TIME China

China Struggles to Stay Rosy as Confidence and Markets Plummet

The Aug. 24 stock-market disarray was dubbed Black Monday

Monday was a really bad day for global stocks, and the Chinese state-run media duly covered the volatility. But the official Chinese press was more reticent in its coverage of China’s own stock-market rout, which triggered the worldwide sell-off.

On Monday, the Shanghai Composite Index dropped 8.5%, the worst decline since 2007. Tuesday saw a 7.6% fall. The latest drop in a summer of sell-offs means that the once buoyant Chinese bourse has shed more than $4 trillion since peaking in June — either a much-needed correction of an overheated market that had more than doubled in a year or a symbol of China’s more troubling economic slowdown, or quite likely both.

Even as punters counted their losses and one group even briefly kidnapped the head of a metals exchange in Shanghai, Monday evening’s prime-time newscast on CCTV, the state broadcaster, totally ignored the nation’s market woes. On Tuesday, as the Shanghai exchange opened 6.4% lower, the People’s Daily, the mouthpiece of the Chinese Communist Party, published a dispatch from Shanghai that reported not on the market fallout but instead on the installation of 12,000 sensors on manholes in one city district. The manholes, whose safety is apparently looked after by 19 separate agencies, will be monitored by satellite.

Control — even on manholes — is something with which China’s ruling Communist Party is clearly enamored. Chinese President Xi Jinping has consolidated power surprisingly quickly since taking over in late 2012 and will use the occasion of the 70th anniversary of Japan’s defeat in China to project his authority. A Sept. 3 military parade is planned, with world leaders (and some former ones, like Tony Blair) gathered to check out China’s latest in martial hardware.

But the past few weeks haven’t exactly gone according to the party’s plan. Earlier this month, a chemical explosion in Tianjin, which killed at least 129 people, coupled with official media obfuscation, dented confidence in the party’s leadership and commitment to transparency. Earlier in the summer, the government’s unprecedented stock-market intervention only served to spook investors, leading to further declines. This past weekend, the government announced that Chinese pension funds would be allowed to invest one-third of their capital in the stock market — yet another move to try to prop up the nation’s bourses. The move was followed by Black Monday, as the Aug. 24 stock-market disarray has been dubbed. “The government still thinks it can control everything,” says Mose Ma, who works for a venture-capital firm in Beijing. “But this is the stock market, and markets fluctuate. It abides by its own logic and rules.”

Most Chinese don’t trade in stocks and foreigners only own a tiny percentage of China-listed shares. Still, the market rout, along with the Chinese government’s bungled attempts to bring stability to the market, has raised larger questions about the health of the world’s second largest economy — and the competence of its stewards. After decades of double-digit growth, China’s economy is slowing. With the nation cutting back on commodities and imports, countries that depend on Chinese consumption are bracing for impact. And for a generation of Chinese accustomed to torrid growth, the new normal is frightening to behold.

Griffin Gao, a project manager for a financial-leasing company in Shenzhen, says he escaped Black Monday only because the stocks he holds are still frozen because of an earlier suspension in trading due to steep losses. “I’m not very confident,” he says, noting that most of his customers are from the manufacturing industry and that many have closed shop in China and are now building factories in Southeast Asia. “China’s infrastructure-construction boom is over.”

In the meantime, China’s official press is focusing on preparations for the upcoming military parade. Many local papers reserved prime front-page space to articles on shock and awe, including live-fire naval drills scheduled to take place off the eastern coast of China over the next three months. Diversionary tactics are just as useful for propaganda artists as they are for military strategists.

— With reporting by Gu Yongqiang / Beijing

TIME Korean Peninsula

Beijing’s Absence Conspicuous as the Two Koreas Engage in Tense Negotiations

“Kim’s recent actions are very clearly designed to drive a wedge between Seoul and Beijing”

As the two Koreas, which have traded artillery fire and very loud K-pop over their border in recent days, continue slogging through talks to de-escalate tensions, one traditional actor is missing: China. Beijing used to hover noisily around such talks. But as the negotiations, which are now routinely being described as “marathon,” drag on into their third day, China — North Korea’s historic brother-in-arms and South Korea’s largest trading partner — has resorted to quietly sniping on the sidelines.

“As North Korea’s only ally and South Korea’s new best friend in the region, China has a natural role,” says John Delury, an associate professor at Yonsei University in Seoul and an avid watcher of both China and the Koreas. “Beijing has been noticeably, almost painfully, absent from the escalating tension on the Korean peninsula in the last couple weeks. Other than anodyne calls for everybody to exercise self-restraint, Beijing has had nothing to say or do to improve the situation.”

Despite a truce in 1953, the two Koreas are still technically at war, and the latest frictions were catalyzed earlier this month by the maiming of South Korean troops in the demilitarized zone (DMZ) border area by land mines presumed to have been laid by the North Koreans. As talks ground on, South Korean President Park Geun-hye demanded an apology for the attack — for which the North Koreans deny responsibility — even as the South kept up its psychological warfare against its cloistered neighbor by broadcasting news and pop music from loudspeakers on the border. North Korea has responded to the aural assault by firing over the border, prompting South Korea to respond with its artillery. The South Korean Defense Ministry says that North Korean troops are amassing at the border and that North Korean submarines have left their normal base.

The relationship between China and North Korea used to be famously close, in Mao Zedong’s words, as “lips and teeth.” China sent waves of its troops to fight on the North Korean side during the Korean War; Mao’s own son died during the conflict. One of the members of China’s current Standing Committee, the country’s seven-man leadership clique, was educated at Kim Il Sung University in Pyongyang, where he studied — as hard as it may be to believe — economics.

But China-DPRK relations, already cooling during the rule of Kim Jong Il, have turned even frostier under the leadership of his son, Kim Jong Un. Chinese President Xi Jinping, himself in office since late 2012, has made it clear he believes North Korea should abandon nuclear weapons — a position not appreciated by Pyongyang. One Chinese expert on North Korea — who wishes to remain anonymous because he was not authorized to speak to the foreign media — says that he has heard that Chinese leaders have tried in recent months to arrange high-level meetings in Pyongyang but have been rebuffed. “The Chinese do not like to kowtow to a strange man,” he says, referring to Kim Jong Un. “We are losing our patience.”

Earlier this year in Dandong, a Chinese border town with North Korea, businessmen complained about how trade had dried up, ever since Kim’s uncle Jang Sung Taek, who was a leading proponent of economic reform, was executed in 2013. A fancy new bridge designed to facilitate economic activity between the two countries — paid for, naturally, by China — appeared empty and forlorn. Rather than tales of business deals, locals talked about the latest North Korean soldier who had slipped across the border and robbed Chinese at gunpoint. “Business is getting worse and worse,” said one Dandong businessman who has been to Pyongyang dozens of times. “No one knows when it’s going to get better.”

Meanwhile, on Aug. 24, the Global Times, a Chinese Communist Party–affiliated daily, published an editorial warning that forces on the Korean peninsula might be trying to “strip China of its strength and geopolitical advantages.”

China, under President Xi, has spent months building up to a blowout military parade scheduled for Sept. 3 in Beijing to mark the 70th anniversary of Japan’s defeat in World War II. South Korean President Park, representing a country that was brutally colonized by Japan, is expected to be in Beijing at that time, although it’s not clear whether she will attend the military festivities. There is, however, no word on the planned whereabouts of the North Korean leader. “Kim’s recent actions are very clearly designed to drive a wedge between Seoul and Beijing,” says Zhu Feng, a foreign policy expert at Nanjing University. “There is a lot of disappointment and dissatisfaction on both sides [in China and North Korea].”

The Global Times op-ed speculated that the latest Korean hostilities, some of the worst since the North sank a South Korean navy ship in 2010, could be aimed at forcing Park to cancel her trip to Beijing, at a time when China hopes to show off new military hardware and flex its geopolitical muscle. “Beijing will not be led by the nose,” went the editorial, “and there is no force on the [Korean] Peninsula that could easily maneuver China.”

For all its expanding military arsenal and economic influence abroad, China’s diplomatic efforts have been less successful. “The whole situation [of China’s absence in the latest Korea talks] speaks to the limits of Beijing’s diplomatic clout, even with its neighbors, despite all the talk of China’s rise,” says Yonsei University’s Delury.

Instead, he says, “in a situation like this of real crisis, the United States is the key third party as far as both Koreas are concerned. Indeed, the North Korean Foreign Ministry went so far as to obliquely chide Beijing for telling them to have restraint, in the face of large-scale military exercises by South Korea and the U.S. I would not go so far as to say this is any kind of tipping point in China–North Korea relations, but rather, it underlines how weak the ties are between Xi Jinping and Kim Jong Un.”

TIME South Korea

North and South Korea Trade Fire on Their Border

South Korea's surveillance equipment detected a single North Korea shell

(SEOUL, South Korea) — South Korea’s military fired dozens of shells Thursday at rival North Korea after the North lobbed a single artillery round at a South Korean border town, the South’s Defense Ministry said.

The ministry said in a statement that its artillery landed at the place where North Korea had fired its shell. There were no other immediate details from the military, but it appeared that North Korea did not respond to South Korea’s returned fire.

About 80 residents in the South Korean town where the shell fell, Yeoncheon, were evacuated to underground bunkers, and authorities urged other residents to evacuate, a Yeoncheon official said, requesting anonymity because he wasn’t authorized to speak to the media. He said there were no reports of injuries or damage in Yeoncheon.

In the nearby border city of Paju, residents were asked to stay home, officials said.

North Korea had previously threatened to attack South Korean loudspeakers that have been broadcasting, for the first time in 11 years, anti-Pyongyang propaganda messages across their shared border. Pyongyang also restarted its own loudspeakers aimed at the South.

The cross-border propaganda warfare followed accusations from Seoul that Pyongyang had planted land mines on the South Korean side of the Demilitarized Zone that maimed two South Korean soldiers last week.

Authoritarian North Korea is extremely sensitive to any criticism of the government run by leader Kim Jong Un, whose family has ruled since it was founded in 1948.

North Korea’s army said previously in a statement that the broadcasts were a declaration of war and that if they were not immediately stopped “an all-out military action of justice” would ensue.

South Korean President Park Geun-hye urged Pyongyang to “wake up” from the delusion that it could maintain its government with provocation and threats.

Pyongyang’s powerful National Defense Commission had claimed that Seoul fabricated the evidence on the land mines and demanded video proof. The land mine explosions resulted in one soldier losing both legs and another soldier one leg.

TIME China

The Shanghai Index Drops 4%, Further Dragging Down Asian Markets

South Korea Financial Markets
Ahn Young-joon—AP A currency trader watches a monitor screen at the foreign exchange dealing room of the Korea Exchange Bank headquarters in Seoul, South Korea, Aug. 19, 2015

"Market fear is growing"

(SEOUL, South Korea) — China’s main Shanghai stock index slumped more than 4% on Wednesday, leading Asian stock markets lower a day after a sharp fall rattled investors around the world.

KEEPING SCORE: The Shanghai Composite Index tumbled 4.4% to 3,581.26 after plunging as much as 5%. Other Asian markets widened losses. Japan’s Nikkei 225 slipped 0.5% to 20,458.50 and South Korea’s Kospi fell 1.6% to 1,925.17. Hong Kong’s Hang Seng index was down 1.4% to 23,145.17. But Australia’s S&P/ASX 200 rose 1% to 5,357.80. Stocks in Taiwan and the Philippines were also lower but markets in Singapore and New Zealand were stable.

CHINA FEAR: China’s main Shanghai stock index staged a sharp fall for a second day in a row. The plunge comes after a short period of stability following a series of surprise devaluations of the Chinese yuan last week, which sparked jitters in the global markets. Analysts said investors are selling Chinese stocks fearing that the Chinese yuan may be devalued further. The devaluation of the Chinese yuan is expected to aid exports for the world’s second-largest economy, but it also underlined concerns about China’s economic outlook.

ANALYST’S TAKE: “Market fear is growing. Uncertainty is creeping into markets, as well as the economies on both sides of the Pacific, with China driving the fear,” said Evan Lucas, a market strategist at IG. “The market’s assessment of Chinese growth is dwindling.”

WALL STREET: The U.S. stock market shuffled to a slight loss in a lazy day of summer trading Tuesday. The Standard & Poor’s 500 index slipped 5.52 points, or 0.3%, to close at 2,096.92. The benchmark for most mutual funds has lost just 7 points this month. The Dow Jones industrial average lost 33.84 points, or 0.2%, to end at 17,511.34, and the Nasdaq composite sank 33.35 points, or 0.6%, to 5,059.35.

OIL: Benchmark U.S. crude fell 17 cent at $42.45 per barrel in electronic trading on the New York Mercantile Exchange. The contract closed up 75 cents at $42.62 Monday. Brent crude, a benchmark for international oils used by many U.S. refineries, dipped 20 cents at $48.61 per barrel.

CURRENCIES: The U.S. dollar weakened to 124.300 yen from 124.391 yen while the euro strengthened to $1.104 from $1.103.

TIME trans-pacific partnership

These 5 Facts Explain the Obstacles to the Trans-Pacific Partnership

U.S.-MAUI-TPP-FAILURE
Yin Bogu—Xinhua Press/Corbis Ministers from 12 Pacific countries attend a press conference after the failure of negotiating the Trans-Pacific Partnership agreement in Maui, Hawaii on July 31, 2015.

The major trade deal should still pass, but there are significant sticking points left

The latest round of Trans-Pacific Partnership negotiations ended in Maui last week without an agreement. When all is said and done, the massive, 12-nation trade deal will link 40% of the world’s economy. The potential payoffs are expected to be huge for the countries at the table, but the geopolitics of such a complicated treaty are tricky. Still, while the deal will pass in the end, these five facts explain the last major hurdles to the most significant trade deal of the 21st century.

  1. Pharmaceutical Fight

According to the pharmaceutical companies, development of a new drug typically takes 10 to 15 years. Each success costs around $1.2 billion—including the price of the many failures along the way. A period of exclusivity in the form of patents are the reward for this investment. At issue in TPP negotiations is when cheaper generic forms of new drugs can come to market, or when that exclusivity ends. In the U.S., that timeframe is about 12 years, but most countries involved in negotiations want it to be shorter—eight years or less, though Australia is insisting on five. It makes sense that the U.S. wants the longest period of exclusivity; of the ten largest pharmaceutical companies in the world, six are based in the US. The other four? In Europe, which is not a party to this deal.

(PhRMA, New York Times, World Health Organization)

2. Got Milk?

Dairy accounts for more than 25 percent of New Zealand’s exports (and 7 percent of its overall economy), so the country is driving for greater market access for its dairy products, with help from Australia. It might come as a surprise that cows are so contentious, but Canada is having none of it. Their government is facing a tight election this fall, and dairy farmers hold disproportionate clout in Ottawa. How much clout? Enough that dairy imports in Canada currently face a 248.95 percent tariff. If you figure that each of the 12 countries involved in TPP negotiations have their own domestic politics to worry about—more on this below—you can start to understand why trade negotiations hit so many road blocks.

(Wall Street Journal, New York Times, World Trade Organization)

3. Car Controversy

Considerable media attention has been paid to the auto details of the deal. That’s because they prominently feature the U.S. and Japan, the two most significant members of the TPP trade bloc. Japan’s auto sector is the most closed-off of all industrialized countries, ranking 30 out of 30 across all OECD nations. It’s import penetration rate in 2012 was 5.9%, compared to an OECD average of 58% and a U.S. import penetration rate of 47.9%. Tokyo has made it quite difficult for foreign countries to sell in Japan by throwing up “nontariff barriers,” or indirect costs. Washington also has long-standing protections on its domestic auto industry. The U.S. currently has a 2.5 percent import tariff on passenger cars and parts and a 25 percent tax on light trucks. Automotives in general enjoy a high level of protection across industrialized countries, but this will start to change with the passage of TPP.

(American Auto Council, Institute for International Economics, U.S. Customs and Border Protection)

4. The Trouble with Textiles

Textiles, the poster child of globalization, have become ensnared in the deal. Only clothing that is wholly sourced and assembled within TPP countries will qualify for duty-free sales. This poses particular problems for Vietnam, currently the second-largest exporter of apparel and footwear to the U.S., with more than $13 billion in sales last year. In order to manufacture all those items, however, Vietnam had to buy $4.7 billion worth of fabric from China, about half of its total annual imports. By itself, Vietnam is only able to produce a fifth of the fabric that it needs to sell on world markets. Companies in countries like Vietnam have spent decades building up diversified and extensive supply chains. The TPP may well force some shifts. But the payoffs will be huge—American taxes on Vietnamese textile imports would fall from as high as 32 percent down to zero. In fact, of all the TPP countries, Vietnam is projected to be the biggest winner relative to the size of its economy, with an expected 10 percent boost if TPP goes into effect.

(Wall Street Journal, Forbes, Brookings Institution)

5. The Red Herring: Currency Manipulation

If you’ve been following the “fast-track” debates in the U.S. Congress over the past few months, you might think that currency manipulation was a key sticking point in the TPP negotiations. It isn’t, but it’s a big domestic headache for President Obama. U.S. politicians who oppose the deal attempted to tie it to the more general problem of global currency manipulation, when governments buy or sell foreign currency in an effort to artificially change the value of their currency. It’s easy to see why. The Peterson Institute estimates that the U.S. trade deficit has increased by $200 billion to $500 billion per year as a result of currency interventions. At the same time, the U.S. has lost between 1 million to 5 million jobs. Those are chilling figures.

But tougher currency manipulation regulations were never going to be a part of the TPP. Control over individual currencies and monetary policies are key issues of sovereignty, and countries are understandably wary of signing away that kind of control. Introducing stringent currency manipulation requirements would blow up the entire TPP on the spot. But it will make it tougher to get the deal passed. With anti-TPP Senators in the U.S. threatening to repeal Obama’s “fast-track” authority for TPP if the administration doesn’t address currency manipulation in the final agreement, Obama still has significant domestic battles ahead of him.

(Institute for International Economics)

***

Despite these thorny issues, the deal is a big economic and geopolitical win for all the countries involved. Expect the TPP to be completed by the end of 2015.

TIME women

How Indian Women Are Reclaiming Their Right to Public Space in Delhi

A flash mob performs during a candlelit vigil protesting violence against women as they mark the second anniversary of the deadly gang rape occurred in New Delhi on Dec. 16, 2014.
Saurabh Das—AP A flash mob performs during a candlelit vigil protesting violence against women as they mark the second anniversary of the deadly gang rape occurred in New Delhi on Dec. 16, 2014.

Women are stretching the existing boundaries of cultural rules that attempt to demarcate a woman’s place in an unequal city

Urban redevelopment in India over recent decades has had particular implications for women. While the economic deregulation of the 1990s opened up new possibilities for work, leisure and relationships, it has also led to new stresses. Cities such as New Delhi have become sites for experimentation, autonomy and aspiration for women. Yet against these images of emancipation can be juxtaposed everyday risks and vulnerabilities.

Contradictions abound in a space that values the woman’s body as a liberalized commodity. Women are under constant scrutiny: for what they wear, how they behave, where they are going, who they are with, at what time of day or night. They are under pressure to conform to familiar boundaries of tradition and class. Challenging these boundaries carries the risk of psycho-social dissonance and assault of various kinds.

Perhaps it is no coincidence that the increasing number of women working in the IT industry – or socializing in bars and restaurants – arose in tandem with the rise of cultural nationalist politics in India. Following the rape and murder of young student Jyoti Singh in New Delhi in December 2012, some held that responsibility for violence against women should be attributed to “western lifestyles”. Public debates have also focused on other forms of the “outsider” as a source of fear and hostility on Delhi’s streets, naming rural migrants a “menace in society”.

Bearer of tradition

Clearly, violence against women in Delhi is not a new phenomenon that has arisen out of economic liberalization and urban redevelopment. Yet the intense focus on the death of Jyoti Singh and subsequent cases is indicative of a cultural shift. This young woman, from a provincial background but “aspirational”, represented what “world class” Delhi was supposed to afford women: safe access to public space and a cosmopolitan lifestyle.

Such attacks highlight the contradictions held within the body of the woman. She must embody the progressive city but also remain the bearer of tradition measured by skirt lengths. The presence of young professional women in Delhi’s public spaces may be desirable to legitimate claims of “global city” status. However, in reality, this access is conditional and based on maintaining a cultural order inflected by a moral discourse of respectability.

As writers such as Shilpa Phadke argue, women must manufacture purpose in order to access the city, they cannot just “loiter”. Much of this purpose is non-sexualised conduct such as engaging in family activities or shopping in the new mega-malls.

Women navigate the city “giving back” through aggressive language, evading stares, reclaiming spaces such as rooftops and parks. They seek safety in numbers, knowing when to wrap a scarf more tightly around their head or cover their knees when sitting. These appear to be everyday skills to cope with the city and to manage its discomfort.

While in these actions women may appear fragile, they are in fact asserting a place in Delhi, especially when reassured by anonymity or the protection afforded by socio-economic capacity such as owning a car. This is an understanding of Delhi opposed to the computer-generated images of independent, happy women in new condominiums that look down from advertising hoardings throughout the city.

Clearly, women are not necessarily timid or immobile in the face of Delhi’s aggression. They are taking part in producing space and seeking out pleasure. There are limits, but these limits can be stretched. Roaming may be curtailed for some who have to remain in the line of sight of home, and choices restricted at times by the pressures of respectability. Yet, women have the capacity to generate ambiguity through their presence, disrupting cultural rules that attempt to demarcate a woman’s place in an unequal city.

This article originally appeared on The ConversationThe Conversation

TIME Ideas hosts the world's leading voices, providing commentary and expertise on the most compelling events in news, society, and culture. We welcome outside contributions. To submit a piece, email ideas@time.com.

TIME China

The U.K. Has Refused Chinese Dissident Artist Ai Weiwei a Long-Term Visa

Ai Weiwei - Visit from Germany
Peter Kneffel—picture-alliance/dpa/AP Images Chinese artist Ai Weiwei in his studio during a visit from Margarete Bause, Chairman of Alliance '90/The Greens in the Bavarian parliament, in Beijing, China, 23 Nov. 2013

Instead, he will be allotted just 20 days in the country

London’s Royal Academy of Arts will soon host a three-month landmark exhibit of Chinese artist Ai Weiwei’s most important work, but the artist himself could be conspicuously absent. The dissident auteur announced via his Instagram account on Thursday afternoon that British immigration authorities had declined to issue him the six-month business visa for which he applied, claiming he had supplied deceptive information on his application.

With characteristic cheekiness, he released the news in a caption to a picture of a toilet.

He then posted the letter from the U.K. Visas and Immigration Office — sent by way of the British Embassy in Beijing — that informed him that he would receive only a three-week permit, requiring him to leave the country shortly after the exhibit opens.

The visa form requires the applicant to declare if he or she has ever faced, among other things, criminal charges in the U.K. or elsewhere.

“You have stated: ‘No, I have never had any of these,’” the letter to the artist read. “It is a matter of public record that you have previously received a criminal conviction in China, and you have not declared this.”

The letter then informs Ai that any future visa applications containing “inaccurate” information could earn him a 10-year ban from entering the country.

Though Ai’s politically controversial work has led to several run-ins with Beijing law enforcement officials, he says the state has never formally charged him with or convicted him of a crime. According to his Instagram post, the artist attempted to prove this to British authorities in China, but “the representatives insisted on the accuracy of their sources and refused to admit any misjudgment.”

Only a week ago, China returned the artist’s passport after revoking his international travel privileges four years ago on tax-evasion charges that Ai claims are politically motivated. The Royal Academy of Arts quickly affirmed in an eager blog post that Ai would indeed be traveling to London for the his exhibition, which opens on Sept. 19.

It appears that Ai is currently on his way to Berlin, where his 6-year-old son lives with his mother. (The artist posted an Instagram of a freshly minted German visa early this week).

TIME Asia

Asian Superpowers China and India Top List of Nations Whose Millionaires Move Abroad

General Economy Images Of China
Tomohiro Ohsumi—Bloomberg/Getty Images The Oriental Pearl Radio & TV Tower, right, and commercial buildings are illuminated as they stand at dusk in Shanghai, China, on Tuesday, April 21, 2015.

Tens of thousands of "high-net-worth individuals" have left to seek a better life overseas

We may be in the midst of “the Asian century,” but a new report shows that many of the wealthiest citizens of the continent’s two fastest-growing economies — China and India — have chosen to leave their countries and settle down abroad.

A total of 91,000 Chinese millionaires left the country and settled overseas in the past 14 years, while the exodus of Indian millionaires ranked second at 61,000, according to a report by consultancies New World Wealth and LIO Global. France, Italy, Russia, Indonesia, South Africa and Egypt round out the top eight.

The study, released this month, looked at immigration data from 2000 and 2014 indicating applications for a second citizenship or change of domicile (permanent residence).

The U.K. — its capital city London, in particular — appears to be the most popular destination for the world’s rich to settle down in, followed by the U.S, Singapore, Australia and Hong Kong. The report says Indians tend to move to countries like Australia and the United Arab Emirates, while Singapore and Hong Kong are popular destinations for China’s wealthy.

Despite the large-scale departure of millionaires, both China and India still have plenty of wealthy citizens who chose to stay back — reflected by their respective positions at fifth and 10th on the list of countries with the most millionaires overall. They also remain the world’s most populous nations, sharing a third of the global population.

Those who leave generally cite reasons like “turmoil in home country, security concerns and optimizing education of children,” the report said.

Read next: China Slowdown? Depends on Where You Look

Listen to the most important stories of the day

TIME Dalai Lama

Exclusive: The Dalai Lama Talks About Pope Francis, Aging and Heartbreak With TIME

Britain Dalai Lama
Matt Dunham—AP The Dalai Lama stands on stage before making a speech to an audience at the ESS Stadium in Aldershot, England, on June 29, 2015

On the morning of his 80th birthday

On Monday, the morning of his 80th birthday, His Holiness the Dalai Lama sat down with TIME in Anaheim, Calif. The Tibetan spiritual leader shared his advice on growing old and mending a broken heart and talked about maybe meeting Pope Francis. Below are excerpts from the conversation, which has been lightly edited for length and clarity.

The gap between the Tibet cause in exile and the situation on the plateau is widening. Some say that your message — which is so cheerful, hopeful, and, as we see here in Anaheim, appeals to upper-middle-class Westerners — is so counter to the situation on the ground in Tibet, where some feel that the exile government isn’t doing enough for Tibetan Buddhists themselves. How do you see that tension, and its future?
It seems that regardless of how much censorship they impose, the people in Tibet do seem to be able to get the news … Inside Tibet, is physically distant … but there’s a few who get some information, then that spreads … There are organizations, their main responsibility is to look after the Tibetan refugee community, their education, and also the way for preservation of our own culture, mainly, and monastic institutions, to carry our tradition and culture — I think quite sophisticated knowledge about the tradition. So then we are not representing, directly, inside Tibet. We have no direct responsibility like that, so by the way, say in our last, I think, 30 years, many Tibetans have the opportunity to come to India and join our school. … So then after they get some education level, they return, they carry [that] inside Tibet … Then these people now carry the main responsibility for teaching … More of these connections are taking place on the personal, individual level, organic process, not so much through the centralized institution.

You have not yet met Pope Francis, correct? If you could have a meeting with Pope Francis, what would you want to talk with him about?
Yes, not yet … Recently he also has been showing genuine concern about the environment. Wonderful. A spiritual leader should speak — these are global issues. So I admire [him].

MORE: Pope Francis Urges Climate-Change Action in Encyclical

How do you find sense of purpose as you age, especially if you live in a Western society that values youth?
I believe in also telling people, when you are young is its own special beauty, doing active things. Then, getting older, its own beauty, more experience to share with other people. One time in Sweden, I noticed, one small group of people, they have some kind of program, those retired people should take more active role taking care of young children. I think that is very good. Old people play, mixing with young children, the old people themselves feel something fresh. Sometimes, children see more love with grandparent rather than parent, that also happens. So I think children may do not attraction external beauty, old people, no longer any beauty, but smile, play, make joke, some sort of short stories, then children looked at. So if you age but then still feel bitter because you are not able to lots of things you could do when you were young, that is total, silly, unrealistic. Of course, the wider experience, the young people, youth, cannot do that — not yet.

I don’t know if you’ve ever been in love, but I’m wondering — how do you heal a broken heart?
Actually, you see, practice celibacy … If you look at the nature of strong attachment, underlying that strong attachment is a clinging, grasping, and if you look at other reactive emotions that arise, actually it is strong attachment that underpins hatred, anger, jealousy, and so on, so if you somehow are able to look at this and recognize that a large part of the reception is perception, that could lose some of this strong grasping. I always remember, in a dream, if … a beautiful woman or something like that, I remember I am a monk. It is very helpful.

And if you aren’t a monk?
I think the desire for sex goes extreme, always creates some trouble. So that I think, in Western culture, there is a lot of emphasis on sensuality, and sexuality is part of that.

TIME China

China-Backed Development Bank Holds Signing Ceremony in Beijing

China-led AIIB members ink accord for its inception by year's end
AP—Kyodo Delegates from more than 50 countries gathered to sign the articles of agreement that specifies the new lender's initial capital and other details of its structure.

Conspicuously absent from the ceremony was the U.S., which declined to join the bank

Delegates from 57 founding member states gathered in Beijing on Monday to finalize and ratify the terms of the Asian Infrastructure Investment Bank (AIIB), the China-backed multilateral development bank seen by some as a strategic rival to the World Bank and similar international financial institutions.

The signing ceremony comes eight months after Beijing officially launched AIIB, which intends to “focus on the development of infrastructure and other productive sectors in Asia” and “promote interconnectivity and economic integration in the region,” according to its mission statement. It will begin with a $50 billion capital base, the BBC reports.

Of its founding members — which include Australia, Russia and Germany — China will be the largest shareholder, with 25% to 30% of all votes. Conspicuously absent from the roster is the U.S., which in October expressed concern over the bank proposal’s “ambiguous nature.” While World Bank President Jim Yong Kim has praised the new institution, citing the “massive need” for fresh investments in Asia, some critics see its establishment as a self-serving exercise in Chinese soft power.

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