China's Mercantilism and New Global Economic Order

Modern communication technology has allowed ChinaAmerican-esque resource providers and vacation
to achieve a centralized bureaucracy that has adestinations. We can see that if China takes on
smaller chance of becoming overextended and tooJapanese level importance in high technology exports,
top heavy. The danger, of parts of centralthey'll be able to then finally consolidate nationally and
government melting into regional structures withrelax the amount of force needed to keep social
rebellious consequences, is diminishing every year.stability.
The risk is not totally gone however if rapidIn a few decades, the communist leadership in Beijing
economic growth bumps into serious stagnation andwill then be able to claim that not only did they bring
even GDP reversal. As of today, China has thethe nation out of poverty but they:
creaky uneven centralization of 18th century France1) beat Westerners at their own game like Japan did
and is gleefully engaged in large scale mercantilist(but without a period of war over resources)
practices.2) created real feeling of nationalism, inter-ethnic
Chinese society is not yet fully urbanized andpeace, and modern nation state like Chiang Kai Chek
consolidated. Beijing cannot yet engage in cuttingwanted
edge mercantilist practices as done by Japan and3) avoided Soviet Union's mistakes when undergoing
Singapore. Chinese political center only recentlyPerestroika while properly utilizing communist fruits of
overcame last remnants of feudalism, warlordism, andmass literacy and emphasis on science/engineering
peripheral regional integration. Having dealt with that,4) took the torch from United States as the Global
China is pursuing the same economic path thatrole model when it comes to free trade, peaceful
allowed Kaiser's Germany to rapidly grow by takingco-existence, lack of harmful interference in other
advantage of British post-mercantilist free tradesocieties' business, isolationism, respect for borders of
period. It is very historically appropriate. There is nosmall states, and business cooperation
need for Beijing to emulate Spanish, British, or French5) built more for the developing world than the
mercantilist experiences.financially oriented English speakers by swapping
For a nation of 5 year plans, it makes sense to tryresources for real engineering construction projects
to skip developmental steps and leap from6) helped create a stabilizing one world currency for
macroeconomics of Kaiser's Germany to those ofmore even international development
Japan. As of today, China has done rapidSuch claims will allow Communist party to win election
neomercantilist development by the book:after election for a number of decades even if they
1) Government imposed positive trade balancethen allow political pluralism. Many Asian states
through protectionism and currency control (yuancontinued to have one party rule for decades even
pegged to the dollar)after democratizing. Cultural collectivism and emphasis
2) Self sufficiency in agriculture and manufacturing ofon agreement allows power elites to work smoothly
basic to advanced goodstogether. Taking into account Britain's experience,
3) Acquisition of large amounts of money and goldChina can easily continue to pragmatically evolve, build
(around a trillion dollars worth as of 2009). Controls toa financial center through Hong Kong, bring new
prevent wealth from flowing out of the countryresources (such as Helium 3 from space exploration),
through protectionist restrictions on importsand guide humanity by being its center of progress.
4) Large scale mining and infrastructural projects toHistory has shown that leading global elites will not
increase use of domestic resources and terrain.allow such unimpeded ascendancy. Cutting off
Hamilton and Quinsy Adams would be proud of whatresources and containment is too blatantly hostile.
Beijing's coastal elite have achieved in the last 20Japan and Imperial Germany have demonstrated that.
years. China has also secured 60% of Africa'sAdvanced hybrid of mercantilism and free trade
resource exports and are structurally integrating(from a society strong enough economically and
Central Asia and Siberian Russia into their resourcetechnologically) will be the only way to
feeding network.counterbalance Chinese ascendancy. Only European
5) Keeping the overall population's wages low toUnion with English and Russian speaking allies has
increase country's overall manufacturing exports. Thatwhat it takes to effectively compete and prevent
is easily accomplished by underdevelopment offormation of a long term hegemon that is culturally
Western provinces like Tibet. One child policy is moreand psychologically uncomfortable for Westerners.
imposed on the wealthier Mandarin ruling coalition thanEarlier in the article, it was mentioned how Chinese
the periphery ethnic groups. Uneven implementationbureaucracy, has a small chance of being destabilized
of one child policy keeps periphery ethnic groupsagain. There is precedent for this happening at
more fertile and poorer. Coastal urban ruling peoplesnumerous times in China's history with horrible civil
spend more energies on advanced wealth generatingwars and revolts from poorer less developed
employment rather than saving to augment multipleperiphery. China's gini index, that shows country's
children.income inequality between the rich and the poor,
6) Keeping of imports limited to natural resources andshows that China is even more economically unequal
large scale buy outs of foreign expert talent inthan United States. Today, Beijing's authoritarian rule
anything from engineering, electronics, economics,keeps the lid on trouble from elites from either the
and hard sciencesoligarch coastal factions, rural/regional factions, and
Current opinion and international action has just beenurban West emulating liberals.
reactive so far. Westerners are mainly focused onEuropean Union's job, to deal with the near future,
China's attempts to prevent rapid devaluing of theinvolves:
bought dollars (before all of them are eventually used1) Being proactive rather than reactive to Chinese,
on natural resources anyway) through creation of anAmerican, or Russian moves
international reserve currency . Some look on how2) Acquiring valuable allies to augment influence. That
the international recession, can be used by China, tomeans working first with Russia to kick American
move from less advanced manufacturing to priceBritish influence out of central Europe and then with
competing with Germans and Japanese when itEngland to push American influence out of NATO.
comes to advanced electronics and electric cars.NATO can then be ended and America approached
Chinese confidence in constructively criticizing theas an equal power to work with.
existing international economic system is often noted.3) Being pragmatic and not looking at human rights
Very little attention has been paid to the implicationswhen acquiring resources from other nations. Europe
of the world being pulled into a mercantiliststill has time to lock onto substantial amounts of
arrangement. China is becoming more predictable andresource exports from the third world, especially
thus out-maneuverable. Originally, Britain becameAfrica. It can join Russia in developing the Arctic
economically successful because it added free tradeenergy reserves and help Russia outbid Chinese
theory onto mercantilist practice earlier than Spain orresource extraction/exploration companies in Central
France. It stayed one step ahead of the competition.Asia.
However, the new economic hybrid has created4) Consolidate EU structures, such as the European
oligarchal capitalist interests who then used liberalParliament, so more coherent action can be
theory to reduce state's involvement in theundertaken with more popular trans European
economy. Wealthy exporting interests (wholegitimacy.
controlled the house of commons and people's5) Use advanced collective protectionist methods to
opinion through printed media) used appeals tokeep an edge in high technology products to stay a
individual freedom to dismantle the mercantilist/freestep ahead of China. Contribute even more
trade hybrid that made Britain powerful and wealthyconstructively to global currency formation through
to begin with. Britain coasted along but economicallyIMF where Westerners still dominate.
declined as hybrid societies were able to build up new6) Work with United States and England to manage
waves of industrial assets through neomercantilistthe geopolitical, social, and economic decline of United
practices (Germany/ United States). As BritainStates peacefully and productively. Invite young
declined in industrial might, it focused on its coreAmerican professionals to European Union to displace
strength of money management and that lead to thesocial pressures from relying on less assimilative
torch being passed down to Wall Street in the 20thMuslim immigrants. Become the stable adult co-equal
century. The great competing banking hubs ofmediator between Russia and United States so the
Europe (Paris, Berlin, Moscow) were looted in thetwo former superpowers can productively contribute
wars/revolutions. We now see what happens whenand provide nuclear protection. Open borders to
banking and finance is the core strength andyoung educated Westerners from around the world
emphasis of the economy.to counterbalance aging of Europe.
China is now in the process of moving to the final7) Develop strong ties to regional powers like Japan
stage of manufacturing asset concentration throughand India to counterbalance Chinese cultural influence.
focus on development of advanced products likeTo do that, rapidly expand economic cooperation
cars and computers. Rapid economic assimilation ofwith them in the sphere of building climate change
Taiwan and Hong Kong will quickly aid in that process.infrastructure, energy, military, and space
Western investment in Taiwan created a base for8) Comprehensively educate the public on climate
high technology and competitive know how. Manychange and loss of technological edge to China in
Taiwanese oligarchs have already basically integratednon-confrontational terms. Take the lead in
their companies with mainland ones. Ideologically,recognizing petty-infighting (like Poland's mistrust of
Taiwan's Kuomintang political center, can nowRussian cooperation in Europe) and offer tangible
smoothly cooperate with Chinese authorities. Peopleeconomic/developmental incentives to major actors
forget how important socialism was in Chiang Kaito overcome them.
Chek's original nationalist ideology.Brussels has enough time to still effectively
Very soon, China will begin manufacture of highconsolidate before China does. It will require the
technology goods to compete with Germany andsame long term vision, developmental eye, and good
Japan for markets in Russia, Europe, and Northhistorical sense as the one possessed by their
America (as well as lower end cheap electric cars soldChinese politburo counterparts. Europe is more
to developing nations). They will be forced to utilizeeconomically egalitarian than China. It has more power
existing free trade international system (perhapselites and cutting edge professionals. It must find a
stabilized by IMF's Special Drawing Rights currencyway to be protected by Russo-American nuclear
basket) to push these products abroad.umbrella (without being controlled by them) so not
How would Chinese like to see the world once theirtoo much money is spent on integrated European
products flow onto middle class Western markets?defense. Together, Western peoples of the world
They would like to see no protectionism fromgot close to a billion people and have as much of a
Europe, Russia, Japan, or North America. They wouldshot as Chinese (less than half the Chinese speak the
like to see rule of law and capitalist adherence fromruling dialect of Mandarin). Western civilization has the
everybody in the world. They'd be fine with Northqualitative expertise to provide solid competition that
America and Europe reduced to Southwill benefit all of humanity.