chinese
...s a drastic removal from the policies of Mao Zedong and, in fact, from centuries of Chinese political culture. The Open Policy, which designated limited areas in China "as places with preferential conditions for foreign investment and bases for the development of exports" (Nathan 99), was extremely successful in the areas where it was implemented (Shirk 47). However, it was looked upon by many Chinese as nothing less than an avenue to "economic dependency" (Nathan 50). Indeed, when the policy was first implemented, many Chinese seem[ed] to fear that Deng's policies [were] drawing China back toward its former semi-colonial status as a "market where the imperialist countries dump their goods, a raw material base, a repair and assembly workshop, and an investment center." (Nathan 51) It is interesting to note the symptoms of a national character that would subscribe to the above sentiment. In an article written in 1981, just two years after the Open Policy was first proposed, Andrew J. Nathan noted the almost pathological resistance to foreign intervention in the Chinese economy: "Some Chinese fear that reliance on imported technology will encourage a dependent psychology ... [Many] Chinese perceive joint ventures as a costly form of acquisition. 'Some people worry: Won't we be suffering losses by letting foreigners make profits in our country?'" (52). The Chinese were as vociferous about issues of sovereignty. Nathan maintained that the Mao-led revolution, which culminated in victory in 1949, had been fueled by "an intense patriotism: ... once China had 'stood up,' no infringement on its sovereignty, no matter how small, should be permitted" (53). These feelings were manifested in denying foreign businessmen long-term, multiple entry visas, resisting "increased foreign economic contacts" and alteration of current ways of doing things, and disinclination to become involved in government-to-government loans and joint ventures lest Chinese become exploited in some way (Nathan 53-55). Given these hesitancies on the part of the Chinese society vis-a-vis foreign relations, it is impressive that Deng and his allies were able initially to create and implement the Open Policy since many members of the society at large were resistant to becoming involved in a policy so antithetical to the Chinese national character. However, once the successes of the Open Policy were apparent, resistance to the plan by the populace waned. Moreover, given the confluence of politics and economics in China, it seems apparent that some members of the CCP would also not be in favor of the plan. Nevertheless, the Open Policy was implemented and has become instrumental in the success of the burgeoning Chinese economy. The implementation of the Open Policy was so successful that by 1988 the leaders of the CCP were encouraged to create a new program called the "coastal development strategy." In this program, even more of the country was opened up to foreign investment--an area which, at the time, included nearly 200 million people. Moreover, by involving more overseas investors, "importing both capital and raw materials," and "exporting China's cheap excess labor power," the new policy was one of "'export-led growth' or 'export-oriented industrialization.' It [was] explicitly modeled on the experiences of Taiwan and the other Asian 'small dragons'" (Nathan 99). One analyst has maintained that "China now stands at the threshold of the greatest opportunity in human history: a new economic era promising greater wealth and achievement than any previous epoch" (Gilder 369). Illustrative of this optimistic feeling is Shanghai, an area that was designated for preferential conditions for foreign investment and as a base for the development of exports in 1988. This city and environs in the Yangtze Delta area have a population of approximately 400 million people and the city has become the nation's financial hub for international and national investors. For political reasons, this area was excluded from the original Open Policy designation in 1978, but is currently in the process of catching up with other areas so designated. Indeed, the increase in foreign investments in the last two years is striking. The area received 3.3 billion dollars in foreign investments during the 1980s. The area received the same amount from foreign investments in 1992 alone. In only the first ten months of 1993, the area had received over six billion dollars worth of foreign investments (Tyler A8). Western analysts have asserted that the Open Policy and the coastal development strategy have allowed Deng to entrench his political power (Shirk 47) and will allow his power to be sustained even after death. If this is true, Deng should be very popular in Shanghai. With its new designation, and with the billions of foreign dollars coming into the area, it has become necessary to improve the city's facilities. To that end forty billion dollars worth of public works projects have been allocated by the central government for Shanghai within the last year (Tyler A1). These public works projects include new sewers, a new water system, new gas lines, a new bridge, and extensive roadwork. Future plans include the construction of a second international airport, a container port, a new subway system, and more roads and bridges (Tyler A8). The financial district, which will feature a new stock exchange, is also being rebuilt by China and foreign investors in a joint venture. By being designated for preferential conditions, Shanghai received from the central government tax exemptions for enterprises doing business with foreign companies, tax holidays for new factories set up with foreign investments, and a bonded zone--the largest in China--for duty free imports of raw materials. Shanghai now has all the trappings of a modern city: discos, construction projects, and conspicuous consumption. In short, where "revered monuments and golden arches exist side by side" (Riboud 12), the appearance of the new Shanghai does nothing less than signal "the end of the ideological debate over China's free market experiments" (Tyler A8). Shanghai has joined the ranks of the modern metropolis. However, this is not necessarily a beneficial development. Inflation is rampant: prices have doubled in the industrial zones in the last five years. Nevertheless, the fact that Shanghai currently possesses the fifth most expensive office space in the world demonstrates that demand is high and that the prospects for future growth are promising (Tyler A8). Indeed, Pudong, a free export manufacturing zone described as "the future sight of Shanghai's Manhattan" (Tyler A8), boasts more than twenty factories built or being built with names like Siemens and Hitachi prominent. This area has become particularly attractive to foreign investors and companies because of its tax concessions, duty free imports of raw materials, and cheap labor. Shanghai stands to benefit, too, as it receives ancillary technology and discretionary spending from the workers and executives of the companies represented (Tyler A8). It is conditions like these that have caused at least one analyst to predict that China will be "the richest economy in the world within the next 25 years" (Gilder 372). Shanghai is by no means unique to this growth. Additional foreign investments have continued to pour into other areas of China. For example, the Boeing Company recently announced its intention to "invest $100 million in a plant in [Xian] China to make tail sections for 737 jetliners" ("Boeing" D4). In addition, E.I. du Pont recently predicted "that its investments and business in China could increase as much as ten times by the end of the century" ("Du Pont" D2). Tellingly, du Pont's chairman attributed the company's negotiations of "as many as 28 new projects in China" to the fact "that the country's financial changes, improved infrastructure and rising disposable income has [sic] encouraged the company to expand its business activities" ("Du Pont" D2). The Chinese government has made conscientious attempts to promote the strength of the country's economy while protecting its citizens. Just a few weeks ago, the government instituted "tight-money policies, intended to control inflation and slow what has been the world's fastest growing major economy" (Shenon "China Halts" D1). However, after doing so, China's Securities Regulatory Commission was forced to stop the issuing of new issues on the Shanghai and Shenzhen Stock Exchanges because the value of the markets had decreased so greatly. This latter move was "meant to calm millions of first-time Chinese investors who evidently went into the market believing that stock prices could only go up" (Shenon "China Halts" D1). Might this policy show a union of economic and moral concern? If so, it demonstrates the desire on the part of the government to show some kind of responsibility, some moral force, to its citizenry. At the very least, the strategy appears to show a practical desire on the part of the government to take control over what could have been a bad economic situation. Indeed, after these measures were instituted, China's trade deficit decreased (Hansell D2) and the stock markets' volume attained record highs ("Stocks Surge" D2). To be sure, Chinese investors remain somewhat wary about the stock market and, ironically enough, more control of the stock markets appears to be necessary (Shenon "A Nail-Biting" D1). But, in discussing Chinese attempts to control inflation, Philip J. Suttle, head of emerging markets research at the investment firm of J.P. Morgan, has predicted that "[i]t looks as though the Chinese are going to have the soft landing they are aiming for" (quoted in Hansell D2). China's interest in stock markets is no longer restricted to within its own boundaries. This month, Shandong Huaneng Power Development Company, "the first mainland Chinese company to have its primary listing on the New York Stock Exchange" ("China Stock" D5), began trading shares. The stock should be an attractive one to investors: Chinese electrical "demand ... is expected to grow by a whopping 17 million kilowatts a year until the turn of the century" (Zuckerman D6). Moreover, China stands to gain from the issue's sales. "The company plans to use the $311 million dollars it received from the offering to retire $83 million in loans from ... Chinese state entities. It also plans to expand its overall generating capacity" (Zuckerman D6). Nor does this signify the only Chinese attempt of raising capital from foreign sources on foreign soil. "Three more power companies are expected to be listed in New York and Hong Kong in the coming months" (Zuckerman D6). Given the apparent strength of the Chinese economy as shown by huge public works projects, extensive foreign investments, participation in the world economy, and a generally higher standard of living by the populace, it would appear that China is now ready to join the world as a modern capitalistic and democratic society. However, this is not quite the case. The CCP retains vestiges of those characteristics of insularity and intransigence as discussed by Nathan. Because of its human rights record, the country's economic growth is being impeded. That is, the politics of China, which have always been allied with its economics, are now restricting international growth. The United States, especially, has been concerned with China's treatment of political dissidents. In May, President Clinton decided to end linking China's trade status with the United States with its record on human rights. The president has been criticized for this because of situations like the following: trials for "'counterrevolutionary activities' [including] ... plans to use a remote-controlled airplane to drop pro-democracy leaflets over ... Tienenmen Square" ("China cracks" A13) have recently begun for fifteen dissidents and labor organizers who were involved in the Tienenmen Square protests. These trials have "been delayed twice, first to avoid negative international reaction just before the decision last September on China's failed bid to host the 2000 Olympics and then this spring to avoid influencing Clinton's trade decision" ("China cracks" A13). In addition, China has instituted "new laws effective in June [which] give sweeping powers to China's State Security Bureau to clamp down on dissidents" ("China cracks" A13). China is fully aware of United States' concerns about its human rights record. Given the fact that the United States has made it clear to China that that record will be allied with trade status, China's timing of such restrictive activities has caused United States legislators and administrators to question China's sincerity in its desire to have a favored trade status with the United States. Indeed, just in the past few days, it took a last-minute lobbying campaign by President Clinton and his Cabinet [to head off a] potentially embarrassing vote by the House of Representatives to restrict trade with China as a way to punish Beijing for reported human rights violations. (Bradsher A7) But China's problems in joining the community of the world market have more to do than with its political ethos and practices. China appears not to understand or to be able to follow through on fundamental modern economic practices. For example, the United States has recently complained that "China has not complied with international rules on access to its markets and protection of copyrights and patents" (Gargan 14). Such non-compliance could make it difficult for China to become a founding member of the World Trade Organization, the successor to the General Agreement on Tariffs and Trade and the body that is intended to promote global free trade by lowering tariffs and other barriers, [which] will be formally constituted on January 1, 1994. (Gargan 14) The specific nature of the Unit...