Reasons Why Obama Needs New Start with China
--By George Koo



 
(January 1, 2009)


   
This article first appeared on 
http://www.atimes.com/atimes/China_Business/JL04Cb01.html

 

 

The Barack Obama administration takes office in January on the promise of 
change, and one of the most critical changes he can make is to reboot US 
relations with China based on mutual respect and shared interests. A strong 
and positive alliance with China is more important now than ever. 

By treating China as an equal partner, the Obama administration would not only 
recognize the reality of China's position in the new world order but would 
gain an ally that could reduce America's military expenditures, provide 
diplomatic cover in certain parts of  the world essential to world stability 
and help rescue America's foundering economy. 

 

Reason 1: International relations


Unlike the US, China never aspired to be a superpower and policeman of the 
world. Its policy has been to get along with everybody. Thus, it is able to 
maintain civil, if not downright cordial, diplomatic relations with nations 
with whom the US has been unfriendly, such as Russia, Iran, Cuba, Venezuela, 
Pakistan and North Korea to name just a few. 

 

Consistent with its "get along" approach, China has rarely invoked its veto 
right as a permanent member of the UN Security Council. Since joining the 
body, its has cast six vetoes. During that same period for other permanent 
members, by way of comparison, USSR/Russia cast 123 vetoes, the US 80, the UK 
32 and France 18. 

Since 1990, China has contributed 9,000 peacekeepers in 22 UN operations, more 
than the combined total of the other four permanent members of the Security 
Council. What they have not done is to send any of their troops on any non-UN 
sanctioned mission beyond their borders and occupy any territory belonging to 
other sovereign states. 

 

China has a growing presence in Africa and Latin America, but it has been 
based on mutually beneficial, commercial interests. Typically, Chinese 
investments and participation help build the local infrastructure and train 
native skill sets as well as pursuing cooperation in exploration and 
development of natural resources. 

China has already played a critical role by hosting the six party talks and 
keeping the conference room open with the North Koreans. Arguably much more 
progress could have been made by now, had the U.S. been less pig-headed about 
who blinks first.

 

Since China has gotten along well with every nation - far better than the US - 
Beijing is in the position to cajole international cooperation more readily 
than Washington can. With China's complicit help, the US will be able to 
lessen world tension without incurring extra expenditures for shuttle 
diplomacy or even bigger outlays for military intervention. 

 

Reason 2: Reduce military expenditure


Pentagon and the military industrial complex love to position China as the 
next evil empire in order to justify annual defense budgets north of US$500 
billion. Not much of the allocation is for anti-terror activity. Most of the 
spending is for advanced weaponry development allegedly in anticipation of a 
rising China. 

However, China is neither the belligerent state nor has the military might to 
compete with the US. China's defense posture has been that of a porcupine 
rather than a pit bull. 

 

It willingly revealed its nuclear weapons development to visiting American 
scientists. Its submarine surfaced in midst of the Kitty Hawk flotilla, just 
to show that it could. China's military shot down their own satellite to help 
Americans update their benchmark of the Chinese capability. 

 

The motivation seems nothing more than making sure that the US will not 
miscalculate China's ability for retaliation. 
Unlike the former Soviet Union, China has not shown any inclination to compete 
for world dominance or join in an arms race. By seeing and understanding the 
real China, hundreds of billions of dollars can be saved by not having to 
spend it for advance military systems. 

 

Ironically, if the US were to spend those billions, it would have to borrow 
from China. 

 

Reason 3: China as an economic partner


China is holding on to more than one trillion of our (US) dollars and Chinese 
companies are potentially interested in investing in America. They would find 
attractive acquisitions in American markets, factories, name brands, 
management and technical know-how. They could come to the US to license, form 
alliances and joint ventures or take over shuttered plants. 

Haier is one China's major appliance makers and the first to build a plant in 
the US. Haier's investment in South Carolina has had a ripple effect as other 
Chinese investments followed to the benefit of the local economy. One 
consequence is that the Port of Charleston has become the fourth-largest 
container handling port in the US, boasting the most modern cargo handling 
equipment - made in China. People in South Carolina know the story, but most 
of the people in the US do not. 

 

Chinese companies could invest in America and create jobs in America, but our 
basic attitude towards China's participation in our economy has to change. The 
new administration and Congress need to send out a new message that dollars in 
Chinese hands are as welcome as anyone's. 

 

There are a number of policy changes that the new administration should 
undertake in order to signal to Beijing that Washington is no longer home to 
hostile, knee-jerk attitude towards China. Congressional commissions that 
serve no purpose other than to provide a public forum for China bashing should 
be dissolved. 

 

To invite direct investment from China, guidelines on permissible investment 
need to be transparent and clearly delineated so that Chinese companies know 
where they stand in advance. Case-by-case debate in Congress that follows each 
contemplated investment, with gratuitous rancor thrown in, would be deal 
killers and cause any plans for inbound investment from China to be stillborn. 

 

China's own economic stimulus announced this month is to invest nearly $600 
billion on the country's own infrastructure, but it is also seeking economic 
opportunities elsewhere, from Australia to Africa to South America. It will be 
up to the Obama administration to send a new signal that we also welcome their 
investments here in the US. 

 

A good beginning would be for the State Department to instruct its visa 
offices in China to stop treating applicants as if they are from a pariah 
state. Simplifying the visa application process to business travelers from 
China would encourage more commercial exchange and facilitate inbound 
investment. 

 

As Europe and other tourist destinations have discovered, China is rapidly 
becoming the largest source of international tourists. France and Germany, 
among others, have found the Chinese tourists to be bigger spenders than 
Japanese or American. With an enlightened visa policy, we too can be 
beneficiaries of their tourist buying sprees. 

 

After all, to quote a US President of not too distant past, ¡°It's the 
economy, stupid.¡± 

 

Reason 4: Expanding high-tech exports to China


In general, China prefers high-tech equipment and machinery from the US over 
those from competitors in Western Europe, Japan or Russia. However, none of 
the other suppliers requires the buyer to jump through the hoops that the US 
government imposes on China for the privilege of buying from us. 

 

The US export control policy towards China needs to be revamped and the 
hostile bias removed so that China can be accorded the same respect as any 
customer. The notion that goods sold for civilian use could also find military 
use and therefore must be restricted when exporting to China is outdated and 
gratuitously insulting. 

 

The US export licensing process has been costly to administer, costly for 
American manufacturers to with and costly for the Chinese buyer to follow. The 
policy has not made America more secure but has impeded export sales and made 
buying from us less attractive than buying from our competition. 


 

The export control process was instituted during the Cold War to guard against 
American technology falling into the Soviet hands. The efficacy of this policy 
was questionable then and its relevance certainly more questionable now. 


China is too important a market for American high-tech goods for us to 
continue to tolerate a policy that undermine our own competitiveness. 


 

Reason 5: Stop racial profiling


Another change though not directly connected to relations with China is 
stopping the practice of racial profiling by law enforcement agencies. In the 
case of Chinese Americans, it is the idea that somehow their feelings about 
their ancestral land, a natural feeling with any first generation immigrants, 
are somehow unnatural and a cause of disloyalty. 

 

Ethnic bias runs deep in certain parts of the American government. Broad and 
ambiguous export control policy provides cover for justifying racial profiling 
by the enforcement agencies. Sometimes the bewildered target of the FBI 
investigation is tripped up by the idea that a civilian use could have 
military implications. Other times, they didn't do anything but were harassed 
anyway for merely being ethnic Chinese. 

 

The FBI has always espoused the idea that China uses the so-called "grains of 
sand" practice of espionage. Simply stated, FBI believes every ethnic Chinese 
in America is a potential spy for China. 

 

The idea that China is patiently collecting tidbits of information from a 
million sources that add up to devastating intelligence is preposterous, but 
this theory serves to excuse those in counter-intelligence for failing to 
catch anyone and justify their random arrests of Chinese Americans. 

 

Though it hardly qualifies as espionage, exporting to China can get a person 
in trouble, especially if the person is ethnic Chinese. 


 

The Obama administration should conduct an anti-ethnic cleansing of the FBI 
leadership and get rid of the bigots and the racially biased culture that have 
resided there since J. Edgar Hoover. Racial profiling under grains of sand or 
any other pretense is still a show of ignorance and in the case of the FBI, 
incompetence. 

 

Stopping the harassment of Chinese Americans will contribute to a positive 
atmosphere with China and will re-direct the energies of the law enforcement 
bodies to issues related more directly to homeland security, a cause we all 
support. 
 


Copyright(c) 2005, National Association for China's Peaceful Unification(NACPU), Washington D.C., USA. All rights reserved.