that a monopoly supplied ale and provisions to the men aboard ship who vanquished the armada with the help of a 'Protestant wind'. The English lost only one hundred men and none of their ships. However, provisions and rations of sour beer left thousands ill or dying of typhoid, scurvy or food poisoning. (p.391)

Ten years later the patent agreement expired and was not renewed by the Queen. She reserved profits for the Crown. Elizabeth commented with reference to her Master of the Horse that "An unruly horse must be abated of his provender that he may be the better and more easily managed". (p.457) Essex had fallen out of favor with the Queen--predominantly because his activities in his Irish command could be construed as treasonous. Shortly thereafter he led a rebellion in London in the year 1601 against the Monarch and all citizens were called out to defend the Queen. The result for him was that two executioners were called to cut off his head.

Parliament was determined to end the abuse of monopolies through an act limiting her powers to grant them. However, the Queen decided to immediately revise the present system. Parliament was overwhelmed with joy on hearing the news and warmly received her 'golden speech'. "That my grants should be made grievances to my people, and oppression be privileged under colour of our patents, our princely dignity shall not suffer". (p. 473)

D.卡尔顿 罗西  

2017年5月26日




Allison Weir, The Life of Elizabeth I, The Ballantine Publishing Group, New York: 1998.







                                                                          


                                                             Icewine Vines


                                    Icewine


Recently, it was brought to the attention of the author through both an article written in The Globe and Mail and a question asked of the Prime Minister about the plight of two, Canadian wine entrepreneurs who face criminal charges with regard to a customs duty dispute. It is surprising that this issue has dragged on for over 13 months without Canadian government intervention and will culminate in a closed-door trial in the near future. The author will express an opinion on the matter.

John CHANG [ZHANG] who is a Canadian was born in Taiwan. Both he and Ms. Lu were charged with undervaluing a shipment of ice wine to China. However, rather than the issue being treated as a commercial dispute it was taken to a criminal court which has more serious implications. "Chinese law notes that those found guilty of evading more than 500,000 yuan in taxes could be punished with anywhere from 10 years to life in prison, as well as a fine of 100 to 500% of the evaded taxes."

About 20 years ago the author gave a present of a bottle of ice wine made by Inniskillen to his former director--Professor LI Pei. She recently passed away at the age of 99. LI Pei was the founder of (TESL) or teaching english as a second language in China. It was not an inexpensive gift and along with a package of American pistachios (which were her favourite) it was equivalent to a month's salary. He gave the ice wine which he had brought from Canada because it was uniquely Canadian. It was also a wine which was first in its class as was she.

The ambassador of ice wine at the time was Donald Ziraldo. He was undertaking the marketing of ice wine in China. The wine came from a vineyard in the Niagara Region which was 20 miles away from the author's hometown.

The author had read how Dr. Ziraldo's company was having some difficulty about a shipment to China. The details cannot be remembered but it seems that it was about a non-payment for shipment of ice wine. As you know, though, matters do not become more clear with time so accept with scepticism the inexactness of the recollection.

In those years the author was teaching a class of law students of whom most were at the doctoral level. If there is one thing he wanted them to remember was the difference between the word "persecution" and "prosecution". Many of them said they were "persecutors" rather than "prosecutors". To the author the image of "persecutors" brought up images of the Spanish inquisition where suspects were racked.

At any rate, the author emailed Dr. Ziraldo about the news story. The author offered to recommend one of his best students who was currently a lawyer and formerly a judge to represent the company, but this avenue was not taken at that time. It is not known how the issue was finally resolved or dealt with.

More recently, you may have read about the case of the Dawu Group which was founded by SUN Dawu. A subsidiary was sued for trademark infringement about what seemed to be a generic term with respect to its five grain liquor. The real issue though appears to be one of monopoly. This kind of issue can manifest itself in various ways, for example, with respect to specialized grapes and the land which supports them which are in short supply in the Niagara Region and on the other hand, a high demand in China for a premium icewine which demands a premium price by the nouveau riche.

However, the law firm Fasken Martineau classifies the most recent issue involving a Canadian as a customs dispute, and China’s conduct is a violation of its international trade obligations under the World Trade Organization Valuation Agreement. Under international trade law, disagreement over the valuation of imported goods is supposed to be resolved under the agreement. The author does not understood why the Canadian government has not recognized the case against CHANG and LU under the WTO Valuation Agreement and support them on this basis. Our government should call for the immediate release and repatriation of these two individuals on the basis of international rule of law.

It seems to the author that there is a concerted effort by the mainland Chinese to not only dominate in trade but to undermine the very symbols of Canada. There was nothing more Canadian than the Blackberry which became a Redberry through imitation. Then, there was the canola dispute over dockage which undermined a Canadian innovation in genetic engineering which took place decades earlier. Icewine has been faked for years in China by freezing grapes in the refrigerator. It may be that up to 50% of the Chinese icewine is fake with fake Canadian labels. Its quality is non-existent. Frankly speaking, if the Chinese could fake the Canadian water of icewine then they would not hesitate to do so. In effect, aren't they doing so?

Why hasn't the Canadian government sued under the China-Canada FIPA agreement in order to protect our icewine industry? It is evident that "exploratory" talks between China and Canada on extradition, free-trade, human rights and the environment will become the issue of the next election. It seems these days the "persecutors" outnumber the "prosecutors" in China. However, Canadians will neither accept closed-door trials nor closed-door talks. There is no compromise on core values.


  


D.卡尔顿 罗西  

2017年5月21日







1. Canadian winery owners face closed trial in China Ottawa — The Globe and Mail Robert Fife and Steven Chase

May 19, 2017

https://www.theglobeandmail.com/news/politics/canadian-winery-owners-face-closed-trial-in-china/article35054130/


2. Fake Icewine

http://www.thecanadianencyclopedia.ca/en/article/canadian-icewine/



3. Niagara winery owner arrested for allegedly smuggling $58.8 million worth of wine

Stephanie IP, Postmedia Network July 23, 2016

http://www.torontosun.com/2016/07/23/niagara-winery-owner-arrested-for-alleged-smuggling-588-million-worth-of-wine



4. Special Report: China and Niagara's wine

By Bob Tymczyszyn, Grant LaFleche, QMIAgency June 17, 2016

http://www.stcatharinesstandard.ca/2016/06/17/china-and-niagaras-wine



5. http://www.winesofcanada.com/icewine4.html


6. http://www.winesofcanada.com/ziraldo1.html








                                   



Reprint of Previous Post

https://sundawu.ca/Disquietude.html







Update of Legal Proceedings on Intellectual Property Rights

A notice of infringement of trademark was made on September 21, 2015 by the Yibin Wuliangye Co. Ltd. in the court of Zibo City of Shandong Province against the Taiwujituan liquor company which was begun by Sun Dawu. It is understood that the plaintiff employed on a nationwide basis 50 law firms as co-defenders. The author makes no comment on the merit or demerit of the case since trademark law is quite specialized. On December 10, 2015, the case was heard and a decision was made in favour of the plaintiff. An appeal was allowed at a higher court situated in Jinan in July 2016.

What caught the attention of the liquor industry, legal profession and for that matter the entire nation was the penalty for trade mark infringement. The plaintiff had demanded the following:

为此,原告将其诉至法院,要求判令被告立即停止侵权行为,并在相关媒体刊登道歉声明以此来消除影响;且判令被告赔偿原告经济损失及制止侵权行为所支付的合理开支共计 300万元。

To this end, it is the plaintiff which sued the Court, asking the defendant to immediately stop the infringement, and to publish an apology in the relevant media in order to eliminate the influence; and the defendant was ordered to compensate the plaintiff for economic loss and reasonable expenses to stop the infringement with a payment of up to 3 million yuan.

August 02, 2016

“五粮”这种通用型词语竟然被注册为商标,不允许其他厂家使用“五粮”这两个字,如果有人把“法官”、“汽车”、“老师”等词语注册为商标的话,这个社会将变成什么样子?!所以,五粮液集团把“五粮”注册为商标,并不是为了保护自己的商标权益,而是为了市场垄断。我希望国家管理部门能够对这类行为进行甄别、处理和改善。

Sun Dawu

August 08, 2016

"Five grain" such general words should have been registered as a trademark, does not allow other manufacturers to use "five grain" these two words, if one of them, "judge", "car", "the teacher the words" registered as a trademark, what this society will look like?! Therefore, the wuliangye group "five grain" registered as a trademark, not in order to protect its trademark rights, but rather to monopolies in the market. I hope that national authorities can screen, treat and improve such acts.


Both John CHANG [ZHANG] and his wife Ms. LU are farmer entrepreneurs as are SUN Dawu and his wife Ms. LIU along with their families.




                                       
                      



Undated family photo of Amy Chang, left, her father John Chang and mother Allison Lu (family handout)




Daughter of winery owners facing trial in China
pleads for Trudeau to intervene


STEVEN CHASE AND ROBERT FIFE

OTTAWA — The Globe and Mail

May 25, 2017

The daughter of two Canadian winery owners who face a criminal trial on Friday in Shanghai for allegedly failing to pay sufficient duties on shipments to China is pleading for Prime Minister Justin Trudeau to intervene.

Amy Chang says the Chinese government has criminalized a commercial dispute and that her parents’ treatment over the past 14 months should serve as a warning to people looking to do business in China, particularly because Mr. Trudeau’s government is trying to kick-start negotiations on a trade deal with Beijing.

The Chinese government accuses Mr. Chang and Ms. Lu of under-reporting the value of their wine shipments to China and consequently of underpaying the full duties owed. Their Lulu Island Winery in Richmond, B.C., is also named in the charges, and denies both allegations. Lulu Island said it has receipts from the Chinese customs authority that back up the couple’s claims of innocence.



https://www.theglobeandmail.com/news/politics/winery-owners-daughter-pleads-for-trudeau-to-intervene-with-beijing/article35110368/



      
                           

                                        Roger Tassé


Roger Tassé, who is considered the architect of the Canadian Charter of Rights and Freedoms, died in hospital Saturday in Gatineau, Que.


THE CANADIAN PRESS March 21, 2017

In 1980 Tassé led a team of Justice Ministry lawyers tasked with helping political leaders reach an agreement on The Canadian Charter of Rights and Freedoms.

In 1982 he was deputy justice minister in the Liberal government of former prime minister Pierre Elliott Trudeau where he played a lead role in the repatriation of the Canadian Constitution.


http://www.ottawacitizen.com/health/charter+architect+roger+tasse+dead/13388010/story.html





                       


If the icewine case against John Chang [Zhang] and his wife Ms. Lu were in Canada it would be regarded as an infringement of the defendants' rights and freedoms under the Charter of Rights and Freedoms. “In Canada, the actions of China Customs would be a clear violation of Section 9 of the Canadian Charter of Rights and Freedoms, which guarantees the right against arbitrary detainment and imprisonment.” However, rights and freedoms of Canadians under the Liberal government of Justin Trudeau take second place to free-trade between China and Canada through its sychophantically sideling up to an authoritarian regime.
 



                          



Shanghai Customs cracked the case of 300 million wine smuggling case involving 200 million of ice wine in four cases

July 20, 2016


Source: Legal Daily - Legal Network



上海海关破获案值3亿葡萄酒走私案

其中2亿冰酒涉4案

发布时间:2016-07-20 16:23 星期三

来源:法制日报——法制网



It appears there is a triple entendre in the title of this article. The title refers to a case of icewine, to a legal case of smuggling rather than a valuation issue and cracking open a bottle of icewine (usually in celebration. From the pictures one can easily see the place of origin for the Canadian product. One has to wonder though whether or not this is a "case" against a Canadian whose name is ZHANG or rather a Canadian whose place of birth was Taiwan. It so happens also that Canada wants free-trade with the PRC and not Taiwan.



4   起案件中,走私案值最大的一起涉案酒庄位于加拿大,该酒庄董事长张某通过导游吸引中国旅游团到酒庄参观并购买冰酒、葡萄酒等。消费者在境外交易付款后,张某即把订单发至“上海配送中心”,由配送中心把冰酒送到客户指定的境内地址。同时在张某的授意下,酒庄专门制作了虚假报关单据用于向海关申报进口,其申报进口价格远远低于实际成交价格。张某及该酒庄因此涉嫌价格瞒报走私犯罪。到案后,张某对走私冰酒的行为供认不讳。


The author has quoted this paragraph in toto. He asks you to carefully examine the last sentence. However, he will not provide a translation out of concern that it may not be correct. He will also not comment on it further out of deference to the defendants.     



http://www.legaldaily.com.cn/index_article/content/2016-07/20/content_6728714.html







                          

                                                      The Chang Family


Trudeau urged to delay trade talks
until China frees two Canadians


Robert Fife and Steven Chase

Ottawa

November 28, 2017


Prime Minister Justin Trudeau is being urged to postpone free-trade talks with China until the authoritarian regime frees two Canadians who have been detained for more than 20 months over a customs duty dispute.

Amy Chang, whose father and mother have been trapped in China since March, 2016, wrote to Mr. Trudeau on Monday, asking him to "directly help free my parents" when he meets President Xi Jinping and Prime Minister Li Keqiang next week.

"I am asking you to delay launching formal free-trade negotiations with China until my parents are back home safely in Canada," Ms. Chang wrote in the letter to Mr. Trudeau that was provided to The Globe and Mail.

"If your government cannot protect and defend honest Canadian business people in China today, how will you be able to protect and defend honest Canadians doing business in China after we have a free-trade agreement?"


https://www.theglobeandmail.com/news/politics/trudeau-urged-to-delay-trade-talks-until-china-frees-two-canadians/article37121140/




                     

Beware risks of business with China: former ambassador

Lynn Desjardins

November 30, 2017

A former Canadian ambassador to China says the Canadian government is not doing a good enough job of warning people of the risks of doing business in China. Chinese authorities have imprisoned Canadian wine producer John Chang for over 20 months and his wife’s passport has been confiscated because of a customs dispute. And his is not the only such case.

Former ambassador saw several cases a year “My specific concern related to cases of Canadian business people…who are involved in a commercial dispute in China that suddenly becomes… a criminal matter which leads to the intimidation and sometimes the imprisonment of a Canadian,” said David Mulroney, former ambassador and now president of the University of St. Michael’s College in Toronto.

“We need to have a comprehensive strategy that includes thinking about consular affairs—so, how to protect Canadians in China, thinks about cyber espionage, thinks about how China has a wider impact on our foreign policy…A free trade agreement should be one element in a very comprehensive and sophisticated foreign policy that I simply haven’t seen us developing yet.”

The department of Global Affairs currently features one line in its travel advisory for China that says, "Canadian business travellers have been detained and had their passports confiscated as a result of business disputes with their Chinese counterparts."

Mr. Mulroney said this caution is buried too deep in a multipage document and should instead be given prominent placement in advice offered by Canada to its citizens.

"The warning should be 'You may be caught up in a business dispute that morphs into a criminal dispute and you will be imprisoned or your passport will be taken away. And our consular ability to help you will be limited or none,'" the former envoy said.

Mr. Mulroney said incidents of Canadians detained in China over commercial disputes were increasing during his tenure in China but that many of those ensnared in such matters preferred to keep quiet about what happened either because they had relatives in China or wished to keep doing business in that country.

"It's an all-too-common occurrence and it's designed to intimidate the foreign party. … Suddenly a commercial dispute you would willingly fight out in court is now a matter of your own freedom – and it's very hard for people not to crumble under that kind of pressure," the former envoy said.

He said Ottawa is not sufficiently addressing what has happened to Mr. Chang and his wife or the implications for Canadian business.

"If a Canadian business person who has been a poster boy for doing business with China is wrongfully imprisoned that is a very difficult and very real issue," he said.


https://www.theglobeandmail.com/news/politics/former-envoy-david-mulroney-says-official-warning-needed-for-canadians-doing-business-in-china/article37135005/


Listen to David Mulroney on Chinese risks
11:20 minutes

http://www.rcinet.ca/console.php?id=7820226&image=http://img.src.ca/2017/11/30/635x357/171130_6i5px_rci-mulroney-china_sn635.jpg&locale=en&appCode=medianet





                        

                                    Amy Chang   CEO   Lulu Island Winery


                          The Case of John Chang


                      


A few Canadians know about the takeover of Black Hills Estate Winery, Gray Monk Estate Winery and Tinhorn Creek Vineyards by Andrew Peller Ltd.


                       


All Canadians know about the wildfires which affected the Mendocino, Napa and Sonoma counties in California. It may affect the supply and taste of Napa and Sonoma wines for years to come.



                          

                  John Chang and his wife Allison Lu

Almost no Canadians know about the current fate of the Canadian, family entrepreneur known as John Chang of Lulu Island Winery who was arrested and tried for alleged smuggling of icewine into China. His case deserves the highest priority of the Canadian government. Sadly, though, it seems that the Chang case and human rights in general have been sacrificed on the altar of preparatory Canada-China free-trade talks. They sacrifice so much for so little.



D.卡尔顿 罗西

2017年11月22日








                       

                                       Amy Chang


An Update of the Criminal Case against the Chang Family


It is the author's practice to leave accounts of important, unresolved court issues concerning human rights such as the John Chang case on the front page of the website. It may be that the case will now go to a higher court for a final decision. However, in the meantime, the author has decided instead to create a special tab so that readers can access the information. This is mainly due to space limitation on the front page which loads slowly for all stories-- including the Chang case-- if megabyte ceilings are exceeded.

The author though will continue to remind his readers that Chang is still under arrest and that his health is continuing to deteriorate under imprisonment. A civil case has inexplicably transformed into a criminal case with potentially harsh penalties. It is the author's opinion that he and his wife are being held in order to put pressure on the Canadian government to accept an extradition treaty which may deprive more Canadians of their charter and human rights. Furthermore, the Liberal government is not pressing the human rights issue in order to appease Chinese with regard to free-trade.

It is unknown if Amy Chang was able during her Ottawa visit to get ten minutes of the Prime Minister's time in order to discuss the cases of her parents. It is unknown if the Prime Minister gave ten minutes of his time to Amy Chang on his visit to Niagara-on-the Lake where he merrily, merrily rowed his boat down the river. What is known is that John Chang is still languishing and deteriorating in a Chinese prison and his wife's Canadian passport has been seized.

Generally speaking, Canadians have the impression that "exploratory" free-trade talks are more important to the Liberal government than the plight of a Canadian charged with an alleged smuggling crime apparently done for years under the noses of Chinese customs and in plain sight at their custom's facility. Liberal politicians and their surrogates want to tout free-trade while ignoring the lack of freedom and restrictions placed on Chang who conducted trade in icewine which is quintessentially Canadian in character. They do not challenge through a FIPA lawsuit the knock-off industry in icewine nor the arrest of Chang. The fake icewine industry has been costing Canadian farmer entrepreneurs millions of dollars a year for decades and the integrity of a reputable industry has suffered.

Our ambassador to China finds it necessary to sell free-trade with China. Canadians are well aware of the importance of international trade. However, we do not have to be sold on "free". We are free. We want to remain free. We were not given rights under the Charter, but rather the Charter recognized our existing rights.

What exactly does it mean to be free? The author is currently reading the autobiography of Heinrich Harrer as written in Seven Years in Tibet. He may be best known for his participation in the first expedition which conquered the sheer rockface of the Eiger.  Prior to World War II, he was scouting the best way to climb a mountain in the Himalayas. However, with Britain's entry into the war against Germany he was arrested by the Indian government because he was German. On one of three occasions, he escaped from the prison camp in which he was held. He viewed at night the lights of the camp which was situated 3000 feet below. At that moment, he felt free. John Chang will be free when he looks down on his prison from a height of 35,000 feet (about the height of Mt. Everest) as he travels back to Canada by plane. Tibetans will be free when they look down from the same height.

In the author's opinion it is a mistake for the Liberal government to lump the cases of Canadians held in Chinese prisons if that is what is being done. They may want to resolve all cases at the same time, but the cases and individuals are very different. The cases involve Xiao Jianhua, Sun Quan and finally John Chang. The case given the highest priority is that of Xiao Jianhua.

The reason this case has the highest priority is because former Conservative Prime Minister Brian Mulroney ingratiated himself with the Liberal government by opening political doors for FTA talks in the United States. In return, it seems, he received a quid pro quo whereby he would help facilitate the release of Xiao Jianhu who has been a member of the Communist Party since 1989 or at the time of the Tiananmen demonstration. Xiao is a billionaire who is said as a financier to have controlled on behalf of Party members over a trillion dollars. He might also have personal contacts gained over the years which might be of interest to anyone who might want money made under rule by law to be protected in a country like Canada with rule of law.

The Sun Qian case on the surface involves someone who is accused of being associated with a religious organization. However, it is important to remember that the Falun Gong began as an organization sponsored by the state to promote athleticism--today, the state is sponsoring soccer. Qi Gong was and still is a healthy way to promote bodily strength and spirit. The Falun Gong organization promoting Qi Gong was suppressed when it was perceived to threaten state power. In other words, it was repressed for political reasons rather than religious ones. Basically, therefore, the Xiao and Sun cases are politically oriented.

The author was never bothered for a minute because he practiced "hard Qi Gong" or Mei Hua Zhang and Kenpo in China. He was never bothered for a minute because he was a practicing Buddhist in China. He was never bothered for a minute because he was a practicing Buddhist who practiced Kungfu. He did not try to lead or follow others, but remained a rugged individual. However, Communist China does try to reduce the individual to a compliant machine and especially frowns on a group of individuals who resist becoming automatons by exercising free will in a spiritual or civic movement or moment.

It cannot be denied that there is a rather uneasy relationship between the state and religion in China where the non-religion of the state is considered atheism. Retired Party members who followed Communism almost religiously during their careers cannot become Buddhists who seek salvation through rebirth. Party members must swear loyalty to the principles of Marxism-Leninism with Chinese characteristics rather than worship the foreign god of Christianity and ordinary Chinese cannot be influenced by Revelation which is excluded from prayer books. Islamism is studied very carefully in order to eradicate it and adherents of Islam tend to be viewed as potential terrorists. Finally, Falun Gong are regarded as extremists in the same way that the early Christian church in Rome was persecuted because believers would not swear loyalty to the Roman emperor.

What the state fears is that any group of individuals will become a movement. That is why monks at one of the oldest temples in Beijing find an army barracks next door. Falun Gong became a movement when they marched on Beijing in the number of 10,000. In other words, the state saw Falun Gong as a potential threat to its existence. However, repressive measures used against Tibetan monks, Christians, Islamic religious minorities and Falun Gong members almost guarantee that resistance will continue. More repression means more resistance.

Today, the definition of a group of individuals has become smaller and smaller. Even a small group can threaten the political existence of the state if there are many small groups. For example, Xu Zhiyong held private dinner parties of five people to discuss responsibilities of good citizens and constitutionality. If someone on the internet expresses non-conformist views and his message is shared then it is treated as a threat. Resistance tendencies tend to be viewed as a threat to Communist supremacy and they are trod upon.

The Sun case though differs from the Xiao case with respect to financial characteristics. The Xiao case involves massive financing of non-transparent nature while the Sun case involves entrepreneurship. Sun may have been worth a considerable amount of money, but that money and her large ownership position in the company has dissipated if not disappeared in rather mysterious circumstances.

The Chang case involves a successful, Canadian, family entrepreneur who concentrated on a niche market to sell his products in Asia. As far as the author is aware the Liquor Control Board of Ontario does not impose a tariff on Chinese wine. However, China imposes restrictive tariffs on Canadian exports of wines. Isn't that called protectionism and can't it be regarded as unfair? Chang is charged with smuggling icewine by undervaluing his product which was affected by these punitive tariffs. Clearly, it was a customs case until Chang had the effrontery to declare his innocence in a country where everyone is presumed guilty until proven innocent.

Because the Chang case is not political in the Chinese sense it should be the easiest for Canada to demand his release. However, is the Liberal government miffed because former Prime Minister Stephen Harper asked Chang along on a trade mission to China? It would seem hypocritical though if they held this circumstance against Chang and at the same time were cajoled by former Conservative Prime Minister Brian Mulroney into giving the highest priority to the Xiao case which is inherently and intimately political in nature.

Because the Chang case is in reality a customs or civil case governed by international rules it should also be the easiest to solve. Canada signed FIPA so it would have the right to sue in cases similar to the Chang case where there was a double standard. China imposes tariffs on wines while one of the biggest consumer markets in Canada does not. The second double standard is that China ignores the sale of counterfeit icewine which does not have to face tariffs and overlooks the importation of Canadian grapes imported into China in order to process fake icewine, but imposes tariffs on foreign sales of legitimate icewine imported from abroad.

It is not known if Canada has or has not launched an arbitration case against the Chinese government over the Chang case and the broader issue of counterfeit icewine. The reason for the lack of knowledge is that both sides are bound by promise not to disclose the details of the case nor even if an arbitration case exists. However, at the moment, there seems to be no indication that a FIPA case has been triggered by the Liberal government; although, potentially, it could be initiated by a private Canadian corporation.

On the other hand, the author's suspicions have been aroused that the Chinese government may have intimated that a FIPA case was imminent with regard to the restrictions placed on the Chinese acquisition of Norsat International. The reason is that Chinese officials continuously referred to protectionist sentiments of the Liberal government even though it appears to Canadians to be a matter of national security and not trade protection. If so it is also possible that the Chinese intimidated the Liberal government through an actual FIPA case which took place during the time of exploratory free-trade talks in Beijing and then were followed up at the time of the second round of exploratory free-trade talks in Canada. It almost seems like a secret within a secret since Canadians know little about exploratory free-trade talks and nothing about particular arbitration cases under FIPA. All Canadians know definitively is that more cases have been initiated by China against other countries than other countries have conducted against China--particularly to appease Chinese with regard to free-trade talks even if they are in the so-called exploratory stage.


D.卡尔顿 罗西

2017年7月17日