China, Xenophobia, and Soft Power
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I normally don't disagree much with Todd Hill, but his latest post, Who's Your Daddy?, has me a bit riled up, enough for me to make a new post instead of just a comment in fact. The topic is the Chinese National Offshore Oil Corporation's bid for purchase of Unocal and how this is a threat to American interests. I've posted on Daily Kos about how this is just silly, but I wanted to make three points in response to Todd's post here, namely that China's actions are not overtly hostile once you place them in context, that Americans are really creating a Chinese bogeyman to hide their own problems, and that anti-China sentiment misdiagnoses any threat China may pose.

The thrust of Todd's post, and most of these dire warnings of rising China, is that we can't let China become a superpower. Why? Because China is a threat. Why is it a threat? Because China is trying to become a superpower. Buried beneath that circular reasoning is the assumption that any rising power must automatically be a threat to American interests.

Take this bit from Todd's post:
In the next 8-10 years it is expected another 80 million vehicles will be in use just in China alone. Oil is quickly becoming the natural resource China craves most, and the last thing we need are two giants clashing over black gold.
So the way to stop two giants clashing over black gold is to start clashing over black gold?

I don't think CNOOC's bid will go through simply because Chevron has the deal about wrapped up, but it's hardly an unexpected attempt to take over American oil and hold us hostage. China has a growing economy. Of course, it's going to need more oil! And UNOCAL has most of its assets in Asia. Given the rate at which India is growing, I wouldn't be surprised if they, or any other developing nations, start making bids for oil assets as well. The way we prevent "two giants clashing over black gold," it seems to me, is not to shoot down a deal that's probably going to fail on its own, but to invest more resources in alternative energy and fuel efficiency.

Likewise, there's the concern about China's growing military spending. Yet that's to be expected from any growing power. There aren't too many powers that grow in wealth and population without a corresponding increase in military power. That aside however, China's military spending is still tiny in comparison to the United States.

And there's Taiwan. First, let's put this in context. Imagine that after the Civil War, the Confederate government fled to Cuba, took it over, and declared itself to be the legitimate government of the Southern governments. That's basically the situation Taiwan is in. Be glad that the Chinese aren't Americans, because you can be sure that we would have carpet-bombed Cuba into oblivion by now. China already possesses the capacity to turn Taiwan into a sea of glass and no American military presence is capable of preventing that. The fact that is hasn't is good news, and the fact that Taiwan's biggest trading partner is the mainland is even better. Certainly matters more than the purchase of Russian landing craft.

There's also the concern about how "[f]oreign nations holding the future of liberty in their hands puts Americans in grave danger fiscally." Let's get one thing straight. The Chinese saved our butts. Had foreign nations not been buying up our debt, interest rates would be higher, the dollar would be lower, there would be no recovery, and Americans wouldn't be able to buy a new house. Nor do they have any reason to stop helping us in the near future. Selling their dollars reserves or reevaluating their currency would shock Chinese banks not yet equipped to handle such a shift. Any economic grievances we may have with the Chinese have less to do with Chinese policies and America's own economic problems:
In fact, since 2000, U.S. exports of goods to China have more than doubled to $35 billion while U.S. exports to the rest of the world have grown a paltry 2 percent. Last year, China was the fifth-largest market in the world for U.S. exports.

China's fixed currency cannot be blamed for recent troubles in U.S. manufacturing. U.S. manufacturing output is actually 45 percent higher than it was when China first fixed its currency to the dollar in 1994. Manufacturing employment has fallen in the United States in recent years, not because we are manufacturing less, but because our workers are so much more productive. The textile and apparel industries, which compete most directly with Chinese imports, have been shedding jobs for decades, long before China emerged as a global competitor.
So am I saying that we should just ignore China? Of course not, but a lot of folks misunderstand the challenge we face. For a good primer on this, check out Joshua Kurlantzick's article in TNR (subscription only):
Beijing is pursuing these interests through a two-pronged strategy. On the one hand, China appears to be building a string of alliances across the globe with nations shunned by the United States--nations like Venezuela, Iran, Sudan, Burma, and Zimbabwe. At the same time, China appears to be wooing non-rogue developing nations--both democracies like Brazil and stable pseudo-authoritarian states like Malaysia. Beijing does so by championing a vision of international relations centered on national sovereignty--one that contrasts sharply with recent U.S. doctrine, by leveraging China's economic successes to win over foreign leaders and by using Chinese soft power to win hearts and minds even in places like Australia, once considered firm American allies.
Scary stuff, and all the more so, considering that China is now more popular than we are. But it's a policy focused on "soft power", not military and economic might. It is championing a vision of an international order based on sovereignty in contrast to an interventionist American vision based on individual rights. It seeks to counter American influence not through force of arms but by isolating us, and to some extent, that's our own fault:
At the same time that China's influence has grown, the U.S. means of leverage--aid allocations, trade deals, academic ties, popular culture--are weakening, undermined by everything from new restrictions on student visas to the prisoner abuse scandals at Guantánamo Bay and Abu Ghraib. Worse, when dealing with longtime allies like Thailand, Washington too often talks about little other than terrorism. Asians find the American "obsession" with terrorism tedious, Karim Raslan, a prominent Malaysian writer, told The New York Times. "We've all got to live. We've all got to make money," he said. "The Chinese want to make money, and so do we."
America must articulate and defend a clear vision of where it wants the international order to go. And it must do more than simply dictate it through force of arms. It has to make friends and convince them to follow along, but talk of a looming Chinese threat won't do that. No one got popular by talking smack about the cool kids.

And to some extent, our challenge is not only to win the battle of popular opinion against the Chinese, it's to convince the Chinese themselves of those values. I spent last summer in Beijing, and I can tell you that the people don't hate America or what it stands for. They eat McDonalds and KFC (they actually hold weddings in KFCs), dream of attending an American university, try their best to learn English, have access to BBC, and surf the Internet. China is not like the secretive totalitarian regime of North Korea. They certainly think we're arrogant (who doesn't?), but they don't want a war with us. Yet when Americans rant about the dangers of rising China, none of that matters. They get a bit scared, the hardliners become a little stronger, and the world moves a little closer towards insanity.

Full Disclosure: I am of Chinese descent. Take what you will from that.

Reader Comments

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Excellent
By ToddHill Jul 7th 2005 at 12:18 am EDT
You did an excellent job offering your opinion to mine, and I'm so glad you got involved in this important discussion.

One thing, I believe China is already a superpower, there is no preventing it from becoming one.

As far as military spending, considering that China has racheted up the defense budget from where they started, it is indeed drastic and one that should make you look twice. It is of great concern the technology that they are utilizing to defeat American computer systems and advancements militarily, as well as the increased focus on missiles and landing craft in the Taiwanese strait.

Finally, I do not thank the Chinese or any country for financing our debt. I never want our economy to be sustained by another foreign entity, whether it is China or someone else. I think it is a huge failure on the part of the current leadership to allow such a massive defecit in the first place. This is going to be a major issue we must deal with as our generation rises to power. Foreign countries owning American debt is not a good thing at all. What is going to happen when the bill collector comes to collect?

Don't get me wrong, everything China is doing is INCREDIBLY smart. They are really playing on American resentment around the world and capitalizing economically, trade-wise, and militarily. They are gathering up credibility faster then we can lose it. To me, that is a very scary thing because it shows how much influence the United States is losing abroad in dealing with other nations. This does not position America justly for the future. Most importantly, for our future.
On Taiwan and War
By ACDC Jul 7th 2005 at 10:46 am EDT
I really see military action with China as something to avoided at all costs. If there's going to be a battle over Taiwan, I don't really see how America can win. If China wants to destroy Taiwan, it has enough missiles to do that. Given the location, no amount of anti-missile defense will do enough. If they want to invade Taiwan, they have enough people to overwhelm any defense, even without a blue-water navy (the million man swim). Nuclear retaliation is either not credible or incredibly scary. Best case scenario for us is that China has its way with Taiwan, American forces fall back, and we fight a long and bitter war to liberate the ruins of Taiwan--i.e. WW3.

That leaves deterrence and prevention as our best option. I believe economic integration with China is the best way to do that. Chinese ownership of American debt and interest does is not a strategic advantage for the Chinese. In the event of war, they risk the American government seizing Chinese assets and defaulting on the debt (entirely understandable actions in time of war). That throws the Chinese economy into a tailspin. Economic interdependence may limit our desire to go to war, but it also limits theirs as well.

Economic independence and brinkmanship however, only encourage war. If we're going to scramble for resources in some "great game" and engage in an arms race, hardliners on both sides gain credibility. A war appears inevitable and is thus appearing, makes it so. America may eventually win the war, but it'll be one we wish we hadn't fought.
Oh, also ...
By ACDC Jul 7th 2005 at 10:56 am EDT
I don't mean to say that we should expand our deficit. That's just bad economics. My point is just that it isn't necessarily a national security threat.
  
Flip-flop?
By gqmartinez Jul 7th 2005 at 4:15 am EDT
OK, so I disagree with protectionism morally and economically. That's what Todd seemed to be advocating, but I think that's not entirely accurate.

I do, however, see China as a strategic threat both economically and militarily. Those who fail to see China's economic threat are doing a great disservice to our economy and the average American worker--just ask John Edwards. Of course, just because a nation provides us with a threat--to dominance--does not make them our enemy. Ignoring threats to our economic well being is dangerous. I don't fault globalism--at least not yet. But we should be weary. I bet computer programers are thinking twice about it more than they were 5 years ago...
That gets old...
By ToddHill Jul 7th 2005 at 9:41 am EDT
Ok, now "flip-flop" is real old, that is soooooo 2004. Everytime I hear the term I remember that acceptance speech Bush gave in New York. When he would use the term "flip-flop" the crowd in exact unison would move their arm from left to right, symbolizing "flipping and flopping."

The purpose of debate is to get all ideas and thoughts on the table. Hopefully, the combination of free flowing ideas will result in a solid plan of action.

I'm not a protectionist, I am a realist. China is a growing threat as they continue and rise as a major super power. Their rise threatens us economically and militariy first and foremost. Those are probably the most vulnerable parts of our institution right now. So long as we continue down the road we are going we will continue to slide down in rank as a super power. That is all I am saying.

I do believe allowing UNOCAL to be purchased by the Chinese will catapult this growing threat. And it is only the beginning. Today it will be UNOCAL. Tomorrow it will be something in financing. Next time it will be some other vital infrastructure. It's a snowball down hill effect.

I also never said that China was an enemy. That being said, we are moving in that direction, and the situation with Taiwan cements that direction.
hmm...
By gqmartinez Jul 7th 2005 at 3:52 pm EDT
I used the f-f word in reference to myself.

It's pointless for both of us to keep saying that our lack of response is dangerous. I think we disagree on what our response should be. I say give them the oil, that's yesterday's economy. Let's focus on renewable energy and conservation (unlike the LaRouche folks, I don't think steel is the way to go). We should be the leaders in that technology. Holding on to oil, IMO, is bad environmentally and not really good at job creation.
Not really a threat
By ACDC Jul 7th 2005 at 11:00 am EDT
Maybe it's just semantics, but I really see it as a challenge. Globalization presents concerns for both us and the Chinese. For us, it's the loss of jobs and the economic transition. For the Chinese, it's some very unstable growth and societal instability. It's in the interest of both sides for globalization to work out, so I think seeing this as something to cooperate on, not compete, is more productive.
to-MAY-toe, tah-MAH-toe
By gqmartinez Jul 7th 2005 at 3:58 pm EDT
Recognizing that there is a "challenge" or "threat" is pretty much the same first step. Unfortunately, I don't see our leaders responding to the challenge. I support globalization and want to hear more from liberals and Dems on how we should address the issue.
  
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