The China fantasy

China's economic success is blinding too many western observers to its leadership's violation of international norms, says Patrice de Beer.

China is preparing for the Olympic games in Beijing in 2008, an event the communist regime plans to turn into a celebration of nationalistic pride and its own indomitable power. A year before the torch is lit, this very regime is facing a far less enticing prospect: accusations that its country is the source of major food-and-drug scares with fatal consequences as a result of the uncontrolled exports of counterfeited goods.

China can rightly feel proud of having become, in just two decades, the world's factory and a major trade player, as well as of having facilitated the emergence of a booming new middle class out of an egalitarian society. But these successes have come at a cost: a still very repressive regime at home and a worrying lack of control on tradable goods (whether for domestic or export consumption) with fragile safety barriers.

The question is: at a time when health-and-safety regulations are becoming ever more stringent in the European Union and the United States, why are westerners so lenient when China is not playing by the rules?
Patrice de Beer is former London and Washington correspondent for Le Monde.

Among Patrice de Beer's recent articles in openDemocracy:

"French politics: where extremes meet"
(4 December 2006)

"Why is the left so gauche?"
(26 February 2007)

"France's telepolitics: showbiz, populism, reality" (2 April 2007)

"France's intellectual election"
(16 April 2007)

"France's choice: the Bayrou factor"
(24 April 2007)

"Sarkozy's rightwing revolution"
(8 May 2007)

"Le Monde's democratic coup" (30 May 2007)

The poisoned trail

An answer to this lingering question can be found in James Mann's latest book, The China Fantasy: How Our Leaders Explain Away Chinese Repression (Viking, 2007). Mann is former Los Angeles Times correspondent in Beijing; author of Beijing Jeep: A Case Study of Western Business in China (Westview Press, 1997) and About Face: A History of America's Curious Relationship with China from Nixon to Clinton (Vintage, 2000); and now at the Johns Hopkins University's Paul H Nitze school of advanced international studies. What this old hand in Sino-American relations writes on the art of dealing with China in this sharp pamphlet could also be said on behalf of all developed governments, Japan excepted: that relations with China are different from relations with any other country in the world as they are not based on hard facts but on a quasi-theological vision of the "middle kingdom", which has adapted from its longstanding basis in anti-communist ideology to an obsession with business and trade which has nurtured unsustainable trade deficits and gradually bound the west to a more and more monopolistic and greedy supplier.

This might explain why Washington has reacted so mildly to the melamine-tainted pet-food scandal which has killed 8,500 dogs (also sold for use in feed for hogs and chickens) in the United States and caused a massive recall; or to the drug scandal involving cough syrup laced with poisonous diethylene glycol (used in anti-freeze) falsely labelled as less expensive - but fit for human consumption - glycerine, which caused the death of between 100 and 450 Panamanian kids after having been used in exported toothpaste (see "Cleaning up China's Honey", Los Angeles Times, 3 May 2007; "From China to Panama, a Trail of Poisoned Medicine", International Herald Tribune, 5 May 2007; "Tainted Chinese Imports Common", Washington Post, 20 May 2007; "China Investigates Contaminated Toothpaste", International Herald Tribune, 22 May 2007).

Yet these incidents are not exceptional. In the first four months of 2007, US Food and Drug Administration (FDA) inspectors - who are able to check less than 1% of imports - have sent back to China 298 contaminated food shipments (twenty-five times more than from Canada); among them dried apples preserved with a cancer-causing chemical, honey with banned antibiotics, mushrooms with illegal pesticides... many of which turn up again at US borders.

The FDA may have tightened its controls, but fighting poisonous or counterfeited Chinese goods is far from straightforward and would need more cooperation from Peking, a stronger will to act from US authorities and the business community, as well as less dependency on Chinese goods (which in areas like apple concentrate and wheat gluten have gained a quasi-monopoly). As former assistant US trade representative Robert B Cassidy told the Washington Post: "so many US companies are directly or indirectly involved in China now, the commercial interest of the United States these days has become to allow imports to come in as quickly and smoothly as possible"; he added that the US finds itself "kowtowing to China" as foreign dignitaries were once humiliatingly compelled to do at the feet of the "son of heaven".

In addition, China has accumulated a trade surplus of $1.2 trillion which it is in part using to purchase around half of the US's fast-growing debt. Thus the only superpower finds itself increasingly dependent, tied to China by more and more bonds every year, like Gulliver in Jonathan Swift's novel. While Chinese authorities reject reciprocal ties, in a regime where the rule of law is still distant, where food-and-safety regulations are regularly flouted, including by state corporations, and rarely monitored and punished (despite the odd condemnation thrown from time to time at domestic and foreign public opinions as a token of good faith).

In May 2007, the Chinese drug administration - asked to explain why the Taixing Glycerine Factory (which used Glycol in the deadly syrup sold in Panama) or the Beijing-based state trading company Fortune Way could not be prosecuted - said that it had no jurisdiction, as the plant was not certified to make medicine. But is it not simple justice that the culprits should be prosecuted for illegally making adulterated drugs, as they would be in any country governed by the rule of law?

The rules of the game

Many influential figures warn against threatening China with sanctions when it breaks international rules of conduct - among them every US president since Richard M Nixon, former senior government figures like Henry Kissinger and Madeleine Albright, prestigious academics and members of think-tanks, prominent businessmen and journalists such as Thomas Friedman of the New York Times. They pretend that China has only two options for the future, a "soothing scenario" which sees its political future gradually opening up and a "chaos scenario" where its political or economic system falls apart - and that it is crucial to uphold the first one. To this model, James Mann opposes a "third scenario", equally plausible, where China continues to develop under the same authoritarian system.

Mann opposes those who dream of a mythical market of 1.3 billion consumers and a politically-correct theory which pretends that democracy will automatically follow economic development. He feels that the emerging urban middle class has no desire to see its newly acquired wealth threatened by hundreds of millions of farmers and migrant workers who receive only the crumbs of present prosperity. Meanwhile the communist regime, which outlaws any free political, trade union or religious organisation, has been since the Tiananmen Square massacre in 1989 too worried about potential dissent to allow it to develop any voice.

George W Bush may have depicted China (in February 2000) as a "strategic competitor", but a collusion has developed between both sides of the Pacific; the official US side even scorns criticism of its China strategy as "China bashing" (thus creating a new lexicon where critics of the People's Republic of China can in a democracy be termed "troublemakers", "provocative" or "anti-Chinese"). "People in China don't care about politics, they just care about making money" and similar clichés are widespread - even as they forget that Chinese people in Taiwan or Hong Kong care very much about democracy, as did those mainlanders who demonstrated eighteen years ago before being crushed by tanks. In any case, who are we Europeans or Americans to dare say that Chinese genes are not fit for democracy, as Charles de Gaulle and Alain Peyrefitte (Jacques Chirac's former minister and self-appointed China "scholar") once pontificated?

To trade in Chinese goods or to help the most populated country in the world to develop is one thing; to bow to political or economic pressure is another; to hope that China will become a major, responsible power with global responsibilities is one thing, to grant one of the world's most repressive regimes a seal of undeserved respectability is another. The People's Republic of China cannot be allowed to present itself as the model to follow when it counts among its allies and most favoured trade partners regimes such as Zimbabwe or Sudan.

The time has come - as James Mann sensibly concludes - to tell the Chinese that they have to abide by more democratic rules, both domestically and abroad. Waiting could be fatal; within two or three decades, an unreconstructed state is on track to become a real strategic threat to the United States. But then, to adapt a phrase attributed to Lenin, capitalists would sell anything to anyone, including the rope to hang themselves.

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Comments

intermedusa
16 June 2007 - 5:15am
THE DEMOCRATIZATION OF GLOBALIZATION China is a threat to democracy and freedom throughout the World. Right now the Chinese leadership in an attempt to placate the US and maintain its huge trade surplus is talking the talk of Peaceful Rise and Military Expansion solely for defensive purposes but it is not walking the walk. The Government of China has absolutely no right to rule. It is one of the most ruthless and criminal governments in the world. It was expected that with economic growth China would eventually develop a middle class that would demand political power and democratically reform the country. China would go the way of South Korea /Taiwan. The reality is that China is getting worse not better. The rule of law and any hope of even a glimmer of democratic freedoms are being ruthlessly crushed. Not only that but China is using its growing economic power to support it’s brother criminal governments such as Sudan, Burma, Zimbabwe etc. China is cleverly employing trade as a military weapon virtually conquering countries without a shot being fired through the ruthless economic black mailing of nation states. It is decimating the manufacturing base of Africa and Latin American countries buying only raw materials and importing such cheap Chinese manufactured goods that the local indigenous industry cannot compete. This is having a devastating impact on the manufacturing base of these countries. This is a grave threat to democracy and freedom. The great unknown in all this – the modernization of the Chinese military that because of the lack of transparency appears to be going far and beyond what is necessary for purely defensive purposes. It is time to open our eyes to the very real danger China poses. Democratization of Globalization In addition to depriving China of its veto power on the Security Counsel (go to www.unitednationswatch.info), the West must move immediately to dramatically correct the massive trade imbalances that they have allowed China to accumulate. This means the reallocation of $ 350 billion of production out of China and into third world democratic countries. This would be done over a 10 year period i.e. 35 billion/year. (The United States presently sells $28 billion to China and imports $228billion – a whopping $200 billion deficit. A real sucker’s deal if there ever was one. A sucker’s deal that is devastating the wages and economic future of the American Middle Class. The EU has a deficit of $150 billion. Sucker number 2.) These countries include Mexico, Central and South America, India, and Africa where the US $200 billion share would be shifted. The EU $150 billion - to Romania, Bulgaria, the Balkans, Ukraine, Turkey, Georgia, Armenia, Africa, India. The only stipulation is that these countries must purchase an equivalent amount of high end production from the US and the EU to modernize their economies. In this way everybody wins. The US/EU dramatically reduces their trade deficit. The $200 billion coming back into the US/EU economy in high end technology jobs translates into an $800 billion economic bonanza. An economic bonanza for the besieged Middle Classes of both the US and EU. The benefits of Globalization goes to the needy hard working poor of democratic nations. And the hard working down trodden Middle Classes of the West. The pouring of its trade imbalance with China by the EU into its Near Abroad will dramatically shift the balance of power to democratic forces of the Ukraine, Turkey etc and drastically reduce the costs of the EU eventually absorbing these counties as member states. Globalization becomes a vehicle not to enrich one greedy, criminal state but to benefit the entire third world. As previously explained - the transfer of trade wealth from the West to the third world and spreading it around comes back to the West through the purchase of high end technology to be used to modernize these third world countries. Trade becomes a tool to spread freedom and democracy. The Democratization of Globalization. One of the important reasons for the NAFTA Agreement was to encourage US industry to set up in Mexico leading to an economic boom – The Economic Rise of Mexico. Instead, because of cheap Chinese slave labor and no labor or environmental regulations (as required by NAFTA) these factories closed and re-located to China. As a result, millions of unemployed Mexicans poured into the United States. Not only that but the enormous importation of product from China is requiring the USA to invest hundreds of billions into transportation infrastructure just to move it inland from the California ports. An absolutely idiotic situation. The re-distribution of part of the Chinese trade surplus back to Mexico will help stabilize and truly lead to its economic rise. This will lead to a dramatic drop in illegal immigration from Mexico to the US. And Mexico importing an equivalent value of US high end technology will be a reciprocal economic shot in the arm for the United States. As for China, the stripping of its veto power at the UN and re- allocation of its trade excesses with the West will force the Chinese government to reform politically and economically or die. Its time for the United States /EU to wake up before it’s too late. Its one thing for the West to be despised and hated but treated with RESPECT rather then to be despised hated and treated with contempt. Written By, Larry Houle E-mail: intermedusa@yahoo.com www.chinademocracy.net
James Secor
22 June 2007 - 10:58pm
Yes! Yes! Yes! Let's bash the hell out of China. America is great and wonderful and does nothing bad ever, anywhere, especially at home where it, too, is a democracy in name only--about as democratic as Hitler's Germany, Stalin's Russia or Ghengis Kahn's China. Bash, bash, bash! The US trade deficit is China's fault. All China's fault. After all, China didn't have to sell things to the US, did it? {in a very low tone, repeat after me, "Duh. . ."} The US doesn't export fake or bad drugs. No! It doesn't export any drug to help anyone except on a scale no one can afford. Its drugs have such horrible side-effects that people must take MORE DRUGS to take care of that problem. And let's look to drugs that KILL and actually cause other diseases, drugs that are developed and used by even the food industry. In America. China doesn't make fake drugs. America makes fake "intellectual property rights" to restrict the make and sale of drugs to itself. China says, fuck you big phrma! While at the same time working hand-in-hand with world drug manufacturers. . .and putting price controls in place so more people have access to medication across the board than any American, thank you very much. Oh, no, no, no, no, NO! Everything good comes from America. I note but nobody else does that journalists when James Mann were here were restricted in their travel and who they spoke with. So, what does Mann know? (pun intended) So China is a repressive government? So is The United States of America. So are most governments in today's world. To coin a phrase, What else is new? Want a democracy? Go to another world. There are plenty out there. When you get there, tell me what exactly do you mean by democracy and how are you going to make it work. . .because Democracy in America is bought and paid for and bought democracy is an oligarchy or a monarchy or a simple tyranny. Take your pick. Stephen Popper: any country that marginalizes even one human is a psychotic country. A country with so many prisons and so many ways of putting you in prison--excluding the gulags and renditions--is a psychotic country. So. . .let's drum up some more fear propaganda for China. Let's create an enemy where there is none. Communism? Let's just say all communism is alike when it's not. Since Americans like to onlly get their information from books--experience to hell!--try reading Chalmers Johnson. America is losing the world big time. America is going to the dogs in a bobsled down a melting glacier. America's afraid it's losing what it never really had and, today, it's all China's fault. {hnn! and stamp your cute little foot at this point} jimsecor, expat Ph.D., disabled and alive

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