Showing posts with label Red Capitalism. Show all posts
Showing posts with label Red Capitalism. Show all posts

4.1.08

2008 brings the reality of modern China to Western living rooms...

I <3 China - Beijing 2008 Summer OlympicsImage by kk+ via FlickrImage by kk+ via Flickr
For the last decade, China has been meticulously grooming its capital city, Beijing, for the curious eyes of eager Western consumers and potential business opportunities offered by the 2008 Summer Olympics. The Chinese Communist Party (CCP) has made grand promises of wealth and universal well-being to its vast citizenry, all of which hinge upon the near flawless production of the most anticipated event in the history of the Middle Kingdom.

Can the government contain the political powder-keg over which it rules? Will the world accept a Chinese superpower under Communist rule? History is hanging in the balance and nobody (least of all the CCP) knows what to expect in 2008, but I certainly look forward to sharing my thoughts on how America, and the West generally, should respond to the emergence of a more powerful and confident Chinese people.

I also welcome the submissions of papers, presentations, essays or videos anyone would like to contribute. Below I have embedded a great presentation compiled by a dear friend of mine, Victor Lang, who is a native of Hong Kong. Victor and I share many similar interests, such as China-Africa relations, international perception of Chinese politics, and domestic censorship by the CCP and corporations it intimidates to comply with their ridiculous media policies.

Happy New Year to all China Wakes readers and a toast to what will hopefully be remembered as the greatest year in the history of mankind's largest and oldest civilization.



Reblog this post [with Zemanta]

20.3.07

Internet forum from People's Daily offers elaborate and engaging glimpse into Chinese perception of US post-9/11 policy...




"Subject: A nation bickering about smoking while Iraq burns"

A discussion forum feed published by a People's Daily blogger named Shanhuang on the day of the US invasion of Iraq that I stumbled upon this evening is full of some very astute and disconcerting thoughts on the US and the priorities of American culture. With the fourth anniversary of "Shock and Awe" passing just yesterday (with little notice since the media is more concerned over the Justice Dept. and the who is Anna Nicole Smith's baby-daddy) this thread provides a voluminous log of the day-to-day and week-to-week sway of the cerebral tides between the different factions that emerged around the world in the post-September 11th world, and has once again set me thinking about the perception of the US in China.

I have written recently on the flawed perception of the Chinese amongst nearly every person within Middle Class America. I fret regularly to my friend Victor about what I feel will be the ultimate determinant of whether or not China and the US will come to a peaceful understanding and cultural diffusion (a la Japan and South Korea)-- the oft overlooked and underestimated possibility that there could arise a jealousy and spite for China across the United States if/when the US loses its economic stranglehold on the global markets.

Political realities and national interests across the Western Hemisphere will undoubtedly result in a unified resistance to the first substantial threat posed it by another civilization in several centuries time. The lack of careful consideration of the how to best manage/balance the Sino-American alliance by the American press (which I will elaborate on in a subsequent post) coupled with a preoccupation with a sensationalized conflict in the Middle East among concerned citizens (a.k.a. voters) is likely to be remembered as the primary catalyst of opportunistic political pandering by politicians who were similarly complacent, or more accurately negligent, in their careful consideration of the countries interests.

An America that exists under the institutions of our founding Republican principles will not, and must not, allow China to establish an alternative political model under the banner of Mao, even if the guiding wisdom which underlies it be rooted in a less draconian code. There are several reasons why I believe this is an indispensable maxim, the least of which is my nostalgia for the greatness of the the colonial founder's experiment. However, the Chinese must also never become a casualty of US domestic politics in the same manner that the Soviet Union became the issue of greatest concern and source of ideological alliances during the bygone, bi-lateral era of the Cold War, because if the Chinese are anything, they are VERY proud (similar to most Americans as this article makes clear).

Consequently, I see the future of Chinese politics (in light of both the China and the United State's long term interests) through the lens of Japan's US-styled (authored) system, which is basically a rotation of leadership of one political party, the LDP, through the occasional polling of the general populace. So essentially, the political realities faced by the US in the far Pacific Rim as they compete in the 21st century global economy have the potential to be at once unified, at least stylistically between the Japanese and Chinese peoples. However, one need not get too close before the glaring differences in lifestyle and social values- as well as the echo's of bitter diplomatic rifts stemming from Japanese aggression at the outset of the 20th century- rush into view and cloud the thoughts of men tasked with forgetting about these issues and getting on with the jobs of making peace and creating wealth.

It is so easy to forget about China these days, as it seems the only region of the world that is worthy of the media's time, well at least the US media. So many thoughts are provoked by just this one statement; thoughts that send the mind irrecoverably into the depths of my political consciousness. With hope, this issue can soon emerge from suppression and regain its importance on the mantle of US foreign policy, in the spot now occupied by the criminal files of radical Islamic terrorists and politicians, where it will soon so apparently belong.

29.12.06

China holds the key to unlocking growth in Africa...

The recent Beijing Summit made it clear that the Chinese government is becoming more publicly emboldened in their African policy initiatives. Many mainstream pundits and analysts have recently written about this topic, and I thought I would interject with my thoughts while the debate is still young and minds are still impressionable. I have for some time felt that it was essential for the Chinese to take the lead in Africa, and my confidence in this opinion has only been strengthened as coalition forces face increased difficulty in Iraq, and the situation in the Palestinian territories continues to deteriorate.

Though I wish the Chinese would take more responsibility in the current Middle Eastern crisis, I can understand their unwillingness to get involved in a situation that they are neither responsible for nor capable of substantially pacifying. Instead, they should use their experience in managing the development of their own impoverished regions to shape a more prosperous future for the people of Africa, and they should do so without the fear of igniting a diplomatic firestorm among Western governments that view a more proactive China as a threat rather than an opportunity. Africa now faces rampant disease, famine, violence, economic malaise, and is plagued desertification; all the while Western diplomats sit on their thumbs on the upper-east side and squabble over the merits of peacekeeping missions to halt genocidal slaughter in Sudan.

For decades, U.N. policy has failed the people it was established to benefit, those in the developing world, and until recently, there was no end to the destitution is in sight. There is no government in the world more experienced with and successful in the implementation of development policy than the Chinese. Its immense population has required its leaders to climb down from their perches in Beijing and travel to the poor villages in its western provinces to better understand the nature of poverty and conceive of more realistic and effective policies to combat its debilitating consequences. However, China has heretofore been unwilling to assert itself on issues which it fears may derail its economic prosperity because of political opportunists in Western capitols eager to keep them in check as they grow and expand their influence beyond their borders.

Nobody questions the merits of exploring innovative solutions to problems that have vexed policymakers for decades. However, few Western politicians or bureaucrats have been willing to admit that when their initiatives to stimulate economic growth abroad are compared with the initiatives undertaken by the Chinese government to combat similar inequalities domestically the proof is in the pudding. The Chinese economy is booming, its peasantry is becoming increasingly self-sufficient and educated, and most people would agree that the future for the Chinese people (ALL Chinese people) is bright, and their international prestige and influence growing. This leaves western leaders in the precarious position of having to confront a communist government whose success challenges the legitimacy of their own democratic systems. As the U.S. and her allies battle for the hearts and minds of impoverished, war-torn peoples in the Middle East, for whose current situation they bear the lions-share of the responsibility, it is essential that other less-developed regions do not become lost in the chaos. Missions that have been relegated to the back-burner since 9/11 because of the shift in our foreign policy mustn't be permanently retarded, for social stability in a world growing in both population and inequality is not guaranteed and should not be taken for granted anywhere or on any issue.

It seems logical to me that governments in the developed world would feel threatened by the rapid ascendancy of such a formidable competitor in the less-developed world, but I doubt that they have the resources necessary to offer a viable alternative strategy while they become further bogged down in the "War on Terror". As the Chinese begin to spread their wings and establish friendships with countries on the African continent that have felt slighted by the West for years, they are undoubtedly going to earn the respect of the people and governments of these countries, and will finally enter the realm of nations which share collective responsibility to provide aid and assistance to the developing world (G8 members). Therefore, I think it would be in the West's self-interest to allow, in fact encourage, the Chinese to expand into Africa unabated to both relieve themselves of the distraction it poses to progress on current initiatives elsewhere. It is important to make sure the Chinese do not become too ambitious for their own good but rather stay focused on international projects that they are best suited to manage, of which African economic development is clearly one.

Some may argue that by ignoring the African continent and allowing the Chinese to build their prestige through cooperation in economic development projects and poverty alleviation, the West would be squandering their opportunity to build the partnerships necessary to capitalize on the rich natural resources the developing economies in that region will become increasingly adept at harnessing, packaging, and exporting.

I take a contrary view, as I feel that the best way to substantially benefit from the vast reserves of oil, uranium, iron ore, and other minerals and fuels that have only begun to be realized is by allowing the Chinese multi-national companies to take responsibility for financing, constructing, and operating the sorely needed infrastructure that will allow these goods to be extracted and brought to market in a manner that is both efficient and has a real effect on the currently inflated market prices that are currently under the sole discretion of the OPEC ministers.

I suspect that the Chinese are not going to make an investment in these countries unless they have reason to believe that their return on that investment will be substantial. Even if the Chinese and their partners are reluctant to open up their co-ops to full participation from foreign companies and governments, there is likely to be a tangible easing of the pressure the economy's unprecedented growth has placed on global markets, so by allowing them to have preferential access to these reserves it should result in a decline in the price of oil contracts traded in Chicago, New York, and other major commodity markets around the world. This is Economics 101, simple supply and demand.

In terms of realizing benefit on behalf of the American people and the citizens of our Western allies, this tweak in the fundamental market makeup could have a tangible downward effect on the price of gasoline for consumers, as well as ease the burden on airlines that are struggling to cut costs and climb out of bankruptcy. Thus, it would be positive for American industry generally to encourage the Chinese to explore possible partnerships in countries like Zimbabwe, Zaire, Nigeria, Kenya, and others that are ready to test the waters of globalization and improve their embattled economies.

Another comparative advantage China offers its potential African partners is its rich experience in building a domestic economy upon a manufacturing force that can both produce at unparalleled levels while simultaneously maintaining a cost of production well below that sought by countries in the America's and Eastern Europe, which are its only true competitors in terms of quality of labor. The last great untapped labor force in the world occupies most of the African continent and if provided the proper industrial management, the continent has enough raw material to become very competitive in numerous industries by following the Chinese economic development model.

I believe strongly that one of the most debilitating handicaps endured by G8 nations is their irreversible and misguided obsession with framing the debate on international development and poverty alleviation as a domestic political issue, instead of leaving the diplomats to contrive of innovative solutions to the complex problems of the 21st century which are devoid of political calculation. After spending several months considering the merits of the solution I have proposed it seems apparent to me that it will be successful based upon one precondition: the US and her allies acknowledge China's right to use the arena of international trade and developmental economics to enhance its prestige among its peers atop the international community. The ideas I have articulated in this post are an attempt to refocus the debate on development policy in the West away from the prevailing approach of "what should we be doing", towards one that asks the question, "what should we be encouraging others to do?" I hope to stimulate thought, and I welcome all feedback.

Reblog this post [with Zemanta]

11.9.06

China Launches "Super Fruit" Satellite

The traditional (  中國                   ) and ...Image via WikipediaDNA - Evolutions - Shijian-8: China launches satellite for super fruit and vegetables - Daily News & Analysis

Related Google News Links

The Chinese have launched an ambitious agricultural program into orbit in the form of 2000 seeds on a recoverable platform, which will be exposed to cosmic radiation and micro gravity. China has been experimenting with similar research involving rice and wheat seeds with the result being a substantial increase in yields. This is China's 23rd 'recoverable' satellite launch and marks the first solely dedicated to seed enrichment. As the country continues to grow and more Chinese become accustomed to a higher standard of living, the demand for food in the PRC is also going to continue to rise indefinitely.

Rising populations in Africa and other less developed regions will undoubtedly put strain on global markets, and desertification of China's already scarce farmland has already put the country in a position of great dependence on global markets to feed its population. It will be important for Beijing to successfully reap the maximum yields from the arable land it still hasn't polluted if it is to confidently promise its citizens that they will have sufficient food stocks to prevent the onset of famine in the event of a natural disaster or other crisis. This research is absolutely a step in the right direction, and I hope the US and other governments have green-lighted similar programs to help China, India and every other developing nations deal with the strain of growing populations with limited resources.

Reblog this post [with Zemanta]

1.9.06

Guangdong workers get guaranteed wage levels

Guangdong workers get guaranteed wage levels

China's Southeastern province of Guangdong has announced that it has formally instituted minimum wage standards for its companies. The wage rate varies depending on the location of the company, but most workers below management level should receive some raise in the monthly wage.

"The minimum wage ranges from a high of 780 yuan (US$96.18) a month in Guangzhou to the lowest rate in rural regions of 450 yuan (US$55.49) a month." Though these levels probably seem repugnant to Americans who are used to making these monthly salaries in one hour of work, every extra dollar offers Chinese peasants hope for a brighter future.

30.8.06

"Red Capitalism" Growing In Global Appeal

People's Liberation Army in dress uniform, currently the largest army in the world in number of peopleImage via WikipediaImage via Wikipedia- Google News-- Chinese Success Creates New Paradigm for Developing Nations

For years the prevailing model for growing the economies of developing countries was the Washington Consensus- brain-child of the Clinton Administration focused on creating dynamic regional and bi-lateral trade agreements to help bridge gaps in comparative advantage and lower protectionist trade barriers. In terms of maximizing the benefits of globalization for the United States and its most valued allies, both developed and developing nations, it was a very effective. However, many lesser developed nations have failed to find their niche in the global marketplace and have floundered for years, usually under political turmoil.
The unrelenting growth exhibited by the Chinese economy since opening its borders to the west has given the Chinese Communist Party immeasurable credibility in the eyes of developed and developing nations alike. The CCP's policy framework for building a 21st century economy under great demographic strain and a hostile political climate, otherwise known as "socialism with Chinese characteristics"-- but more aptly termed "Red Capitalism" by many China scholars-- has been embraced by many 3rd world states struggling to feed their people.

Reblog this post [with Zemanta]

24.8.06

China and Venezuela Get Cozy


Associated Press Business News: Venezuela Says China Backs U.N. Bid - MSN Money

China, Venezuela ink 8 agreements to boost bilateral ties

I have been totally caught off guard by the recent headlines coming out of Beijing, which is currently courting Hugo Chavez and his countries vast oil reserves using uncharacteristically audacious public diplomacy to emphatically embrace their lone legitimate Communist Ally. Several major agreements have been brokered recently which have clearly been launched with the intention of legitimizing the Venezuelan government as it aspires to bolster its regional and global profile. In addition to the recent announcement of support for Venezuela's bid for a seat on the UN Security Council, which is also supported by Moscow, the two Communist allies inked pacts on issues ranging from housing to oil. Chavez has declared that by 2009 China will receive 500,000 barrels of oil per day from his country, with that number reaching 1 million sometime next decade.

I don't see any reason why the US shouldn't support Venezuela's bid for a Security Council seat- for what better place is there to humble a spirited populist like Chavez. I would take John Bolton over Hugo Chavez in a cage fight (which is how I like to refer to Security Council sessions) any day.

Chavez has been emboldened by electoral victories and his government has made great efforts to brand itself recently as the most virulently anti-American in the western hemisphere, which has brought them the respect and financial incentives from the East, specifically Russia and China. Venezuelan oil ministers have recently threatened to cut-off shipment to the US if their is suspicion of subversive tactics by the CIA or any other US-backed anti-Communist activists in the country. Statistics for the first four months of 2006 put the total Venezuelan import figure at roughly 1.5 million barrels per day, which is far greater than Chavez has yet promised to Beijing, but that number is down from the 1.7 million barrels during the mid-1990's. If Caracas continues to divert exports typically bound for the US to Beijing, there will be a marked increase in the price of gasoline across the United States. I think the best policy would be for the US consumer to recognize the overtly hostile rhetoric of the Venezuelan President and make the conscious decision to not contribute to the coffers of a clearly irresponsible individual. CITGO is the Venezuelan state-owned oil company, and for this reason I never buy gasoline from a CITGO station. I call on all American's who care about the future of gas prices and the security of the US economy to join me in my boycott, and tell a friend.

17.7.06

Chinese Continue to Show Little Regard for Intellectual Property Rights

Chinese Reverse Enginere Skype

News broke recently on the blog of Charlie Paglee that a Chinese company had reversed engineered Skype's interface so as to manipulate the existing Skype programing, which relies on super nodes to transmit massive amounts of data into the individual users interface rapidly, by not giving the new service super node capability but still relying on the super node infrastructure to transmit its services. There are some upsides to the new technology, such as the interoperability it will offer for users of various IM services (such as MSN, Yahoo and AOL), co-operating through the Skype network. Paglee notes in his blog that he received a call via his skype service from a colleague who works for the Chinese engineering company responsible for the methodical reverse engineering process, who informed him that the end-goal of the firm was to create its own presence within the Skype network which is 100% inter-operable with the Skype offered communication services. He notes that there was a clear disparity in the quality of the two services as they currently work together, but he suspects the firm will be able to clear up these problems without significant problem. This is both a promising development for Chinese innovative capacity, but also poses a serious threat to the stability of the Skype network because of the intense drag it has on the current super node capacity. It is encouraging to hear about foreign firms, particularly Chinese firms, which have achieved great success in innovation of personal technology, but the Chinese need to understand the importance of working with its western corporate partners rather than actively pursuing every opportunity to undermine their competitive advantages and manipulate their already generous network infrastructure.

13.7.06

Industrial and Commercial Bank of China to Seek Dual Listing in Hong Kong and Shanghai

The Industrial and Commercial Bank of China has confirmed that it will seek a dual listing on the Hong Kong and Shanghai indices, which indicates bullish sentiment among Chinese policymakers for the mainland markets. This is in stark contrast to the consensus held for the last 18 months, during which ipso on the mainland capital markets were suspended because of extreme volatility following routine asset stripping and artificial deflation of IPO prices among corrupt brokerage houses and SOE executives. The mainland markets have shown signs of strength recently, hitting a two year high last week, but many institutional shortfalls will likely hamper any further maturity under a fresh IPO market. Lack of credible brokerages and institutional investors (such as pension funds) leave the markets off the buy sheets of most high profile investors, which leaves their fate in the hands of the individual Chinese investor, who is becoming more confident as of late, but still remains just as unpredictable as ever.

ICBC's Hong Kong listing will likely follow in the profitable footsteps of recent listings of two of the other five major Chinese banks, Bank of China and China Construction Bank. It is wishful thinking to assume the Shanghai listing will be as successful, but it seems evident to me that at the very least CCP policymakers see an opportunity to allow ordinary Chinese in on the success of its bullish financial sector, which has thus far been reserved for more globally focused investors who have the capital necessary to keep these investors out of the Hong Kong market. Whether or not the mainland investors can be counted on to buy early and hold onto their investment, rather than get caught up in an artificially motivated sell-off once the stock 'peaks,' which are typical of the mainland markets, remains to be seen. If this new strategy works, it will be a major political victory of the Communist Party, which has been struggling to find ways to let the general population share in the countries rapid economic growth.