China is Becoming a Superpower, With Our Help

Quote of the day:
“China was in decline for 300 years and then around 1978 Deng Xiaoping said, ‘OK, let’s find something new.’ He reintroduced entrepreneurship and capitalism to a country that has had a long, long history of both. In China they save and invest more than 35% of their income; in America we save less than 2%. The Chinese work from dawn to dusk. When they come to work, they don’t say, ‘How many holidays do I get?’ They want to live like we do in America and they are willing to work hard, save and invest for the future.”
--James B. Rogers, in today’s Barron’s

Ok. Let’s all have a moment of panic about China.

AAAAAAleadpaintAAAGGGGGGjobsGGGGGHHHHHHbadpetfoodHHHHHHwewon’tbenumberoneHHHHHHtheydon’tspeakEnglishHHHHHHHHH!!!!!!

Good. Now that we’re done with that, let’s talk.

There’s been lots of attention over the last week to protests surrounding the Olympic torch route. Fervent Free Tibet supporters have been vocal and sometimes aggressive, not heeding the Dalai Lama’s call to keep the peace.

Simultaneously there have been strong protests against China’s ongoing human-rights abuses.

These protesters make very important points. China certainly does need to heed the wishes of the people of Tibet. And there’s no doubt their human rights record is spotty.

What concerns me is that these two valid issues are simply added to what some see as a growing list of reasons that China is a sinister menace. And while we engage in the latest anti-Chinese hysteria, the real, long-term ramifications of its emergence as an economic superpower are ignored.

Because of their rising power, they are able to buy American debt (that is, dollars). We get worked up about this and then use part of our home-equity loan to go to Best Buy and get a flat-screen TV, made in China. That home-equity loan might also be owned by China.

In other words, we fret and worry about China’s growing ownership of American assets and then we drive to the post office to mail a few to them. We borrow from them to buy their products.

China’s influence and economic power are growing. They will one day have more economic influence than us. Why? Because their population is more than three times ours.

Historically, the majority of China’s population has been agrarian. Now that has changed, and more than half live in urban areas. And as still more and more people get engaged in China’s growing commercial and industrial base, this trend will accelerate.

There’s no need to panic. There is a need to be aware of and to understand.

Driving in China

Quote of the day:
“Hatred is an affair of the heart; contempt that of the head.”
--Arthur Schopenhauer

These days we are alternately fascinated by and scared of China. It seems clear that the country is in the process of becoming an economic and political superpower, and we don’t know whether to cheer them on or be very frightened.

The photo above is a bridge in a Chinese city, choked by smog. What goes on inside China is a big mystery to most of us. We see pictures, we read news reports. But it can be very hard to learn what everyday life is like.

This makes Peter Hessler’s “Letter From China” in the November 26th “New Yorker” very rewarding reading. It’s an entertaining romp through what it’s like to rent a car and drive in China. He did both over several years.

What makes driving in China such an adventure is that most people are new to it. On top of this, everyone knows a little bit about driving--literally, just enough to be dangerous.

Car ownership is becoming more and more common, and everyone seems to think he’s a good driver. China has 28 cars per every thousand people, which is where the U.S. was in 1915. They have three percent of the world’s cars but twenty-one percent of its traffic fatalities.

Windshield wipers are considered a distraction, as are headlights. The use of headlights was banned in Beijing until the mid-1980s.

One question on the driving exam is “During the evening, a driver should a) turn on the brights, b) turn on the normal lights, c) turn off the lights.”

Another question: “True or False: In a taxi, it’s fine to carry a small amount of explosive material.”

And this: “When overtaking another car, a driver should pass a) on the left, b) on the right, c) wherever, depending on the situation.”

And this: “If, while preparing to pass a car, you notice that it is turing left, making a U-turn, or passing another vehicle, you should a) pass on the right, b) not pass, c) honk, accelerate, and pass on the left.”

And this: “When driving through a residential area,, you should a) honk like normal, b) honk more than normal, to alert residents, c) avoid honking, in order to avoid disturbing residents.”

Honking is essential, according to Hessler, who describes the horn code: “A solid hooooonnnnnk is intended to attracted attention.

"A double sound--hooooonnnnnk, hooooonnnnnk--indicates irritation. There’s a particularly long hooooooooooooonnnnnnnnnnk that means a driver is stuck in traffic, has exhausted curb-sneaking options, and would like everyone else on the road to disappear.

“A responding hooooooooooooooooonnnnnnnnnnnnk proves they aren’t going anywhere.”