Few Western observers know China better than The Honorable Kevin Rudd. As a young diplomat, the Australian, who speaks fluent Mandarin, was stationed in Beijing in the 1980s. As Australia’s Prime Minister and then Foreign Minister from 2007 to 2012, he led his country through the delicate tension between its most important alliance partner (the USA) and its largest trading partner (China).

Today Mr. Rudd is President of the Asia Society Policy Institute in New York. In an in-depth conversation via Zoom, he explains why a fundamental competition has begun between the two great powers. He would not rule out a hot war: «We know from history that it is easy to start a conflict, but it is bloody hard to end it», he warns.

Mr. Rudd, the conflict between the U.S. and China has escalated significantly over the past three years. To what extent has that escalation been driven by the presence of two strongmen, i.e. Donald Trump and Xi Jinping?

The strategic competition between the two countries is the product of both structural and leadership factors. The structural factors are pretty plain, and that is the continuing change in the balance of power in military, economic, and technological terms. This has an impact on China’s perception of its ability to be more assertive in the region and the world against America. The second dynamic is Xi Jinping’s leadership style, which is more assertive and aggressive than any of his post-Mao predecessors, Deng Xiaoping, Jiang Zemin and Hu Jintao. The third factor is Donald Trump, who obsesses about particular parts of the economy, namely trade and to a lesser degree technology.

Would America’s position be different if someone else than Trump was President?

No. The structural factors about the changing balance of power, as well as Xi Jinping’s leadership style, have caused China to rub up against American interests and values very sharply. Indeed, China is rubbing up against the interests and values of most other Western countries and some Asian democracies as well. Had Hillary Clinton won in 2016, her response would have been very robust. Trump has for the most part been superficially robust, principally on trade and technology. He was only triggered into more comprehensive robustness by the Covid-19 crisis threatening his reelection. If the next President of the U.S. is a Democrat, my judgement would be that the new Administration will be equally but more systematically hard-line in their reaction to China.

Has a new Cold War started?

I don’t like to embrace the language of a Cold War 2.0, because we should not forget that the Cold War of the 20th century had three big defining characteristics: One, the Soviets and the Americans threatened each other with nuclear Armageddon for forty years; two, they fought more than twenty proxy wars around the world; and three, they had zero economic engagement with each other. The current conflict between the U.S. and China on the other hand is characterised by two things: One, an economic decoupling in areas such as trade, supply chains, foreign direct investment, capital markets, technology, and talent. At the same time, it is also an increasingly sharp ideological war on values. The Chinese authoritarian capitalist model has asserted itself beyond China and challenges America.

How do you see that economic decoupling playing out?

The three formal instruments of power in the U.S. to enforce decoupling are entity listing, the new export control regime, and thirdly, the new powers given to the Committee on Foreign Investment in the United States, CFIUS. Those are powerful instruments which potentially affect third countries as well, through sanctions imposed under the entity list. You can take the example of semiconductors, where the recent changes of the entity list virtually limits the exports of semiconductors to a defined list of Chinese enterprises from anywhere in the world, as long as they are based on American intellectual property.

These measures have cut off Chinese companies like Huawei or SMIC from acquiring high-end semiconductor technology anywhere in the world. The reaction in Beijing has been muted so far, with no direct retaliation. Why?

In China there is a division of opinion on the question of how to respond. The hawks have an «eye for an eye» posture, that’s driven both by a perception of strategy, but also with an eye on domestic sentiment. The America doves within the leadership – and they do exist – argue a different proposition. They think China is not yet ready for a complete decoupling. If it’s going to happen, they at least try to slow it down. Plus, they want to keep their powder dry until they see the outcome of the election and what the next Administration will do. That’s the reason why we have seen only muted responses so far.

Isn’t it the case that both sides would lose if they drive decoupling too far? And given that, could it be that there won’t be any further decoupling?

We are past that point. Whoever wins the election, America will resolve in decoupling in a number of defined areas.

First and foremost in those global supply chains where the products are of too crucial importance to the U.S. to depend on Chinese supply. Think medical supplies or pharmaceuticals.

The second area is in defined critical technologies. The Splinternet is not just a term, it’s becoming a reality.

Thirdly, you will see a partial decoupling on the global supply of semiconductors to China. Not just those relevant to 5G and Artificial Intelligence, but semiconductors in general. The centrality of microchips to computing power for all purposes, and the spectrum of application in the civilian and military economy is huge.

Fourth, I think foreign direct investment in both directions will shrink to zero.

The fifth area of decoupling is happening in talent markets. The hostility towards Chinese students in the U.S. is reaching ridiculous proportions.

Do you see a world divided into two technology spheres, one with American standards and one with Chinese standards?

This is the logical consequence. Assume you have Huawei 5G systems rolled out across the 75 countries that take part in the Belt and Road Initiative, then what follows from that is a series of industry standards that become accepted and compatible within those countries, as opposed to those that rely on American systems. But then another set of questions arises: Let’s say China is effectively banned from purchasing semiconductors based on American technology and is dependent on domestic supply. Chinese semiconductors are slower than their American counterparts, and likely to remain for the decade ahead. Do the BRI countries accept a slower microprocessor product standard for being part of the Chinese technological ecosystem? I don’t know the answer to that, but I think your prognosis of two technology spheres is correct.

China throws huge amounts of money into the project of building up its semiconductor capabilities. Are they still so far behind?

Despite their acts to buy, borrow or steal intellectual property, they constantly remain three to seven years behind the U.S., Taiwan and South Korea, i.e. behind the likes of Intel, TSMC and Samsung. It’s obviously hard to reverse engineer semiconductors, as opposed to a Tupolev, as the Soviets had to find out, which can be reverse engineered over a weekend.

Wouldn’t America hurt itself too much if it cut off China from its semiconductor industry altogether?

There is an argument that 50% of the profits of the US semiconductor industry come from their clients in China. That money funds their R&D in order to keep three to seven years ahead of China. The U.S. Department of Defense knows that, what’s why the Pentagon doesn’t necessarily side with the anti China hawks on this issue. So the debate between the US semiconductor industry versus the perceived national security interest has yet to be resolved. It has been resolved in terms of AI chips, and Huawei is the first big casualty of that. But for semiconductors in general the question is not solved yet.

Will countries in Europe or Southeast Asia be forced to decide which technology sphere they want to belong to?

Until the 5G revolution, they have managed to straddle both worlds. But now China has banked on the strategy of being the technology leader in certain categories, and the one they are in at the moment is in 5G technology and systems. If you look at the next five years, and if you look at the success of China in the other technology categories in its Made in China 2025 Strategy, then it becomes clear that we increasingly are going to end up in a binary technology world. Policy makers in various nations will have to answer questions around the relative sophistication of the technology, industry standards, concerns on privacy and data governance, and of course a very big question: What are our points of exposure to the U.S. or China? What will we lose in our China relationship by joining the American sphere in certain fields, and vice versa? Those variables will impact the decision making processes everywhere from Bern to Berlin to Bangkok.

But in the end, they will have to choose?

Yes. India for example has done it in the field of 5G. For India, that was a big call, given the size of its market and China’s desire to bring India slowly but surely towards its side of the Splinternet.

The third field of conflict after trade and technology lies in financial markets. We know that Washington can weaponise the Dollar if it wants to. So far, this front has been rather quiet. What are your expectations?

Two measures have been taken so far by the Trump Administration. One, the direction to U.S. government pension funds not to invest in Chinese listed companies; and two, the direction to the New York Stock Exchange not to sustain the listing of Chinese firms unless they conform to global accounting standards. I regard these as two simple shots across the bow.

With more to follow?

Like on most other things including technology, the U.S. is divided in terms of where its interests lie. Just like Silicon Valley, Wall Street has a big interest in not having too harsh restrictions on financial markets. Just look at the volume of business. Financial market collaboration between the Chinese and American financial systems in terms of investment flows for Treasuries, bonds and equities is a $5 trillion per year business. This is not small. I presume the reason we have only seen two rather small warning shots so far is that the Administration is deeply sensitive to Wall Street interests, led by Secretary of the Treasury Steven Mnuchin. Make no mistake: Given the serious Dollars at stake in financial markets, an escalation there will make the trade war look like child’s play.

Which way will it resolve?

The risk I see is that if the Chinese crack down further in Hong Kong. If there is an eruption of protests resulting in violence, we should not be surprised by the possibility of Washington deciding to de-link the U.S. financial system from the Hong Kong Dollar and the Hong Kong financial market. That would be a huge step.

How probable is it that Washington would choose to weaponise the Dollar?

We don’t know. The Democrats in my judgement do not have a policy on that at present. Perhaps the best way to respond to your question is to say this: There are three things that China still fears about America. The US military, its semiconductor industry, and the Dollar. If you are attentive to the internalities of the Chinese national economic self-sufficiency debate at present, it often is expressed in terms of «Let’s not allow to happen to us in financial markets what is happening in technology markets». But if the U.S. goes into hardline mode against China for general strategy purposes, then the only thing that would deter Washington is the amount of self-harm it would inflict on Wall Street, if it is forced to decouple from the Chinese market. If that would happen, it would place Frankfurt, Zurich, Paris or the City of London in a pretty interesting position.

Would you say that there is a form of mutually assured destruction, MAD, in financial markets, which would prevent the U.S. from going into full hardline mode?

If the Americans wanted to send a huge warning shot to the Chinese, they are probably more disposed towards using sectoral measures, like the one I outlined for Hong Kong, and not comprehensive measures. But never forget: American political elites, Republicans and Democrats, have concluded that Xi Jinping’s China is not a status quo power, but that it wishes to replace the U.S. in its position of global leadership. Therefore, the inherent rationality or irrationality of individual measures is no longer necessarily self-evident against the general strategic question. The voices in America to prevent a financial decoupling from China are strong at present, but that does not necessarily mean they will prevail.

China’s strategy, meanwhile, is to welcome U.S. banks with open arms. Is it working?

The general strategy of China is that the more economic enmeshment occurs – not just with the U.S., but also with Europe, Japan and the likes –, then the less likely countries are going to take a hard-line policy against Beijing. China is a master in using its economic leverage to secure foreign policy and national security policy ends. They know this tool very well. The more friends you have, be it JPMorgan, Morgan Stanley or the big technology firms of Silicon Valley, the more it complicates the decision making process in the West. China knows that. I’m sure you’ve heard it a thousand times from Swiss companies as well: How can we grow a global business and ignore the Chinese market? Every company in the world is asking that question.

You wrote an article in Foreign Affairs in August, warning of a potential military conflict triggered by events in the South China Sea or Taiwan. Do you really see the danger of a hot war?

I don’t mean to be alarmist, not at all. But I was talking to too many people both in Washington and Beijing that were engaged in scenario planning, to believe that this was any longer just theoretical. My simple thesis is this: These things can happen pretty easily once you have whipped up nationalist narratives on both sides and then have a major incident that goes wrong. A conflict is easy to start, but history tells us they are bloody hard to stop.

Of course the main argument against that is that there is too much at stake on both sides, which will prevent an escalation into a hot war.

You see, within that argument lies the perceived triumph of European rationality over East Asian reality. All that European rationality worked really well in 1914, when nobody thought that war was inevitable. The title of my article Beware the Guns of August referred to the time between the assassination in Sarajevo at the end of June, the failure of diplomacy in July, and then miscommunication, poor signalling and the dynamics of mobilisation in the end led to a situation that neither the Kaiser nor the Czar could stop. Nationalism is as poisonous today as it was in Europe for centuries. It’s just that you’ve all killed each other twice before you found out it was a bad idea. Remember, in East Asia, we have the rolling problems of our own version of Alsace-Lorraine: it’s called Taiwan.

Influential voices in Washington say that the time of ambiguity is over. The U.S. should make its support for Taiwan explicit. Do you agree?

I don’t. If you change your declaratory policy on Taiwan, then there is a real danger that you by accident create the crossing of a red line in Chinese official perception, and you bring on the very crisis you are seeking to avoid. It’s far better if you simply had an operational strategy, which aims to maximally enhance Taiwan’s ability to deter a Chinese attack.

Over the past years, the Chinese Communist Party has morphed into the Party of Xi. How do you see the internal dynamics within the CCP playing out over the coming years?

Xi Jinping’s position as Paramount Leader makes him objectively the most powerful Chinese leader since Mao. During the days of Deng Xiaoping, there were counterweighting voices to Deng, represented at the most senior levels, and there was a debate of economic and strategic policy between them. The dynamics of collective leadership applied then, they applied under Jiang Zemin, they certainly applied under Hu Jintao. They now no longer apply.

What will that mean for the future?

In the seven years he’s been in power so far, China moved to the left on domestic politics, giving a greater role to the Party. In economic policy, we’ve seen it giving less headroom for the private sector. China has become more nationalist and more internationally assertive as a consequence of it becoming more nationalist. There are however opposing voices among the top leadership, and the open question is whether these voices can have any coalescence in the lead-up to the 20th Party Congress in 2022, which will decide on whether Xi Jinping’s term is extended. If it is extended, you can say he then becomes leader for life. That will be a seminal decision for the Party.

What’s your prediction?

For a range of internal political reasons, which have to do with power politics, plus disagreements on economic policy and some disagreements on foreign policy, the internal political debate in China will become sharper than we have seen so far. If I was a betting man, at this stage, I would say it is likely that Xi will prevail.

Scamdemic - Corona Virus

German Corona Investigative Committee

October 4, 2020 Algora Blog 48 Comments

Dr. Reiner Fuellmich is one of four members of the German Corona Investigative Committee. In this video he is describing how there is no legal doubt about the possibility of a class action lawsuit against those responsible for the lockdowns. From the local level all the way to the WHO and many pharma companies in between.

Since we received many requests from people on how to get involved and how to get help in starting their lawsuits against the coronavirus restrictions, here is Dr. Dr. Reiner Fuellmich’s website: Dr. Reiner Fuellmich. It is available only in German, but you can contact him via phone or email here.

Also you may join the effort by linking to Corona Schadensersatzklage.

Americans have traditionally rallied behind a sick President.

After Ronald Reagan was shot in 1981, he won the next election in a landslide.

Scamdemic - Corona Virus

The New Vaccine Law in China

October 3, 2020 Algora Blog Leave a comment

China: Vaccine Law Passed

(Aug. 27, 2019) On June 29, 2019, the National People’s Congress Standing Committee of the People’s Republic of China (PRC or China) adopted the PRC Law on Vaccine Administration (Vaccine Law). The official Xinhua news agency statesthat the Law provides for the “strictest” vaccine management with tough penalties in order to ensure the country’s vaccine safety.

Before the passage of this 100-article Law, provisions governing vaccines were contained in the PRC Drug Administration Law, PRC Law on the Prevention and Treatment of Infectious Diseases, and a few relevant administrative regulations and rules.

The new Law provides for regulatory requirements for researching, producing, distributing, and using vaccines. Such requirements, according to one legal commentator, are much more stringent than those for other drugs (art. 2). It also contains a chapter specifying penalties for violating the Vaccine Law, which are also stricter than those for violating other drug laws (ch. 10). According to the Law, if any violation of this Law constitutes a crime, a “heavier punishment” within the range of punishments provided by the Criminal Law on the relevant crimes is to be imposed (art. 79).

The Law mandates the launching of a national vaccine electronic tracking platform that integrates tracking information throughout the whole process of vaccine production, distribution, and use to ensure all vaccine products can be tracked and verified (art. 10).

According to the Law, China is to implement a state immunization program, and residents living within the territory of China are legally obligated to be vaccinated with immunization program vaccines, which are provided by the government free of charge. Local governments and parents or other guardians of children must ensure that children be vaccinated with the immunization program vaccines (art. 6).

The Law establishes a compensation system for abnormal reactions to vaccination. A recipient of an immunization program vaccine who dies or suffers significant disability or organ and tissue damage is to be paid from the vaccination funds of the provincial level government if the damage falls within the scope of abnormal reactions associated with a vaccine or cannot be prevented (art. 56).

The Law will take effect on December 1, 2019 (art. 100).

Law
Vaccine administration law of the people’s Republic of China
(Adopted by the 11th meeting of the Standing Committee of the 13th National People’s Congress on June 29, 2019）
Release time： 2019-07-03 13: 58 source: China people’s Congress
Contents

　　Chapter I general provisions

　　Chapter II vaccine development and registration

　　Chapter III vaccine production and issuance

　　Chapter IV vaccine circulation

　　Chapter V vaccination

　　Chapter VI monitoring and handling of abnormal reactions

　　Chapter VII post-market Administration of vaccines

　　Chapter VIII safeguards

　　Chapter IX supervision and management

　　Chapter X legal liability

　　Chapter XI supplementary provisions

Chapter I general provisions

　　Article 1 this law is enacted in order to strengthen vaccine management, ensure vaccine quality and supply, standardize vaccination, promote the development of the vaccine industry, protect public health and maintain public health safety.

　　Article 2 this law shall apply to vaccine development, production, circulation and inoculation, as well as to supervision and administration activities within the territory of the people’s Republic of China.Where there are no provisions in this law, the provisions of laws and administrative regulations such as the Drug Administration Law of the people’s Republic of China and the prevention and control of infectious diseases law of the people’s Republic of China shall apply.

　　The term “vaccine” as used in this law refers to preventive biological products used for human immunization for the purpose of preventing and controlling the occurrence and prevalence of diseases, including immunization planning vaccines and non-immunization planning vaccines.

　　Article 3 the state shall implement the strictest management system for vaccines,and adhere to safety first,Risk Management, full control, scientific supervision and social co-governance.

　　Article 4 the state adheres to the strategic and public welfare nature of vaccine products.

　　The state supports basic and applied research on vaccines,promotes vaccine development and innovation, and integrates vaccine development, production and stockpiling for the prevention and control of major diseases into national strategies.

　　The state has formulated plans and industrial policies for the development of the vaccine industry, supported the development and structural optimization of the vaccine industry, encouraged large-scale and intensive vaccine production, and continuously improved the level of vaccine production technology and quality.

　　Article 5 the holder of a vaccine marketing license shall strengthen the quality management of the whole life cycle of the vaccine and be responsible for the safety, effectiveness and quality control of the vaccine.

　　Units and individuals engaged in vaccine development, production, circulation and vaccination activities shall abide by laws, regulations, rules, standards and norms, ensure that the information in the whole process is true, accurate, complete and traceable, assume responsibility in accordance with law and accept social supervision.

　　Article 6 the state shall implement an immunization planning system.

　　Residents residing within the territory of China shall enjoy the right to vaccinate against immunization programmes in accordance with the law and fulfill the obligation to vaccinate against immunization programmes.The government provides immunization programme vaccines to the population free of charge.

　　The people’s governments at or above the county level and their relevant departments shall ensure that children of school age are vaccinated against immunization programmes.Guardians shall ensure that children of school age are vaccinated on time in accordance with the law.

　　Article 7 people’s governments at or above the county level shall incorporate vaccine safety work and vaccination work into their national economic and social development plans at the corresponding level, strengthen capacity-building for vaccine supervision and management, and establish and improve the mechanism for vaccine supervision and management.

　　Local people’s governments at or above the county level are responsible for the supervision and administration of vaccines in their respective administrative regions, and unify the leadership, organization and coordination of the supervision and administration of vaccines in their respective administrative regions.

　　Article 8 the pharmaceutical supervision and Administration Department under the state council shall be responsible for the supervision and administration of vaccines throughout the country.The competent Department of Health and health under the state council shall be responsible for the supervision and administration of inoculation prevention throughout the country.Other relevant departments under the state council shall be responsible for the supervision and administration of vaccines within the scope of their respective functions and responsibilities.

　　The pharmaceutical supervision and administration departments of the people’s governments of provinces, autonomous regions and municipalities directly under the central government are responsible for the supervision and administration of vaccines in their respective administrative areas.The Departments of the people’s governments at the municipal and county levels divided into districts that bear the responsibilities of drug supervision and administration(hereinafter referred to as the drug supervision and administration departments)are responsible for the supervision and administration of vaccines in their respective administrative areas.The department in charge of Health and health of the local people’s governments at or above the county level shall be responsible for the supervision and administration of vaccination in their respective administrative areas.Other relevant departments of the local people’s governments at or above the county level shall be responsible for the supervision and administration of vaccines within the scope of their respective functions and responsibilities.

　　Article 9 the state council and the people’s governments of provinces, autonomous regions and municipalities directly under the central government shall establish departmental coordination mechanisms to coordinate and coordinate the relevant work of vaccine supervision and administration in an overall manner, regularly analyze the safety situation of vaccines, strengthen vaccine supervision and administration and ensure the supply of vaccines.

　　Article 10 the state implements a system of electronic traceability of vaccines throughout the whole process.

　　The pharmaceutical supervision and Administration Department under the state council, in conjunction with the competent health and health department under the state council, has formulated unified standards and norms for vaccine traceability, established a national collaborative platform for electronic vaccine traceability, and integrated information on the traceability of vaccine production, circulation and the whole process of vaccination so as to achieve vaccine traceability.

　　The holder of the vaccine listing license shall establish an electronic vaccine traceability system, which is connected with the National Vaccine electronic traceability collaborative platform, so as to achieve the traceability and verifiability of the vaccine in the smallest packaging unit in the whole process of production, circulation and vaccination.

　　Disease prevention and control agencies and inoculation units shall truthfully record the circulation of vaccines, inoculation, etc. according to law, and provide retroactive information to the National Electronic vaccine traceability collaborative platform in accordance with regulations.

　　Article 11 in the course of vaccine development, production and testing, a system of biosafety management shall be established and improved, biosafety risks shall be strictly controlled, Biosafety Management of pathogenic microorganisms such as bacteria and strains shall be strengthened, the health of operators and the public shall be protected, and the use of pathogenic microorganisms such as bacteria and strains shall be guaranteed to be lawful and legitimate.

　　Vaccine development, production, testing and other use of bacterial strains and cell lines, should be clear history, biological characteristics, generations, the establishment of detailed files to ensure that the source is legal, clear and traceable;unknown sources, may not be used.

　　Article 12 people’s governments at various levels, their relevant departments, disease prevention and control institutions, inoculation units, holders of vaccine marketing licenses and vaccine trade associations, etc. shall, through the National Children’s vaccination day and other activities, regularly carry out publicity, education and popularization of vaccine safety laws, regulations and knowledge of vaccination prevention.

　　The news media shall carry out public public publicity on vaccine safety laws, regulations and knowledge of vaccination prevention, and supervise public opinion on vaccine violations.Publicity reports on vaccines should be comprehensive, scientific, objective and fair.

　　Article 13 the vaccine industry association shall strengthen industry self-discipline,establish and improve industry norms, promote the construction of industry integrity System, Guide and urge members to carry out production and operation activities in accordance with the law.

Chapter II vaccine development and registration

　　Article 14 the state, on the basis of factors such as the epidemic situation of diseases and the immunization status of populations, shall formulate relevant research and development plans and arrange necessary funds to support the development of new vaccines such as polyvalent polyvalent ones.

　　The state has organized joint research on Vaccine Market License holders, scientific research units and medical and health institutions to develop vaccines that are urgently needed for Disease Prevention and control.

　　Article 15 the state encourages holders of vaccine marketing licenses to increase investment in research and innovation funds, optimize production processes, raise the level of quality control and promote the progress of vaccine technology.

　　Article 16 clinical trials of vaccines shall be approved by the pharmaceutical supervision and Administration Department under the state council in accordance with law.

　　Clinical trials of vaccines shall be carried out or organized by three-level medical institutions or disease prevention and control institutions at or above the provincial level that meet the conditions prescribed by the drug supervision and Administration Department under the state council and the competent Department of Health and health under the state council.

　　The state encourages qualified medical institutions,disease prevention and control institutions, etc. to carry out clinical trials of vaccines in accordance with law.

　　Article 17 applicants for clinical trials of vaccines shall formulate clinical trial plans, establish a system of safety monitoring and evaluation of clinical trials, carefully select subjects, rationally set up subjects groups and age groups, and take effective measures according to the degree of risk to protect the legitimate rights and interests of subjects.

　　Article 18 in carrying out clinical trials of vaccines, the written informed consent of the subject shall be obtained;if the subject is a person without civil capacity, the written informed consent of his or her guardian shall be obtained;if the subject is a person with limited civil capacity, the written informed consent of the subject and his or her guardian shall be obtained.

　　Article 19 vaccines listed in China shall be approved by the pharmaceutical supervision and Administration Department under the state council and obtain a certificate of drug registration;when applying for vaccine registration, truthful, adequate and reliable data, materials and samples shall be provided.

　　The pharmaceutical supervision and Administration Department under the state council shall give priority to review, review and approval of urgently needed vaccines and innovative vaccines for Disease Prevention and control.

　　Article 20 where a vaccine urgently needed in response to a major public health emergency or other vaccine deemed urgently needed by the competent Department of Health and health under the state council has an assessment that the benefit is greater than the risk, the pharmaceutical supervision and Administration Department under the state council may approve an application for registration of the vaccine with conditions.

　　In the event of a particularly major public health emergency or other emergency that seriously threatens public health, the competent Department of Health and health under the state council shall, in accordance with the need for the prevention and control of infectious diseases, make recommendations for the emergency use of vaccines, which may be used urgently within a certain range and within a certain time limit after the approval of the organization and demonstration by the drug supervision and Administration Department under the state council.

　　Article 21 when approving an application for vaccine registration, the pharmaceutical supervision and Administration Department under the state council shall approve the production process, quality control standards, instructions and labels of vaccines.

　　The pharmaceutical supervision and Administration Department under the state council shall promptly publish the contents of the vaccine manual and label on its website.

Chapter III vaccine production and issuance

　　Article 22 the state implements a strict access system for vaccine production.

　　To engage in vaccine production activities, a pharmaceutical production license shall be obtained with the approval of the pharmaceutical supervision and Administration Department of the people’s government at or above the provincial level.

　　Engaged in vaccine production activities, in addition to meeting the “people’s Republic of China Drug Administration Law” to engage in drug production activities, but also shall meet the following conditions：

　　(I)have a moderate scale and sufficient capacity reserves;

　　(2)have systems and facilities and equipment to ensure biosafety;

　　(3)Meet the needs of disease prevention and control.

　　The holder of the vaccine marketing license shall have the vaccine production capacity;where it is necessary to entrust production beyond the vaccine production capacity, it shall be approved by the pharmaceutical supervision and Administration Department under the state council.Those who accept commissioned production shall abide by the provisions of this law and the relevant provisions of the state to ensure the quality of vaccines.

　　Article 23 the legal representative and main person-in-charge of the holder of the vaccine listing license shall have a good credit history, and the personnel in key positions such as the person-in-charge of production management, the person-in-charge of quality management and the person-in-charge of Quality Authority shall have relevant professional background and experience.

　　The holder of the vaccine marketing license shall strengthen the training and assessment of the personnel specified in the preceding paragraph, and promptly report their positions and changes to the pharmaceutical supervision and administration departments of the people’s governments of provinces, autonomous regions and municipalities directly under the central government.

　　Article 24 vaccines shall be produced and tested in accordance with the approved production process and quality control standards, and the whole process of production shall comply with the requirements of the quality management standards of pharmaceutical production.

　　The holder of the vaccine marketing license shall, in accordance with the provisions, review and inspect the whole process of vaccine production and vaccine quality.

　　Article 25 the holder of the Vaccine Market License shall establish a complete production quality management system, continue to strengthen the management of deviations, use information technology means to truthfully record all the data formed in the process of production and inspection, to ensure that the whole process of production continues to meet the statutory requirements.

　　Article 26 the state shall implement a system for granting and issuing vaccines.

　　Before each batch of vaccines is sold or imported, it shall be audited and inspected by the approval and issuance agency designated by the drug supervision and Administration Department under the state council in accordance with the relevant technical requirements.If the requirements are met,a certificate of approval shall be issued;if the requirements are not met, a notice of non-approval shall be issued.

　　Vaccines not approved and issued shall not be sold, and shall be destroyed under the supervision of the pharmaceutical supervision and Administration Department of the people’s government of the province, autonomous region or municipality directly under the central government;imported vaccines not approved and issued shall be destroyed under the supervision of the pharmaceutical supervision and Administration Department of the port where they are located or subjected to other treatment according to law.

　　The drug supervision and Administration Department under the state council and the approval and issuance agency shall promptly publish the results of the approval and issuance of listed vaccines for public inquiry.

　　Article 27 an application for vaccine approval and issuance shall, in accordance with the provisions, provide the approval and issuance institution with the batch production and inspection records summary and other materials and samples of the same batch number of products.Imported vaccines shall also provide proof of origin, approval and issuance of certificates;in the country of origin is exempted from approval and issuance of certificates, shall provide exemption and issuance of certificates.

　　Article 28 vaccines that are urgently needed to prevent or control the epidemic of infectious diseases or to respond to emergencies shall be exempted from approval and issuance by the pharmaceutical supervision and Administration Department under the state council.

　　Article 29 the issuance of vaccine batches shall be subject to data review and sampling inspection batch by batch.Vaccine approval and issuance inspection items and inspection frequency shall be dynamically adjusted according to the vaccine quality risk assessment.

　　Where there is doubt about the authenticity of the application materials or samples for vaccine approval and issuance, or there are other circumstances that require further verification, the approval and issuance agency shall verify it, and, if necessary, shall organize on-site verification by means of on-site sampling and inspection.

　　Article 30 where the approval and issuance agency finds that there are major quality risks to the vaccine during the approval and issuance process, it shall promptly report to the drug supervision and Administration Department under the state council and the drug supervision and Administration Department of the people’s governments of provinces, autonomous regions and municipalities directly under the central government.

　　The department receiving the report shall immediately conduct on-site inspection of the holder of the vaccine listing license, notify the approval and issuance agency on the basis of the results of the inspection of the relevant products or all products of the vaccine listing license holder shall not be approved and issued or suspend the approval and issuance, and order the holder of the vaccine listing license to rectify.The holder of the vaccine marketing license shall immediately rectify the situation and promptly report the rectification to the Department ordered to rectify the situation.

　　Article 31 the holder of the vaccine marketing license shall truthfully record the deviations in the production process, the difference in quality, the faults and accidents in the production process and the measures taken, and set out in the documents for the approval and issuance of the corresponding batch of products;where the quality of the vaccine may be affected, the holder of the vaccine marketing license shall immediately take measures and report them to the pharmaceutical supervision and Administration Department of the people’s government of the province, autonomous region or municipality directly under the central government.

Chapter IV vaccine circulation

　　Article 32 the competent Department of Health and health under the state council, together with the financial Department of the state council and other organizations, shall conduct centralized bidding or unified negotiations for vaccines under the State Council to form and announce the winning bid price or the transaction price, and all provinces, autonomous regions and municipalities directly under the central government shall conduct unified procurement.

　　Other immunization planning vaccines and non-immunization planning vaccines other than the national immunization planning vaccines shall be procured by provinces, autonomous regions and municipalities directly under the central government through provincial public resource trading platforms.

　　Article 33 the price of the vaccine shall be set independently and rationally by the holder of the vaccine listing license according to law.The price level, spread rate and profit margin of the vaccine should be maintained at a reasonable margin.

　　Article 34 disease prevention and control institutions at the provincial level shall, in accordance with the national immunization plan and the disease prevention and control needs of their respective administrative regions, formulate plans for the use of vaccines in their respective administrative regions, and report them to the departments that organize the procurement of vaccines in accordance with the relevant provisions of the state, and report them to the departments in charge of Health and health of the people’s governments of provinces, autonomous regions and municipalities directly under the central government for the record.

　　Article 35 the holder of the vaccine marketing license shall supply the vaccine to the disease prevention and control agency in accordance with the provisions of the procurement contract.

　　The CDC shall supply vaccines to inoculating units in accordance with the provisions.

　　Units and individuals other than the disease prevention and control agency shall not supply the vaccine to the inoculation unit, and the inoculation unit shall not receive the vaccine.

　　Article 36 the holder of the vaccine marketing license shall, in accordance with the procurement contract, distribute the vaccine to the agency for Disease Prevention and control or the vaccination unit designated by the agency for Disease Prevention and control.

　　The holder of the vaccine listing license and the disease prevention and control agency shall have the conditions for the cold chain storage and transportation of the vaccine, and may also entrust the vaccine distribution unit that meets the conditions to distribute the vaccine.

　　The agency for Disease Prevention and control may charge storage and transportation costs for the distribution of non-immunized planned vaccines. the specific measures shall be formulated by the financial department under the state council in conjunction with the price Department under the state council, and the fees shall be formulated by the price Department under the people’s government of a province, autonomous region or municipality directly under the central government in conjunction with the financial department.

　　Article 37 disease prevention and control institutions, inoculation units, holders of vaccine marketing licenses and vaccine distribution units shall abide by the regulations on the management of vaccine storage and transportation to ensure the quality of vaccines.

　　Vaccine in the storage, transportation of the whole process should be in the specified temperature environment, cold chain storage, transportation should meet the requirements, and regularly monitor and record the temperature.

　　The regulations for the administration of vaccine storage and transportation shall be jointly formulated by the pharmaceutical supervision and Administration Department under the state council and the department in charge of Health and health under the state council.

　　Article 38 when selling vaccines, the holder of the vaccine marketing license shall provide a copy of the approval and issuance certificate affixed to his seal or an electronic document;where the sale of imported vaccines, he shall also provide a copy of the customs clearance form of imported drugs affixed to his seal or an electronic document.

　　When receiving or purchasing a vaccine, the disease prevention and control agency or inoculation unit shall obtain the supporting documents provided for in the preceding paragraph and keep them for reference not less than five years after the expiration of the validity period of the vaccine.

　　Article 39 the holder of a vaccine marketing license shall, in accordance with the provisions, establish a true, accurate and complete sales record and keep it for not less than five years after the expiration of the validity period of the vaccine for reference.

　　The disease prevention and control agencies, inoculation units and vaccine distribution units shall, in accordance with the provisions, establish true, accurate and complete records of receipt, purchase, storage, distribution and supply, and keep them for reference not less than five years after the expiration of the validity period of the vaccine.

　　When a disease prevention and control agency or inoculation unit receives or purchases a vaccine, it shall obtain a record of temperature monitoring of the whole process of transportation and storage, and keep it for reference not less than five years after the expiration of the validity period of the vaccine;if it is unable to provide a record of temperature monitoring of the whole process of transportation and storage or the temperature control does not meet the requirements, it shall not receive or purchase it, and shall immediately report it to the drug supervision and Administration Department and the department in charge of Health and health of the local people’s government at or above the county level.

　　Article 40 disease prevention and control institutions and inoculation units shall establish a system of regular inspection of vaccines, take measures such as isolation and Storage, setting up warning signs and other measures for vaccines that have problems such as unrecognized packaging, non-conforming storage temperatures and exceeding the validity period, and dispose of them in accordance with the provisions of the drug supervision and Administration Department under the state council, the department in charge of Health and health and the department in charge of Ecology and environment.The agency for Disease Prevention and control and the inoculation unit shall truthfully record the disposition, and the disposition record shall be kept for not less than five years after the expiration of the validity period of the vaccine for reference.

Chapter V vaccination

　　Article 41 the competent Department of Health and health under the state council shall formulate a national immunization plan;the types of vaccines in the national immunization plan shall be drawn up by the competent Department of Health and health under the state council in conjunction with the financial department under the state council, which shall be reported to the State Council for approval and published.

　　The competent Department of Health and health under the state council shall establish an Expert Advisory Committee on national immunization planning and, in conjunction with the financial Department of the state council, shall establish a mechanism for the dynamic adjustment of vaccine types in national immunization planning.

　　When implementing the national immunization plan, the people’s governments of provinces, autonomous regions and municipalities directly under the central government may, in accordance with the needs of disease prevention and control in their respective administrative areas, increase the types of vaccines for the immunization plan and report it to the department in charge of Health and health under the State Council for the record and publish it.

　　Article 42 the competent Department of Health and health under the state council shall formulate and publish norms for the work of inoculation and strengthen the standardized management of inoculation prevention.

　　The competent Department of Health and health under the state council shall formulate and publish the immunization procedures for vaccines under the national immunization plan and the guiding principles for the use of vaccines under the non-immunization plan.

　　The departments in charge of Health and health of the people’s governments of provinces, autonomous regions and municipalities directly under the central government shall formulate vaccination plans in the light of the actual situation in their respective administrative areas and report them to the departments in charge of Health and health of the State Council for the record.

　　Article 43 disease prevention and control institutions at various levels shall, in accordance with their respective responsibilities, carry out publicity, training, technical guidance, monitoring, evaluation, epidemiological investigation, emergency response and other work related to vaccination.

　　Article 44 inoculation units shall meet the following conditions：

　　(1)obtaining a license to practice in a medical institution;

　　(2)qualified physicians, nurses or Rural Doctors With professional inoculation training and assessment organized by the competent health and health departments of the people’s governments at the county level;

　　(3)have refrigeration facilities, equipment and refrigeration storage systems that comply with the norms of vaccine storage and transportation management.

　　The competent Department of Health and health of the local people’s governments at or above the county level designates qualified medical institutions to undertake immunization planning and vaccination work in the area of responsibility.A qualified medical institution may undertake the work of non-immunization planning vaccination and shall report it to the competent Department of Health and health that issued the practice license of its medical institution for the record.

　　Inoculation units shall strengthen their internal management,and inoculation work shall comply with the norms of inoculation work, immunization procedures, guidelines for the use of vaccines and inoculation programmes.

　　Disease prevention and control institutions at all levels shall strengthen the technical guidance of vaccination units and the management of the use of vaccines.

　　Article 45 when inoculating, medical and health personnel shall inform the recipient or his or her guardian of the variety, role, taboos, adverse reactions and other precautions for vaccination, inquire about the state of health of the recipient and whether there are taboos for vaccination, etc., and truthfully record the information and inquiry.The recipient or his or her guardian shall truthfully provide the recipient’s health status and contraindications for inoculation.If there is a taboo against inoculation and cannot be inoculated, medical and health personnel shall make medical recommendations to the recipient or his or her guardian, and truthfully record the situation of making medical recommendations.

　　Before carrying out vaccination, medical and health personnel shall, in accordance with the requirements of the norms of vaccination work, check the health status of the recipient, verify the taboo against vaccination, check the vaccination certificate, check the appearance, batch number and expiration date of the vaccine and syringe, check the name, age and name, specifications, dosage, site of vaccination and route of vaccination of the recipient, so that the recipient, vaccination certificate and vaccine information are consistent, and the vaccination can be carried out before confirmation is correct.

　　Medical and health personnel shall inoculate those who meet the conditions for vaccination.Where adverse reactions occur during the stay of the seed recipient at the scene, medical and health personnel shall take timely treatment and other measures in accordance with the requirements of the norms of inoculation prevention work.

　　Article 46 medical and health personnel shall, in accordance with the provisions of the competent Department of Health and health under the state council, record truthfully, accurately and completely the identification information of the variety of vaccines, the holder of the listing license, the smallest packing unit, the validity period, the time of inoculation, the medical and health personnel who carried out the inoculation, the seed recipient and other inoculation information, so as to ensure that the inoculation information can be traced and queried.Vaccination records shall be kept for not less than five years after the expiration of the validity period of the vaccine for reference.

　　Article 47 the state shall implement a system of vaccination certificates for children.Within one month after the birth of the child, his or her guardian shall go to the inoculation unit or birth hospital where the child is living to undertake the work of inoculation and apply for the inoculation certificate for him or her.Inoculation units or birth hospitals may not refuse to handle them.The guardian shall keep the vaccination certificate properly.

　　Vaccination shall be administered by the place of residence, and the vaccination unit responsible for the vaccination of the child while he or she leaves his or her place of residence shall be responsible for the vaccination of the child during the period of his or her departure from his or her place of residence.

　　The format of the vaccination certificate shall be prescribed by the department in charge of Health and health under the state council.

　　Article 48 when a child enters or attends school, the child-care institution or school shall examine the vaccination certificate and find that the vaccine has not been vaccinated in accordance with the provisions of the immunization plan, it shall report it to the inoculation unit in the place of residence of the child or the place of the child-care institution or school that undertakes the prevention work of inoculation, and cooperate with the inoculation unit to urge his or her guardian to replant the vaccine in accordance with the provisions.Disease prevention and control institutions shall provide technical guidance for child-care institutions and schools to check vaccination certificates.

　　Measures for the examination of children & apos; s admission and admission to school for vaccination certificates shall be formulated by the competent Department of Health and health under the state council in conjunction with the Administrative Department of Education under the state council.

　　Article 49 inoculation units shall not charge any fees for vaccinations under the immunization plan.

　　In addition to the cost of the vaccine, the vaccination unit may also charge a vaccination service fee.The fees for vaccination service fees shall be set by the price departments of the people’s governments of provinces, autonomous regions and municipalities directly under the central government in conjunction with the financial departments.

　　Article 50 the competent Department of Health and health of the local people’s governments at or above the county level may, on the basis of information on monitoring and early warning of infectious diseases, report it to the competent Department of Health and health of the people’s governments at the corresponding level for the purpose of preventing and controlling outbreaks and epidemics of infectious diseases and report it to the competent Department of health of the people’s governments at or above the provincial level for the record, and may conduct mass vaccination in their respective administrative areas.

　　Where it is necessary to carry out group vaccination throughout the country or within the scope of provinces, autonomous regions or municipalities directly under the central government, the department in charge of Health and health under the state council shall decide.

　　The local people’s government at or above the county level or the competent Department of Health and health under the state council shall organize the relevant departments to do a good job of Personnel Training, publicity and education, material mobilization and so on.

　　No unit or individual may carry out group inoculation without authorization.

　　Article 51 in the event of an outbreak or epidemic of an infectious disease, the local people’s governments at or above the county level or their departments in charge of Health and health need to take emergency vaccination measures, in accordance with the provisions of laws and administrative rules and regulations.

Chapter VI monitoring and handling of abnormal reactions

　　Article 52 abnormal inoculation reaction refers to the adverse reaction of drugs caused by qualified vaccines during the implementation of standardized inoculation or after the implementation of standardized inoculation, which has caused damage to the tissues, organs and functions of the recipient’s body, and none of the relevant parties have been at fault.

　　The following conditions are not abnormal inoculation reactions：

　　(I)general post-vaccination reaction due to the characteristics of the vaccine itself;

　　(II)damage caused to seed recipients due to vaccine quality problems;

　　(3)damage caused to the recipient by the inoculation unit in violation of the norms of inoculation work, immunization procedures, guidelines for the use of vaccines, and inoculation programs;

　　(4) the recipient at the time of inoculation is in the incubation period or precursor period of a disease, after inoculation coupling onset;

　　(5) the recipient has a vaccination taboo specified in the vaccine specification, before vaccination the recipient or his guardian did not truthfully provide the recipient’s health status and vaccination taboo, etc., after vaccination the recipient of the original disease acute recurrence or exacerbation of the disease.;

　　(6)the psychological response of an individual or group due to psychological factors.

　　Article 53 the state shall strengthen the monitoring of abnormal responses to vaccination.The plan for monitoring the abnormal response to vaccination shall be formulated by the competent Department of Health and health under the state council in conjunction with the Department of drug supervision and administration under the state council.

　　Article 54 Where inoculation units,medical institutions, etc. find a suspected abnormal reaction to inoculation, they shall report it to the disease prevention and control institutions in accordance with the provisions.

　　The holder of a vaccine marketing license shall set up a specialized agency with full-time personnel to collect, track and analyze suspected abnormal reactions to vaccination on his own initiative, take timely risk control measures, report suspected abnormal reactions to vaccination to the disease prevention and Control Agency, and submit the quality analysis report to the pharmaceutical supervision and administration departments of the people’s governments of provinces, autonomous regions and municipalities directly under the central government.

　　Article 55 the agency for Disease Prevention and control shall promptly report the suspected abnormal response to inoculation in accordance with the provisions, organize an investigation and diagnosis, and inform the recipient or his or her guardian of the conclusions of the investigation and diagnosis.Where there is a dispute over the conclusion of the investigation or diagnosis, an application may be made for appraisal in accordance with the appraisal measures formulated by the competent Department of Health and health under the state council.

　　Any suspected abnormal reaction to vaccination that has a significant impact on society, such as the death or serious disability of the person receiving the vaccination as a result of vaccination, or the suspected abnormal reaction of the group to vaccination, shall be investigated and dealt with by the departments in charge of Health and drug supervision and administration of the people’s governments at or above the municipal level divided into districts in accordance with their respective responsibilities.

　　Article 56 the state shall implement a system of compensation for abnormal reactions in vaccination.Where the death, severe disability, organ and tissue damage of the recipient during or after the vaccination is carried out is an abnormal reaction to vaccination or cannot be ruled out, compensation shall be given.The compensation range implements directory management and dynamically adjusts according to the actual situation.

　　The compensation costs required for vaccination against immunization planning vaccines shall be arranged by the financial departments of the people’s governments of provinces, autonomous regions and municipalities directly under the central government in the funding for vaccination;the compensation costs required for vaccination against non-immunization planning vaccines shall be borne by the holder of the relevant vaccine marketing license.The state encourages compensation for recipients of abnormal inoculation responses through various forms, such as commercial insurance.

　　Compensation for abnormal response to inoculation shall be timely, convenient and reasonable.The scope, standards and procedures for compensating for abnormal reactions in vaccination shall be prescribed by the state council, and the provinces, autonomous regions and municipalities directly under the central government shall formulate specific measures for their implementation.

Chapter VII post-market Administration of vaccines

　　Article 57 the holder of a vaccine listing license shall establish and improve the quality management system of the whole life cycle of the vaccine, formulate and implement a post-market risk management plan for the vaccine, carry out post-market research on the vaccine, and further confirm the safety, effectiveness and quality control of the vaccine.

　　For a vaccine that puts forward further research requirements when approving an application for vaccine registration, the holder of the vaccine marketing license shall complete the research within the prescribed time limit;if the research is not completed within the prescribed time limit or the benefit is not proved to be greater than the risk, the drug supervision and Administration Department under the State Council shall deal with it according to law until the drug registration certificate of the vaccine is cancelled.

　　Article 58 the holder of the Vaccine Market License shall carry out quality tracking and analysis of the vaccine, continuously improve the quality control standards, improve the production process and improve the stability of the production process.

　　Where there is a change in production technology, production site, key equipment, etc., it shall be evaluated and verified and filed or reported in accordance with the provisions of the drug supervision and Administration Department under the State Council on Change Management;where the change may affect the safety, effectiveness and quality control of vaccines, it shall be approved by the drug supervision and Administration Department under the state council.

　　Article 59 the holder of a vaccine listing license shall continuously update the specification and label in accordance with the post-market research of the vaccine and the abnormal reaction of vaccination, and apply for approval or filing in accordance with the provisions.

　　The pharmaceutical supervision and Administration Department under the state council shall publish the updated vaccine instructions and labels on its website in a timely manner.

　　Article 60 the holder of a Vaccine Market License shall establish a system of review and analysis of vaccine quality and risk reporting, and truthfully report to the pharmaceutical supervision and Administration Department under the State Council on the production and circulation of vaccines, post-market research and risk management, etc. every year in accordance with the provisions.

　　Article 61 the drug supervision and Administration Department under the state council May, according to the actual situation, order the holder of the vaccine listing license to carry out post-listing evaluation or directly organize post-listing evaluation.

　　The drug supervision and Administration Department under the state council shall cancel the drug registration certificate of the vaccine for which the abnormal response to vaccination is serious or for other reasons endangers human health.

　　Article 62 the pharmaceutical supervision and Administration Department under the state council may, in accordance with the needs for Disease Prevention and control and the development of the vaccine industry, organize post-market evaluation of vaccine varieties and find that the product design, production technology, safety, effectiveness or quality control of such vaccine varieties is significantly inferior to other vaccine varieties for the prevention and control of the same disease, shall cancel the drug registration certificate of all vaccines of such varieties and annul the corresponding national drug standards.

Chapter VIII safeguards

　　Article 63 people’s governments at or above the county level shall include in the budget of the government at the corresponding level the necessary funds for Vaccine Safety, the purchase of vaccines for immunization planning and vaccination, as well as the construction of information technology, so as to ensure the implementation of the immunization planning system.

　　The people’s governments at the county level shall, in accordance with the relevant provisions of the state, grant subsidies to rural doctors and other primary medical and health personnel engaged in vaccination prevention.

　　The state supports vaccination efforts in economically underdeveloped areas as needed.The people’s governments of provinces, autonomous regions and municipalities directly under the central government and the people’s governments at the municipal level divided into districts shall grant necessary financial subsidies to the people’s governments at the county level in economically underdeveloped areas to carry out work related to inoculation prevention.

　　Article 64 the people’s governments of provinces, autonomous regions and municipalities directly under the central government, in accordance with the epidemic trends of infectious diseases in their respective administrative areas, shall, within the scope of the projects for the prevention and control of infectious diseases determined by the competent Department of Health and health under the state council, determine the projects related to vaccination in their respective administrative areas and ensure the implementation of the projects.

　　Article 65 the competent Department of Health and health under the State Council shall, in accordance with the plan for the use of vaccines under the national immunization plan of all provinces, autonomous regions and municipalities directly under the central government, provide information on the needs of vaccines under the national immunization plan to the holder of the vaccine listing license, and the holder of the vaccine listing license shall rationally arrange production on the basis of the information on the needs of vaccines.

　　When there is a risk of shortage in supply of vaccines, the competent Department of Health and health under the state council and the Department of pharmaceutical supervision and administration under the state council make recommendations, and the competent Department of industry and Information Technology under the state council and the Department of Finance under the state council shall take effective measures to ensure the production and supply of vaccines.

　　The holder of the Vaccine Market License shall organize production according to law to ensure the supply of vaccines;where the holder of the Vaccine Market License stops the production of vaccines, he shall promptly report to the pharmaceutical supervision and Administration Department under the state council or the pharmaceutical supervision and Administration Department of the people’s government of a province, autonomous region or municipality directly under the central government.

　　Article 66 the state shall incorporate vaccines into its reserves of strategic materials, and shall implement reserves at the central and provincial levels.

　　The competent Department of industry and Information Technology and the financial Department of the state council, together with the competent Department of Health and health, the Department of Public Security, the Department of market supervision and administration and the Department of pharmaceutical supervision and administration, strengthen the production capacity and product management of vaccine reserves and establish dynamic adjustment mechanisms in accordance with the needs of disease prevention, control and emergency preparedness for public health.

　　Article 67 the funds used for inoculation prevention in financial arrangements at various levels shall be earmarked for special purposes, and no unit or individual may misappropriate or squeeze in them.

　　Units and individuals concerned shall, according to law, accept the audit supervision of audit institutions for the use of funds for vaccination.

　　Article 68 the state implements a compulsory insurance system for vaccine liability.

　　The holder of the vaccine marketing license shall apply for compulsory insurance of vaccine liability in accordance with the provisions.If the damage caused by the quality of the vaccine is caused by the seed recipient, the Insurance Company shall pay the compensation within the limit of the liability covered.

　　The specific measures for the implementation of the compulsory insurance system for vaccine liability shall be formulated by the pharmaceutical supervision and Administration Department under the state council in conjunction with the competent health and health departments and insurance supervision and administration agencies under the state council.

　　Article 69 in the event of an outbreak or epidemic of an infectious disease, the holder of the relevant vaccine marketing license shall produce and supply vaccines for the prevention and control of infectious diseases in a timely manner.Transportation units shall give priority to transporting vaccines for the prevention and control of infectious diseases.The people’s governments at or above the county level and their relevant departments shall do a good job of organizing, coordinating and safeguarding.

Chapter IX supervision and management

　　Article 70 the pharmaceutical supervisory and administrative departments and the departments in charge of Health and health shall, in accordance with their respective responsibilities, supervise and manage the whole process of vaccine development, production, circulation and vaccination, and supervise the implementation of their obligations according to law by the holders of vaccine marketing licenses, disease prevention and control institutions and inoculation units.

　　The pharmaceutical supervision and administration departments shall, in accordance with law, supervise and inspect the quality of vaccines in vaccine development, production, storage, transportation and inoculation.The competent departments of Health and health shall, according to law, supervise and inspect the implementation of the immunization planning system and inoculation prevention activities.

　　The pharmaceutical supervision and administration department shall strengthen on-site inspection of the holders of the vaccine market license;when necessary, it may extend inspection of units and individuals that provide products or services for Vaccine Development, Production and circulation activities;units and individuals concerned shall cooperate and may not refuse or conceal them.

　　Article 71 the state shall build a professional and specialized team of drug inspectors at the central and provincial levels and strengthen supervision and inspection of vaccines.

　　The pharmaceutical supervision and administration departments of the people’s governments of provinces, autonomous regions and municipalities directly under the central government appoint inspectors to settle the holders of vaccine marketing licenses.The inspectors are responsible for supervising and inspecting the implementation of the quality management standards for pharmaceutical production, collecting clues on vaccine quality risks and violations of laws and regulations, reporting the situation to the pharmaceutical supervision and administration departments of the people’s governments of provinces, autonomous regions and municipalities directly under the central government and making recommendations, and are responsible for their actions during the period of assignment.

　　Article 72 where there are safety risks in vaccine quality management, and the holders of vaccine marketing licenses fail to take timely measures to eliminate them, the drug supervision and Administration Department may take measures such as responsible interviews and rectification within a time limit.

　　Where there is a serious violation of drug-related quality management standards, the drug supervision and administration department shall order the suspension of vaccine production, sales and distribution, and immediately rectify it;after the completion of the rectification, the drug supervision and administration department shall check to meet the requirements before resuming production, sales and distribution.

　　The pharmaceutical supervision and administration department shall establish a system of credit records for holders of vaccine marketing licenses and their relevant personnel, incorporate them into the national credit information sharing platform, publicize their serious untrustworthy information in accordance with the provisions, and implement joint disciplinary measures.

　　Article 73 where a vaccine exists or is suspected of having quality problems, the holder of the vaccine marketing license, the disease prevention and control agency or the inoculation unit shall immediately stop selling, distributing or using it, immediately stop production if necessary, and report it to the pharmaceutical supervision and Administration Department and the department in charge of Health and health of the people’s government at or above the county level in accordance with the provisions.The competent Department of Health and health shall immediately organize the organs for Disease Prevention and control and inoculation units to take the necessary emergency measures, and at the same time report to the competent Department of Health and health of the people’s government at a higher level.The drug supervision and administration department shall take measures such as seizure and seizure according to law.For vaccines that have been sold, the holder of the vaccine marketing license shall promptly notify the relevant disease prevention and control institutions, vaccine distribution units and vaccination units, recall in accordance with the provisions, truthfully record the recall and notification, and the disease prevention and control institutions, vaccine distribution units and vaccination units shall cooperate.

　　Where the production, sale, distribution, use or recall of vaccines is not stopped in accordance with the provisions of the preceding paragraph, the pharmaceutical supervision and Administration Department and the department in charge of Health and health of the people’s governments at or above the county level shall, in accordance with their respective duties, order the production, sale, distribution, use or recall of vaccines.

　　The holder of the vaccine marketing license, the disease prevention and control agency or the inoculation unit shall not conceal, misrepresent, delay or underreport the vaccine, and shall not conceal, falsify or destroy relevant evidence if it is found to have or suspected to have quality problems.

　　Article 74 the holder of a vaccine marketing license shall establish an information disclosure system and, in accordance with the provisions, promptly disclose on his website information on vaccine products, instructions and labels, the implementation of drug-related quality management standards, the status of approval and issuance, the status of recall, the status of inspection and punishment, and the status of compulsory insurance for the responsibility to insure vaccines.

　　Article 75 the pharmaceutical supervision and Administration Department under the state council, in conjunction with the competent Department of Health and health under the state council, shall establish mechanisms for sharing information on vaccine quality and inoculation.

　　The pharmaceutical supervision and administration departments of the people’s governments at or above the provincial level, the departments in charge of Health and health, etc. shall, in accordance with the principles of science, objectivity, timeliness and openness, organize the holders of vaccine marketing licenses, disease prevention and control institutions, inoculation units, news media, scientific research units, etc., to exchange and communicate information on vaccine quality and inoculation.

　　Article 76 the state shall implement a unified system of disclosure of vaccine safety information.

　　Warning information on vaccine safety risks, information on major vaccine safety accidents and their investigation and handling, and other vaccine safety information determined by the state council to be uniformly published, shall be published by the pharmaceutical supervision and Administration Department under the state council in conjunction with the relevant departments.The report on the abnormal response to vaccination in the country shall be uniformly published by the competent Department of Health and health under the state council in conjunction with the Department of drug supervision and administration under the state council.The above information may not be published without authorization.The publication of major vaccine safety information shall be timely, accurate and comprehensive, and scientific assessment shall be carried out in accordance with the provisions and the necessary explanations shall be made.

　　When the drug supervision and Administration Department of the people’s government at or above the county level discovers vaccine safety information that may mislead the public and public opinion, it shall immediately verify and analyze it with the competent Department of Health and other relevant departments, professional institutions and holders of relevant vaccine marketing licenses, and publish the results in a timely manner.

　　No unit or individual shall fabricate or disseminate false vaccine safety information.

　　Article 77 any unit or individual shall have the right to obtain vaccine information according to law and to put forward opinions and suggestions on the supervision and administration of vaccines.

　　Any unit or individual has the right to report illegal acts of vaccines to the departments in charge of Health and health, the departments in charge of drug supervision and administration and other departments, and to report cases where the departments in charge of Health and health, the departments in charge of drug supervision and administration and their staff have not performed their duties of supervision and administration in accordance with law to the people’s governments at the corresponding level or at a higher level and their relevant departments and supervision organs.Relevant departments and organs shall promptly verify and deal with;to verify the truth of the report, in accordance with the provisions of the whistleblower reward; whistleblower to report serious illegal acts in the unit where the report is verified, to give a heavy Award.

　　Article 78 the people’s governments at or above the county level shall formulate emergency plans for vaccine safety incidents, and make provisions on the classification of vaccine safety incidents, the organizational command system and responsibilities for the disposal, the mechanism of prevention and early warning, the procedures for the disposal and emergency security measures.

　　The holder of the vaccine listing license shall formulate a plan for the disposal of vaccine safety incidents, regularly check the implementation of various preventive measures, and eliminate security risks in a timely manner.

　　In the event of a vaccine safety incident, the holder of the vaccine marketing license shall immediately report it to the drug supervision and Administration Department under the state council or the drug supervision and Administration Department under the people’s governments of provinces, autonomous regions and municipalities directly under the central government;the disease prevention and control agencies, inoculation units and medical institutions shall immediately report it to the health and health departments and drug supervision and administration departments of the people’s governments at or above the county level.The drug supervision and administration department shall, together with the department in charge of Health and health, in accordance with the provisions of the emergency plan, set up a command body for the disposal of vaccine safety incidents, carry out medical treatment, risk control, investigation and processing, information dissemination, explanation and explanation, and do a good job in the disposal of replanting and other post-treatment work.Replanting costs for vaccine safety incidents due to quality problems are borne by the holder of the vaccine marketing license.

　　Units and individuals concerned may not conceal, misrepresent, delay or underreport vaccine safety incidents, and may not conceal, forge or destroy relevant evidence.
Chapter X legal liability

　　Article 79 whoever, in violation of the provisions of this law, constitutes a crime shall be investigated for criminal responsibility in accordance with law.

　　Article 80 where the production and sale of vaccines are counterfeit drugs, the pharmaceutical supervision and Administration Department of the people’s government at or above the provincial level shall confiscate the illegal income and the vaccines produced and sold illegally, as well as the raw materials, accessories, packaging materials and equipment specially used for the illegal production of vaccines, order the suspension of production and rectification, revoke the drug registration certificate until the drug production license is revoked, and impose a fine of not less than 15 times the value of the illegal production and sale of vaccines, and not less than 50 times the value of the goods, which is less than 500,000 yuan, on the basis of 500,000 yuan.

　　Where the production and sale of vaccines are inferior drugs, the pharmaceutical supervision and Administration Department of the people’s government at or above the provincial level shall confiscate the illegal income and the vaccines produced and sold illegally, as well as the raw materials, accessories, packaging materials, equipment and other items specially used for the illegal production of vaccines, order the suspension of production and rectification, and impose a fine of not less than 10 times the value of the illegal production and sale of vaccines, not less than 30 times the value of the illegal production and sale of vaccines, which shall be calculated as 500,000 yuan;if the circumstances are serious, the certificate of registration of drugs shall be revoked until the license for the production of drugs is revoked, etc.

　　Where the production or sale of vaccines are counterfeit drugs, or the production or sale of vaccines are inferior drugs and the circumstances are serious, the pharmaceutical supervision and Administration Department of the people’s government at or above the provincial level shall confiscate the income earned from their units during the time of the illegal act, impose a fine of not less than one time but not more than ten times the income received, prohibit the production and sale of drugs for life, and detain the public security organ for not less than five days but not more than 15 days.

　　Article 81 in any of the following circumstances, the pharmaceutical supervision and Administration Department of the people’s government at or above the provincial level shall confiscate the illegal income and the vaccines illegally produced and sold, as well as the raw materials, accessories, packaging materials and equipment specially used for the illegal production of vaccines, order the suspension of production and rectification, and impose a fine of not less than 15 times the value of the illegal production and sale of vaccines, not less than 50 times the value of the illegal production and sale of vaccines, and a fine of not less than 500,000 yuan, which shall be calculated on the basis of 500,000 yuan;if the circumstances are serious, the relevant approval documents for drugs shall be revoked, until the license for the production of drugs is revoked, etc., to the legal representative, the main person-in-charge or the person directly responsible for the illegal production and sale of vaccines. the persons in charge, the personnel in key positions and other persons responsible shall confiscate the income earned from their units during the period when the illegal act occurs, and shall also impose a fine of not less than 50% but not more than 10 times the income received, and shall be prohibited from engaging in pharmaceutical production and business activities for ten years until life, and shall be detained by the public security organ for not less than 5 days but not more than 15 days：

　　(1)application for vaccine clinical trials,registration,approval and issuance, provision of false data,materials,samples or other fraudulent acts;

　　(2)fabricating production, inspection records or changing product lot numbers;

　　(3)supply of vaccines to vaccination units by units or individuals other than disease prevention and control institutions;

　　(IV)commissioned production of vaccines without approval;

　　(5)changes in the production process, production site, key equipment, etc. shall be approved but not approved in accordance with the provisions;

　　(6)updating the vaccine instructions and labels shall be approved but not approved in accordance with the provisions.

　　Article 82 except as otherwise provided in this law, the holder of a vaccine marketing license or other unit who violates the quality management standards related to drugs shall be ordered by the drug supervision and Administration Department of the people’s government at or above the county level to make corrections and give a warning;if he refuses to make corrections, he shall be fined not less than 200,000 yuan but not more than 500,000 yuan;if the circumstances are serious, he shall be fined not less than 500,000 yuan but not more than 3 million yuan, and he shall be ordered to stop production and business for rectification, until the relevant approval documents for drugs, the drug production license, etc. are revoked, and the legal representative, the main person-in-charge, the person-in-charge directly in charge and the personnel in key positions and other persons responsible for them shall be fined not less than 500,000 yuan and not more than 300,000 yuan are suspended he shall also impose a fine of not less than 50% but not more than five times the income obtained, and shall be prohibited from engaging in pharmaceutical production and business activities for ten years until life.

　　Article 83 in violation of the provisions of this law, the holder of the vaccine marketing license has any of the following circumstances, by the people’s government at or above the provincial level drug supervision and Administration Department ordered to correct,give a warning;refuse to correct,a fine of 200,000 yuan to 500,000 yuan; serious circumstances, ordered to stop production and business rectification,and a fine of 500,000 yuan to 2 million yuan：

　　(I)failure to establish an electronic traceability system for vaccines in accordance with the provisions;

　　(2)the legal representative,the main person-in-charge and the person-in-charge of Production Management, Quality Management person-in-charge, quality authorized person and other key positions do not meet the prescribed conditions or do not train or assess them in accordance with the provisions.;

　　(3)failure to report or record in accordance with the provisions;

　　(4)failure to carry out post-market research in accordance with the provisions, or failure to set up institutions and personnel in accordance with the provisions of the initiative to collect,track and analyze suspected inoculation abnormal response;

　　(5)failure to apply for compulsory insurance of vaccine liability in accordance with the provisions;

　　(6) the information disclosure system has not been established in accordance with the provisions.

　　Article 84 in violation of the provisions of this law, the approval and issuance agency has any of the following circumstances, the drug supervision and Administration Department under the State Council ordered to make corrections,give a warning,the main person in charge, directly responsible for the person in charge and other directly responsible personnel given a warning according to law until the downgrade：

　　(A)failure to conduct audit and inspection in accordance with the provisions;

　　(2)failure to publish the results of the approval and issuance of listed vaccines in a timely manner;

　　(III)failure to verify as required;

　　(IV)significant quality risks of vaccines were found not to be reported as required.

　　If, in violation of the provisions of this law, the issuing authority fails to issue a certificate of approval and issuance in accordance with the provisions or fails to issue a notice of approval and issuance, the drug supervision and Administration Department under the state council shall order it to make corrections, give a warning, and give demotion or dismissal to the main person-in-charge, the person-in-charge directly responsible and other persons-in-charge directly responsible according to law;if the circumstances are serious, the main person-in-charge directly responsible and other persons-in-charge directly responsible according to law.

　　Article 85 where a disease prevention and control agency, inoculation unit, vaccine listing license holder or vaccine distribution unit violates the cold chain storage and transportation requirements of the vaccine storage and transportation regulations, the pharmaceutical supervision and Administration Department of the people’s government at or above the county level shall order it to correct, give a warning, destroy the vaccines illegally stored and transported and confiscate the illegal income;if it refuses to correct, a fine of 200,000 yuan to 1 million yuan to the vaccination unit, vaccine listing license holder or vaccine distribution unit shall be imposed;if the circumstances are serious, the vaccination unit, vaccine listing license holder or vaccine distribution unit shall be fined if the value of the goods is less than 100,000 yuan, the holder of the vaccine marketing license and the vaccine distribution unit shall be ordered to stop production and shut down business for rectification, until the relevant approval documents for drugs and the drug production license are revoked, and the legal representatives of the vaccine marketing license holder, the main person-in-charge, the person-in-charge directly responsible and the personnel in key positions and other persons responsible shall be punished in accordance with the provisions of Article 82 of this law.

　　Where a disease prevention and control institution or inoculation unit commits an illegal act as provided for in the preceding paragraph, the competent Department of Health and health of the people’s government at or above the county level shall give a warning to the main person-in-charge, the person-in-charge directly in charge and other persons directly responsible for the act until they are removed from their posts according to law, and order the medical and health personnel responsible for the act to suspend their practice activities for not less than one year but not more than 18 months;if serious consequences are caused, the main person-in-charge, the person-in-charge directly in charge and other persons directly responsible for the act to be expelled according to law, and the qualification of the inoculation unit may be revoked, and the original licensing department shall revoke the practice certificate of the medical and health personnel responsible for the act.

　　Article 86 where a disease prevention and control agency, vaccination unit, vaccine listing license holder or vaccine distribution unit commits any act other than the provisions of Article 85 of this law in violation of the standard management of vaccine storage and transportation, the pharmaceutical supervision and Administration Department of the people’s government at or above the county level shall order it to make corrections, give a warning and confiscate the illegal income;if it refuses to make corrections, a fine of not less than 100,000 yuan but not more than 300,000 yuan is imposed on the vaccination unit, the vaccine listing license holder or the vaccine distribution unit;if the circumstances are serious, a fine of not more than three times the value of the vaccine stored and transported illegally by the vaccination unit, the vaccine listing license holder or the vaccine distribution unit shall be not less than 10 times the value of the vaccine stored and transported illegally, and the value of the vaccine shall be not less than 10 times the value of the vaccine stored and transported illegally, and the value of the vaccine shall be not less than 10 times the value of the vaccine stored and transported illegally, and the value of the vaccine shall be less than 100,000 yuan, according to 100,000 yuan calculation.

　　Where a disease prevention and control institution or inoculation unit commits an illegal act as provided for in the preceding paragraph, the competent Department of Health and health of the people’s government at or above the county level may give a warning to the main person-in-charge, the person-in-charge directly in charge and the other person-in-charge directly responsible until he is removed from office according to law, order the medical and health personnel who are responsible to suspend their practice activities for not less than six months but not more than one year;if serious consequences are caused, the main person-in-charge directly in charge and the other person-in-charge directly responsible shall be expelled according to law, and the original licensing department shall revoke the practice certificates of the medical and health personnel who are responsible for the practice.

　　Article 87 if, in violation of the provisions of this law, a disease prevention and control agency or inoculation unit commits any of the following circumstances, the competent Department of Health and health of the people’s government at or above the county level shall order it to make corrections, give a warning and confiscate the illegal income;if the circumstances are serious, the main person-in-charge, the person-in-charge directly responsible and the other person-in-charge directly responsible shall be given a warning according to law until the removal of his / her duties, and the medical and health personnel who are responsible shall be ordered to suspend their practice activities for not less than one year but not more than 18 months;if serious consequences are caused, the main person-in-charge directly responsible and the other person-in-charge directly responsible shall be expelled according to law, and the original licensing department shall be ordered to suspend his / her practice activities for not less than one year but not more than 18 months; if serious consequences are caused, the main person-in-charge, the person-in-charge directly responsible and the other person-in-charge directly responsible shall be expelled according to law, and the original licensing department shall revocation of the practice certificate of the responsible medical and health personnel：

　　(1)failure to supply, receive and procure vaccines in accordance with the provisions;

　　(II)vaccination does not comply with the guidelines for vaccination work, immunization procedures,guidelines for the use of vaccines, vaccination programmes;

　　(3)carrying out group vaccination without authorization.

　　Article 88 if, in violation of the provisions of this law, a disease prevention and control agency or inoculation unit commits any of the following circumstances, the competent Department of Health and health of the people’s government at or above the county level shall order it to make corrections and give a warning;if the circumstances are serious, the main person-in-charge, the person-in-charge directly responsible and other persons directly responsible shall be given a warning according to law until they are removed from their posts, and the medical and health personnel responsible shall be ordered to suspend their practice activities for not less than six months but not more than one year;if serious consequences are caused, the main person-in-charge, the person-in-charge directly responsible and the other persons directly responsible shall be expelled according to law, and the original licensing department shall revoke the person-in-charge who is directly responsible and the other persons directly responsible shall be suspended from their practice activities for not less than six months and not more than one year; if serious consequences are caused, the main person-in-charge, the person-in-charge directly responsible and the other persons directly responsible shall be expelled according to law, and the original licensing department shall revoke the certificate of practice of medical and health personnel：

　　(I)failure to provide retroactive information in accordance with the provisions;

　　(2)when receiving or purchasing vaccines, the relevant supporting documents and temperature monitoring records are not obtained and kept in accordance with the provisions.;

　　(3)failure to establish and maintain records of vaccine reception, purchase, storage, distribution, supply, vaccination and disposal in accordance with the provisions;

　　(4)failure to inform or inquire about the relevant circumstances of the recipient or his or her guardian in accordance with the provisions.

　　Article 89 where a disease prevention and control institution, inoculation unit or medical institution fails to report a suspected abnormal reaction to vaccination, vaccine safety incident, etc. in accordance with the provisions, or fails to organize an investigation or diagnosis of a suspected abnormal reaction to vaccination in accordance with the provisions, the competent Department of Health and health of the people’s government at or above the county level shall order it to make corrections and give a warning;if the circumstances are serious, the vaccination unit or medical institution shall be fined not less than 50,000 yuan but not more than 500,000 yuan, and the main person-in-charge of the disease prevention and control institution, inoculation unit or medical institution, the person-in-charge directly in charge and other persons who are directly responsible shall be given a warning according to law until they are removed from their posts;if there are serious consequences, the main person-in-charge, the person-in-charge directly in charge and other persons directly responsible shall be expelled according to law, and the original licensing department shall revoke the practice certificate of the medical and health personnel responsible.

　　Article 90 where a disease prevention and control institution or inoculation unit collects fees in violation of the provisions of this law, the competent Department of Health and health of the people’s government at or above the county level shall supervise the return of the fees illegally collected to the unit or individual who originally paid the fees, and shall be punished according to law by the market supervision and Administration Department of the people’s government at or above the county level.

　　Article 91 whoever, in violation of the provisions of this law, engages in immunization planning and vaccination work without the designation of the competent Department of Health and health of the local people’s government at or above the county level, or does not meet the conditions for non-immunization planning and vaccination work, shall be ordered by the competent Department of Health and health of the people’s government at or above the county level to make corrections, give a warning, confiscate the illegal income and the illegally held vaccines, order him to stop business for rectification, and impose a fine of not less than 100,000 yuan but not more than 1 million yuan, and impose sanctions on the main person-in-charge, the person-in-charge directly in charge and other persons who are directly responsible in accordance with the law.

　　Where, in violation of the provisions of this law, a disease prevention and control Institution, a unit or an individual other than an inoculation unit conducts mass vaccination without authorization, the competent Department of Health and health of the people’s government at or above the county level shall order it to make corrections, confiscate the illegal income and the vaccines held illegally, and impose a fine of not less than 10 times the value of the vaccines held illegally, but not more than 30 times the value of the vaccines held illegally, and if the value of the vaccines is less than 50,000 yuan, the value of the vaccines shall be calculated as 50,000 yuan.

　　Article 92 if a guardian fails to ensure that children of school age are vaccinated on time in accordance with law, the competent Department of Health and health of the people’s government at the county level shall criticize Education and order it to make corrections.

　　If a child-care institution or school fails to check the vaccination certificate in accordance with the provisions when a child is admitted to care or enrolled in school, or fails to report to the vaccination unit after discovering that a child has not been vaccinated in accordance with the provisions, the Education Administrative Department of the local people’s government at or above the county level shall order it to make corrections, give a warning, and impose sanctions on the main person-in-charge, the person-in-charge directly in charge and other persons who are directly responsible in accordance with the law.

　　Article 93 whoever fabricates or disseminates false vaccine safety information, or provokes quarrels and trouble in a vaccination unit, constitutes an act contrary to the administration of Public Security, shall be punished by the public security organ for the administration of Public Security in accordance with law.

　　Where newspapers, periodicals, radio, television, internet sites and other media fabricate or disseminate false vaccine safety information, the relevant departments shall be punished according to law, and the main person-in-charge, the person-in-charge directly in charge and other persons directly responsible shall be punished according to law.

　　Article 94 local people’s governments at or above the county level in the vaccine supervision and management work in any of the following circumstances, the directly responsible person in charge and other directly responsible person according to law to give demotion or removal of sanctions;if the circumstances are serious, according to law to give dismissal sanctions;causing serious consequences, the main person in charge：

　　(1)poor performance of duties, resulting in serious adverse effects or significant losses;

　　(2)false reporting,false reporting,slow reporting,underreporting vaccine safety incidents;

　　(3)interfere with or obstruct the investigation of vaccine violations or vaccine safety incidents;

　　(4)there have been particularly major vaccine safety accidents in their administrative areas, or major vaccine safety accidents have occurred continuously.

　　Article 95 drug supervision and administration departments,health and health departments and other departments in any of the following circumstances in the vaccine supervision and administration, the directly responsible person in charge and other directly responsible person according to law to give demotion or removal of sanctions;if the circumstances are serious,according to law to give dismissal sanctions;causing serious consequences, the main person in charge：

　　(1)failure to perform supervision and inspection duties, or found that illegal acts are not investigated and dealt with in a timely manner;

　　(2)unauthorized group inoculation;

　　(3)false reporting,false reporting,slow reporting,underreporting vaccine safety incidents;

　　(4)interfere with or obstruct the investigation of vaccine violations or vaccine safety incidents;

　　(5)disclosure of whistleblower information;

　　(6) received a suspected abnormal response to vaccination related reports, not in accordance with the provisions of the organization of Investigation,treatment;

　　(7)other acts that fail to perform their duties on vaccine supervision and management, resulting in serious adverse effects or significant losses.

　　Article 96 where damage is caused by vaccine quality problems, the holder of the vaccine marketing license shall be liable for compensation in accordance with law.

　　If a disease prevention and control agency or inoculation unit causes damage to the seed recipient due to violation of the norms of inoculation work, immunization procedures, guidelines for the use of vaccines and inoculation programs, it shall be liable for compensation in accordance with law.

Chapter XI supplementary provisions

　　Article 97 the meaning of the following terms in this law is：

　　Immunization planning vaccines refer to vaccines that residents should be vaccinated in accordance with the provisions of the government, including vaccines determined by the national immunization plan, vaccines added by the people’s governments of provinces, autonomous regions and municipalities directly under the central government in the implementation of the national immunization plan, as well as vaccines used by emergency vaccination or group vaccination organized by the people’s governments at or above the county level or their competent health departments.

　　Non-immunization programme vaccines refer to other vaccines voluntarily vaccinated by residents.

　　A holder of a vaccine listing license refers to an enterprise that has obtained a certificate of registration of vaccine drugs and a license for production of drugs in accordance with the law.

　　Article 98 the state encourages vaccine-producing enterprises to produce and export vaccines in accordance with international procurement requirements.

　　The exported vaccine shall comply with the standards or contractual requirements of the importing country(region).

　　Article 99 the purchase of entry-exit vaccinations and required vaccines shall be separately prescribed by the border health and quarantine organ in consultation with the financial department under the state council.

　　Article 100 this law shall come into force as of December 1, 2019.

Cultural/Ideological Divide

The Melania tapes bust the “Free Melania” myth

October 3, 2020 Algora Blog Leave a comment

Turns out the first lady is a lot like her husband.

By Anna North

Melania Trump stands before a podium, backed by American flags. First lady Melania Trump addresses the Republican National Convention from the Rose Garden of the White House on August 25, 2020, in Washington, DC.Brendan Smialowski/AFP via Getty Images

Remember “Free Melania”?

It became a meme and a hashtag shortly after the first lady was caught on tape appearing to grimace at President Trump’s inauguration. The idea was that Melania Trump was an unwilling captor to her husband and his regime, deserving of pity and liberation, not criticism. It was all “part of a long-standing narrative in pop culture: the cheeky but also insistent assumption that the new first lady is the sad and sleepy heroine of a decidedly modern fairy tale,” as Megan Garber wrote at the Atlantic in 2017.

Now it’s 2020, approximately 10 trillion years later, and Melania herself has punched a big hole in that narrative.

On a tape secretly recorded in 2018 and released Thursday night by CNN, the first lady complains to then-friend Stephanie Winston Wolkoff that the media is bothering her about the Trump administration’s policy of separating migrant children from their parents at the US border.

“They said, ‘Oh, what about the children, that they were separated?’ Give me a fucking break,” she says on the tape, according to the CNN transcript. “Where they were saying anything when Obama did that?”

The Obama administration did not, in fact, pursue a policy of separating children from their parents at the border. And Trump’s statements on the tape suggest that, far from secretly disapproving of her husband’s administration, she is actually on board with its aims and angry at those who criticize them. She’s also mad about the “liberal media,” who she believes are treating her unfairly.

Her chief of staff, Stephanie Grisham, dismissed the tape as a “clear attempt at relevance” by Wolkoff, who also recently published a book about her relationship with Melania. “The timing of this continues to be suspect — as does this never-ending exercise in self-pity and narcissism,” Grisham said.

But the tape offers a clearer picture into Trump’s inner life than the American people have ever gotten. And in that picture, she’s not an innocent damsel in distress. Instead, she’s dismissive of the lives and rights of immigrant children, and resentful and angry at anyone who would criticize her for it. Ultimately, she’s a lot like her husband.

Americans have always projected what they want to see onto Melania

Melania Trump has always been something of a blank slate. She makes few public statements, and when she does, she’s often terse and hard to read — a polar opposite of her husband’s often logorrheic bluster. During one of her first big moments on the national stage, her speech at the 2016 Republican National Convention, she actually used someone else’s words rather than her own — Michelle Obama’s, to be exact, an instance of plagiarism for which she and the Trump campaign were heavily criticized. But that plagiarism also prevented Americans from knowing much about the real Melania.

Americans have had to read into her clothes — a pussy-bow blouse after her husband was caught on tape bragging about his ability to grab women “by the pussy”; a suffragist whitesuit at the 2018 State of the Union; a jacket reading “I really don’t care, do u?” while visiting a child detention center. Or they’ve had to speculate based on her facial expressions, like that famous frown at the inauguration, or her body language, like the time she appeared to swat her husband’s hand away during a 2017 visit to Israel.

Often, that speculation has centered on Melania’s possible hatred for her husband. At the inauguration, Jezebel’s Ashley Feinberg joked, “we all had a very nice and good time welcoming in our new president, Donald J. Trump. But of all the many, many happy people in attendance, no one was happier to be there than his loving wife who certainly does not hate him, Melania Knauss Trump.”

But some went beyond the idea that Melania harbored distaste for her husband, to joke (or maybe not joke) that she was actually begging for release. As Garber reported, signs at the 2017 Women’s March included messages like “MELANIA: BLINK TWICE IF YOU NEED HELP.”

Such messages had a darker undertone given that more than 20 women have reported sexual misconduct by the president, and that his ex-wife Ivana Trump once said that he raped her (she later said she did not mean this in a “criminal sense”). This history has led to questions about whether Trump has been abusive to Melania.

But there’s also been an element of wish fulfillment to liberals’ “free Melania” memes — a hope, perhaps, that the person in some ways closest to Trump might actually think he sucks. The idea of a secret sleeper agent within the White House, signaling to outsiders with pussy bows and cryptic expressions, has been appealing to those looking for any reason to be hopeful during the Trump administration.

There’s also more than a little sexism in the idea that Melania Trump must be a victim, as Vox’s Alex Abad-Santos has noted. It assumes that she lacks agency in her relationship and her position as first lady, and also, perhaps, that a woman simply couldn’t hold the same views President Trump does.

As it turns out, the latter isn’t true.

The tape is a rare opportunity to hear Melania speak for herself

On the tape, recorded in summer 2018 when the Trump administration’s policy of family separation was causing widespread outrage, Melania Trump argues that actually, the conditions for migrant children in detention at the border are quite good.

“The kids, they say, ‘Wow I will have my own bed? I will sleep on the bed? I will have a cabinet for my clothes?’ It’s so sad to hear it, but they didn’t have that in their own countries, they sleep on the floor,” she tells Wolkoff on the tape.

She also claims that mothers and children lie about being persecuted in Mexico so they can get asylum in the US: “A lot of like moms and kids they are teached how to do it. They go over and they say, like, ‘Oh, we will be killed by a gang member, we will be, you know, it’s so dangerous.’”

“They could easily stay in Mexico,” she goes on, “but they don’t want to stay in Mexico because Mexico doesn’t take care of them the same as America does.”

On the tape, Melania also appears to reveal that her infamous “I really don’t care” jacket, worn on a visit to a detention center in June 2018, was an effort to troll left-wingers. “I’m driving liberals crazy,” she says, “and they deserve it.” (She had previously stated publiclythat the jacket was meant as a message “for the left-wing media who are criticizing me.”)

Melania also complains on the tape about being asked about family separation while she was trying to plan the White House Christmas decorations, which she also did not care for (“who gives a fuck about the Christmas stuff and decorations?”). She also complains that she’s being unfairly treated in the media, claiming that she tried to reunite a migrant child and mother but “they would not do the story because they’re against us because they are liberal media.”

Sound familiar?

There are moments on the tape where Melania appears to resent being lumped together with her husband. “They say I’m complicit, I’m the same like him, I support him,” she says at one point. “I don’t say enough, I don’t do enough.”

But overall, the sense is of a first lady who is on board with her husband’s policy and believes in the ideas behind it: that immigrants are fraudulently coming to the US to take advantage of its supposedly generous welfare state, that they must be stopped, and that children at the border are actually lucky to be held in the comparatively palatial conditions of a US detention center.

Moreover, the Melania captured on the tape is someone who actually has a lot in common with her husband — someone who feels aggrieved and mistreated by a “liberal media” that never acknowledges her accomplishments. As she says, “they’re against us.” It’s the same message Trump has repeated throughout his presidency, as when he claimed in 2017 that “no politician in history, and I say this with great surety, has been treated worse or more unfairly” by the media.

By not saying very much, Melania Trump has allowed liberals to project their own fantasies, and sometimes their own biases, onto her. But now that she’s been caught speaking in an unguarded moment, the reality appears far more prosaic: The woman who married Donald Trump, campaigned with him, lives in the White House with him, and has never once publicly spoken out against him despite probably knowing more about him than anyone else, is actually a lot like Donald Trump. Imagine that.

Western Hegemony's Collapse

Biden – A Catalyst To Accelerate US Decline?

October 3, 2020 Algora Blog Leave a comment

Authored by Egon von Greyerz via GoldSwitzerland.com,

The Chinese understand the long game and they have infinite patience. They have always known that they never needed to attack the US, financially or militarily.

Because China has invariably understood that the US would self-destruct.

POLITICS AND PRINCES DON’T MIX

The Duchess of Sussex who has dragged her poor husband, Prince Harry, into the US election has declared that this will be the most important election in history. She will most probably be right but for the wrong reason. Meghan Markle believes a Biden victory is the only way that the US can be saved, primarily because she can’t stand Trump (which is reciprocal). It probably doesn’t matter who wins the election when is comes to stopping the crash of the US economy and currency.

But what is guaranteed is that Biden’s policies will bankrupt America much faster than Trump’s. The profligate democrats will forgive trillions of debt, increase spending and reduce taxes for the masses.

The Chinese have waited patiently for this moment. They forecast the collapse of the “capitalist monetary system with the dollar as its prop” already half a century ago and how right they have been.

THE DAYS OF THE DOLLAR ARE COUNTED

A 98% fall in real terms – against gold – and a 78% fall against the Swiss franc tells the world that the days of the dollar are counted. So will we see the US bald eagle crash to the ground and a phoenix in the form of a new world currency emerge like in the 1988 Economist article?

Well, the dollar crash is guaranteed and a Biden victory will accelerate the move. But there is unlikely to be a new world currency in the near term. As the dollar falls and with it the US economy, China will gradually emerge as the next dominant economy and super power. But this will take time. Before that we will have chaos in the global financial system, economic collapse in many countries, political upheaval, riots, and wars.

BIDEN – A CATALYST FOR ACCELERATED US DECLINE

So is a Biden victory going to cause all this. No not solely. But just as the coronavirus sped up that fall of the US and world economy, Biden will be the catalyst for an accelerated decline of the US. Both events would have happened anyway but probably not as dramatically as with these two powerful catalysts – CV and Biden.

The coming US election will have bitter consequences for the US and the world whoever wins. It is likely to be aggressively fought not just before November 4th but more so after the result is declared. There will be a plethora of forums where the election result will be disputed and fought like in the courts, the media, the streets, in families and in politics of course.

CHURCHILL – WE SHALL FIGHT ON THE BEACHES

The fighting everywhere reminds me of Winston Churchill’s speech in parliament in June 1940 after the evacuation of Dunkirk:

“…… we shall fight on the beaches, we shall fight on the landing grounds, we shall fight in the fields and in the streets, we shall fight in the hills;…”

Churchill’s speech was obviously to unify and prepare the nation for the major war effort ahead. But the consequence of the US election will be extremely divisive and damaging for the US whoever wins.

So 2021 is not just likely to be the start of a severe and long lasting economic downturn or collapse for the US but also an extended period of extreme political and social disharmony and discontent.

REMINISCING OVER BETTER TIMES

I have just entered my 52nd year of working life. But I can clearly remember life before that as a young boy in Sweden, back in the 1950s. This was a time when the family was the kernel of society and there was total respect for law and order. Mothers were at home and looked after the children. The wages of the father were sufficient to provide for the family. Very few people had debt and obviously there were no credit cards. Most things were paid for in cash. The police was unarmed and there was total respect for their authority. Sweden then was a very homogenous society with few immigrants. There was very little crime and virtually no violent crime. I remember visiting churches in the countryside and the doors were open and church silver would stand on shelves totally unprotected. Young children could move around freely without parental protection. Very few people went on holiday abroad or had cars or televisions. The economy was strong, based on real money with little debt. The quality of life was far superior to today. I am not talking about material things but people were much happier with less stress and strong respect for your fellow humans. There was integrity with strong moral and ethical values.

THE END OF AN ERA

I do realise that all of this could sound like a mature man nostalgically reminiscing and embellishing the past. There might be some truth in that criticism but I am quite convinced that the era we are now in is the end of a cycle when it comes to quality of life, values, crime, honesty, integrity. The current debt based economy with fake money and values is clearly creating a very unhappy society and many discontented people.

This is why the current cycle needs to soon come to an end. The world needs a proper forest fire which destroys the debt and all the bubble assets financed by printed money and worthless debt. The coming fall of the global debt edifice will be a relief for the world but it will obviously involve a long period of suffering. But only after this fall can the world start a new cycle with green shoots based on a sound monetary and financial system which is based on real values, both moral and material.

HALF A CENTURY OF DRAMATIC CHANGES IN THE WORLD

Coming back to my half a century of working life, there have also been some dramatic changes in the world. The table below shows what has happened to debt, dollar, GDP & stocks during my 51 years’ involvement with financial markets, between 1969 and 2020. US federal debt is up 75x and GDP is only up 20x. There is no clearer evidence that the US economy is running on empty and that more and more debt is required to produce an increase in GDP in nominal terms.

DEBT DEFAULT COMING

US debt to GDP has now reached 135% against 35% in 1969 and growing. These debt levels are unsustainable for future growth. With falling tax revenues and rising expenditure, there is zero chance that this debt will ever be reduced. And when interest rates go up, the US will not even be able to service the debt. So a debt default is very likely in the next few years.

Whilst US GDP is up 20x since 1969, China’s GDP is up 175x. There can be little doubt that China will be the next global economic superpower. Only a revolution in China would stop that.

Gold is up 53x since 1969 and the Dow 34x. If dividends after tax are included and reinvested, the rise of the Dow and gold would be fairly equal.

I started the article with China’s view, in 1971, on the future of the dollar and the US economy. The debt explosion and slow GDP growth are clear evidence of how right China was.

But the dollar’s 98% fall against gold and 79% against the Swiss franc confirms China’s 1971 prediction:

“…..the seriousness of the US economic crisis and the decay and decline of the entire capitalist system.”

“…..mark the collapse of capitalist monetary system with the US dollar as its prop…. Nixon’s new economic policy cannot extricate the US from financial and economic crisis.”

So there we have it. The wise Chinese saw half a century ago what would happen to the US, the dollar and the capitalist system and they knew already then that they would be the main beneficiaries.

But destruction of currencies and fall of empires is not new in history. Von Mises stated this phenomenon very eloquently:

2021 THE CHINESE YEAR OF THE GOLDEN OX

2021 will be the Chinese year of the Metal or Golden Ox. It will also be the 50th anniversary of Nixon’s fatal decision to end the gold backing of the dollar.

As the golden ox rises in China, the US bald eagle will crash to the ground as a symbol of the crashing dollar and US economy.

2021 is likely to be an ominous year in the global economy. We may not see the “final and total catastrophe of the currency system” completed already then but we are likely to see the start of the final dollar collapse and a major surge in gold and silver.

Anyone holding depreciating dollars and other currencies will soon regret not holding real money in the form of physical gold and silver.

Western Hegemony's Collapse

Russia’s foreign policy enters new China-aligned phase

October 2, 2020 Algora Blog Leave a comment

by M.K. Bhadrakumar
Former Indian Diplomat

Moscow is redefining its relations with Germany, Europe and the wider world in sight of its alliance with Beijing

The following is the fourth installment of an extended report on one of the most important geopolitical developments of the 21st century: the increasingly comprehensive alliance between China and Russia and its implications for Eurasian and regional powers across the planet. To follow the series, click here.

It comes as no surprise that the joint statement issued in Moscow on September 11 reserves its most powerful passage on the raison d’être of the Russian-Chinese alliance in the emerging international situation by recalling their historic struggle against Nazism and Japanese imperialism:

“The Soviet Union and China were hit the hardest by Nazism and militarism and bore the brunt of the burden of resisting the aggressors. At the price of enormous human losses, they stopped, routed and destroyed the occupiers, displaying unparalleled self-sacrifice and patriotism in this struggle.

“The new generations are deeply indebted to those who gave up their lives for the sake of freedom and independence, and the triumph of good, justice and humanity. Entering a new era, the current Russia-China relations of comprehensive partnership and strategic cooperation have a powerful, positive feature of true comradeship developed on the battlefields of World War II.

“It is a sacred duty of all humanity to preserve the historical truth about that war. Russia and China will jointly counter all attempts to falsify history, glorify the Nazis, militarists and their accomplices, and tarnish the victors. Our countries will not allow anyone to revise the results of World War II.”

Indeed, the historical analogy carries profound echoes in the current situation in Europe and the Asia-Pacific region. The German government is openly accusing the Russian state of poisoning opposition politician Alexei Navalny and is threatening Russia with sanctions.

Germany’s language toward Russia has dramatically changed. It is no more restrained by any sense of guilt that the blood of 25 million Soviet citizens is on its hands. It is talking as if it is already planning the next military campaign against Moscow.

Above all, as happened once before in the 1930s, other Western powers, in their obsession with containing Russia and China, are not only turning a blind eye to the growing militarism in Germany and Japan but are surreptitiously encouraging it.

Russian diplomacy, which has a glorious tradition in modern history, does not make its moves accidentally or impulsively. The historical consciousness is intense. Memories from the past and the present lie deeply embedded, hopelessly entangled in the collective consciousness.

A little-noticed fact is that the Russian-Chinese statement of September 11 was released on the eve of the 30th anniversary of The Treaty on the Final Settlement with Respect to Germany.

The so-called “2+4 Treaty,” signed in Moscow on September 12, 1990, between the Federal Republic of Germany and the German Democratic Republic – with the erstwhile World War II llies the USSR, the US, Britain and France as co-signatories – formalized the unification of Germany, which had been a divided nation through the previous four and a half decades.

No doubt, the joint statement issued in Moscow on September 11 this year heralds a new phase in Russian foreign policy in the post-Cold War era, especially with regard to Russo-German relations and Russia’s relations with Europe and the world order in general.

The salience that draws attention here is that Moscow decided to embark on this new journey holding China’s hand. This is of great importance for European, Eurasian and international politics as a whole.

Two days after the joint statement was issued, on September 13, Russian Foreign Minister Sergey Lavrov appeared on the prestigious Moscow. Kremlin. Putin. program of the state-run Rossiya-1 TV channel, where he was asked about the specter of Western sanctions once again haunting Russia in the shadows of the “Navalny case” and Nord Stream 2 gas pipeline project in particular, with Germany in a lead role.

Lavrov summed up Russia’s deep disenchantment with its European partners in the following words:

“In principle, the geopolitical response over these years consisted of recognizing that our Western partners were unreliable, including, unfortunately, members of the European Union. We had many far-reaching plans, and there are documents setting forth the path to developing relations with the EU in the energy sector and high technology, and stepping up economic cooperation in general.

“We share a single geopolitical space. Considering our shared geography, logistics, and infrastructure across the Eurasian continent, we benefit from a substantial comparative advantage.

“It would certainly be a grave mistake for us and the European Union, as well as other countries in this space, including the SCO, the EAEU, and ASEAN, which is also nearby, not to use our comparative geopolitical and geo-economic advantages in an increasingly competitive world. Unfortunately, the European Union sacrificed its geo-economic and strategic interests for the sake of its momentary desire to match the United States in what they refer to as ‘punishing Russia.’

“We [Russia] have grown used to this. We now understand that we need a safety net in all our future plans related to reviving the full partnership with the European Union. This means that we need to proceed in a way that if the EU sticks to its negative, destructive positions, we would not depend on its whims and could provide for our development on our own while working with those who are ready to cooperate with us in an equal and mutually respectful manner.”

The extent of the bitterness in the Russian mind at this point in time can be put in perspective only with a recap of history devolving upon the unification of Germany in 1990, the hopes that the momentous event had raised in regard of Russo-German relations (which has a troubled history, to say the least) and what subsequently turned out during the three decades thereafter.

It is a complicated story of amnesia and plain political chicanery on the part of the West. With the benefit of the “declassified” archival materials that are available today – especially the indispensable diary of Soviet politician Anatoly Chernyaev, aide to Mikhail Gorbachev, relating to the year 1990 – it is possible to reconstruct Russia’s tortuous relations with the West in the post-Cold War era.

This article was produced in partnership by Indian Punchline and Globetrotter, a project of the Independent Media Institute, which provided it to Asia Times. It is the fourth article in a series. Part 5 will examine Germany’s rise in Europe.

Western Hegemony's Collapse

China’s 21st Century Technology

October 2, 2020 Algora Blog Leave a comment

Instead of fireworks, 2000 drones light up Shenzhen sky to celebrate China’s National Day on Oct 1st marking 71st anniversary of Mao announcing founding of PRC on Tiananmen Square. See what China is up to. A choreography of 2000 drones. And the United States sends up balloons in response.

Western Hegemony's Collapse

China Deploys Sun Tzu To Prevail In The Chip War

October 1, 2020 Algora Blog Leave a comment

Authored by Pepe Escobar, via posted at The Asia Times

Beijing has a plan to become the indispensable tech core of East Asia, linking ASEAN, Northeast Asia and even both Koreas…

Let’s cut to the chase: with or without a sanction juggernaut, China simply won’t be expelled from the global semiconductor market.

The real amount of chip supply Huawei has in stock for their smart phone business may remain an open question.

But the most important point is that in the next few years – remember Made in China 2025 remains in effect – the Chinese will be manufacturing the necessary equipment to produce 5 nm chips of equivalent or even better quality than what’s coming from Taiwan, South Korea and Japan.

Conversations with IT experts from Russia, ASEAN and Huawei reveal the basic contours of the road map ahead.

They explain that what could be described as a limitation of quantum physics is preventing a steady move from 5nm to 3nm chips. This means that the next breakthroughs may come from other semiconductor materials and techniques. So China, in this aspect, is practically at the same level of research as Taiwan, South Korea and Japan.

Additionally, there is no knowledge gap – or a communication problem – between Chinese and Taiwanese engineers. And the predominant modus operandi remains the revolving door.

China’s breakthroughs involve a crucial switch from silicon to carbon. Chinese research is totally invested in it, and is nearly ready to transpose their lab work into industrial production.

In parallel, the Chinese are updating the US-privileged photo-lithography procedure to get nanometer chips to a new, non-photo lithography procedure capable of producing smaller and cheaper chips.

As much as Chinese companies, moving forward, will be buying every possible stage of chip manufacturing business in sight, whatever the cost, this will proceed in parallel to top US semiconductor firms like Qualcomm going no holds barred to skirt sanctions and continue to supply chips to Huawei. That’s already the case with Intel and AMD.

Huawei’s game

Huawei for its part is investing deeply in a very close R&D relationship with Russia, recruiting some of their best tech talent, notoriously strong in math, physics and rigorous design work. An example is Huawei’s purchasing of Russian face recognition company Vocord in 2019.

Some of the best tech brainpower in South Korea happens to be Russian.

Huawei has also established a “5G ecosystem innovation center” in Thailand – the first of its type in ASEAN.

In the medium term, Huawei’s strategy for their top notch smart phones – which use 7nm chips – will be to hand over the business to other Chinese players such as Xiaomi, OPPO and VIVO, collect patent fees, and wait for the inevitable Chinese chip breakthrough while keeping production of 5G equipment, for which it has sufficient chips.

Huawei’s Harmony OS is considered by these IT experts to be a more efficient system than Android. And it runs on less demanding chips.

With the expansion of 5G, most of the work on smart phones can be handled by cloud servers. By the end of 2020, at least 300 cities across China will be covered by 5G.

Huawei will be concentrating on producing desktop computers and digital displays. These desktops will come with a Chinese processor, the Kunpeng 920, and run by a Chinese Unified Operating System (UOS).

UOS is a Linux system developed by China’s Union Tech and commissioned by Beijing to – here’s the clincher – replace Microsoft Windows. These desktops will not be sold to the general public: they will be equipping China’s provincial and national administrations.

It’s no wonder a steady rumor in IT circles is that the best bet ahead would be to put money in a Chinese Chip Investment Fund – expecting to collect big time when major tech breakthroughs happen before 2025.

The East Asian tech core

Whatever the trials and tribulations of the chip war, the inescapable trend ahead is China positioned as the indispensable tech core of East Asia – encompassing ASEAN, Northeast Asia, and Eastern Siberia linked to both Koreas.

This is the hard node of the incoming Regional Comprehensive Economic Partnership (RCEP) – the biggest free trade deal in the world – which is bound to be signed by 2021.

India has opted for self-exclusion from RCEP – which in geoeconomic terms condemns it to a peripheral role as an economic power. Compare it to South Korea, which is boosting its integration with ASEAN and Northeast Asia.

East Asia’s tech core will be at the heart of a global production chain integrating the very best in science and technology conception and the very best production specialists scattered around all nodes of the global supply chain.

That’s a natural consequence, among other factors, of East Asia introducing patent applications at a multiple of 3.46 times the US.

And that brings to the very special Samsung case. Samsung is increasing its R&D drive to in fact bypass US-branded technologies as soon as possible.

When South Korea’s President Moon turbo-charges his appeal for the official end of the Korean War that should be seen in tandem with Samsung eventually reaching a wide-ranging tech cooperation deal with Huawei.

This pincer movement graphically spells out South Korean independence from the American bear hug.

It does not escape the Beijing leadership’s attention that the emergence of South Korea as a stronger and stronger geopolitical and geoeconomic actor in East Asia must be inextricably linked to access by China to the next generation of chips.

So a crucial geopolitical and geoeconomic process to watch in the next few years is how Beijing progressively attracts Seoul to its area of influence as a sort of high-tech tributary power while banking on the future of what would be a Korea Federation.

This is something that has been discussed every year, at the highest level, at the Eastern Economic Forum in Vladivostok.

Wang Huiyao of the Beijing-based Center for China and Globalization notes how China and South Korea already have a free trade agreement and “will start the second phase of negotiations to establish a new mechanism for China-South Korea economic cooperation, which is developing fast.”

The next – immensely difficult – step will be to set up a China-Japan free trade mechanism. And then a closer, interconnected China-Japan-South Korea mechanism. RCEP is just the first step. It will be a long sail all the way to 2049. But everyone knows which way the wind is blowin’.

Algora Blog

Monthly Archives: October 2020

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