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China’s newish security laws

 On the one hand, China wants to attract foreign direct investment so that its population continues to prosper on the other hand China has become fearful of foreigners and threats them as convenience scapegoats.

The new securities law that were installed more than 18 months ago are not starting to bite. The reason is that since the Covid barriers have been lifted investors are starting to return to China. 

It has been noticed that many consulting firms have either sold or shut down their Chinese operations, and these operations were specifically created to bring new North American or European investors to China

Oh, it is widely known that travel between Canada and China is only 20% of what it was prior to the Covid epidemic with the US travel is less than 10% of what it used to be. This is a fundamental shift in the American investors mindset that China is a good place to invest. In fact, the numbers for China are not that good labour costs and political risk have risen;  there are easier and closer options than China as a manufacturing centre.

In addition, the US government has made the export of certain semiconductor illegal to China further complicating the process of manufacturing in China.  It would seem at first that controlling all aspect of China is more important, economic growth. If this is the case, then things for Taiwan are rather Grimm. The reason is that if China is on a nationalistic path, then bringing back Taiwan into the fold is important, it would seems that China is disregarding the lessons that Russia has failed to learn over the past 12 months it is possible that this lesson is not seen as very important to the Chinese leadership.

The reality of China today is that with a rapidly declining birth rate and rapidly ageing population China is at a inflection point, and it is important to recognize the China and the CPP are not the same thing and it may be in the interest of the CPP to engage into a limited war to regain power over Taiwan rather than economic expansion it would enable the CPP to control the decline as opposed to being forced to see it imposed by third-party 

One thing for sure, if you are a westerner and were planning to go to China for anything else than tourism you should reconsider your travel decision. It is unlikely that you know what the Chinese consider secrets, it has even been indicated that what is considered secret changes from time to time, and can even include the most innocuous information. 

One thing for sure is that for Americans travelling to China.  It will be almost impossible to obtain insurance and that will kill trade between China and America. 

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