Wei Jingsheng Foundation News and Article Release Issue: A567-W335

魏京生基金会新闻与文章发布号: A567-W335


Release Date: September 18, 2010



Topic: The Debate Over the Chinese Currency Before the Mid-term Elections in the USA -- by Wei Jingsheng

标题:美国中期选举前的人民币汇率问题 -- 魏京生


Original Language Version: Chinese (Chinese version at the end)



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The Debate Over the Chinese Currency Before the Mid-term Elections in the USA

-- Wei Jingsheng



Recently, the exchange rate of the Chinese currency RMB (RenMinBi) has received some fanfare.  Most of the Chinese media use "mid-term election campaigning" as the explanation, saying that the US lawmakers are make sensational election gestures in an effort to get the voters' agreement.  Although this statement is a platitude, with some analysis we can still see a trend which represents the views of the general public.


Sensationalism by the lawmakers is very possible.  Many lawmakers have to find a balance between their personal interests and national interests, thus their behavior show them as offering beautiful lip service during the election, yet implementing different policies after being elected.  We have often read this kind of criticism in the news media and it has been a blemish that the Western politicians try to avoid.  So, let us ask further: why do they cheat?  Because cheating can win votes for them.  Then why can they cheat successfully?  Because this is what the voters want.  The unfair trade between the USA and China has been harming the interests of the American people.  This understanding is the consensus of the majority of Americans.  If a candidate does not consider their interests, he may have to step down.  There are already several US Congressional incumbents who have lost their candidacy in the primaries this year as a result.


Ten years ago, I and some U.S. Congressional members with a sense of justice already pointed out that granting China permanent Most Favored Nation status (i.e. PNTR: Permanent Normal Trade Relations) is a wrong policy which would result in unfair trade conditions and harm the U.S. economy.  At that time, public opinion polls showed that about 70 percent of respondents supported our view, yet the vote in Congress was more than 50 percent for PNTR.  Thus, a famous Sino-scholar mocked me: Wei Jingsheng's thoughts depart the mainstream of American politics, and he is an outdated character.


Perhaps this argument is correct, because the public in general believes that that vote in 2000 showed a problem with American democracy.  The votes of elected representatives clearly departed from the views of the public.  So, since then the call for reform and change in Washington politics has become more and more popular, and eventually lead then Senator Obama under the banner of "change" to defeat his senior rival.  Now the process is repeating again.  When unknown young players beat senior congressional members, it reflects the wish of the American people who want to change Washington politics.  This wish is now concentrated in the Sino-US trade issues, and changing the unfair structures of Sino-US trade is becoming a hot topic for this mid-term election.  For the time being, the focus concentrates in the Chinese currency RMB exchange rate.


Is the RMB being manipulated?  This is simply a false question.  The Chinese government itself never admitted that China's economy is a completely market economy.  To use their own words, it is called a controllable market economy of the primary stage of socialism.  That means a limited market economy, with the emphasis on "controllable".  The reason given to the public is to protect the national economy; the reason in private is that only in a controllable situation can it "make some people get rich first".  This is the fundamental theory of the economic reform and opening up by the Chinese Communist Party (CCP).  Any statement that China is a market economy is false, false to such a degree that it is not only not the reality of China, even the Communist Party's own words do not call it that.


More has been added to Deng XiaoPing's "make some people get rich first" theory: not only provide for the "domestic servants", but also the "friendly allies".  Only if there is support of the autocracy from these "friendly allies" will there be a long lasting stability of the tyranny.  The super profits transferred to the Western capitalists under the slogan of "attracting foreign investments" is the root cause of the Western politicians overly leaning toward protecting the CCP's system.  Deng Xiaoping and his successors found out the illness of the Western democracy, and learned how to manipulate Western politics through big business.  The success of the "Chinese Model" relies on the prerequisite of corrupting the western democracy.  Excess profits prompted Western big businesses with a mad impetus to push Western politics to support and protect the CCP's autocratic regime, even at the expense of the interest of their own nations.  Without the autocracy, there would be no super profits.  This has been the consensus of the big business executives in the West.


They were able to end the sanctions against the Chinese Communist regime after the June 4 Massacre in Beijing.  They were able to offer the permanent Most Favored Nation status to the Chinese government.  Thus started the road to political degeneration in the West, meanwhile the rise of the success for the so-called "China Model".  Since then, the Sino-US trade deficit expanded rapidly, while the U.S. economy began to decline.  In terms of money, the wealth is steady growing, yet the actual value of goods and services are stagnant or falling.  The consumer price level went up with the support of lending, and ran counter to the actual value of production.  After less than a decade of accumulation, it caused the current economic crisis.


Some say that despite the U.S. crisis, China earned a lot of money, so for China the result has been good.  This is a very debatable.  Indeed, in this decade, a lot of people in China became rich.  Indeed, billionaires sprung up in China like the spring bamboo shoots after the rain.  Indeed, China has become the world's second-largest luxury goods consumer market.   It seems indicative of the success of Deng Xiaoping's "get rich first" theory.  But few people noticed that the wealth gaps in the United States and China are expanding simultaneously.  These gaps shows that the excess profits earned did not all stay in China, but were divided with the American capitalists as well.  This money does not create more productivity for mankind; it creates a bigger gap between rich and poor.


When they could mindlessly earn excess profits, U.S. companies' incentive for creativity is greatly weakened. All the capitalists have to do is to relocate their factories to China for higher profits.  While these Capitalists and executives have their bonuses increased to astronomical figures, unemployment in the USA has grown simultaneously.  Funds to support technological upgrading were reduced, while consumer price indexes were rising.  Funds went into financial markets to support the American people's reliance on credit over-consumption, which accumulated to form the U.S. credit crisis and global economic recession.


On the other side, when the mindless could earn excess profits in foreign trade markets, China's rapid expansion of the manufacturing industry simply used cheap labor to make money by repeating the low end of Western technology.  There is no impetus for technological innovation, except in the technology of faking and cheating.  At the expense of damaging the consumers worldwide, they were able to earn excess profits by relying on authoritarian politics and an irrational trading system.  Meanwhile, because of China's political instability and lack of legal protection, a large part of the profits were transferred to the Western financial markets.  As this money worsened the financial crisis in the West, it also slowed the development of China's domestic market and economic security.  The so-called "Chinese Model" is a model to damage the others yet not beneficial to itself.


RMB appreciation would only be the prelude to changing this type of irrational economic structure.  Only when China's trade union rights are protected, with a reasonable expansion of the domestic market, will China's economy be on the right track.  Then the Western economy will be on the right track as well.  This reform is starting from the United States, and this election is a sign of this reform.  The Chinese democracy movement is in full support of this economic and political reform which would be beneficial to the people of both China and the United States.



To hear Mr. Wei Jingsheng's commentary, please visit:



(Written and recorded on September 17, 2010.  Broadcasted by Radio Free Asia.)



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Wei Jingsheng Foundation News and Article Release Issue: A567-W335

魏京生基金会新闻与文章发布号: A567-W335


Release Date: September 18, 2010



Topic: The Debate Over the Chinese Currency Before the Mid-term Elections in the USA -- by Wei Jingsheng

标题:美国中期选举前的人民币汇率问题 -- 魏京生


Original Language Version: Chinese (Chinese version at the end)









-- 魏京生











人民币的币值是不是被操控了? 这根本就是个虚假的问题。中国政府从来也不承认中国的经济是完全的市场经济。用他们自己的话说,那叫做社会主义初级阶段的可控制的市场经济。也就是说是有限的市场经济,重点在于可控制。公开的理由是保护民族经济;私下的理由是在可控制的情况下才能使一部分人先富起来。这就是共产党改革开放的根本理论。认为中国是市场经济的任何说法都是虚假的理论,虚假到了不符合中国的现实,甚至不符合中共自己的说法。

























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