Archive for the 'China' Category

Tales of the Orient

Wednesday, March 19th, 2008

dalai_lama.jpgWhilst it can be argued that Tibet is historically part of China, culturally there are distinct dissimilarities. In contrast to the many minorities in China, the Tibetans have a powerful sense of their own culture which makes them unique.

China has for centuries been ravaged by invasion, warlordism and dismemberment and has now fulfilled its historic ambitions of being geographically complete. However, it is difficult to understand its view of the Dalai Lama. China insists that he is demanding independence, yet he keeps repeating his desire only for more Tibetan autonomy.

There are ironies in all of this. The US put much pressure on China to try to bring North Korea to the negotiating table. The Chinese persuasively argued that until the USA negotiated directly, there would be no progress. So a formula was devised to prevent any loss of face, and it worked. In my view China should have the confidence to interface directly with the Dalai Lama; it is from their point of view counterproductive to refuse this opportunity.

Additionally there is a genuine longing in China for Taiwan to become part of the Republic of China. Until recent events in Tibet, the voices in Taiwan calling for a greater rapprochement were in the ascendant. Now the elections in Taiwan next week may well be influenced by concerns over actions in Tibet.

The development of China is indeed a latter day economic miracle, and there is certainly more freedom and tolerance than a decade ago. China has every reason to be self-confident – its sound advice to the Americans over North Korea should be echoed in its dealings with the Dalai Lama today.  

Fear and Greed

Wednesday, February 28th, 2007

nyWhat a juxtaposition of contradictions that the colossal fall in the Shanghai share index proved to be. It happened on the very day that the Chinese Prime Minister promised socialism for 100 years. I wonder what Karl Marx would make of yesterday’s events. It also coincided with the beginning of the Year of the Golden Pig, very auspicious, and an event occurring only once a century.

Markets have done very well – not only shares linked to commerce and industry, but also mining and commodity shares. Almost all over the world house prices have soared, on the back of low interest rates and low inflation. The profits outlook for 2007 is good.

However this golden scenario of ever rising asset prices will not continue for ever, that is the only certainty. Perversely, the chances of this extraordinary bull run continuing for longer is greater today than two days ago. Much froth will have evaporated.

As President Kennedy’s hugely successful father Joe once observed about the performance of stock markets – “leave the last 10% to the other guy”.

What it also tells us is the huge global economic importance of China. It used to be that if General Motors sneezed the US economy caught a cold. Eventually one day, we shall undoubtedly suffer from Asian flu – the moment of greatest danger will be when such an eventuality is universally regarded as inconceivable. 

A Frothy Tale

Monday, January 22nd, 2007

starbucksChina has been in the news again because it fired a ground-based ballistic missile to destroy an old weather satellite. Shock horror in the United States, which relies so heavily on satellites for surveillance and communications. No doubt real anxieties in Taiwan too. Whether we like it or not, the recent complete dominance of the United States globally is ebbing. It is not only in economic matters that the world is tilting eastwards.

China is full of contradictions. Hundreds of thousands of young Chinese are or have been educated in universities abroad, yet there you cannot get the BBC website, as China seeks to shut out internet sites it finds potentially or actually disagreeable. Yet the rapidly growing Chinese middle class is now beginning to realise that everything modishly Western and modern should be in context.

Walking around the Forbidden City last month I was surprised to see somebody drinking out of a Starbucks cup. It being cold, the thought of a cappuccino was pretty attractive, so we found the small and unobtrusive Starbucks outlet which was very crowded and active. Now hundreds of thousands of Chinese are emailing and blogging their alarm. The Forbidden City is simply wondrously unique. I cannot think what the equivalent here might be – selling Big Macs to visitors in Buckingham Palace?

The Chinese have torn down many old sites and buildings, but now are beginning to realise that their heritage is a precious one. Assuredly, as Chairman Mao might have observed, in this instance it is simply a cup too far.

Watch this space…

Wednesday, January 10th, 2007

beijingIsrael’s Prime Minister Ehud Olmert is currently in Beijing, primarily to discuss Iran. China is of course a member of the UN Security Council, so any further UN action over Iran will come under their gaze.

All of this dramatically confirms the emergence of China on the world stage. Even three years ago the Chinese were declaring that their overwhelming objective was simply economic growth, not international involvement, but that has now changed. They have just published a White Paper on defence, which includes a huge expansion of their navy, at a time when our ships are being mothballed – a telling contrast.

In response to its economic dynamism, the Chinese are moving towards a flat tax rate, harmonising the local and foreign investment tax regime, and encouraging initial public offerings by Chinese companies on their booming Shanghai stock market. Meanwhile they are building relationships across the globe to secure the natural resources they lack.

So they are becoming increasingly involved in our world – they are even trying to agree their mutual history with the Japanese. More and more will we see politicians beating a path to Beijing.

They are not a democracy and they have huge challenges, but as Europe shrinks in world importance, and America reassesses its world role, China’s economic importance is being matched by its political weight and influence. This is at a time when Britain’s reputation abroad is at its lowest ebb for decades. 

A Chinese Christmas…

Monday, January 8th, 2007

santaChina seems an unlikely place to spend Christmas and New Year but that is what we as a family did. The Chinese have enthusiastically taken to Christmas, with parties and celebrations, carols being sung in hotels and shopping malls, and all the usual commercial trappings we have in England.

There are now over 60 million Christians in China, and the number is growing. I should add that interest in the Oriental religions, Taoism, Confucianism and Buddhism is also more in evidence. In any event, on Xmas day, churches were packed.

It is currently a perfect time to visit China. Everything works very well and it is still inexpensive. Going when it is cold, and out of season means very few tourists. Preparations for the 2008 Beijing Olympics are everywhere in evidence.

After the extremely modern and well organised airports in China, it was something of a shock to return to a shoddy and chaotic Heathrow airport. What a terrible introduction to Britain our main air gateway has become.

Happy belated 2007 greetings.