SPEAKING FREELY Obama needs new start with China
By George Koo
Speaking Freely is an Asia Times Online feature that allows guest writers to have
their say.
Please click hereif you are interested in contributing.
The Barack Obama administration takes office in January on the promise of
change, and one of the most critical changes he can make is to reboot US
relations with China based on mutual respect and shared interests. A strong and
positive alliance with China is more important now than ever.
By treating China as an equal partner, the Obama administration would not only
recognize the reality of China's position in the new world order but would gain
an ally that could reduce America's military expenditures, provide diplomatic
cover in certain parts of
the world essential to world stability and help rescue America's foundering
economy.
Reason 1: International relations
Unlike the US, China never aspired to be a superpower and policeman of the
world. Its policy has been to get along with everybody. Thus, it is able to
maintain civil, if not downright cordial, diplomatic relations with nations
with whom the US has been unfriendly, such as Russia, Iran, Cuba, Venezuela,
Pakistan and North Korea to name just a few.
Consistent with its "get along" approach, China has rarely invoked its veto
right as a permanent member of the UN Security Council. Since joining the body,
its has cast six vetoes. During that same period for other permanent members,
by way of comparison, USSR/Russia cast 123 vetoes, the US 80, the UK 32 and
France 18.
Since 1990, China has contributed 9,000 peacekeepers in 22 UN operations, more
than the combined total of the other four permanent members of the Security
Council. What they have not done is to send any of their troops on any non-UN
sanctioned mission beyond their borders and occupy any territory belonging to
other sovereign states.
China has a growing presence in Africa and Latin America, but it has been based
on mutually beneficial, commercial interests. Typically, Chinese investments
and participation help build the local infrastructure and train native skill
sets as well as pursuing cooperation in exploration and development of natural
resources.
China has already played a critical role by hosting the six-party talks and
keeping the conference room open with the North Koreans. Arguably much more
progress could have been made by now had the US been less pig-headed about who
blinks first.
Since China has gotten along well with every nation - far better than the US -
Beijing is in the position to cajole international cooperation more readily
than Washington can. With China's complicit help, the US will be able to lessen
world tension without incurring extra expenditures for shuttle diplomacy or
even bigger outlays for military intervention.
Reason 2: Reduce military expenditure
Pentagon and the military industrial complex love to position China as the next
evil empire in order to justify annual defense budgets north of US$500 billion.
Not much of the allocation is for anti-terror activity. Most of the spending is
for advanced weaponry development allegedly in anticipation of a rising China.
However, China is neither the belligerent state nor has the military might to
compete with the US. China's defense posture has been that of a porcupine
rather than a pit bull.
It willingly revealed its nuclear weapons development to visiting American
scientists. Its submarine surfaced in midst of the Kitty Hawk flotilla, just to
show that it could. China's military shot down their own satellite to help
Americans update their benchmark of the Chinese capability.
The motivation seems nothing more than making sure that the US will not
miscalculate China's ability for retaliation.
Unlike the former Soviet Union, China has not shown any inclination to compete
for world dominance or join in an arms race. By seeing and understanding the
real China, hundreds of billions of dollars can be saved by not having to spend
it for advance military systems.
Ironically, if the US were to spend those billions, it would have to borrow
from China.
Reason 3: China as an economic partner
China is holding on to more than one trillion of our (US) dollars and Chinese
companies are potentially interested in investing in America. They would find
attractive acquisitions in American markets, factories, name brands, management
and technical know-how. They could come to the US to license, form alliances
and joint ventures or take over shuttered plants.
Haier is one China's major appliance makers and the first to build a plant in
the US. Haier's investment in South Carolina has had a ripple effect as other
Chinese investments followed to the benefit of the local economy. One
consequence is that the Port of Charleston has become the fourth-largest
container handling port in the US, boasting the most modern cargo handling
equipment - made in China. People in South Carolina know the story, but most of
the people in the US do not.
Chinese companies could invest in America and create jobs in America, but our
basic attitude towards China's participation in our economy has to change. The
new administration and Congress need to send out a new message that dollars in
Chinese hands are as welcome as anyone's.
There are a number of policy changes that the new administration should
undertake in order to signal to Beijing that Washington is no longer home to
hostile, knee-jerk attitude towards China. Congressional commissions that serve
no purpose other than to provide a public forum for China bashing should be
dissolved.
To invite direct investment from China, guidelines on permissible investment
need to be transparent and clearly delineated so that Chinese companies know
where they stand in advance. Case-by-case debate in Congress that follows each
contemplated investment, with gratuitous rancor thrown in, would be deal
killers and cause any plans for inbound investment from China to be stillborn.
China's own economic stimulus announced this month is to invest nearly $600
billion on the country's own infrastructure, but it is also seeking economic
opportunities elsewhere, from Australia to Africa to South America. It will be
up to the Obama administration to send a new signal that we also welcome their
investments here in the US.
A good beginning would be for the State Department to instruct its visa offices
in China to stop treating applicants as if they are from a pariah state.
Simplifying the visa application process to business travelers from China would
encourage more commercial exchange and facilitate inbound investment.
As Europe and other tourist destinations have discovered, China is rapidly
becoming the largest source of international tourists. France and Germany,
among others, have found the Chinese tourists to be bigger spenders than
Japanese or American. With an enlightened visa policy, we too can be
beneficiaries of their tourist buying sprees.
After all, to quote a US President of not too distant past, “It's the economy,
stupid.”
Reason 4: Expanding high-tech exports to China
In general, China prefers high-tech equipment and machinery from the US over
those from competitors in Western Europe, Japan or Russia. However, none of the
other suppliers requires the buyer to jump through the hoops that the US
government imposes on China for the privilege of buying from us.
The US export control policy towards China needs to be revamped and the hostile
bias removed so that China can be accorded the same respect as any customer.
The notion that goods sold for civilian use could also find military use and
therefore must be restricted when exporting to China is outdated and
gratuitously insulting.
The US export licensing process has been costly to administer, costly for
American manufacturers to comply with and costly for the Chinese buyer to
follow. The policy has not made America more secure but has impeded export
sales and made buying from us less attractive than buying from our competition.
The export control process was instituted during the Cold War to guard against
American technology falling into the Soviet hands. The efficacy of this policy
was questionable then and its relevance certainly more questionable now.
China is too important a market for American high-tech goods for us to continue
to tolerate a policy that undermine our own competitiveness.
Reason 5: Stop racial profiling
Another change though not directly connected to relations with China is
stopping the practice of racial profiling by law enforcement agencies. In the
case of Chinese Americans, it is the idea that somehow their feelings about
their ancestral land, a natural feeling with any first generation immigrants,
are somehow unnatural and a cause of disloyalty.
Ethnic bias runs deep in certain parts of the American government. Broad and
ambiguous export control policy provides cover for justifying racial profiling
by the enforcement agencies. Sometimes the bewildered target of the FBI
investigation is tripped up by the idea that a civilian use could have military
implications. Other times, they didn't do anything but were harassed anyway for
merely being ethnic Chinese.
The FBI has always espoused the idea that China uses the so-called "grains of
sand" practice of espionage. Simply stated, FBI believes every ethnic Chinese
in America is a potential spy for China.
The idea that China is patiently collecting tidbits of information from a
million sources that add up to devastating intelligence is preposterous, but
this theory serves to excuse those in counter-intelligence for failing to catch
anyone and justify their random arrests of Chinese Americans.
Though it hardly qualifies as espionage, exporting to China can get a person in
trouble, especially if the person is ethnic Chinese.
The Obama administration should conduct an anti-ethnic cleansing of the FBI
leadership and get rid of the bigots and the racially biased culture that have
resided there since J Edgar Hoover. Racial profiling under grains of sand or
any other pretense is still a show of ignorance and in the case of the FBI,
incompetence.
Stopping the harassment of Chinese Americans will contribute to a positive
atmosphere with China and will re-direct the energies of the law enforcement
bodies to issues related more directly to homeland security, a cause we all
support.
Dr George Koo is a retired business consultant and a Chinese American who
has been to around 60 countries. He writes for New America Media,
www.newamericamedia.org and a personal blog, www.georgekoo.com.
(Copyright 2008 George Koo.) Speaking Freely is an Asia Times Online feature that
allows guest writers to have their say.
Please click hereif you are interested in contributing.
Head
Office: Unit B, 16/F, Li Dong Building, No. 9 Li Yuen Street East,
Central, Hong Kong Thailand Bureau:
11/13 Petchkasem Road, Hua Hin, Prachuab Kirikhan, Thailand 77110
