In the Arena

The China Syndrome

According to the New York Times, the Obama Administration may be coming to the conclusion that China is more a strategic competitor than strategic partner. Certainly, the Chinese have been acting more aggressively toward their Asian neighbors and more disdainfully toward us–although I would imagine it’s still premature to say whether our future relationship will be primarily cooperative or competive or, most likely, an uneasy mixture of both.

This is an extremely complicated relationship that we have no choice but to get right–and, all too often, we’ve gotten it wrong. The Obama Administration’s decision to sell arms to Taiwan, an issue that drives the Chinese crazy, was crashingly wrong, in an anachronistic way. (I mean, aside from the last, lingering and no doubt decrepit members of the Who-Lost-China lobby, what reasonable person would make arming Taiwan  a major American priority?) At the same time, though, there has been a tendency–encouraged by the fiduciopathic U.S. financial community–to ignore China’s assorted trade and monetary depredations. [Fiduciopathy is a perverse twisting of normal fiduciary relationships to emphasize the pursuit of short-term profit without any sense of moral or societal consequences.]

On my recent road trip, I was struck by how many Americans were worried and angry about China–and how few had any idea where the President stands on this issue. In fact, I’m not quite sure where the President stands. I realize that a lot of the byplay has to proceed quietly when it comes to economic relationships between great powers–and especially when it involves a great power like China, which places inordinate emphasis on public stoicism and respect.

But I think we’re reaching the point where the President does have to speak to the American people about China, not only about the importance of charting a successful long-term relationship, but also about China’s economic impact on the American middle class and what can be done to mitigate its unfair trade practices.

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  • paschendale1917

    And yet another NYT article from their Department of the bleeding obvious………

  • http://elvisberg.wordpress.com Elvis Elvisberg

    I mean, aside from the last, lingering and no doubt decrepit members of the Who-Lost-China lobby, what reasonable person would make arming Taiwan a major American priority?
    -
    None.
    -
    So, presumably, it’d be Charles Krauthammer and everyone in the Republican/Tea Party.

  • morzer

    What unfair trading practices? The Chinese are more efficient, manufacture good for much lower costs, and haven’t frittered away good money on credit cards, mortgages, and subsidies for the rich. China is simply doing what it should – running its economy effectively, refusing to fall for the ignorant right-wing nonsense that has wasted the last 30 years in the US, and in every respect behaving as a sovereign state has every right to do. China has no reason to defer to a failing state, nor to prop up a sclerotic economy.

  • herby002

    “China has no reason to defer to a failing state, nor to prop up a sclerotic economy.”

    morzer, you seem to be writing off the US a bit prematurely. If nothing else, remember the phrase “There’s life in the old dog yet.”

    As for China, its Communist government has quite a few problems of its own in “running its economy effectively” such as :

    Local/provincial government bureaucrats stealing land from local farmers in order to sell it to industrial companies in exchange for bribes and corporate jobs.

    Disbandment of the “Barefoot Doctors” medical system in favor of a US-style medical insurance deal wherein everybody has to buy insurance in order to be treated; pay huge fees upfront; or go without treatment – and die.

    Contending with air pollution due to industrial growth, automobile exhaust, and deforestation that millions of Chinese people go about their business in cities wearing face masks.

    I could go on…

    Please don’t write off the effect of the US on China’s economy. If China chose to call in all the US debt that it holds in US bonds, they would risk killing the economy of their best customer. The linked economies of Europe and Asia would follow. It would be economical suicide for China.

  • Ike Jakson

    China should be the natural trading partner and ally in that part of the World. Nothing should be done to damage that relationship and everything to improve it.

    China together with Russia can form a strong deterrent to rogue states like North Korea and Iran, and others that may harbor similar mischievous intentions. America should build bridges not destroy them between America, China and Russia.

  • morzer

    Life in the old dog?

    Not much. The poor brute is on its last legs, and just about ready for the final goodbye. American financial institutions are corrupt, and inadequately regulated, there are plenty of sweethearts deals for those who know the right Senator, unemployment may now be stuck at around 8-9% longterm, an ignorant electorate is about to elect ignorant right-wing buffoons who will only make things worse, income inequality is rising beyond its already alarming levels, America’s infrastructure is ageing dangerously and not being replaced adequately…

    How much more evidence do you need that America is moving towards being a failed state?

  • manuvaram

    Taiwan arms sale was a response to multiple snubs delivered to the President by the Chinese, including poor handling of his visit to China, and wrecking of climate change talks.

    Two years ago, several world leaders saw Obama as too lofty and potentially weak. China deliberately chose to test him. All of us should be glad he sent some tough love their way.

  • herby002

    3.2 – morzer,

    “How much more evidence do you need that America is moving towards being a failed state?”

    Want to see government corruption?
    Check out China, most of the Balkan countries, many South American states, many African countries; they are pretty good examples of massively unequal income distribution also.

    Want to see failed states?
    Go to Somalia, if you feel suicidal. Mexico, Afghanistan & Pakistan are on the brink; go there at your own risk.

    We still have the opportunity to solve our problems.

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