Daily Mirror - Print Edition

The Worrisome Dominance of China; all hail Xi Dada

12 Mar 2018 - {{hitsCtrl.values.hits}}      

Start with politics. Xi Jingping has used his power to reassert the dominance of the Communist Party and of his own position within it. As part of a campaign against corruption, he has purged potential rivals. He has executed a sweeping reorganization of the People’s Liberation Army (PLA), partly to ensure its loyalty to the party, and to him personally. He imprisoned free-thinking lawyers and stamped out criticism of the party and the government in the media and online. Though people’s personal lives remain relatively free, he is creating a surveillance state to monitor discontent and deviance.
China used to profess no interest in how other countries ran themselves, so long as it was left alone. Increasingly, however, it holds its authoritarian system up as a rival to liberal democracy. At the party’s 19th Congress last autumn, Xi Jingping offered “a new option for other countries” that would involve “Chinese wisdom and a Chinese approach to solving the problems facing mankind.” Xi later said that China would not export its model, but you sense that America now has not just an economic rival, but an ideological one, too.
The bet to embed markets has been more successful. China has been integrated into the global economy. It is the world’s biggest exporter, with over 13% of the total. It is enterprising and resourceful, and home to 12 of the world’s 100 most valuable listed companies. It has created extraordinary prosperity, for itself and those who have done business with it.
“Yet China is not a market economy and, on its present course, never will be. Instead, it increasingly controls business as an arm of state power. It sees a vast range of industries as strategic. Its “Made in China 2025” plan, for instance, sets out to use subsidies and protection to create world leaders in ten industries, including aviation, tech and energy, which together cover nearly 40% of its manufacturing. Although China has become less blatant about industrial espionage, Western companies still complain of state-sponsored raids on their intellectual property. Meanwhile, foreign businesses are profitable but miserable, because commerce always seems to be on China’s terms. American credit-card firms, for example, were let in only after payments had shifted to mobile phones”. (Quote above is from the latest ECONOMIST).

 

 

"For Sri Lanka of course the Port City across Galle Face is sufficient evidence that we are unable to hold on to our own identity as a beautiful country with our own personality"


For Sri Lanka of course the Port City across Galle Face is sufficient evidence that we are unable to hold on to our own identity as a beautiful country with our own personality. President Maithripala Sirisena has already voiced his dismay at the way Chinese shops are multiplying in Colombo. I have not seen much of them however. One point which struck me in the above account we have just read is that Chinese state firms having agreements with independent countries like ours may provoke a disagreement with the Chinese state. Not that there was much to choose between USA and other world powers in such a relationship.
When I was Chair of Consolexpo (a state exporter of tea and produce, now defunct) in the 1977-79 period, Consolexpo got involved in a dispute with a private US importer of passion fruit juice, which was said to add a unique flavour to a fruit cordial. We had to stop exports of passion fruit juice because our supplier, which was a state plantation developed by Dr. Colvin R. de Silva in Agalawatte was unable to honour its commitments to us. The state plantation had virtually closed down after the SLFP/LSSP/CP government, in which Colvin was Minister of Plantations, had been replaced by the UNP government of J. R. Jayewardene in 1977. Consolexpo as the exporter was left high and dry. 
When the private importer in USA, who was our partner in the deal, met our Ambassador in USA the matter was referred by the Ambassador to us and the President JR, who told us that notwithstanding our supplier’s failure we had to get passion fruit juice from somewhere and supply it to the US buyer, incurring whatever financial loss that would cause. And so it was done. 

 

 

"China has been integrated into the global economy. It is the world’s biggest exporter, with over 13% of the total. It is enterprising and resourceful, and home to 12 of the world’s 100 most valuable listed companies"


But that was a small matter compared to the huge commitments that SL government enters into now with China in various infrastructure areas like roads and ports. What if China insists on having its pound of flesh?  
Is President Trump going to play the role of Portia, the legal lady, who saves the hero in Shakespeare’s Merchant of Venice from losing his pound of flesh? Or are we going to be swallowed up like the Port City has swallowed up Galle Face?
It is easy to ask questions about China’s dominance and our dependence.  Apparently even the farce that was enacted in Rajanganaya about processing water for drinking involved a Chinese firm. The Sri Lankan management of the project could not explain it to the beneficiaries. Can a politicized management do these things?  


What is your point of view?
([email protected])