Monday, April 28, 2008

Sharing the Playground

The dragon has awakened, but it hasn’t turned out to be the ferocious creature that most feared. Once China opened its doors to the west and international markets, it has made a credible attempt to engage its neighbors through goodwill and to become a responsible power. Membership in the UN and WTO has likewise shown China capable of being a team player. China’s notion of its superiority is accompanied by the obligation to set a moral standard for the rest of the world- ironic, since corruption is rampant and transparency is not its strong suit. Nevertheless, China recognizes that the only way to gain the stature it longs for is through reunification of the region. On the western front, SCO strengthens China’s ties with Russia and its former states, and to the south ASEAN continues to forge a strong trade relationship with China. Africa and Australia are eager to supply China with the necessary raw materials to stoke the fires of economic reforms and for the US, China has provided primarily a cheap labor pool. So, with China’s hot economy and everyone getting a piece of the pie where does that put the US? Hopefully, the US welcomes the development between China and its neighbors since maintaining stability keeps the economy in line. With China underwriting a considerable chunk of our national debt, the US needs the Chinese economy to retain that stability. Anything that could jeopardize Chinese markets, spells trouble for everyone especially the US. The spreading roots of globalization firmly anchor our economic destinies as nations grow more interdependent. The US is so heavily invested and overextended in the Mideast at this point, that growing tensions elsewhere, would likely find us coming up short in our response. The US would do well to support even handed partnerships that mutually benefit all parties involved. In terms of its foreign policy with China’s new best friends, the US should continue to invest in these countries and strengthen its own trade agreements with them. The continued threat of terrorism world wide calls for all hands on deck to conquer this menace, so the stronger the alliances, the greater likelihood of a united front. The US does not want to stand alone either if faced with escalating tensions between China and Taiwan. Support from Asian neighbors would signal to China that although trade relationships are welcomed and valued, bullying its territorial possessions is totally unacceptable. Our international reputation has been battered of late and we too need to be setting the moral benchmarks.

Saturday, April 26, 2008

Peaceful Coexistence Not Likely

Doak Barnett’s 1993 article, Chinese Turkestan, showcases Xinjiang’s metamorphosis from 1950’s poor, primitive outpost to the current modernized city inhabited by Uighurs and an ever growing Han population. Barnett is awed by the changes he witnesses and reports that Han and Uighurs coexist rather peacefully. Fast forward a dozen years later and the Uighurs and Han Chinese aren’t so cozy anymore. This remote western region has always been at the crossroads between China and Central Asia, as traders traveled the Silk Road to enter China through the back door. The civil war of the 1940’s offered the Uighurs the opportunity to establish their own country, East Turkestan, but the effort was short lived when the CCP invaded and brought the Uighur back into the Chinese fold as the Xinjiang Uighur Autonomous Region. As economic reforms continue at full throttle, Beijing has pushed westward to develop its more remote regions and a flood of Han Chinese from the surrounding provinces have arrived in Xinjiang looking for opportunities. The increase in the Han population and the rise of terrorism has made the Uighur strangers in a strange land. While the Han live in apartment high rises and shop in local department stores, many Uighurs adhere to more ethnic traditions, visiting kebab stalls, shopping in the bazaars and attending mosques. Xinjiang's skyline mimics those of larger cities and billboards in Chinese hawk the latest commodities. Economic reforms have transformed the city, but generally, the two groups do not mix even though they often share the same workplace. Following the September 11th attacks though, life for the Uighur grew more difficult as a 2006 Time Asia article notes (http://www.time.com/time/asia/features/xinjiang/cover2.html). Beijing, ever vigilant in its monitoring of any “separatist” moves by the Uighur, grew fearful of alliances with Al-Queda that might stir up new attempts at civil unrest. Uprisings in the early 90’s and again in ’97 prompted the CCP to initiate the “Strike Hard Campaign” to ensure containment of any separatist sympathizers. Additionally, the government stepped up economic development in the region, and imported Han Chinese laborers to build roads, highways and rail lines; the ultimate intent was to dilute the Uighur population and build a greater Chinese identity. The campaign also brought greater surveillance by police and the PLA who detained suspects and infiltrated mosques. Islamic clerics were forced to attend “patriotic education” sessions, the Uighur language was banned and Mandarin required in the universities and schools. Local language texts were also scrutinized for any overtones of separatist rhetoric. After the 9/11 attacks, under pressure from the U.S., the Uighur were once again targeted by the CCP because of their Islamic beliefs. Although far removed from Beijing, the Uighur have not escaped repression of religion and cultural practices. Recent months have once again seen clashes between Uighur protestors and Chinese police. Xinjiang may well be on the margins both geographically and culturally, but they continue to struggle with maintaining their ethnic identity as the east encroaches and overtakes the region. The Han are not going away and the Uighur will grumble, but not openly. There is still a small segment that refuses to give up the fight, but for the remainder the challenge is to accommodate a changing landscape while retaining their identity. Although the government may consider the Uighur Chinese, the Uighur know otherwise.

Saturday, April 19, 2008

Who's That Knocking at the Door?

A fortuitous gift lay on my office chair this week- the May 2008 special issue of National Geographic. Colleagues, aware of my MALS course and tired (I feel certain) of hearing me reference China regularly, left this month’s copy for my perusal. China- Inside the Dragon, cover to cover, is a fascinating portrayal of the complexities of our Eastern neighbor. Page after page of National Geographic’s outstanding photography unfolds providing a visual backdrop to so many of our readings. The photos of the dazzling urban areas such as Shanghai give testament to China’s rising economic star. Several pages later though are reminders of those who are less enchanted by modernization, but who are, all the same, impacted by what goes on in the big city as they struggle to maintain their ethnic identities and traditions. One ethnic minority, the Dong, goes quietly about its everyday business as modernization encroaches upon its village, while another minority group, the Tibetans, have taken on the Chinese government in their bid to retain their centuries’ old religious beliefs.


Novelist Amy Tan’s article, Village on the Edge of Time, visits the mountainous region of Dimen in South China, home to the Dong. Five clans, totaling 2,372, populate this poor, remote village in Guizhou where most villagers harvest, plow and plant rice fields and bring in less than $100 annually. Their presence of more than a thousand years in the area has given rise to preserving their history through song. Every aspect of life, from manners to chores, is recorded in songs that are passed from generation to generation. Tan’s depiction of this distinctive culture portrays an ethnic minority that cannot escape the modernization that flourishes beyond its borders. Television came to the region seven years ago and by 2006 cell phones were able to reach remote areas. By 2007, almost the entire village owned phones, primarily to stay in touch with the 1200 working age youth that have left to work elsewhere. It is now a village of very old, raising very young. Women in their 70’s strap their grandchildren onto their backs as they hike three miles up the mountains to tend their fields. Tan details the lives of the za, elderly women who teach the younger generation the songs of the clan, and the council of eleven elders who oversee the social welfare and civil conduct according to the Dong code of conduct. Feng Shui masters treat maladies with herbs and drive unhappy ancestoral ghosts from individuals who experience their wrath. While urban life slowly seeps into the village, the Dong continue to quietly farm and sing of the past. To read Tan’s article and view both a narrated slide show and video, go to: http://ngm.nationalgeographic.com/2008/05/china/guizhou/amy-tan-text

Tibetans, on the other hand, are standing four square opposed to China’s imposition of modernity and seek to regain their sovereignty and maintain the practice of their religious beliefs. Tibetan protests and clashes with the Chinese army have filled the news for the last month. Like the Dong, Tibetans reside in a remote mountainous region that geographically has kept them on the margins of economic development. China’s push westward with its plan of economic reform though has put the Tibetans and the Chinese at loggerheads. Roads, an airport and now the super rail system have opened Tibet to an eastern onslaught of Chinese visitors and residents. Chinese residents have constructed businesses everywhere, changing the landscape dramatically and furthering the resentment that most Tibetans feel with regard to the Chinese. Nevertheless, there are those Tibetans who accede that the Chinese presence has brought schools and hospitals to the area, something the Tibetan government could not provide. Lewis Simon’s article, Moving Forward, Holding On, displays the animosity each group feels toward the other and the underlying distrust that is mounting as Tibetans fear China’s real motive is to exploit the vast natural resources it commands. http://ngm.nationalgeographic.com/2002/04/tibetans/simons-text/1

China has produced staggering results in the eastern region, but the question remains whether it can produce economic miracles in the countryside without destroying what was once the backbone of Mao’s social system.

Saturday, April 5, 2008

Hi Ho, Hi Ho, It's Off to Work We Go..

While American parents worried about the toxic effects on their children from toys imported from China, few, I would wager, have given too much consideration to the Chinese child laborers likewise subjected to those same toxins. Child laborers contribute to the pool of cheap labor that keeps the wheels of Chinese production turning. As the population ages, China faces a shrinking labor pool that is beginning to exert changes in employment practices. Industries and factories are discovering the need to compete for employees, giving employees leverage in higher salary demands and better working conditions. If employees don’t like what they see, they vote with their feet by moving on to a better place of employment. Workers vigilantly check their cell phones for text messages from others who keep them abreast of where the best wages can be found. (New York Times, Help Wanted: China Finds Itself with a Labor Shortage, http://www.nytimes.com/2005/04/03/international/asia/03china.html?scp=38&sq=child+labor+in+china&st=nyt ). As migrant workers move on to greener pastures, child laborers fill the void, particularly in factories. The high drop out rate of students from schools in the countryside assures an ample supply of these underage workers. Although China designates 16 as the legal age for employment, hiring underage workers is not uncommon especially in small private industries and factories where oversight is negligible. The China Labor Bulletin’s report on child labor, Small Hands (http://www.china-labour.org.hk/en/files/share/File/general/Child_labour_report_1.pdf- ) categorizes six groups of child laborers: 1) those who work as part of an apprentice program, 2) those attending work study schools, 3) those working with their families in a business or as household helpers, 4) casual workers who perform odd jobs, work with a construction crew, in restaurants, or as nannies for a limited amount of time 5) regular workers who have contracts with a small enterprise in a city, and 6) forced laborers. The Bulletin report observes poverty and the high drop out rate to be the two largest factors contributing to the availability of child laborers. The Chinese compulsory education system requires six years of primary school, followed by three years of middle school. While the education is compulsory and free, numerous fees place a large burden on cash strapped families. By the second year of middle school, many parents pull their children out when grades are low and the tuition for high school looms ahead. Inadequate funding of rural schools leaves most children with a poor basic education, making middle and high school a significant struggle even for the best of students. The prohibitive cost of university makes this stepping stone to a better life a virtual impossibility for most. A college degree used to be a vehicle for success in the urban areas, where one could attain a job and with it a residency card. These days it is easier to find work, and residency requirements have been lifted in most major cities, so a college degree offers limited benefits in view of the cost.

Saturday, March 29, 2008

Kids Do the Darndest Things...

The horse is already out of the barn, and Party officials are anxious. Economic reforms have propelled China into modernity indeed, and with it a new generation searches for its own identity. Straddling the old and the new, China’s youth are as varied and individualistic as their contemporaries in America. Many recognize the hardships their parents endured during the Cultural Revolution and have seized the opportunity to move up and beyond, to a life their parents could never have envisioned. Like Depression era parents who pushed their offspring to get educated and make something of themselves, Chinese youth feel the pressure of similar aspirations from their parents. We hear the fervor of this quest in Alex’s comments on his hopes for the future. Education, success, financial security for himself and his family, and the intense desire to achieve something for his country are reflected in his summary of the future. The American dream has come to China, in spite of limitations on individual freedoms. Many in the urban areas have translated those dreams to reality while the Party continues to look over their shoulders. Astute observers of the political climate, they know where the line is drawn and have devised methods for tiptoeing around that line when necessary.

Interestingly, there are those that don’t even care about that line, and choose instead to follow an entirely different route. The linglei of the Time/Asia’s 2004 article, The New Radicals (http://www.time.com/time/asia/covers/501040202/story.html) are the rebels without a cause. Largely ignoring the call to fall in line with the conventional road to success, they have instead sought self expression in other ways. Eager to follow a different path, many have left school and become entrepreneurs, writers, or designers in their own right. While the term linglei originally translated to “slacker”, its new connotation is alterative lifestyle. As Chun Shen expresses it, "People born in the 1970s are concerned about how to make money, how to enjoy life," …. "But people born in the 1980s are worried about self-expression, how to choose a path that fits one's own individual identity." These are the cool kids, the Fonzie’s of China -it’s not about the money, it’s about what makes you happy and distinctive. And cool sells. Publishing, fashion, electronics and fast food market the linglei image and reap the rewards.

The linglei are the benign rebels that many want to emulate, but there is a truly criminal group of youth rapidly growing that is cause for great concern(http://www.time.com/time/magazine/article/0,9171,501021111-386993,00.html) These youth operate in a moral vacuum where Communist ideals are irrelevant and the ethics of capitalism is questionable. Criminal and gang activity fill that void. The traditional Confucian based family has been eroded by a soaring divorce rate, consequently leaving some kids adrift. Officials worry that although the number of 14 year olds has fallen from 28% to 25% in the last decade, there has been no appreciable drop in youth related crime. Like US gangs, youth are recruited by older members to first engage in petty crimes such as school yard “protection” in exchange for fees and then graduate to more serious business ventures. A severe shortage of juvenile detention centers finds most of these kids sent to labor farms where they rub elbows with adult criminals who further their criminal education.

Kids, kids, kids….what are you going to do with them? Party officials should check out reruns of Happy Days for some insight on parent/child dynamics; while Mr. and Mrs. Cunningham thought they were commandeering the troops, the Fonz, Richie, Joanie and Potsie knew full well that was just an illusion! Take heed China!

Saturday, March 22, 2008

Welcome to Beijing, ya'll

In recent weeks, China has been taking it on the chin. With the Olympics only months away, troubles brew in Tibet and Taiwan. This past week has seen Chinese troops clamp down on Tibetan rebels and the resurgence of Taiwan’s talk of independence on the eve of elections. It seems Party officials are putting out wildfires-they no sooner get one extinguished and another flares up. Pressures to meet Olympic deadlines amid international concerns regarding air and food quality must have Party officials popping tranquilizers daily- with good reason. There’s a lot riding on the Olympics for the Chinese. This is their golden opportunity to convince the world they are worthy of their ascendancy as a global leader. The Olympics will showcase China’s rapid economic turnaround from an isolated, poor country to an economic powerhouse in a relatively short time. Sensing that the Western world is uncomfortable and somewhat suspicious of the newest member to the club, they are eager to roll out the welcome mat and prove there is no cause for distrust. To be sure, the Olympics will be a wondrous spectacle, but it will be China’s handling of its internal problems that the international community will be scrutinizing. Can China convincingly demonstrate that it is not just an economic contender but a world power as well? That will depend on how it addresses the ongoing poverty of its peasants, the social ills of the urban areas, and the containment of Tibet and Taiwan. If China doesn’t get heavy handed against its citizens and gradually loosens the reins of control to allow greater civic participation, then it will be taking a step forward in the right direction. However, the Party generally operates on the basis of self preservation, despite its seeming road to obsolescence as the Old Guard dies out and the younger generation grabs for the golden ring of consumerism. China has worked hard to forge international relationships that show it is a responsible neighbor, but it will risk undermining those relationships if it oppresses its own citizens. China has transformed itself by sheer determination and can maintain a world power status if it doesn’t become shortsighted and focus on economic reforms at the expense of its people. The national pride that comes as a byproduct of China’s history and economic growth cannot be underestimated in pushing it front and center in the global arena. Now that the doors have been flung open, the Chinese are ready with “Glad ya’ll could make it, come right on in.” and it wouldn’t be neighborly of us to do otherwise. Like it or not, China is here to stay.

Saturday, March 1, 2008

Frankly, they don't give a dam....

http://www.ft.com/cms/s/0/ccdd055c-e4c2-11dc-a495-0000779fd2ac,dwp_uuid=7799346e-6d6c-11da-a4df-0000779e2340.html


“This dam was a really stupid mistake. We should consider all such projects from a scientific perspective, and if it’s not scientific we shouldn’t do these stupid things. It was so stupid, stupid, I say.” An obviously ticked off An Qingyuan, former Communist Party boss from the Shaanxi province, vented his frustration at the failure of the Sanmenxia dam constructed in the 1950’s by a Sino-Soviet engineering team. Mr. Qingyuan has become an activist lobbying to have the dam demolished and has also raised pertinent questions about the newly built Three Gorges Dam. Supported by the Party elite during the Great Leap forward, the Sanmenxia dam displaced 400,000 peasants and has been a monumental failure both socially and environmentally for those living in the area of the dam. Even current Party officials blame the Sanmenxia on many of the current environmental problems. Silt build up and industrial overuse have contributed to water shortages. The dam was reconstructed in 1960, but by then the human and environmental costs were staggering. Families moved from their land to make way for the dam are still bitter about the broken promises of compensation.

I was a bit surprised by the open criticism that Mr. Qingyuan offered and even more so by the senior Party officials’ admission that Sanmenxia was a disaster. Party officials are not wont to admit, “Oops, we goofed!” Also interesting to note that the old Party line lives on in the comments of the local officials who live near the dam who parrot “the benefits outweigh the negative consequences”. Those old school Maoists- you’ve got to admire their loyalty. Has the government learned from its past experiences? Not likely. Mao was breathing down the necks of the peasant population to work harder and faster to propel China toward economic growth with not much thought to consequences. I think back to the reading, The Tunnel, about the directive issued to communities to build air-raid tunnels large enough to accommodate city buses. The local committees were galvanized into action with not much more than axes, picks and hard labor….and oh yeh, they forgot to tell them to shore up the walls to prevent collapse. Minor oversight. China in its zeal to climb to the top of the heap seems to get ahead of itself I think. So, this begs the question- if moving 400,000 folk to build Sanmenxia provided a heap of problems, wouldn’t you think they’d give pause to the ramifications of moving 1.3 million for Three Gorges? Of course when you have one of the world’s largest populations, citizens are pretty much expendable.

Chinese authorities have employed the usual full steam ahead with Three Gorges, but this time not without critics. We can hope that the thirteen years that it has taken to construct Three Gorges has allowed time to carefully look over the blueprints. But my guess is that not much thought has been given to environmental impact. The press given this new dam touts it as the largest and waxes on about supplying one tenth of the country’s energy needs. As energy needs have soared, officials have gone silent and they seem to be rethinking that statement. Perhaps these officials should have looked to the past for the answers of today. As for the solution of what to do with 1.3 million people…that’s a hard nut to crack. China is quickly depleting its arable land and shipping folks off to the city presents its own problems. Maybe it needs to reexamine and be a bit more flexible with its energy plan. They are developing wind and nuclear power and that’s a start. Basically, they’ve painted themselves into a corner. But haven’t we done the same thing with our dependence on oil?

Saturday, February 23, 2008

Medicare or Medican't ?

A sense of déjà vu came over me as I read two articles from the Economist, one published October 11, 2007 and the other February 21, 2008, that dealt with the mounting problems of China’s health care system. While I read through both articles it seemed all too familiar- what was the source of this familiarity? Then it struck me- this is a duplicate of the US dilemma! The question for both countries is how to provide health care for its citizens and how large a role should government play in that solution?

As China’s economy has shifted into overdrive and the population of urban areas continues to swell, countryside peasants who served as Mao’s poster children for reform under the CCP still lag significantly behind their urban counterparts in both income and benefits. A nostalgia permeates the countryside for the “barefoot doctors” of the 1970’s Cultural Revolution that provided for the basic health and hygiene of the rural population. These paramedical personnel were generally given between six to eighteen months of training, oftentimes by doctors “sent down” to the countryside. It wasn’t state of the art healthcare, but it was free and somewhat reliable for basic health needs. The October 2007 article, “Missing the Barefoot Doctors” (http://www.economist.com/world/asia/displaystory.cfm?story_id=9944734 ) finds that although grain production in rural areas has risen three years consecutively and incomes have shot up by 6%, the total agricultural contribution to the GDP has taken a nosedive. Once 25% of the GDP in the early 90’s, it has dipped to 12% for the remainder of the decade. Peasants still find themselves on the periphery of the economic boom and squeezed out by aid targeted to urban areas, particularly healthcare and education. In spite of increased incomes, some peasants have moved from poverty to dire poverty, usually the result of mounting medical expenses. While the central government allocated 8-11% of total expenditures on agricultural and rural welfare in the 90’s, currently those allocations have plummeted to 7-8%. Peasants and laid off workers of SOE programs that enjoyed healthcare benefits have found it necessary to move to the cities to survive. Even in the cities this underclass is shut out. Labor contract laws passed this year now mandate that urban employers provide coverage for migrant workers. However, hiring of migrants is most often an informal affair, which makes it easy for employers to circumvent the law. I’m experiencing that déjà vu feeling again- employers and migrants circumventing laws? Hmmm….

China touted a medical insurance scheme for countryside residents in 2003 in an attempt to address the growing problem of medical care. The voluntary plan calls for each peasant to contribute 15 yuan, with the central and provincial governments chipping in 10 yuan each respectively for annual healthcare coverage. Voluntary yes, but some have contended their contributions were withheld from their government subsidies for grain production. The government is still reluctant to loosen the reins too much. Under this plan, the insured could expect reimbursement of 40-60% of expenses, but only once the bill was paid in full. Therein lies the rub for many peasants. Rich peasants benefit from the plan, but for many peasants up front payment is a virtual impossibility. Additionally, medical care can only be accessed in one’s own locality, thereby excluding the millions who have migrated to the cities The government’s move to decentralization and delegation of decision making to the local level has created its own problems. Doctors and healthcare workers are prone to ordering expensive drugs and unnecessary procedures for patients in order to bring in revenue for covering salaries. Shortfalls from provincial funding have put the burden on healthcare facilities to make up the difference. Some economists have suggested a reduction in size of bloated local bureaucracies and greater aid contributions from higher levels of government.

China is aware that it must take action if it is to prevent an economic unraveling that could result if it ignores this problem too long. While the central government has pushed for modernization and economic reforms in urban areas, it is all too aware of the elephant in the middle of the room. “Losing Patients”, found in the February 21st article of the Economist (http://www.economist.com/world/asia/displaystory.cfm?story_id=10727824) notes China will revisit the healthcare issue at the March 5th parliamentary session. There is the growing recognition by China that as its economy pushes forward at full throttle, its cheap labor force is vital for continued growth. The plan to be unveiled will seek stronger government control of healthcare and a larger percentage of the budget dedicated to healthcare needs along with a move toward universal healthcare. The US might do well to listen in and see what the Chinese propose, especially since this hot button issue tops the lists of most of the aspiring presidential candidates.

Saturday, January 26, 2008

Revolution Repeat??

As the old saying goes,”Never say never.” History does often repeat itself, but I don’t think it likely that a cataclysmic event such as the Cultural Revolution would occur again. China has moved to the fore in the global economic arena following expanded trade with the Western world. In the wake of this growth, economic relationships have changed. Mao’s quest for a socialist tradition where property and wealth were controlled by a community of workers has shifted more toward the capitalist model. Mao’s communism still colors the economic ideology of today’s China as expressed by Jiang Zemin’s speech on the eightieth anniversary of the Chinese Communist Party, “On the basis of economic growth, efforts should be made to increase income for urban and rural residents, constantly improve their living conditions….When some people and some regions Get Rich First, others will be brought along…” Sounds like the “trickle down” theory borrowed from the Western economists! Industrialization has seen a rise in entrepreneurs, managers and professionals. The peasants that Mao relied on to grow socialism still exist, but are a much smaller percentage of the population. A growing sector of young Chinese are reaping the financials benefits of this growth and enjoying the consumer power it afford them as they purchase homes, cars and electronics. But, there exists also that segment that still struggles to survive.

Several factors would likely prevent another catastrophe such as the Cultural Revolution. First is the lack of a Mao replacement, a cultural hero bigger than life. A void exists in this department unless another charismatic Party leader rises who can tap into the Culture of Personality. It is much easier to market ideas to the masses when they believe in you and trust you. It becomes important too to have an effective propaganda mechanism in place to pitch your cause. Controlling media is certainly doable, but the emergence of the internet would make it much more difficult to control information coming in and going out; though, China is making every attempt to gain control of web access. With expanded trade, China has rolled out the welcome mat to foreigners so that there is now greater diversity in the population as Westerners arrive to visit, study and live. This increased visibility to the outside world might motivate the Chinese be on their best behavior to deter international criticism. Likewise, the Chinese may not want to risk jeopardizing trade relations as they continue to ramp up their economy. They are poised to become a major player in the power game and it would not be to their advantage to become distracted by internal problems. Perhaps the most important deterrent is memory. Memory serves to remind us of past failures and horrors in the hopes of preventing their replication. Holocaust survivors give voice to the atrocities of Nazism and there are certain to be those who can attest to the brutality of the Cultural Revolution.