Issues with China and Capitalism

 

 

I wrote this as a response to a book I was reading “Made in China” by Pun Ngai about sweat shops and the conditions of the female workers in a Chinese factory.

 

       By in large, to explain this book, “Made in China” by Pun Ngai, I have to look first at several different issues: the politics behind it, the assumptions they draw upon, and the things she leaves out. Then, I’ll attack each of its claims. First off let me go into the politics behind this book. The more and more I read this book, the more and more I hate it. I’m sorry for saying that—well, not really. Maybe Pun Ngai has good intentions by pointing out only the negatives in every instance, but I couldn’t help but be reminded of some transient theme behind all of her pessimisms. If I didn’t know any better, which I obviously don’t, I would say that Pun Ngai was defaming China not for being against the US and world cohesion, as most of my classmates would like to think, but for being for it. By that, I mean, that this book is extremely Marxist, anti capitalist, and anti US—to stand behind this book, while still maintaining any sense of American patriotism or pride is contradictory. The rest of this paper you may consider to be merely a defensive stance in terms of capitalism versus Marxist communism, but I’d like to think that it’s more than that. The type of thought from this book isn’t rare in China, Pun Ngai is only a part of a widely criticizing faction growing within China that likes to point out all the negatives of globalization, free trade, or neo-liberalism by pointing out the exploits and the harsh conditions being subjugated upon the workers, while disregarding any and all positive benefits they receive personally as well as any benefits towards the government as a whole. In this way, it is kind of like focusing in on only one part of a government’s policies, focusing in on only one company still undergoing reform in the face of a more global privatized free trade open market economy, focusing in on only the lower echeloned workers most of whom are uneducated towards global perspectives, and focusing in on only the negative aspects of their lives. It is in this way that Pun Ngai was able to write such a completely negatively slanted defamation to all logical and true global debate. When the benefits of a society’s system out weigh the negatives, in order to make a Marxist argument for conflict, one has to actually dig down to the bottom of the barrel and scrape the conflicts out with a spoon. The term “spoon” I am using is a metaphor for the subtle way Pun Ngai is trying to prove her points. It was written to incite outrage and to depict a sense of rebellion or resistance, which may or may not have actually been there, just to further her own party or social group’s political ideologies. However, though, in the face of actual research and more information, for lack of a better way of putting this, Pun Ngai is just digging up dirt. This book was not written to discuss whether globalization is ultimately more or less beneficial to society, it was written to persuade people in how globalization is only negative.

       If there are people to blame for this whole ordeal, it would be the US and the European Union—I’ll give that to Pun Ngai. The US and the European Union predominantly control the World Trade Organization (WTO) by the most part, and we pretty much invented Neo-liberalism. Those are the hot buttons in China. The storm over Neo-liberalism and the WTO is what fuels the politics behind this book. The correlation of neo-liberalism to the WTO is kind of like, neo-liberalism is the policy and the WTO is the organization whose parts uphold that policy, kind of like how peace is the ultimate goal of the UN. Neo-liberalism is by and large the newest form of capitalism upheld by the world’s largest capitalists. According to Paul Treanor’s “Neo-liberalism: origins, theory, definition,” it is marked by governments and corporations desire to “intensify and expand the market, by increasing the number, frequency, repeatability, and formalization of transactions.” In most parts if one was to attack neo-liberalism from the perspective of anything but an economic stand point one could easily succeed, obviously so considering this entire book is about that. However, despite some of neo-liberalisms negative aspects it was created by and large by the needs and wants of the people. That is Neo-liberalism sprouted from countries whose interests were controlled and were created by the people for the people. So, if Neo-liberalism is the logical effects of a free society, then Neo-liberalism may ultimately be a cause towards China’s also possibly becoming a more free society itself—consumerism as a means to an end.

       In any case, the conveniences created by a neo-liberalistic system are what create the expansive infrastructure and are also what accumulates the many different types of jobs and careers that can only open up in that type of economy. As for example, the expanding requirement for products to meet a 24 hour a day demand leads to the need for a type of production based ability to meet it. This leads to the creation of jobs in all facets of production from the cleaning of parts, to assembly, and to quality control to ensure that the products being made are in accordance with the standards. Those standards are those created by international and intra-national competition in a free trade global market. That is, not only is it based from competition between the different nations, but also between differing cities and factories. Those with the best standards win—more on that in a second. This means that in order to meet those standards many workers have to meet a calculated regimented demand. In order to meet that demand they have to undergo standardized procedures and time managed schedules regulated by trained managerial staff to ensure that demand is not lost.

       That part about “trained managerial staff” is where China was receiving most of its problems. In China, the government was having a problem with its state owned enterprises losing money. Despite the fact that it offered easier working conditions and worker compensation, or because of that, the state owned enterprises (SOE) were losing money and were on the brink of collapse. If the enterprises failed the government’s economy would collapse and the people as a whole would lose their jobs entirely. For a further understanding of this dilemma, read “Why China is a Paper Tiger.” This is basically a slight explanation of what happened in the Soviet Union. To ensure this didn’t happen in China, Hu Jintao implemented neo-liberalistic methods and began to contract out or privatize his enterprises. Possibly one of the many reasons why this option was so attractive to Jintao was that under a neo-liberalistic system, one can basically contract out an entire industry to private corporations while never actually relinquishing ownership. In this way, the state always holds some control, while still maintaining practices of free enterprise. Truly, China and Neo-liberalism fit together like a hand in a glove. Anyways, going back to this in terms of the workers, under contracts, the people are faced to have to apply for their jobs as well as be assessed continually to ensure that they do their job satisfactorily. This can be seen in negative aspects in terms of Foucault and his panopticon theory—big brother is watching you—or it can be explained that in this way, the company ensures its profits, doesn’t collapse, and the people as a whole don’t lose their jobs. Although the assessment and assembly like process makes the individual person basically interchangeable, it does ensure overall job security for the entire factory.

       Going back to what I was saying a while ago in terms of how competition creates the standards of production, intra-national competition or competition between the different cities and regions within the nation can also create a psychological and sociological side effect predetermined towards inequality. When one is expected to be all that they can be in the face of competition, those that are not able to meet that expectation will be subsequently be discriminated against or looked down upon. This is by no means a justification on my part towards discrimination by any standards, but it is a likely theme also paralleled in the US economy. In terms of how the US deals with it, China can ever more look towards us as a way of absolving itself of this problem. Inequality may be at its deepest core inevitable to coincide upon a capitalist coat tail, but that doesn’t mean it should remain interminable. This also shouldn’t lessen the value of a capitalist based economy either. As China begins to increase its GDP it can then afford to turn its attentions away from maters of national and economic security and face it towards issues like social inequality. Progress doesn’t happen over night.

       According to Hu Jintao, since 1978 and the opening of China’s markets, the GDP in China rose annually about 9.4 percent from 147.3 billion US dollars to 1.6494 trillion US dollars, and its rural poor decreased from 250 million to 26 million. By 2020 he projects China to quadruple its GDP to 4 trillion US dollars. Now, for those with a lack of understanding for the benefits of a high GDP, a higher GDP can be correlated with more money to be spent on social and economic reforms such as education, the sciences, the economy, and for promoting social harmony and comfort of the people. A little sweat right now literally means less sweat for the future, ultimately the greatest good for the greatest number.

       In terms of this book, one can always find things within a nation to be negative on, but when you know and can see the whole global picture, there really is a good reason for everything. Globalization by any measure is inevitable. No country can exist isolated from any other. All countries must produce something and trade it for something else. Even those few exceptions that don’t, like Somalia for example, still can affect the world in terms of upheaval, starvation, and disease. So, it would be beneficial for us to ensure that Globalization is beneficial to us. If this requires the US to be actively controlling of other world economies, and or sending charity and aid, it is in our best interest to do so. However, I do not believe that it is in the US’s best interest to end these practices. Why should we? In some respects, they benefit both the US and China. If one buys into the World Systems Theory, then one can conclude that all countries must go through this phase if they are to move from being a periphery nation towards being a core nation. The US can help developing countries to make this transition easier, but it is also not in our business to intervene too heavily. We must remember that China is still a communist nation and as such still maintains different fundamental ideals than our own, and although it may be beneficial for China to maintain peaceful competition with us now, it may not always be so in the future. As such, the future of the US in terms of its relations towards China and all other developing nations are all pretty much speculative, and any measure we can enact to prepare for any type of possible scenarios would be more than likely made up as we go along to be based on the threats at that moment, but this is mostly to be expected. Within a world of options as it is currently laid out, ambiguity, more than anything else, haphazardly designates the events to come, and relativism, more than any other type of philosophy will lay out how we should approach them.

References

  • Chang, Chun. McCall, Brian. Wang, Yijiang. 2000. “Incentive Contracting Versus Ownership Reforms: Evidence from China’s Township and village enterprises.” Carlson School of Management, University of Minnesota. Minneapolis, MN.

 

  • Fewsmith, Joseph. “China under Hu Jintao.” China Leadership Monitor, No. 14.

 

  • Jintao, Hu. “Speech at 2005 Fortune Global Forum.” 12 March, 2006. <http://english.people.com.cn/200505/17/print20050517_185302.html> 16 May, 2005.

 

  • Restall. “Why China is a Paper Tiger.” The Asian Wall Street Journal. August, 2003.

 

  • Treanor, Paul. “Neo-liberalism: origins, theory, definition.” 12 March, 2006. <http://web.inter.nl.net/users/Paul.Treanor/neoliberalism.html>

 

 

 

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