China or USA: Which Will Rule Trade?

The Association of Southeast Asian Nations (ASEAN) announced at its meeting in November 2012 that it would host negotiations among its members on “a sweeping trade pact that,” according to the New York Times, “would include China.” The trade agreement would include not only the ten countries that are in the association, but also six other countries that have free-trade agreements with the association. In addition to China, those countries include Australia, India, Japan, New Zealand and South Korea. Half of the world’s population would be included in the pact. Notably absent is the United States. This is no accident, as the Obama administration’s own proposal for an eleven-nation Trans-Pacific Partnership excludes China. In other words, the contending proposals may be more about a “control battle” between two contending empires—the United States and China—than anything else. Moreover, which proposal succeeds could say something about whether China succeeds the United States as the hegemonic super-power of the twenty-first century.

Barack Obama and Wen Jiabao: A contest of wills at the East Asia Summit in 2012.   Jason Reed/Reuters

That the immediate issue was that of China’s inclusion or exclusion can be gleamed from Barak Obama’s statement during one of the presidential debates in 2012. “We’re organizing trade relations with countries other than China so that China starts feeling more pressure about meeting basic international standards.” The inclusion of basic can be read as a slight against China. However, that protecting state-run enterprises as done by China would continue to be allowed under ASEAN’s Regional Comprehensive Economic Partnership suggests that what the U.S. takes to be settled in terms of what constitutes the basics of international trade may not have been so settled after all. China could point to U.S. companies being able to deduct expenses on their income tax forms as a form of government aid to the home team. Since at least the mercantilist era in the seventeenth century, governments have carried out industrial policies designed to profit domestic companies and increase tax revenue. Laissez-faire-based trade may not be realistic, considering the myriad ways in which governments interact with business. Regulation itself, in being of a strategic to some firms more than others, could have a differential impact on domestic and foreign firms. It is unrealistic to assume that governments would stop regulating just so the trade is “fair” as well as “free.”

As the twenty-first century was coming into its own, two major economic powers in the world were contending not only for economic dominance, but political hegemony as well. Would it be another American century, or would power follow economic growth over to Asia? The “control battle” itself ostensibly about ordering trade alliances could be an indication that power was about to shift on a massive scale in terms of which economic power would become the definitive superpower.

Source:

Jane Perlez, “Asian Nations Plan Trade Bloc That, Unlike U.S.’s, Invites China,” The New York Times, November 21, 2012.  

The Internet Escapes China's Grasp

The “surprising escape” of Chen Guangcheng, a blind legal activist, from house arrest to the presumed custody of U.S. diplomats was “buoying China's embattled dissident community” even as the government lashed out, “detaining those who helped him and squelching mention of his name on the Internet.”[1] Two points bear further scrutiny.

Chen Guangcheng, after his escape, with Hu Jia.   

First, that Chinese security officials “reacted angrily” strikes me as strange. It is as if institutional interests naturally prompt strong human emotions as though an insult were taken personally. In other words, unless the dissident had insulted or otherwise directly harmed the particular officials, it does not make sense that they would angrily inflict pain on the dissident’s supporters who were taken into custody after the escape. An institutional loss is not a personal affront. To treat the former as if it were the latter is essentially to anthropomorphize a given organization.

Second, the “squelching mention” of Chen Guangcheng’s name on the internet must have been a mission of futility in 2012. “Anything vaguely related to Chen [was] blocked on Chinese social media sites, such as posts including or key word searches for Chen, Guangcheng, GC, or even the words ‘blind person’.”[2] The inclusion of the latter term is almost funny in its overkill; it certainly points to the futility of tracing millions of blog posts and emails on the incident. After savvy internet users used “Shawshank Redemption” to refer indirectly to Chen, that movie title became a banned search term. The Chinese government was definitely playing defensive ball at that point. My point is that the game of snuffing out communication on the internet had already been lost—assuming the Chinese government does not prohibit the internet itself in China.

The government officials’ antiquated responses—both in terms of emotion and technology—suggest that the Chinese regime was still holding onto the ways of another century. This could be an indication that that regime will not survive the twenty-first. As technology continues to widen and deepen, antiquated means of control will become less and less efficacious through the century. Given the habit of officials reacting in “anger,” we can expect the increased difficulty with control to lead to more pain being inflicted on citizens. This in turn should lead to more popular resentment. In other words, the antiquated responses of government officials could be the seed of the regime’s destruction.

1. Alexa Olesen, “Chen Guangcheng Escape: China Activists Inspired by Blind Dissident Lawyer,” The Huffington Post, April 29, 2012. 
2. Ibid.