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Arnaud Bertrand

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@RnaudBertrand

Entrepreneur. Previously HouseTrip (sold to TripAdvisor), now MeAndQi.com

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Arnaud Bertrand Verified account @RnaudBertrand
Something very strange happened at the Communist Party's 5th Plenum last week, its most important meeting this year.

They issued a massive resolution at the end of the meeting together with an official commentary on it by Xi Jinping and, if you read both, you're left with one overwhelming impression: it's crisis time inside the Party.

I'm not exaggerating, check the vocabulary they're using: Xi talks of "viruses eroding the Party's healthy body" (侵蚀党的健康肌体的病毒, qīnshí dǎng de jiànkāng jītǐ de bìngdú) and "stubborn chronic diseases" (顽瘴痼疾, wánzhàng gùjí), with problems so "shocking" (触目惊心, chùmù jīngxīn) that the Party has to "turn the blade inward" (刀刃向内, dāorèn xiàng nèi) - in effect, self-mutilate to get the poison out.

Heck, it was the very theme of the meeting: all about hard discipline with Xi saying he wants to send "a strong signal that things will get stricter the further we go" (越往后越严, yuè wǎng hòu yuè yán).

You don't do that when things are going well.

Except that - and here's the paradox - factually speaking, things are going well in China. One can even say that - looking back centuries - China is at the very height of its power.

This is no exaggeration either: China makes nearly 30% of everything manufactured on the planet, has a record $1.19 trillion trade surplus despite Trump's tariffs, and is in the lead in 69 of 74 critical technologies according to the (hardly pro-China) Australian Strategic Policy Institute.

It's also, geopolitically, more secure than it's been in a long time: in a truce with Washington with Xi having just been welcomed at the White House with a pomp very few have ever been granted - Trump personally waiting for him on the tarmac - while the rest of the world keeps flocking to China, now the world's favorite diplomatic destination.

So what gives, how do you reconcile these 2 things?

I'd argue that China is having its own Fukuyama moment, except in reverse.

Remember the West in the early 1990s at the height of its power: Francis Fukuyama declared "the end of history", with liberal democracy as the "end point of mankind's ideological evolution".

In other words we concluded we had reached perfection, that there was nothing left to fix. History had ended: we were the final form of human civilization. Maximum hubris.

We all know how long that lasted...

China, now at its peak, is taking the exact opposite route. This is not just a supposition by me: last week's resolution literally makes it a rule - the longer the peace lasts, the more the Party must "strengthen its sense of peril" (增强忧患意识, zēngqiáng yōuhuàn yìshí) and "think of danger" (思危, sī wēi).

China, officially, also keeps referring to the so-called "cave dialogue" (窑洞对, yáodòng duì): a 1945 conversation in Yan'an where an educator, Huang Yanpei, warned Mao that every Chinese dynasty had followed the same arc - tough at the start, then soft and rotten once comfortable.

"Good times create weak men", basically, 80 years before the meme.

Which is an old Chinese idea: 2,300 years ago, Mencius summed it up with 生于忧患,死于安乐 (shēng yú yōuhuàn, sǐ yú ānlè, "adversity keeps us alive, comfort kills us").

The resolution, and Xi's commentary on it, keep referring to this new strict doctrine that's officially called "self-revolution" (自我革命, zìwǒ gémìng) as the "second answer" to the "cave dialogue". In other words as China's way of escaping history, of preventing the "good times create weak men" curse.

So, it's "end of history" versus "escaping history", maybe both hubristic in their own way - nobody escapes history forever - but with one big difference: the first stopped looking for its own flaws, the second has made obsessing about them its official doctrine.

That's what I look at in my latest article - from a 3,000-year-old bathtub inscription to the 42 generals who fell off their horses - and why China's obsession with its own flaws might be the most underrated strategic advantage in the world. Or its biggest weakness: arnaudbertrand.substack.com/p/why-the-comm…
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Arnaud Bertrand Verified account @RnaudBertrand
This Reuters article on Tibet is insane: their argument is literally "yes, Tibetans are getting richer and work less, but have you considered how authentic and traditional their hardship used to be?".

It's basically Rousseau's "bon sauvage" all over again: condescension dressed up as compassion. Tibetans as noble exotics who thrive on hardship, a purer kind of human who somehow doesn't want what we want, which is all very moving as long as it's someone else living in a freezing yurt with no electricity or running water at 4,000 meters altitude.
Sjoerd de Groot @SjoerdJdegroot 3d
China is once again destroying the age-old tradition of living in poverty. Somebody should call UNESCO to complain.

reuters.com/world/asia-pac…
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78 replies 578 reposts 3.6K likes 91K views View on X
Arnaud Bertrand Verified account @RnaudBertrand
The sheer state of France's political system: the government's budget for 2027 got exactly 0 votes in parliament, not a single one, which has got to be some kind of record. Not even their own MPs voted for it!

This is because parliament spent weeks amending the budget into something so incoherently horrendous that in the end no-one wants it. Perfect illustration of the complete political paralysis in the country.
Jean-Luc Mélenchon Verified account @JLMelenchon 3d
Ce soir, l’incroyable et jamais vu a eu lieu.

Le projet de budget du gouvernement a eu 458 voix contre et ….. 0 voix pour.

Ça sent le temps perdu et annonce le 49.3 et donc la censure.
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Arnaud Bertrand Verified account @RnaudBertrand
This is an extremely dishonest graph, and yet another perfect illustration of how the EU is actively harmed by its own “China experts.” The poster is a Senior Associate Fellow at MERICS (an infamous China Think Tank with a clear hawkish agenda) who edits a newsletter dedicated to China trade.

Given his profile, he knows perfectly well what EU “exports” to Switzerland actually consist of. Yet he’s choosing to mislead.

The catch here is that a huge chunk of EU “exports” to Switzerland is gold being shipped to Swiss refineries for processing before being re-exported elsewhere, including China. Switzerland refines 2/3rds of the world’s gold.

In fact, the Swiss government itself strips gold out of its trade statistics (bazg.admin.ch/en/swiss-forei…) because the distortion is so absurd.

In other words, a massive amount of these "exports" to Switzerland is transit trade, not Swiss consumption. If one were to look at the final destination, a big share of it should actually count as exports to... China!

Which is why this is so dishonest: the poster is pushing a narrative along the lines "China buys ridiculously little from the EU, look it's even less than tiny Switzerland" while literally counting gold that transits through Swiss refineries on its way to China as evidence that... China doesn’t buy enough. You couldn't make it up!

Shame on you @RafaJBuendia
www.bazg.admin.ch Current data Current foreign trade data – overview at a glance
Rafael Jimenez @RafaJBuendia 5d
Switzerland pulls further ahead of China as an EU export market. Switzerland’s lead increases from €20bn to an estimated €43bn. At some point, the discussion has to move from how much China could buy to how much it actually buys.
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Arnaud Bertrand Verified account @RnaudBertrand
If this happens, it'd be a massive diplomatic coup: even if you go as far back as WW2, you won’t find a single three-way summit between US, Russian and Chinese leaders. The first one ever would be in China, hosted by Xi.

That said, it's unlikely anything substantive would emerge from it: the 2 main subjects they could talk about (Ukraine and nuclear arms control) are both things China made clear it won't talk about in this format.

Which actually would make it even more of a coup: it would mean the meeting happened mostly on China’s terms, with Trump and Putin still accepting the format - which would say quite a lot about where the center of gravity sits these days...
Bloomberg Verified account @business 4d
China confirms it's in talks for an unprecedented trilateral meeting of Presidents Trump, Xi and Putin bloomberg.com/news/articles/…
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