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The world's next superpower
Taipei Times ^ | 07.23.03 | Jonathan Fenby

Posted on 07/23/2003 3:49:12 AM PDT by Enemy Of The State

The world's next superpower

China is growing with bewildering speed, but it is undergoing social upheavals on the way to becoming an economic superpower

By Jonathan Fenby
Wednesday, Jul 23, 2003,Page 9

Conventional wisdom insists that nations ruled by communist parties are regimented, unimaginative failures. Yet nowhere on earth is changing so fast and on such a scale as in China, where market economics and rampant consumerism meet the remnants of Maoism, throwing up paradoxes with profound implications for its 1.3 billion people -- and for the rest of the world.

It is not clear, however, if even the leadership in its heavily guarded Beijing compound knows exactly what is going on in the 9.5 million km2 between the booming development zones of the coast and the huge deserts and mountains on the doorstep of Central Asia.

China is racing to meet its future, confident it will grow into a superpower within a couple of decades, with all that implies for the West and for its Asian neighbors. Yet it remains stunted under the authoritarian hand of a Communist Party for which the retention of power has become an end in itself.

It is the main motor of international expansion, but it contains an uncomfortable expanse of shady zones and, owing to its size and diversity, is very hard to control.

China's gleaming airports put Heathrow to shame. The size of construction projects have led to the joke about the crane being the national bird.

The tycoon class has expanded so substantially that the American business magazine Forbes produces an annual list of China's 100 richest. Car production is rising by millions of vehicles a year.

There are about 300 million mobile-phone users. Shopping malls are crammed with designer clothes, real and counterfeit. Top tickets for Real Madrid's forthcoming game against a Chinese team are priced at ?125 (US$200) each.

Figures issued last week showed that, despite a dip last spring because of the SARS epidemic, China's economic growth should still hit the 7 percent target for the year, with industrial production up by 16 percent in the first six months. Though there are doubts about the precision of official figures, this rate is even higher in the special economic development zones where big, modern factories ally automation with low-cost labour

Having started by making cheap goods, Chinese firms are moving on to more profitable ones as their country's membership of the WTO guarantees them access to world markets.

From toys to computer chips, just about everything seems to come from China these days. Despite SARS, exports in the first half of this year bounded by 34 percent to the equivalent of ?120 billion (US$192 billion). Foreign investment, bringing money, technology and expertise, rises by the year as Western and Japanese executives put the country at the top of their plans.

Made in China

A recent article by an American economist was headlined: "What happens when everything is made in China?"

That raises concern about foreign jobs being exported to China -- as in the decision by Waterford Wedgwood crystal to close British factories and shift production to China for lower costs. But, while international pressure on Beijing to revalue its currency upwards grows, economic expansion is making the mainland a major importer of raw materials, machinery and factory components. Its purchases of crude oil rose by a third in the first half of this year and it could be the salvation of the world steel industry.

On his drive from the airport, British Prime Minister Tony Blair would have seen Beijing engaged in a huge building program running up to its staging of the 2008 Olympics. In Shanghai, a new business district has gone up on marshland and gleaming blocks of flats line the eight-lane roads into the city. A German magnetic-levitation train whisks passengers in from Shanghai's new Pudong airport at 402kph, and a Japanese bullet train is likely to link the city to Beijing. Shenzhen, a pioneering economic development zone across the border from Hong Kong, has grown from a small town into a city of millions attracted by work in its fast-growing factories. Chongqing, capital of the biggest province, Sichuan, is being transformed from a shabby city notorious for its nasty climate into what aims to be a model of growth in a special zone containing 30 million people.

The Three Gorges dam, with its enormous hydro-electric potential, has gone into operation, and there are plans for a mammoth waterway across the country to check the recurrent pattern of droughts and floods. Visit city centers from the once-isolated Kunming in the lush south-west to Manchuria on the border with Russia, and you find the same lines of glass and concrete offices, shops and flats on proud display as signs of modernity.

A middle class is emerging and, this being China, it is numbered in hundreds of millions. Artists and writers challenge tradition in a major way. The "iron rice bowl" of cradle-to-grave welfare promised by Mao Zedong is being smashed. Beijing's development is demolishing the alleyway hutong houses that were a characteristic of the capital for eight centuries.

Modern life is eating away at the traditional family: 14 percent of households now consist of either a single adult or a childless couple who both work. Older people are deeply worried about the future, as their children save to pay for health care and private education. At a lunch in Beijing, the Education Minister spoke to me enthusiastically about the model set by Warwick University for attracting paying students.

A lot of dark areas lie behind the bright lights on the Yangtze cliffs of Chongqing and the Shanghai Bund, where the huge Hong Kong and Shanghai Bank building from before the World War II has been restored as the headquarters of a local development organization.

Income inequalities are enormous. Factory modernization has boosted unemployment, and there are periodic demonstrations by workers who have not been paid. Outside the city centers and modern apartment blocks, China's urban areas are dirty, unhealthy and overcrowded. Workers newly arrived from the country sleep out around train and bus stations, and drive down the already tiny wages paid for manual labor on all those building sites.

Health and safety

Low health and safety standards are highlighted by repeated industrial accidents and the recent spread of SARS. Pollution and environmental destruction are high. Floods kill an average of nearly 4,000 people a year.

The government has launched a series of high-profile crackdowns on major offenders, but corruption is embedded. Badly paid officials exploit their position -- in one city, police stopped motorists to tell them their cars contravened cleanliness regulations: they had a friend standing by to wash vehicles for a small fee.

Much of rural China, which contains most of the country's people, is left behind. Depending on the criteria adopted, upwards of 100 million Chinese live below the absolute poverty line. Though cities are linked by a fast-expanding motorway network, rural communications remain poor. Farmers stage periodic protests about local officials levying "special taxes" for their own enrichment.

Many villages are age-old huddles of mud or adobe huts without sanitation. One villager joked that, if the government really wanted to reduce the number of children, it should lay on electricity so people could watch television at night rather than having sex.

Foreign financial houses have started trading in Chinese shares, but the stock market is run largely for speculation and to direct capital to well-connected firms. The banking system is shot through with huge bad debts as a result of channelling money to politically favored enterprises rather than those which could best use the cash.

The reform of state enterprises seems to be taking longer than expected. Corporate accounts often bear little relation to reality.

An inquiry found recently that most state firms cooked the books. No wonder some commentators see as inevitable the scenario outlined in a recent book called The Coming Collapse of China.

Some of the highest-flying businessmen have crashed to Earth -- the second-ranking person on the Forbes list for 2001 has just been jailed for 18 years for fraud. Huge smuggling rings involving local dignitaries have been uncovered. Municipal officials in Manchuria's main city were found to have been in cahoots with the local mafia.

This is partly the result of such rapid development in a country with no independent legal system, where favors that bring the chance to make a fortune are bought and sold. But the way China is developing poses a distinct problem for the organization that sits obstinately on top of that system and has used its ability to hand out favors and punishment, as the glue that holds it together.

As an old Maoist once said, if the Communist Party does not get rid of corruption, it is done for; but, if does get rid of corruption, it is doomed anyway. Since the move to the market launched by the patriarch Deng Xiaoping (鄧小平) two decades ago, individual liberty has grown enormously. Walking in the streets of Chinese cities, you do not feel the oppression that characterized eastern Europe under communism.

Taxi drivers joke about the leadership, and only the politically ambitious pay much attention to its ideological forays.

Basic gamble

That is, in its way, is what the leadership is after. Its basic gamble is that growing wealth will provide a legitimacy to replace the tenets of Maoism. After the first, second and third ways of politics, welcome to China's fourth way where the prospect of getting rich means that politics, in the conventional Western sense, can be pigeonholed for so long as the economy roars ahead.

So, though there have been some electoral experiments at local level,democracy is far away, as it has been throughout China's history. For the new leadership of President Hu Jintao, as for his predecessor, Jiang Zemin stability is paramount -- the Cultural Revolution is held up as a terrible example of what can happen when things get out of hand.

Crossing the political line is perilous. Dissidents are out of the headlines in the West, but they are still persecuted relentlessly. Members of the deep-breathing Falun Gong exercise group are arrested as a security threat. Tibet remains tightly policed, and the war on terrorism is a convenient pretext for cracking down on the mainly Muslim population of the vast western territory of Xinjiang.

China has put on its best face for the world, particularly since it realized the benefits to be gained from Sept. 11. Blair and the other leaders beating a path to Beijing should realize, however, that, useful as foreigners are, China has never set much store by them. The round-eyes can provide technology and money, but the country will go its own path, making temporary alliances that suit it while increasingly using its clout as it chooses, in its bid to displace Japan as Asia's economic and political motor.

To do that, the leaders Blair met this week have to maintain the breakneck momentum of "socialism with Chinese characteristics" to demonstrate that "It's the economy, stupid."

Jonathan Fenby edited the South China Morning Post in Hong Kong from 1995 to 1999 and is the author of Dealing with the Dragon: A Year in the new Hong Kong.

TOPICS: Business/Economy; Crime/Corruption; Culture/Society; Editorial; Foreign Affairs; Front Page News; Government; News/Current Events; Philosophy
KEYWORDS: china; chinastuff; next; superpower
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To: Jeremiah Jr

Time to order new stationery!

121 posted on 07/23/2003 9:52:17 AM PDT by Thinkin' Gal (Guten Tag!)
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To: Quix
"And they are ruthless, relentless, persistent and patient about revenge"

Makes sense. Wasn't it an old Chinese proverb that says revenge is a dish best served cold?
122 posted on 07/23/2003 9:57:34 AM PDT by Enemy Of The State (If we don't take action now, We settle for nothing later!)
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To: Enemy Of The State

And 90 % of Kung Fu movies has a story line that it is the sacred duty of NUMBER ONE SON to avenge the father's death-----the revenge against the father's killers is a MUST for the son, no matter even if it is one against a 1000 enemies,........
123 posted on 07/23/2003 10:02:17 AM PDT by The Pheonix
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To: logic
It would depend on a lot of things.

They really are sensitive to public opinion to a point and in certain contexts and when it involves a significant percentage of the public/grass roots etc.

Li Peng is STILL one of the most hated men in China.

In some respects, the Chinese care little about anything but themselves and their nuclear family and sometimes some parts of their extended family and to put on a front at New Years that the extended family is one harmonious group of warm and fuzzy people.

HOWEVER, in other respects, in certain contexts and contingencies, they are a boiling cauldron underneath the surface and it wouldn't take much to have a mass demonstration spring up and flash into a forest fire.

The leaders would NOT want to trigger undue demonstration and public outcry.

Therefore, they'd want to minimize the deaths and maximize the intimidation.

I doubt they'd want many deaths--especially near to the incident in time or easily tracable to the incident over the next 6-12 months.
124 posted on 07/23/2003 10:02:19 AM PDT by Quix (PLEASE SHARE THE TRUTH RE BILLDO AND SHRILLERY FAR AND WIDE)
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To: the
Where would they be most likely to try to acquire? It seems to me that their immediate neighbors to the south and west are heavily populated and are already pushing their land to the limits. Siberia is supposed to be vast and rich in resources but the Russians can be pretty tough to handle

Not that tough any more. Alexander Solzhenitsyn was saying thirty years ago that Chinese expansionism into Siberia was the really serious long-term threat to Russia, and he is right. The Chinese have always contended that Siberia rightfully should belong to them. There is plenty of oil and minerals there, plenty of timber, plenty of water, plenty of land (cold though it may be) -- and it is contiguous to their existing territory.

At the rate present trends are going, I don't see how Russia can continue to hold Siberia against the Chinese for more than another 2 or 3 decades at the most. Given China's 5000 history, that is only a blink of an eye.

125 posted on 07/23/2003 10:04:26 AM PDT by Stefan Stackhouse
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To: The Pheonix
Was that supposed to be humor or were you making a point?
126 posted on 07/23/2003 10:05:21 AM PDT by Enemy Of The State (If we don't take action now, We settle for nothing later!)
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To: Quix
THEIR SIGHTS ARE AT LEAST ON AUSTRALIA and the world. Well placed military and other types have persistently insisted that taking over Australia was not only their right, reasonable and inevitable--it was their duty to their people.

Tell them to pack lots of water with them when they come!

127 posted on 07/23/2003 10:05:23 AM PDT by Stefan Stackhouse
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To: Quix
My Chinese friends locally insist that China has targeted the USA for acquisition but only after plenty of their other ducks are in a row.

I am sure that there are a few people in China with a dream of someday making the entire globe Chinese. . . a pipe dream, that is.

128 posted on 07/23/2003 10:08:07 AM PDT by Stefan Stackhouse
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To: Quix
Re your post #124

You are correct there

The Chinese Govt would be reluctant to push their luck too far, by having another Tien-An-Men type of incident

Another such tragedy may finally cost them to lose their "MANDATE OF HEAVEN"
129 posted on 07/23/2003 10:08:11 AM PDT by The Pheonix
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To: Stefan Stackhouse
I've heard they are already doing a La Raza on them.

Hope they are paying better attention than our leaders are.
130 posted on 07/23/2003 10:10:56 AM PDT by the
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To: Enemy Of The State
I am trying to illustrate that in traditional Chinese Culture, revenge for perceived crime against one's family . in many cases seen as a form of "natural justice"
131 posted on 07/23/2003 10:12:45 AM PDT by The Pheonix
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To: The Pheonix
Ok gotcha, but Im not sure that I follow the reasons that led you to point this out?

Anyway, the "traditional culture" for revenge you speak of is actually something form ancient Chinese culture and not something that is practiced today. Unless of cours you are a member of the Triad family.
132 posted on 07/23/2003 10:20:29 AM PDT by Enemy Of The State (If we don't take action now, We settle for nothing later!)
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To: SauronOfMordor
Interesting. That's more like 52-48.
133 posted on 07/23/2003 10:24:24 AM PDT by wbill
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To: The Pheonix
Nevermind, I think I must have been running a little slow on figuring out where you were coming from on that comment. I didn't realize that you were referring to the converation that I was having with Quix. My apologies.
134 posted on 07/23/2003 10:24:38 AM PDT by Enemy Of The State (If we don't take action now, We settle for nothing later!)
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To: Enemy Of The State
Yes, in modern times, a lot of old, feudal mindset , like this revenge syndrome would have just passed away
135 posted on 07/23/2003 10:25:14 AM PDT by The Pheonix
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To: Enemy Of The State
Thanks for your explanation, but no need to apologise

i must confess that I tend to ramble on, sometimes. Yes, I was refering to your converstion with Quix and your mentioning the word "revenge"
136 posted on 07/23/2003 10:29:13 AM PDT by The Pheonix
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To: Quix
HOWEVER, in other respects, in certain contexts and contingencies, they are a boiling cauldron underneath the surface and it wouldn't take much to have a mass demonstration spring up and flash into a forest fire.

I agree! Now satellites are beaming America to China for them to see how life may be lived and the tv's lack of morals going into their subconscious minds.

With that supposed lack of female companionship, and seeing how to get the ladies with the $$$$s, the youth may be mobilized into revolution--or coming our way to get our stuff? They can raise a 200 million-man army according to our State Dept., I believe...

137 posted on 07/23/2003 11:34:35 AM PDT by Ff--150 (Hold fast the form of sound words)
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To: The Pheonix
Thanx, but I was referring to the dragon mentioned in the Bible's book of Revelation actually. Though that refers to the devil in the Bible, IMHO I believe Red China's worship, if you will, of the dragon is more than a cowinkidink with that biblical reference.

I'd forgoten about the Mandate of Heaven...

138 posted on 07/23/2003 11:47:29 AM PDT by Ff--150 (Hold fast the form of sound words)
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To: Always Right
If China were a pure communist state there would be no 'tycoon class'. The only reason China is having success is it has let some degree of capitalism in and it has elimated some of its socialsitic ways. Unfortunately China still is run by a brutal totalitarian regime.

What is more important, capitalism or representative republic and freedom? In other words is the capitalist dictatorship better than socialist democracy with powerfull middle class? What about bankrupt Latin American style oligarchy?

139 posted on 07/23/2003 12:19:39 PM PDT by A. Pole
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To: RogueIsland
Say what you will about the Chinese, but they are not historically an ignorant or uninventive people.

No, but they were very slow at innovation compared to last millenium Europe, and they have never been rapid innovators. A good portion of the power of the West and particularly the US has been its ability to innovate at blinding speed. Things just don't move that fast in Chinese culture.

Gunpowder is a good example. The Chinese had it for the better part of a millenium before the Europeans imported it. Even though the Chinese knew how to make it, after all that time they still hadn't even come close to mastering practical applications of it and it served mostly as curiosity. When the English got their hands on it, they mastered the technology in a couple generations. Remember, one of the first exports of England to China was well-engineered and functional gunpowder weaponry, less than a hundred years after bringing gunpowder to Europe. For all the time they spent at it, the Chinese never came close to producing anything like what the Europeans figured how to make in a matter of decades.

The Chinese had a huge head start on the Europeans technologically, but innovated at a very slow rate. When the Europeans finally wandered out of their primitive dark ages, they brought with them a culture that could innovate and adopt technology at a startling rate. This ability allowed them to catch up to and surpass all the advanced cultures in the world very quickly technology-wise, despite their late start.

140 posted on 07/23/2003 12:48:45 PM PDT by tortoise (All these moments lost in time, like tears in the rain.)
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