China as economic savior?

Europe is in  even worse economic shape than we are, with first Greece and now Italy being so indebted that they are threatening to pull down the whole Euro-zone house of cards.  And even Germany, still an economic powerhouse, may not have enough money or the will to bail everyone out.   Fareed Zakaria calls on the only country with the financial wherewithal to bail out Europe:  China

The time has come for China to adopt a broader concept of its interests and become a “responsible stakeholder” in the global system. The European crisis will quickly morph into a global one, possibly a second global recession. And a second recession would be worse because governments no longer have any monetary or fiscal tools. China would lose greatly in such a scenario because its consumers in Europe and America would stop spending.

Of course, China would have to get something in return for its generosity. This could be the spur to giving China a much larger say at the IMF. In fact, it might be necessary to make clear that Christine Lagarde would be the last non-Chinese head of the organization.

In a world awash in debt, power shifts to creditors. After World War I, European nations were battered by debts, and Germany was battered by reparation payments. The only country that could provide credit was the United States. For America, providing desperately needed cash to Europe was its entry into the councils of power, a process that ultimately brought a powerful new player inside the global tent. Today’s crisis is China’s opportunity to become a “responsible stakeholder.”

via How China can help Europe get out of debt – The Washington Post.

Why wouldn’t that work with us?  Maybe China would bail us out.  Of course, China would have to get something in return.  Maybe we could just sell ourselves to China.  Maybe Beijing would let us be a semi-autonomous region.

The former Soviet Union promised to bury us.  But that was in a time when nations dominated each other by war or the threat of war.  Now nations can substitute economic for military power and just buy up the countries they want.  If things get worse, don’t you think lots of Americans would be willing to give up their liberty and their sovereignty for some personal affluence?

Of course, you don’t have to sell out to China to make that kind of bargain.  Maybe the much-hailed “China model” of an authoritarian government that controls the economy while exploiting the free market will be the ideology that gets us out of our current economic malaise.  That platform would probably get a lot of votes.

A new Chinese militarism?

An Australian newspaper reports on the views of a Chinese general who is encouraging the rise of a new militaristic spirit in China and the recovery of the fighting spirit in revolutionary Communism:

A rising star of the People’s Liberation Army has called for China to rediscover its ”military culture”, while challenging unnamed Communist Party leaders for betraying their revolutionary heritage.

General Liu Yuan displays sympathy for Osama bin Laden, says war is a natural extension of economics and politics and claims that ”man cannot survive without killing”.

His essay, written as a preface to a friend’s book, says ”history is written by blood and slaughter” and describes the nation-state as ”a power machine made of violence”.

General Liu’s public glorification of what he sees as an innate but previously suppressed Chinese military culture reveals an undercurrent that is driving the Communist Party’s increasing assertiveness at home and abroad.

His essay emerges at an awkward time internationally, after Army Chief of Staff Chen Bingde last week travelled to Washington with reassurances about China’s peaceful intentions.

Chinese President Hu Jintao promoted General Liu this year to be Political Commissar of the PLA’s General Logistics Department, after making him a full general in 2009, and some expect he will receive a two-stage promotion into the Central Military Commission, the military’s top leadership body.

General Liu is also an important leader among the dozens of ”princelings” whose parents founded the People’s Republic and are now claiming dominant positions in politics, business and rising through the military.

His father was Liu Shaoqi, who was Mao Zedong’s anointed successor until Mao’s Red Guards threw him in jail and left him to die.

General Liu was purged with his family during the Cultural Revolution and then left Beijing to begin his career as a grassroots official in the countryside in the early 1980s, in parallel with the current boss of Chongqing city, Bo Xilai, and China’s likely next president, Xi Jinping.

”Military culture is the oldest and most important wisdom of

humanity,” writes General Liu, inverting a traditional Chinese formulation that military affairs are subordinate to civilian culture. ”Without war, where would grand unity come from? Without force, how could fusion of the nation, the race, the culture, the south and the north be achieved?”

While overtones of 1930s Japanese and German militarism will be internationally disconcerting, the essay also opens a window into the institutional, ideological and personal struggles that are intensifying before next year’s leadership transition.

It is effectively a clarion call for the true heirs of the communist revolution to rediscover their fighting spirit and reinvent a rationale for their existence.

via Chinese general rattles sabre.

Maybe we had better not dismantle our military.

HT:  Adam

Go East, young scientist

The United States is now facing a brain drain that threatens its traditional scientific and technological leadership, as more and more American scientists are heading for greater opportunities in China and other ambitious countries.  So says scientist Matthew Stremlau:

Twenty years ago, most molecular-science PhD graduates in the United States went on to start up their own labs at universities across the country. These labs drive innovation and keep the United States globally competitive. Today, however, only a handful of my friends will go on to run their own labs, though more would like to. Some go into industry or consulting or law. Others leave science altogether.

As public funding for science and technology shrinks, it just isn’t possible for people who want to become scientists in America to actually become scientists. So when a friend of mine who recently received her PhD in molecular biology asked for some career advice, the answer was easy. Go to China, I told her. . . .

The global science landscape is radically different from what it was when I started graduate school 10 years ago. Opportunities for cutting-edge science are sprouting in many other countries. China stands out. But there are plenty of others. India, Brazil and Singapore built world-class research institutes. Saudi Arabia aggressively recruits researchers for its King Abdullah University of Science and Technology. With a staggering $10 billion endowment there — larger than MIT’s — American scientists no longer need to suffer through Boston’s endless winters. Not to be outdone, Abu Dhabi opened the Masdar Institute of Science and Technology in 2009. These emerging powers have a voracious appetite for good scientists. So they’re trying to poach ours.

I spent nearly two years doing molecular biology research in China. I have worked at the National Laboratory for Agrobiotechnology and at Peking University in Beijing. The Chinese are serious about science. Government spending on research and development has increased 20 percent each year over the past decade. Even in the midst of the financial crisis of 2008-09, China continued to bet big on science and technology. China now spends $100 billion annually on research and development. The Royal Society, Britain’s national science academy, estimates that by 2013, Chinese scientists will author more articles in international science journals than American scientists do.

Chinese labs are cutting-edge intellectual melting pots of Chinese scientists trained in the East and in the West. This environment of creativity and hard work will produce big breakthroughs. Chinese universities aggressively recruit foreign scientists. The start-up packages can be generous and in some cases comparable to what a young faculty member receives in this country. In the future, China might be a better option for U.S. scientists desperate to fund their research. . . .

Talented scientists in this country often fall through the cracks because they can’t get funding. Agencies are deluged with applications and often have to reject as many as 90 percent of the proposals they receive. Unfortunately, the situation is likely to deteriorate further as budget cuts limit the resources available for research. So I’ve started encouraging my friends to think more creatively about their careers. Go to China, I tell them. Or Singapore or Brazil or the Middle East. If the United States can’t fund its scientific talent, find a country that will.

via Go to China, young scientist – The Washington Post.

Is this more evidence of American decline?  Or does it really matter in a global economy?

China spreads its influence

Michael Gerson tells about China’s inroads into Africa and its bigger plans:

The skyline of this city — what little there is of it — is a Chinese creation. Chinese money built the Parliament building. A $100 million, Chinese-funded hotel and conference center is rising. The Chinese government is constructing a soccer stadium, a decidedly popular move.

It is difficult to argue that these shiny new buildings are more urgent development priorities than, say, fighting malaria or providing a daily meal to children in rural schools. But the Chinese don’t even pretend this is the case. These highly visible investments, increasingly unavoidable across Africa, are designed to buy influence with governments.

But why Malawi? This poor, rural, landlocked nation is hardly a strategic prize. Elsewhere, the Chinese are clearly after oil and other resources. Malawi does have some unexploited rare-earth metals and a mine producing uranium. But the aggressive Chinese outreach here seems more directly motivated by a plan to establish China as a power throughout the continent, even in its remotest corners.

This is sometimes called neo-imperialism. At closer range, it more closely resembles mercantilism. Unlike in Asia, where China pursues tinderbox land disputes, the objectives here are overwhelmingly economic — securing vital commodities while selling cheap manufactured goods.

Though China does not seek to plant military bases or ideological revolutions in Africa, the Chinese model of state-led development is increasingly viewed as an alternative to Western economic liberalism. Leaders such as South African President Jacob Zuma are impressed with the Chinese economic approach — which is naturally attractive to leaders inclined toward the expansion of government power.

But what is appealing to African leaders is not always good for African societies. China’s defining foreign policy principle is “mutual noninterference in domestic affairs,” which comes in handy for a nation that fears a focus on its own domestic oppression. In practice, this means that African governments have a rich friend with low standards. Some Chinese associates, such as Zimbabwe or Sudan, are international outlaws. Elsewhere, the influence is more subtle. Malawi, for example, is a multiparty democracy that is experiencing slow democratic regression. Recent legal changes have restricted press freedom and expanded discrimination based on sexual orientation (adding a prohibition against lesbianism to the existing colonial-era statute). Western donors have objected. But since China is indifferent, the pressure on the Malawian government is diluted.

via China’s African investments: Who benefits? – The Washington Post.

A law to visit your parents

China, for all of its seeming success, is also having its problems.  But it is trying to address them:

Under a proposal submitted last Monday by the Civil Affairs Ministry to China’s State Council, adult children would be required by law to regularly visit their elderly parents. If they do not, parents can sue them. . . .

Concerns about how to care for China’s older people are growing as the nation’s population rapidly gets older, wealthier and more urbanized. China has the world’s third highest elderly suicide rate, trailing only South Korea and Taiwan, according to Mr. Jing, who compiled figures from the World Health Organization and Taiwan. The figures show a disturbing increase in suicides among the urban elderly in the past decade, a trend Mr. Jing blames partly on urbanization.

Once ensconced in intimate neighborhoods of courtyard houses and small lanes and surrounded by relatives and acquaintances, older people in China are increasingly moving into lonely high-rises and feeling forgotten, he said.

via In China, a Move to Mandate Closer Families – NYTimes.com.

Actually, I salute China for this.  Not the statist part, but the proposed law would be a reversion to the old pre-Communist Confucian culture, which venerated aged ancestors.

Do you think we might be reduced to that?

China will bail out Europe

Towards the Chinese Century and world domination:

China has said it is willing to bail out debt-ridden countries in the euro zone using its $2.7trillion overseas investment fund.

In a fresh humiliation for Europe, Foreign Ministry spokesman Jiang Yu said it was one of the most important areas for China’s foreign exchange investments.

The country has already approached struggling European countries with financial aid, including offering to buy Greece’s debt in October and promising to buy $4billion of Portuguese government debt.

‘To have any discernible effect China will have to buy a lot more than 5billion euros if they expect to have any impact on the negative sentiment surrounding Europe,’ said Michael Hewson, currency analyst at CMC Markets.

China’s astonishing economic growth has put it on track to overtake America as the world’s economic powerhouse within two years, a recent report claimed.

But experts believed still be some years before America’s leadership role is really challenged – largely because Beijing has given no indication it is ready to take on the responsibility of shepherding the world’ economy.

This foray into the future of the euro could be a signal from Beijing that it is ready to change that perception.

via Fresh humiliation for euro zone as China says it will bail out debt-ridden nations | Mail Online.


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