Chinese Checkered - The Perils of Globalization

China in the past two decades has shown a pace of development that is unmatched by any another country in the world. Its products and economy have affected every citizen on the planet and big corporate houses have been seeking ways to engage and reap benefits out a country that is growing at 10% year on year. The Chinese are the proud builders of the Three Gorges Dam, the biggest man made engineering feat in the world. There are fantastic stories on how the Chinese have removed 150 million citizens out of poverty and the prospect of a successful Olympics in 2008 will further boost China’s global standing as a giant in every sense of the word. The prosperity, economic growth and sheer dominance of the manufacturing sector are the bright spots on a country which is still plagued with questions on human rights, individual freedom, freedom of press, health and product safety and most importantly the realness of the democracy that exists in the country.

Call it what you will but the open arms policy that was started two decades ago has also raised some important issues that the Chinese must provide answers for. Couple of weeks ago two widely read and respected weekly news magazines Time and Newsweek carried stories about the safety of Chinese products and also about how food products were manufactured in Chinese factories using substandard and in some cases potentially poisonous substances which reduced cost and therefore not only increased profits but also harm to the consumer. Pet food products were found with illegal substances as were food products that have flooded the West and most of the world. There are newer allegations of the safety of non-consumable products like children’s toys and other synthetic materials as a fall out of the food product scandal. China on its part displayed quick steadfastness and threw the chief of its food product regulatory agencies to the gallows on corruption charges. This action did not however fully satisfy the millions of consumers who are wondering what their options are in a market that is flooded with products from China. Proponents of China have also argued that most Chinese products are safe and a track record of the past two decades proves their safety and fitness for use. They further argue that since the West is facing the belligerent manufacturing might of the Chinese, at the cost of their domestic manufacturing industry, Western governments and media have embarked on a hyper critical campaign in order to reduce their country’s dependence on Chinese products. The allegations and counter allegations aside, for the moment it is the mainstream media that has ensured that “label reading” has become a fashionable and important way of checking out where a product has originated from.

Globalization and the internet age have also thrown up questions about the nature of democracy and individual rights that exist in the country. China, though still officially Communist, does allow local elections and has followed the famous “one nation two systems” vis-à-vis its relations with Hong Kong. The Tiananmen Square protests proved to be a litmus test for democratic reforms in the country, an incident that lead to the deaths of hundreds of students demanding democracy at the hands of the Communist regime. Chinese governments since the incident in 1989 have tried to shake off the far reaching questions that Tiananmen Square has asked of the Chinese. There continue to remain lingering doubts about how serious China really is about keeping pace with democratic reforms or whether the Chinese want to reap the economic benefits of globalization without compromising their grip over power by ushering in democratic reforms. India has been one of the beacons of democracy in the world and the growth of India with democracy has always been compared with the growth in China sans democracy. We in India are quick to make statements to the effect that democracy is the reason why our country has not progressed well enough and also as to why corruption remains rampant in the country. We like to compare ourselves against military regimes and to Communist China where the iron-grip approach has reaped benefits for its citizens. What we are quick to forget is that authoritarianism, while attractive in short term for the quick benefits it brings, is doomed for failure in the long term prospects of any nation. Most nations that have flirted with authoritarian regimes and dogmas have only given it up to pursue the more stable form of governance – democracy. And sooner or later, the Chinese will need to do the same if it wants its citizens to grow and meaningfully contribute to the growth of their country. Then again, the Chinese model could well be used as an example where authoritarianism with kid gloves has bided well for a country of China’s size.

The Chinese currency has also been cited as being undervalued as compared to the Dollar and the Euro and this is also a reason for Chinese and American financial mandarins to lock horns over the unfairness of the Chinese approach to the global currency market. The West is also concerned over the investments China is making in Africa in return for an assured fuel supply from the energy rich though economically stumbling African nations. This reverse neo-imperialism is again under the Western media’s scanner who are blaming China for cutting deals with despots for the sake of fuelling its own economy, never mind the fact that till barely sixty years ago, the West was doing the very same thing it is now accusing China of. That aside there is no doubt that at a certain level by McDonaldising its nation, the country has also opened itself up to some tough questions, questions that China would prefer not to answer. But globalization is an all or none phenomenon. While some companies maybe willing to overlook the Chinese disregard for democracy and food safety for the billions of Yuan’s in return, it is not long before a serious backlash and lack of credibility may hit the Chinese economy if China does not open up – and not just in words but by quantifiable meaningful actions.