- Reaction score
- 5,959
- Points
- 1,260
Mr. McAdam has a specific axe to grind. He has a big grievance with DFAIT, and Official Ottawa in general, over serious flaws in the Canadian immigration programme.
That being noted I have a few comments on his points:
Quite right. But that doesn’t mean that it is good business to ignore or worse, annoy customers.
More important: China’s current dominance of the cheap consumer goods markets is reminiscent of Japan in the 1950s – when “Made in Japan” was synonymous with cheap, poor quality goods. Influenced by Americans like W Edwards Deming and their own ambitions the Japanese moved quickly to shed low skill metal bending jobs, to Korea, and to focus on high quality, high value production with the concomitant jobs. China will, I think go through a similar process. The Chinese, as Thomas Friedman has said, do not want to engage us in a ‘race to the bottom;’ they do not want to be producers of ‘toxic toys’ – the profit margins are too slim; they are seeking a place at the top. Chinese wages are rising and some low value, low quality production is already shifting to e.g. Indonesia – and there will be always lower wage rates available elsewhere.
Both the math (maybe the reporter’s) and the conclusion are faulty. At a moment in time there were just 300,000,000 Chinese in the emerging middle class – most in the lower middle class. But the Chinese economy is growing rapidly and, with it, so is disposable income for more and more Chinese. Soon the Chinese middle class will be larger than that in the USA; then it will be larger than that of the EU, then ...
China is a big, important market and it is getting bigger and more important. We need to treat it as such. That doesn’t make China our friend, but it is not our enemy, either; it is an increasingly important and valued trade partner.
True enough – as far as it goes. But, maybe, our Western style liberal democracy isn’t what China or the Chinese need right now. Maybe respect (from top to bottom) for the ‘rule of law’ and the idea of ‘equality at law’ are essential preconditions to better national governance. It is, I believe, well understood by the Chinese leadership that they are essential preconditions for a sound business/investment environment – which is essential to continued growth, which is, in turn, essential for social stability and, therefore, is essential for the survival of the Red Dynasty.
I have two points:
1. It is nonsense to say that ‘human rights’ have not improved in China. They have not improved as much as most people might wish but they are better than 10 years ago, much better than 20 years ago and so on; and
2. China is a very conservative society and the position of liberal, individualistic ‘human rights’ is not as high amongst real, true conservatives as it is amongst we liberals.
McAdam is being hyperbolic, as I am wont to be, now and again ;D, in his comments about how Chinese Canadians and Chinese in Canada get their information.
True, but China is not the only espionage threat to Canada and it may not even be the most dangerous. The fact that someone spies on us does not make the our enemy; if it did we would have damned few friends.
That being noted I have a few comments on his points:
Myth 1: Trade with China benefits Canada
"How many times have you heard that China is now Canada's second largest trading partner?" asks Mr. McAdam. "This means that China is our second-largest source of imports after the U.S. -- not that our trade with China has improved."
He notes that China now exports more than four times as much to Canada ($38.3 billion) as we are selling to them ($9.3 billion). Statistics Canada says the Canadian trade deficit with China expanded from $3.9 billion in 1997 to $26.8 billion in 2006.
"China is really using Canada almost as a colony," says Mr. McAdam, "getting raw materials from us and selling them back to us in finished products ranging from furniture and clothes to plastics and high-tech equipment.
"Canada doesn't need China," he says. "China needs Canada."
Quite right. But that doesn’t mean that it is good business to ignore or worse, annoy customers.
More important: China’s current dominance of the cheap consumer goods markets is reminiscent of Japan in the 1950s – when “Made in Japan” was synonymous with cheap, poor quality goods. Influenced by Americans like W Edwards Deming and their own ambitions the Japanese moved quickly to shed low skill metal bending jobs, to Korea, and to focus on high quality, high value production with the concomitant jobs. China will, I think go through a similar process. The Chinese, as Thomas Friedman has said, do not want to engage us in a ‘race to the bottom;’ they do not want to be producers of ‘toxic toys’ – the profit margins are too slim; they are seeking a place at the top. Chinese wages are rising and some low value, low quality production is already shifting to e.g. Indonesia – and there will be always lower wage rates available elsewhere.
Myth 2: China has 1.3 billion customers
"It's a mirage -- there are one billion peasants who cannot afford a bottle of Coke," Mr. McAdam says. The real customer base is 300,000 -- people with privileged government positions.
He says that the West's widespread trade deficits with China spring from low wages and prisoner slave labour, counterfeit products and pirated intellectual property.
While a few Canadian companies make money in China, he says, the fantasy of broad-based beneficial trade has been "created by people to justify" a close relationship with China.
Both the math (maybe the reporter’s) and the conclusion are faulty. At a moment in time there were just 300,000,000 Chinese in the emerging middle class – most in the lower middle class. But the Chinese economy is growing rapidly and, with it, so is disposable income for more and more Chinese. Soon the Chinese middle class will be larger than that in the USA; then it will be larger than that of the EU, then ...
China is a big, important market and it is getting bigger and more important. We need to treat it as such. That doesn’t make China our friend, but it is not our enemy, either; it is an increasingly important and valued trade partner.
Myth 3: China is becoming a democratic nation
"Trade has not brought democracy to China and never will," says Mr. McAdam. Nor will it bring China free speech, free media, free worship or free demonstrations -- graphically confirmed in Tiananmen Square in 1989 and this year in Tibet.
He quotes Chinese Premier Wen Jiabao, who said last year that "democracy is probably still 100 years away."
True enough – as far as it goes. But, maybe, our Western style liberal democracy isn’t what China or the Chinese need right now. Maybe respect (from top to bottom) for the ‘rule of law’ and the idea of ‘equality at law’ are essential preconditions to better national governance. It is, I believe, well understood by the Chinese leadership that they are essential preconditions for a sound business/investment environment – which is essential to continued growth, which is, in turn, essential for social stability and, therefore, is essential for the survival of the Red Dynasty.
Myth 4: China has improved human rights
With Olympic visitors gone home, Mr. McAdam predicts, China "will crack down" on its citizens.
Mr. McAdam laments that "nobody is really taking China to task over its human rights violations." Even in Canada, Chinese émigrés and students are "intimidated by the Chinese government, which leads them to think that they, or their families back home, will be harmed -- unless they spy." This includes some targeted students, scientists, businessmen, foreign delegations and public servants, he says.
Most of the Chinese media in Canada are controlled by the Communist government or its proxies, says Mr. McAdam. "The information that the Chinese population is getting here in Canada -- they might as well live in Communist China."
I have two points:
1. It is nonsense to say that ‘human rights’ have not improved in China. They have not improved as much as most people might wish but they are better than 10 years ago, much better than 20 years ago and so on; and
2. China is a very conservative society and the position of liberal, individualistic ‘human rights’ is not as high amongst real, true conservatives as it is amongst we liberals.
McAdam is being hyperbolic, as I am wont to be, now and again ;D, in his comments about how Chinese Canadians and Chinese in Canada get their information.
Myth 5: China is benign
"China is engaged in a stunning espionage effort, buying ... its way towards high-tech superpower status as fast as it can," says Mr. McAdam. "It wants to have the world's best military."
Ten months ago, the U.S. government concluded, in a 350-page analysis titled 2007 Report to Congress of the U.S.-China Economic and Security Review Commission: "China is supplementing the technologies that its defense industry obtains through commercial transfers and direct production partnerships with an aggressive and large-scale industrial campaign. Chinese espionage activities in the United States are so extensive that they comprise the single greatest risk to the security of American technologies."
(The Sidewinder Report, incidentally, had reached a similar conclusion in Canada: "China remains one of the greatest ongoing threats to Canada's national security and Canadian industry. There is no longer any doubt that the ChIS [Chinese Intelligence Services] have been able to gain influence in important sectors of the Canadian economy, including education, real estate, high technology, security and many others. In turn, it [influence] gave them access to economic, political and some military intelligence of Canada.")
In 2005, during question period, Stephen Harper, then-Conservative leader of the Opposition, criticized the Liberal government for not taking the Chinese espionage threat seriously.
"Today the former head of the CSIS Asia desk (Michel Juneau-Katsuya) confirmed reports from defectors that close to 1,000 Chinese government agent spies have infiltrated Canada,' said Mr. Harper. He quoted Mr. Juneau-Katsuya's estimate that Chinese spies cost Canada $1 billion each month through industrial espionage. Mr. McAdam's conclusion today: "China has dangled billions of dollars of trade, seducing many countries into ignoring human rights issues in China and allowing China to acquire their industrial and military secrets.
True, but China is not the only espionage threat to Canada and it may not even be the most dangerous. The fact that someone spies on us does not make the our enemy; if it did we would have damned few friends.