Archive for March, 2008

The China Trade Fair 2008, Kathmandu

Tuesday, March 25th, 2008

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China will be setting up shop in Kathmandu April 25-28, driven by Nepal China Executives Council (NCEC) and the PRC Embassy in Nepal to educate the Nepali people on modern machinery, automobiles, electronics, medical and agricultural instruments, and home appliances.  Nepal looks to learn, by China’s guidance, how these industries have propelled successes in China’s tourism and economy. This is the third trade show in a series that began in 2005 to mark the establishment of diplomatic relations between Nepal and China.

The event will give Nepal and China the opportunity to examine strengthening a trade partnership. Nepal will assess the quality of Chinese goods and gain information on the business of production and trade. Chinawill exhibit its products and determine scopes of investment.

Nepal-China trade relations have grown in recent years. One notable milestone being tariff-free treatment of Nepali goods in the Chinese market. China has provided Nepal with “financial and technical assistance” in support of arenas such as infrastructure growth, industry establishment, and human resource development. The government of Nepal’s Ministry of Foreign Affairs measures the volume of such assistance to the tune of “80 million Yuan every year.”

Interestingly, the 2005 kick-off trade fair was jointly launched by Nepal and “China’s Tibet.” The 2008 affair comes at the heels of a whirlwind surrounding the controversey of China’s Tibet crisis: “More than 20,000 exiled Tibetans have been living in China since fleeing their region after a failed uprising in China in 1959.” Nepal continues to support its trade relationship with China, and has yet to issue a statement regarding the crackdown of protestors in its capital city.

Boycotting the Olympics? How about Boycotting your SUV?

Friday, March 14th, 2008

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(Hummer H6 Player Edition is a $103,000 “Super SUV,” six-wheeled with a horse power of 325hp and torque of 365 lbs-ft)

Darfur and the Olympic games. China is a key player in both, but rather than throwing a blanket over both issues to determine cause-effect and prescribe a solution, we need to be more careful about how we are classifying these relationships.

East vs. West Models of Economy. The Chinese model of market-based economic development has always been a “natural, inward-focused growth as opposed to the unnatural trade-driven growth of Europe, which relied on the expropriation of the raw materials of the rest of the world.*” Although China has benefited from the exploitation of subordinate classes and countries, it achieved as much merely playing to the level of the league it was drafted into. 

During the Mao era, China experienced social achievements, particularly in literacy and healthcare, that worked to lay the foundation for the economic growth the country has recently experienced. Before the late imperial China was defeated and forced to open its doors to trade with West, China’s economic strategy was based on self-improvement and sought growth organically, from what its own soil had to offer. 

Once strong-armed for its tea, silk, and porcelain, these assets have long since been replaced with manufactured goods, cheap labor, and oil. Western colonists have been credited with introducing industrialization to East Asia, but now China is to blame for pursuing the resources it needs to sustain the survival of its people, and the growing demands of world.

I can’t help but feel that China is acting as a natural global stabilizer, passing down savings to poorer nations who cannot afford to support the luxuries and extravagance of the American way of life. Since its economic rise, China is able to offer poorer societies attractive alternatives to trade and investment*.

Currently, as China works with Sudan to secure an oil stream from the Gulf, Americans are quick to cry foul, label the 2008 Olympics as the “Genocide Games,” and attribute China’s boom to a “Red Storm Rising.”

The Oil Crisis. Just as the US taught China to find success as a globally-competitive trader, it could take the time to educate China on prioritization of human rights and energy trade. How is the US presence in Iraq any more forgivable than China’s interest in Sudan? China’s reason for its relationship with Sudan is no more obscured than the ambiguity surrounding why American families are still missing their husbands, mothers, brothers, and daughters.

On top of its link to Sudan through arms and oil, China is securing liquid gold that the US is losing out on. By aggressively seeking out oil sources in Africa and the Middle East, “with countries hostile to the United States, such as Iran and Sudan,” Americans are armed with all the reason in the world to chastise China for edging out the US for oil resources / trading with frenemies / usurping its position as World Economic Leader enabling genocide activity in Darfur.

Not to mention that the economic impact a growing China has on American income has been predicted to be surprisingly modest (imports of oil are still less than 4 percent of national income*), given the US propensity for increasing its income through technological advance. Moving forward, this means that assuming that oil prices double and Americans continue to burn through oil at the same rate, the hit to the American economy is recoverable in less than two years of normal growth.

On average, Americans consume the equivalent of six gallons of gas per person per day. Americans also drive comparably large cars (some of them de-commissioned military luxury vehicles) and air-condition enormous homes (at an average of 900 square feet per child)*. These are the same Americans that are responding to a poll in the Washington Express, which asked “Should the US boycott the Beijing Olympics to protest human rights violation?” 55% of the respondents answered yes.

The Olympics Games. President Bush, British PM Gordon Brown, and French President Nicolas Sarkozy are all confirmed to attend the 2008 Olympic gala opening ceremony on August 8. Political leaders themselves are refusing to politicize the games in the interest of the Olympic spirit.

Outside of the obvious hypocrisy (the US will trade with and borrow from China, but it draws the line at a footrace?), I hardly think it fair to penalize the world’s best athletes who have trained to compete at an event couched as a juncture for global celebration.

 


* http://chronicle.com/temp/reprint.php?id=zm1qcnxs5p3v7pwkq58f7hb3jlh8l0fk

China ♥ Hillary

Thursday, March 6th, 2008

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Official headshot, courtesy hillaryclinton.com

According to NPR, a survey of almost 5,000 Chinese shows that support for candidates is divided as follows:

Clinton - 60%
Obama - 24%
McCain - 7%

The clip explains that Hillary is favored simply because she is the most known.  Let us not forget her address at the 1995 UN World Conference on Women in Beijing.

Listen here for the broadcast.

Boosting Cuba

Wednesday, March 5th, 2008

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(Adalberto Roque / Agence-France Presse)

The timing of it all! With Castro out and the prospect of a waning trade embargo in a new American administration, Beijing stands a
little taller this spring.

It is openly noted that Raul Castro is ready to replicate China in planning for Cuban economic reform, an extension of Fidel’s
fascination with “Chinese style socialism.” China is glowing in its new role as mentor, and has been hazily whispering sweet nothings about Cuba to the media on its steadfast appreciation for the country: ”China and Cuba are friendly nations. The Chinese side will continue to consolidate and develop Sino-Cuban friendly and cooperative relations.”

Fidel’s departure is the first domino in a series of events. Its economic isolation provided the island country with time to ripen with
resources. Now, it seems, everyone is quivering with excitement at the opportunity to own and drill on a piece of the Gulf of Mexico. With  China as lead comrade on the VIP list (and more in queue), Cuba is poised for significant  foreign investment deals. Deals that will be
neatly stacked on top of business generated from Cuban expatriates, leveraging agricultural resources for ethanol, and its well-educated people – if played correctly.

And still, China wins. On top of being supremely situated for a stake in the Gulf, its relationship with (and investment in) Cuba makes for
a careful US, whose attention is already divided among its presence in the Middle East, the upcoming election, and narrowing its trade gap with China. Among its other 123984719562734 priorities. 

Spielberg: 1
China: 1 *

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*No but for serious, the allegations surrounding China’s involvement in Darfur’s genocide activities are grave and require serious attention. I have been thinking on how to frame this discussion and intend to post on it, very soon.

X-Post // From Sao Paolo to Shanghai: Inequality and Growth, Past and Present, by R. Basas

Wednesday, March 5th, 2008

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For US-China Trade’s first-ever cross post, I am excited to vehicle this article by Rich Basas (blogger for FPA’s Latin America blog, and co-blogger for the Migration blog). He compares patterns of economy between Brazil and China and parallels their struggle with growth and unequal dispersion of wealth.