How China is breaking the Asian model

“What do you think is unique about the Chinese model?” This is a question asked by a TV reporter when I was in Beijing last time. My answer is that I think there is no specific Chinese economic model.

Have a East Asian Development Model Rapid and export-driven industrialization pioneered by Japan, South Korea and Taiwan. What China is doing is pursuing the same model-scale. I added that one of China’s real innovations was that as it became richer, it did not liberalize politically. This distinguishes China from Koreans and Taiwanese.

After the conversation, I asked the reporter if she could use my answer. “No, I don’t think so,” she replied. “But it must be good to be able to say what you think.”

I thought about the exchange this week, because China is preparing to celebrate 100th anniversary The foundation of the Communist Party. The core proposition of President Xi Jinping is that under the leadership of the party’s wisdom, China has embarked on a unique development path that the world can learn from.Xi Jinping’s speech at the 2017 Party Congress Announce China is “opening up a new path for other developing countries to achieve modernization.”

The Chinese leader’s claim that he has discovered a new path to economic growth is questionable. The formula followed in the early stages of China’s post-Mao economic reform is recognizable by anyone who understands the East Asian economic “miracle”.

Many of the first factories in southern China were made by Overseas Chinese investors From Taiwan, Hong Kong, Thailand and other places. They are transferring the models operating in these countries to a new low-cost environment. The fact that China has continued to grow at a double-digit rate for decades is remarkable. But this is not unprecedented. Japan has made similar achievements for many years after World War II.South Korea is Poorer Parts of Sub-Saharan Africa in the 1950s, but today it is a wealthy country.

However, although the Chinese-style economy is derivative, the politics is new. Unlike Taiwan or South Korea from a one-party state to a democratic state, China under Xi Jinping has consolidated the Communist Party’s dominance.

When Chinese commentators talk about providing new models to developing countries, they also have Political views In my heart. Why not embrace the Chinese-style authoritarian order instead of the chaos of Western-style democracy?

China has also challenged the geopolitical environment that provided the backdrop for the rise of Asia. The original Asian tigers were all U.S. allies. In the context of the Cold War with the Soviet Union, the United States saw the advantage of opening its market to the exports of its East Asian allies. Washington is also willing to tolerate their protectionist policies longer than it could have done.

The emergence of Asian economic competitors has never been an easy task for Americans. The rise of Japan in the 1980s caused panic.but Strongly opposed It can be controlled because Japan is an ally and a democratic country.

China will never become an ally of the United States. However, until recently, the United States was very careful not to openly challenge American power in the Pacific.This has changed under the leadership of Xi Jinping, just like China Build military base Across the South China Sea.

As an authoritarian country with increasingly open ambitions to challenge the military, political, and economic power of the United States, China has long aroused strong opposition in Washington. The Trump administration is mainly concerned with the national trade deficit with China. However, under the leadership of Joe Biden, this backlash became more apparent.The new president often says that the United States and China are Locked in An ideological and political struggle provides a model for the 21st century—democracy or authoritarianism.

The Chinese government has reason to hope that it is too late for the United States to reconsider its support for the Asian growth model that promotes China’s rise. China is already the world’s largest manufacturer and exporter. The country now has a huge domestic consumer economy, which provides an alternative source of growth for the export market, which was critical to the first few decades of China’s rise.

China has just become The world’s leading recipient New foreign direct investment. Chinese companies are expanding globally. The economies of the United States and China are so closely intertwined that true decoupling will be extremely difficult—not to mention unpopular among many companies on both sides.

Even so, Xi Jinping took a big risk and openly challenged the strength of the United States. In the first few decades of China’s rise, Washington’s consensus was that as China became richer, it would also be politically liberalized. Therefore, the United States has adopted an encouraging and tolerant attitude toward the rise of China–similar to its attitude toward other East Asian Tiger economies.

As far as China is concerned, the US “license” has now been withdrawn. The United States is restricting China’s access to certain advanced technologies and is organizing its allies to counter Beijing. In this new geopolitical environment, if China’s rise is to continue uninterrupted, Xi Jinping really needs to find a new “Chinese model”—different from the East Asian model.

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