Editorial #5

Is China Our Foe or Friend?

During a conversation between President Clinton and Business Week White House Correspondent Richard S. Dunham, Clinton openly acknowledges the Chinese leaders for their commitments in maintaining the value of Ren Min Bi, or the Chinese currency. By not devalueing its currency in the midst of the Asian currency crisis, China will lose financially to other countries that are willing to offer to the global market even cheaper products and labors because of the currency devaluation happening around the continent, but such action precisely prevents any greater diasters from coming down onto the rest Asian countries. In other words, China has made a tradeoff between financial loss within the country and economic stability across the continent. The question is why would China do such an admirable thing? Could it be that China also wants to become the big brother of Asia like the U.S. is for the rest of the world. Commented by the current big brother, "I think it's clear to everyone that [China] doesn't want to devalue and they've been taking extraordinary actions to avoid devaluation," Clinton says, "They deserve credit for that. And I personally appreciate it..." Exactly how does Clinton show his appreciation for the Chinese is yet another thorny question. Clinton is trying hard to convince the American congress that technology transfer to other nations is in the best interest of everyone, including the United States. Yes, by offering "sensitive" technologies to China for commerical purposes, the United States can benefit financially without jeopardizing its national security. Fueled by the recent media frenzy that revolves around the possibility of stolen technology by China in an failed attempt of an American rocket launch in China and the alledged Chinese illegal campaign contributions, American congress is panicking. After all, China is the last surviving Communist country on earth still live and kicking. This intrinsic fear among congressional members is preventing any healthy and legal technology transfers from the U.S. to other nations, especially to China. It appears that the American politicians are scared of any personal involvement with China, regardless of the nature of the dealings. If it involves China, then you are endangering our national security. That, appears to be the weather on the capital hill. Many business people have retreated and stopped their lucrative dealings with China and other countries such as India and Paksitan because they fear that even if the government investigators cannot dig out any wrong doings of the current businesses, they are likely to find other soft spots. Hey, afterall, we are all in business, can anyone show me a company that is completely, I mean 100% honest in everything they do? Probably not. But one thing is for sure -the government will pound hard on the weak to vent its anger toward bigger companies that they can't catch, i.e., the recent loss by the government in a suit against Microsoft. Is this healthy to the American economy? I mean, wake up and make some money while you still have the technology edge over other coutries… Afterall, the U.S. is still dominating the world, but China is creeping along. In the ancient text of the Art of the War, Cun Zi said that if one is attacking an enermy's castle, only attack from three sides and leave one open for the enermy to escape. The goal of the battle is to obtain the castle and weaken the enermy, it is never intended to kill every enermy soldier. If one does not leave an escape route, the enermy will fight back with nothing to lose and that is dangerous. In dealing with China, if the U.S. does not sell technologies to China who is in dire need of it to improve the lives of the billions, China will purchase the necessary technologies including weaponry devices (for defense purposes of course) from the U.S. competitors. If that is the case, will the U.S. gain any more national security from the inhibition of any businesses with China than from making profits oon the sales? Still not convinced? National security can never be jeapordized, that seems to be the message of the congress. As Tyson, the dean of Haas Business School at UC Berkeley, mentions in her article, our congress should not overlook the nation's export-control procedures, such as the commercial satellites to China. There is simply no evidence indicating either that campaign contributions have influenced licensing approval decisions under the new procedures or that such approvals have compromised national security. In her attempt to state the formidable yet real Chinese status, she says, "[we] should not ignore the fact that China is fast becoming a great military, political, and economic power -one that is capable of promoting or impeding American interests." As clearly indicated in her article, Tyson emphasizes one single most important message: competition leads to innovation. Rather than producing high cost, low quantity weaponry devices, commercial competition may drive down the prices for these technologies that may very well benefit the private sectors without jeapordizing our national security. I believe that if one tries to prevent a global war, it is through plowing the seeds of friendship and kindness rather than through powerful domination. Right now, China needs help, a lot of it. The help will go toward the rest of non-urban dwellers, the farmers, to help them to improve effiencicy and feed their children. China will remember its benefactors' kindness and return such a great favor, such action has been deeply imbued in the tradition of the Chinese value. If history has taught us anything, it's the fact that China has stood its ground in the peaceful transition of Hong Kong, the ongoing negotiations over North Korea, and the Asian currency crisis. Do onto others as you would to yourself. If we treat China like an enemy when she has played fair and square in the global market, why would we then act surprised if China felt betrayed by us, the most advanced nation in the world, and return the crap we have fed her? If that does indeed happen one day, would American congress panick once again, for their worst nightmare has turned real?