Written By Song Xiangqian (Alan Song)

Three years have passed, yet the pandemic continues to afflict all beings. Penned on the first day after quarantine lifting (written on March 20th, re-edited on April 8th).

01

Reflections Amid the Pandemic

Never before have I experienced Shanghai so deserted. The entire city resembles the eerie silence of an era depicted in science fiction films, as if sealed by the virus at the onset of spring. At this moment, I find myself yearning for the congested Shanghai of yore. The bustling crowds and bustling streets are the true signs of a city's prosperity. The warmth of human interaction is truly something to cherish and appreciate. Emerging from a lengthy 21-day quarantine, the desire for freedom permeates every cell of my body, as the time spent in isolation has been ample for pondering life's meaning.

As time flies, three years of battling the epidemic have left all beings suffering. Focusing the lens of time on the current anti-epidemic efforts—some delivery drivers have tied blankets to their delivery motorcycles, taking them wherever they go; large numbers of migrant workers are dragging suitcases, not to stock up on groceries, but to return to the office to retrieve their computers and begin remote work. This wave of the epidemic has brought Beijing's cram school students and Shenzhen's migrant workers into the spotlight, and medical conflicts have erupted even in Shanghai, with confrontations between medical staff at different levels.

In the previous stage, our anti-epidemic efforts have indeed achieved remarkable success. However, the burden of anti-epidemic measures has now brought Shanghai and Shenzhen practically to the brink of lockdown. With a combined GDP of nearly 20 trillion yuan from Jiangsu, Zhejiang, Shanghai, and Shenzhen, accounting for over 20% of the national GDP, and nearly 30% of the national import and export volume, they are gearing up to lead the charge in the second half of the anti-epidemic campaign. Our anti-epidemic efforts have truly entered a "Minsky" moment, with obstacles and challenges littering the path, and the societal fatigue is becoming increasingly evident, making the cost of anti-epidemic measures unbearable.

Today, the Hong Kong government announced some measures to partially restore public life, perhaps marking the first region to emerge from the shadow of the epidemic, having submitted a satisfactory answer sheet. Perhaps this is something worth carefully examining and summarizing. The reality in Hong Kong, where coexistence with the virus has been achieved, may offer an alternative contribution to our country's anti-epidemic efforts.

As the virus continues to evolve and mutate, our anti-epidemic policies also need to evolve and upgrade accordingly. Our anti-epidemic thinking must be rooted in science and refreshed with humanistic care. We must race against time, strengthen nationwide third-dose vaccination efforts, advocate for mixed sequential vaccination with different types of vaccines, including inactivated vaccines, recombinant protein vaccines, adenovirus vector vaccines, and mRNA vaccines; attach importance to the introduction and use of mRNA vaccines and oral medications that are more effective against the Omicron variant; increase vaccination and supplementary vaccination efforts for the elderly and eligible children; actively stockpile anti-epidemic supplies and medical resources; truly implement scientific hierarchical diagnosis and treatment, avoiding shocks to the medical system resources, and making adequate preparations for the possible outbreak of future epidemics. This may be the right choice for scientific anti-epidemic measures.

Despite the visible achievements in anti-epidemic work, certain regions have developed a negative trend in public life: in the event of any emergency, social public interests are not prioritized, scientific planning is not undertaken, and instead, accountability and top-down decision-making principles prevail. The first consideration is to maximize the use of power and restrict the rights of citizens to the utmost, attempting to demonstrate "resolute and decisive" administrative actions and a "strong sense of responsibility." Obedience has become the best governance, and rash and reckless "resolute actions" have become the biggest political correctness. This has been exposed in the anti-epidemic measures in certain western regions and the flooding events in certain central cities.

Next, coordinating epidemic prevention and control with economic and social development, adopting more scientifically effective measures, and striving to achieve maximum prevention and control effects with minimal cost to minimize the impact of the epidemic on economic and social development are the true principles of scientific epidemic prevention and governance for the well-being of the people. In reality, in some places, there have been instances of excessive epidemic prevention measures, which go against the principles of scientific and precise epidemic prevention and artificially magnify the adverse effects of the epidemic on social and economic development. To some extent, this weakens the local population's recognition of the achievements in epidemic prevention. This contradicts the requirement to "achieve maximum prevention and control effects with minimal cost." In the face of new epidemic conditions and the requirements of economic and social development, excessive epidemic prevention measures should be resolutely eliminated.

How to achieve "Pareto optimality" in the process of scientific epidemic prevention? How to rely on "Nash equilibrium" in epidemic prevention decision-making to achieve dynamic and scientific control? How to achieve precision prevention and control, similar to the "milk tea shop" model in a certain major city in the eastern region, in the process of humanized anti-epidemic efforts? Making every effort to control the epidemic, safeguard people's livelihoods, and form the least interference and impact on people's lives and social well-being involves the wisdom of considering both the "big" and the "small," testing governance capabilities, and is also related to the ultimate victory in epidemic prevention and the well-being of the people. It is time to adjust epidemic prevention and control measures, and the transition is not easy—it is a difficult and arduous process that leads to success. As Victor Hugo once said, "Life is a mirror. If you frown at it, it frowns back; if you smile, it returns the greeting."

02

The Peril and Opportunity of Chinese Concept Stocks

As the challenging chess game of epidemic resistance reaches a critical juncture, the financial market is also experiencing a thunderous upheaval, triggered by what appears to be a "bloodbath" stemming from an audit working paper dispute.

The term "Chinese concept stocks" refers to companies listed overseas, with their main business and profits in mainland China. As of the end of 2021, there were a total of 380 Chinese concept stocks, with 281 listed on the U.S. stock market. From February of last year to the present, among Chinese concept stocks, 50 have fallen by more than 90%, 117 by more than 80%, 163 by more than 70%, and 216 by more than 50%. Only 15 have seen gains, and during this period, their cumulative market value has evaporated by over $1.5 trillion, equivalent to nearly 10 trillion yuan. This is a massacre in the capital market, making one wonder if an era is coming to an end.

The newly enacted "Holding Foreign Companies Accountable Act" in the United States specifies that if a foreign-listed company fails to submit the reports requested by the Public Company Accounting Oversight Board (PCAOB) for three consecutive years, the U.S. Securities and Exchange Commission (SEC) has the right to delist it from the exchange. The first batch of five Chinese companies included in the "potential delisting" list could be delisted as early as 2024.

Fully utilizing the international capital market for the benefit of the state and the people, enhancing the quality of accounting information and internal control compliance is a common goal that everyone should strive for. There are successful examples of regulatory cooperation with other countries that can be referenced, and it's not difficult to follow suit.

For some reason, over the past decade, the Public Company Accounting Oversight Board (PCAOB) and the China Securities Regulatory Commission (CSRC) have been engaged in a game of cross-border audit supervision, and various negotiations, talks, and memoranda of understanding have failed to resolve their differences. This self-consuming and self-inflicting condition in the context of great power self-confidence ultimately reflects a lack of confidence, inadequate rule awareness, and a mindset of being both a beneficiary of rights and resistant to supervision.

Reflecting on the WTO negotiations years ago, Mr. Long Yongtu turned from having black hair to white during the talks, which were on the brink of collapse. The negotiations were tense, and it was only in the final moments, with the intervention of the pragmatic Premier Zhu Rongji, that a breakthrough was achieved. This opened the door to a period of rapid economic and social development in China after joining the WTO, marking the beginning of a golden era for the Chinese economy in the first decade of the 21st century.

To truly maintain strategic composure and step out of the historical cycle of rise and fall of great powers, we need to be objective, just, and pragmatic. By not taking a confrontational stance against common sense, and resolutely defending common sense and principles, we can prevent tragedies like those seen in Chinese concept stocks from recurring.

In an economic downturn with multiple factors at play, cautiously using policies that affect the market, taking a break from interventions, and compromising with the market will not undermine our commitment to the political correctness of moving towards social harmony. The rhythm is always the most important factor in the melody of the times. By keeping pace and implementing policies with scientific precision, we can play the strongest notes of the era. The depth of contemplation often determines the ultimate destination of life and career.

03

"Nash Equilibrium" in the Great Power Game

There is never an upper limit to the relationship between two countries. A wise man does not stand under a dangerous wall, and assessing the situation is a crucial ability that a rising great power should possess. The world is no longer in the era when Bismarck said, "The truth is on the range of the big guns." We cannot let our limited strength be infinitely overshadowed by our so-called "financial capabilities." In fact, this is not just a matter of choosing sides; it is already a major confrontation between Eastern and Western values, requiring us to stand on the side of common sense and justice and resonate with the times.

In reality, the United States has launched an "unrestricted war" without deploying a single soldier, encircling the opponent from various perspectives such as politics, military, intelligence, diplomacy, finance, public opinion, morality, technology, and international alliances. It ruthlessly strikes the adversary, and the outcome is already determined at the moment of action.

Descartes said, "The more complete the control, the better; the more ordinary the observation, the better." The harmonious application of observation and experience to life is wisdom. Through careful examination and a broader perspective on geopolitics and ideologies, taking a panoramic view of this period of conflict and upheaval within the larger historical context, future generations might be surprised to find that this is a thorough reckoning with the old order, akin to the aftermath of the Soviet Union's collapse and the fall of the Berlin Wall. It's also a systematic test and nucleic acid test at the doorstep for the potential major competitors in the future. Regardless of the outcome, this covert war has reached a crucial juncture, with victory or defeat hinging on a strategic move.

Historically, we have seen stories of brothers defending against external insults, but the magical reality of brothers clashing over a wall and engaging in a full-blown conflict is unprecedented. This is a reflection and challenge to the order established by the Treaty of Westphalia, which laid the foundation for the nation-state system. The old order is in disorder, the new world order is far from established, and modern nations founding their order will inevitably move towards a new era of "democracy + nationalism + values."

As described by Friedman, the world has become flat, and the end of history may be approaching. The vitality of culture and values will deconstruct and reshape our world. Forgiveness is a powerful expression, and love is the privilege of the brave. Loving one's country is essential, but loving the truth even more so. Standing on the side of common sense and conscience is the shared choice of everyone in this era.

In doing so, the dream of national rejuvenation for great powers can be realized!