More recently, during the spy plane incident over Hainan, American President Bush changed the American position toward China from that of being a world partner (the approach of the Clinton Administration), to that of being a competitor or an opponent in international affairs. This bashing propaganda about China is considered by many people a cover-up (or a smoke screen) for growing American insecurity in international affairs and this distortion is accumulative in the brain washed minds of the American people. It is also degrading to say the least. It is like a champion football team that does not want to play fairly any more because it is afraid of losing. It is the fear of being beaten fairly and decisively on the field, according to an agreed upon set of rules. This obsession with human rights has flared up in many areas of American foreign policy in recent months. This rash, sometimes graphic China-Bashing attitude is probably driven, in part, by powerful economic interests in the United States. The positions of these powerful interests will be seriously threatened by China's entry into the WTO. These industries, if they are forced to face stronger competition, fear losing their shares of their respective markets. These same interests also heavily support political parties financially and therefore have some indirect influence over government policies. China has enough ballots to get into the WTO. The United States alone cannot veto China's entry, but can make things difficult. Both China and the United States will have to adjust themselves to raise economic efficiencies, a fact that normally results from greater competition. However, what must clearly be seen are the comparative advantages, which will benefit all trading partners. With the reduction of trade barriers, more efficient use of the world's productive resources will emerge through greater specialization by the various countries involved. In the short-run, (in the first few years) there will be dislocations of productive resources, particularly of labour. For some industries, the future will be bleak. There will be short run unemployment in some sectors of each country. It is important that these countries develop plans, such as retraining and increased technology, to make adjustments easier as productive resources shift from one sector to another. With greater sharing of international expertise, these transitions should become easier. The long-range result will mean more benefits for all countries; meaning higher standards of living all round. China has already made persistent strides in this direction through its partnership arrangements with foreign corporations over the last twenty years, since the reforms at the end of the Cultural Revolution. China has no alternative but to move forward into the international markets and in other areas of globalization of the twentyfirst century. Not to do so would mean inevitable deterioration or, perhaps, even complete evaporation of China's strong economy. Some sacrifices in socialist economic and political philosophies and policies are imperative if these goals are to be achieved. The big advantage that China has had over the former Soviet Union is that of cautious gradualism in economic policy. China's political hierarchy is slowly embracing the theories and practices of a new socialist market system. The knowledge and skills gained from this approach places China in an excellent position to succeed. The country sees quite clearly that a pure command economic system will not endure to the end under the inertia of this epoch of brisk globalization. In the end, China is destined to succeed. Much of what China will face in the WTO will be the coincidence of internal policies that have been formulated in recent years, although some reconfiguration will be necessary. To suggest immediate success for China may be premature at this point, but there are precedents that are favourable to China's aspirations. Such success is difficult to quantify or generalize, as there are so many factors that are constantly changing. It is a gamble. World recessions, strong economic growth periods, and disasters such as the September 11th, 2001 terrorist attacks, can drastically create economic casualties overnight followed by the trickle down negative impacts. All these being said, it would be a mistake to underestimate China's legitimate presence in this period of globalization. It is indicative, as well as fitting, that almost all countries of the world will benefit from the potential contributions that China can make in the years to come. The WTO's success hinges on international cooperation and ceaseless pursuit of positive common goals rather than focusing on negative issues that could only handicap good economic and social relations along with progress in international trade. It is hoped that such barriers between China and other countries will dissipate now that its membership has finally been certified. |