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It's Just Business, Nothing Geopolitical
Sure it is, and I've got a bridge for sale ...Shut up and keep buying.  HONG KONG — Few countries are benefiting as much as China these days from the international status quo - and Beijing knows it. So, as American criticisms of China have shifted from human rights to the value of its currency and the aggressiveness of its trade practices, Chinese leaders have tried hard to keep the peace while exporting ever more. China's economy is doubling in size every 10 years, and personal incomes have been climbing steeply, especially in the cities. Trade with the United States plays a huge role in that growth, as investors around the world pour money into Chinese factories that make goods destined mainly for the American market.China's trade surplus with the United States now equals slightly more than a 10th of its entire economic output - an extraordinary figure, considering how much of the country's economic output is inherently unexportable, from haircuts and construction to the Big Macs and grande mochas at the proliferating McDonald's and Starbucks stores. China is both a huge beneficiary of American consumer appetites, and profoundly dependent on them. That dependence makes China nervous, especially when the Bush administration imposes restrictions on Chinese shipments to the United States - everything from steel to bedroom furniture to brassieres. "The Bush administration should have a vision and play a leading role in globalization and international trade, rather than sending a message to the world that 'We care more about our own businesses than anybody else's,' " said Xu Xiaonian, a prominent Shanghai economist, voicing a common sentiment. Restrictions are inadequate. It's like trying to "restrict" a hurricane. China needs a prosperous America, with economic policies that not only steer clear of protectionism but also encourage consumption and keep the dollar fairly stable. Low interest rates and big budget deficits have helped in the short term, by fueling a consumption binge in the United States. Helped who? Certainly not the United States. While China has stayed focused on providing jobs for the millions of workers coming off its farms or losing jobs at inefficient state-owned enterprises, geopolitical issues like the war in Iraq have been only a secondary concern. China needs secure sea lanes for its ever-rising oil imports, and like the rest of Asia, it implicitly relies on the American Navy to keep the tankers safe. Oh goodie, another NATO scenario. What's not to like? From Beijing's point of view, although not Washington's, the thorniest issue is also the oldest: America's continued support for Taiwan, which China regards as a renegade province. China has warned again in recent weeks that the United States should stop providing military support for the island. All it takes to solve the problem is for China to go democratic. But with the planned purchase of I.B.M.'s personal computer division by Beijing-based Lenovo, China's main message is, "Want a desktop computer to go with that microwave oven?" EMPHASIS ADDED Meanwhile, America's politicians rearrange deck chairs on the deck of an economic Titanic. Posted by: Zenster 2005-01-17 |
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