Henwood:

> Well yeah, but there's a tendency in left discourse to bracket out
> China, except to talk about sweatshops and political repression. The
> U.S. recession has gotten far more PEN-L traffic than growth in
> China, which has grown almost 10% a year over the last two decades.

Well, for  a start , a lot of those figures are about as accurate as, say,
unemployment figures from the US. Second, a lot of that growth has been
'robbing peter to pay paul' so to speak. As the east coast has boomed and
pumped up the statistics, the interior has waned. You might say there just
isn't enough of an accurate historical database about the Chinese economy to
say much of anything except to say over the past 20 years it has changed a
lot and it has grown some.

Since 9-11 happened hardly anyone noticed China's acceptance into the
WTO--at least all those globally minded Americans hardly noticed.

> How'd it happen? What'd it mean? What's happened to incomes across
> the spectrum? Even if ineq increased, are the poor better off than
> they were 10 or 20 years ago?

The China model is, I know it sounds trite,  unique. It combines the US
penchant for pumping money into research, development and the economy  via
the military and space/missile/aerospace programs while it also follows a
somewhat Japanese model for development, at least on the east coast. In that
sense, the gov't plans how to make capital for development and building
readily available. I'm not sure China will be as successful at taking full
development into the hinterland the way Japan did (the side of Japan most
Americans know nothing about but which figures heavily in Japan politics and
in its economy).

One thing that has really helped China is the investment into China from the
US, Japan and Korea (a lot of it profitable but probably non-productive
cronyism if you look at the Bush family portfolio). It's been Japan with S.
Korean chaebol as well that have been largely responsible for the building
of modern factories able to churn out custom-fitted but factory-made suits,
computers, DVD players, and white goods.

Also, the US cheap dollar/strong yen policy has pushed China into the fore
as huge exporter to both the US and Japan (Japan has a very large account
deficit with China).  This is why the Chinese are now upset by any
depreciation of the yen, even if it is short-term (as are a lot of currency
speculators whose constant source of money was always betting against that
depreciation).

The Chinese I meet and get to know in Japan still act like they come from a
secretive and repressive society. For example, one might have a girlfriend
from China but he doesn't want the other Chinese to know they are together
or that she is even here in Japan. And these people are in Japan because
they have connections to the CP, otherwise they wouldn't be permitted to
leave China.

If you get them actually talking about China as they know it, they talk of
uneven development (city vs. countryside, east coast vs. the interior, SE
vs. most of the rest of the country), loss of farmland and ecological
destruction, enormous pollution and waste problems, and social disruptions
(everyone trying to move to the east coast, people leaving farming to try
for work in the cities, even if it means camping out under a bridge). Most
Chinese I know here are economic and political immigrants in true senses of
those words; they would prefer to stay in Japan than go back after they've
lived a while here.

One of my best friends, who is from China, says he doesn't want to go back
because he loves the social freedom of Japan and hates the prevalent crime
in the Chinese provinces (he doesn't come from an east coast city, but
rather the deep interior). When we were taking a summer hike in the peaceful
Japanese countryside I asked him what his part of China was like. He said,
lots of countryside but you wouldn't walk through it like this because of
bandits.

He's also increasingly uncomfortable with being identified as 'Chinese' in
Japan because recent Chinese immigrants are associated with crime waves in
the Kanto. His hope for a future job is connected with helping (I won't name
the company but it's a famous brand), an electronics company with several
factories here in Fukui, to set up production somewhere in 'green field'
China. His father has lived in Japan and worked for them, as does his older
brother.

If China can resolve its Taiwan issue peacefully (though the Koreas could be
equally cataclysmic for China) and meet its fast-growing energy needs (a bif
IF), it's set to surpass Japan in GNP in a  decade and the US in two. But
that's also because of its enormous population.

I almost think the elite in Japan would be happy to see the US concentrate
its often aggressive and manipulative foreign and trade policies toward
China while Japan slips into some sort of 'Italy' or 'Sweden' status. Hard
to do, though, if you have no EU to tie yourself to.

Charles Jannuzi
Fukui, Japan

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