Friday, July 11, 2008

The China question

Peter Navarro is worried about China and if you read his book, you are at the very least, you may well get concerned as well. The Coming China Wars details problems with Chinese production, quality control, human rights and environmental protection. He also points to Chinese foreign policy as an indicator that China is moving into peer competitor territory. Let's look at each in turn.

Navarro wants US consumers to limit buying Chinese goods, because it is not good for the American economy and because it supports bad Chinese work and environmental habits. He provides a number of cases of evidence for this, although some lean toward the anecdotal. Many times it is difficult to know the scale of the problems he is presenting. How much of the Chinese produced medicine is shoddy for example? I suppose the answer in that case is that one case is too many, but it can be hard to tell how serious the problems that Navarro presents are. His tone can reach the apocalyptic which reduces the appeal of his arguments to the unsure.

Quite a bit of the problems he relates call into question the ability of China to continue on its growth path. Internal divisions, more class than ethnic, are a problem. Environmental degradation is reaching critical levels and the wealthy classes will only go so long without a shift to a consumer culture. This is helpful, as most of the books you read tend to treat China's rise as inevitable.

On the foreign policy side, he portrays Chinese as a rapacious neo-imperialist creating new outposts places as far from Beijing as Central Africa and Latin America. This shouldn't be unexpected. China is growing more wealthy and powerful and as such it is spreading its wings. In few ways does this threaten the United States in any meaningful way. The Chinese Army, Navy and Air Force remain far behind the US and would not fare well in any conflict and the Chinese are sure to know this. Navarro strains credulity when he suggests Chinese anti satellite facilities on Cuba might lead to a new Cuban missile crisis.

So take a look at this book for some reasons to reconsider your shopping and for reasons to think that China's rise may stumble, but don't over-react.

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