Magazine article The New American

Chinopoly: In a Game of Political Stratagem, China Is Using Western Capital and Know-How to Further Empower and Enrich Communist Party Members, but Its Commitment to Communism May Bring Its Downfall

Magazine article The New American

Chinopoly: In a Game of Political Stratagem, China Is Using Western Capital and Know-How to Further Empower and Enrich Communist Party Members, but Its Commitment to Communism May Bring Its Downfall

Article excerpt

[ILLUSTRATION OMITTED]

"China will be the world's next great nation," declared investment and commodities guru Jim Rogers in his 2004 bestseller, Hot Commodities. The 20th century, he noted, "was the American century. The twenty-first will belong to China." Rogers went on:

   Here's how important I think China will be: My daughter, who was
   born in 2003, is learning Chinese. Her Chinese nanny speaks only
   Mandarin to her, and I suspect that she might learn Chinese before
   she learns English. In her lifetime, Chinese will be the most
   important language in the world, next to English. If you are young
   and ambitious, learn Chinese. If you have ambitions for your
   children, persuade them to learn Chinese.

Learning a second language has always been good advice for a young person, and in our ever-shrinking world makes more sense now than ever. And Chinese may be as good a choice as any. However, is Mr. Rogers going a bit overboard? Yes, but he's in crowded company. More than a few other "experts" in business, banking, economics, and political affairs have been preaching the same gospel. Headline stories proclaiming "The China Miracle," "China, the New Superpower," and "The China Century" have been proliferating for years.

[ILLUSTRATION OMITTED]

China's rags-to-riches-in-one-generation story is impressive indeed. Its journey from poverty-stricken, Third World nobody to top A-list business partner in 30 years is nothing less than stunning. The Asian Development Bank's Eminent Persons Group may be correct in claiming that "the speed and depth of Asia's economic progress are unprecedented in world history." While the bankers were writing about Asia in general, they undoubtedly had China foremost in mind.

Virtually overnight, Communist China has gone from a pre-industrial, rural society to the world's manufacturing capital. It is now the largest producer and exporter of consumer electronics, footwear, luggage, textiles, apparel, toys, household appliances, seafood, and numerous other products. It has amassed the largest foreign-exchange reserves in history, reportedly in excess of $1.4 trillion. And it is flexing that muscle in the global arena, investing in Africa, Latin America, Asia, the Middle East--and the United States. That money is now being used to buy up Western assets, including in the United States, as the article on page 16 explains.

Not Above Laws

However, behind the litanies of China's economic triumphs and all of the hype about China as the emerging hegemonic power are some dark secrets. They are secrets that are well known but rarely mentioned by the Wall Street insiders, the major media organizations, and the bipartisan political lobby, which together have been the main forces pushing China's mercurial development. The truth is that China's continued economic, political, and military ascendancy is far from certain. In fact, it faces some very daunting challenges that some China watchers say could be its undoing.

First and foremost is the fact that the laws of economics have not been repealed. Productivity and general prosperity are maximized in market economies in which the actions of private citizens freely determine supply and demand. State-run economies, as all history has shown, are stagnant, inefficient, wasteful, repressive, and invariably result in a gross inequality in the distribution of wealth between the socialist rulers and the ruled.

Its impressive advances notwithstanding, the People's Republic of China remains an inefficient, oppressive, one-party communist state that could not have achieved its recent phenomenal development, except for the suicidal policies of the U.S. government (along with other noncommunist governments) that transferred enormous capital, technology, and know-how to the Beijing regime, in violation of all economic and moral principles. And, in spite of its enormous gains and momentum, Communist China would quickly atrophy and crumble if the American people forced our politicians to end the destructive trade, spending, regulatory, and monetary policies that are destroying our middle class and transferring our manufacturing and technology base to China. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.