Wei Jingsheng Foundation News and Article Release Issue: A644-W402

魏京生基金会新闻与文章发布号: A644-W402


Release Date: Aug. 6, 2011



Topic: The Way Out for China (Part XLII): Unfair Trade Hinders a Sustainable Development in China -- Wei Jingsheng

标题: 《中国的出路》之四十二:不公平的贸易阻碍着中国的可持续发展 -- 魏京生


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



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The Way Out for China (Part XLII): Unfair Trade Hinders a Sustainable Development in China

-- Wei Jingsheng



To say that the United States and other developed countries have become modern colonies would seem too exaggerated to many.  In fact, it is not.  Looking at colonial history, it is not exaggerated at all.


When the word "colony" first appeared, the most developed countries were still agriculture-based societies.  Each development in agricultural technology would result in rapid population growth.  When its population reached saturation, a more developed country would war against less developed countries, followed by an outflow of its population.  The new settlements were called colonies.


With the development of industrialization, the developed countries gradually transformed.  Thus, the function of colonies also transformed from population overflow into export markets for industrial goods.  To compete for colonial territory was not important anymore; more important was the competition for industrial export markets.  Americans were the first to propose an open market policy, replacing the expensive policy of competing for territory.  This change is the main reason that in the late nineteenth century, both China and Japan avoided being colonized after they opened their markets.  Since then, the significance of a colony became its open commodity market, instead of population export.  What both World Wars were fighting for were commodity markets, rather than territory.


From the lessons of the two World Wars, the policies of the developed countries in post-war times reached towards two directions, known collectively as sustainable development strategies.  One of the policies was to continue the policy of open doors with shared interests, promoted by the Americans in the 19th century.  Today we call it global free trade or simply globalization.  The other policy was to develop the domestic market, so people's incomes would grow in pace with the economic growth.  To accomplish this policy needed large-scale government intervention in ??distribution, combined with the surging movement of the trade unions.  The idea was to adjust the balance between personal income and capital income to maintain an essentially simultaneous increase of the domestic market, so as to maintain the sustainability of the economic development of the country internally.


This model of sustainable development showed its effect in the more than half-century of the post war period.  Western democratic countries quickly advanced more than any countries using other modes.  However, the economic model of sustainable development depends on the support of the political and social systems.  Without a fair judicial system, it is not possible to have free and fair trade.  Without a political system that is democratic and relatively clean it is impossible to ensure an equitable social distribution system.  The economic success of the Western democracies is exactly due to the fundamental safeguard of the democratic process and rule of law by its political systems.


Since the failure of the "socialist big pot" of the Chinese Communist Party (CCP), the CCP under the leadership of Deng Xiaoping adopted a deformed model of the early capitalism.  This model was the bureaucratic capitalism once adopted by Nazi Germany and Japan.  The characteristics of this model are to widen the distribution gap and accelerate capital accumulation.  The model takes on the expense of the consumption of the people in their own countries, in an effort to reach the highest possible rate of growth in order to catch up to the developed countries quickly.  It requires the support of two conditions.


The first condition is an anesthesia under the guise of patriotism and the suppression of all trade union activities.  The second is to have an international consumer market which is greater than the country's own.  These conditions were the reasons for the two World Wars fighting for colonies.  But nowadays, China does not have the power to compete for the colonial markets.  At that time, the aides of Deng Xiaoping and Zhao Ziyang found a strategy that could win the war without a battle.  The strategy was to turn to the so-called global trade and create a model for sharing the profits with the capitalists of the developed countries, meanwhile using the developed markets as a new type of colony.


As a result, the United States and other developed countries have become a dumping ground for new industrial products produced by the cheap labor in China, thus replacing the U.S. industrial production.  This colonization completely changed the sustainable development model after World War II.  As the world's factory, China is destroying the sustainable development economy of the democratic countries, step by step.  At the same time, it is also corrupting the Western democratic systems, forcing them to change towards systems dominated by lobbyists and campaign donors.


The success of the so-called China model requires the support of these basic conditions.  Just as it was in Nazi Germany, what it needs first is the anesthesia of patriotism and repression of trade unions and any democratic movement.  Then, with the help of Western capitalists with whom it shares the profits, it needs an unequal trade relationship under the pretext of free trade.  After years of effort, this big matter was accomplished by President Clinton of the USA and Chairman Jiang Zemin of China.  This was the famous PNTR and WTO battle.  After the United States offered free trade status to China, China entered the World Trade Organization and won the eligibility of free trade with all the developed countries.


Since then, for more than ten years now the trade deficit between China and the West has grown rapidly.  Just this year alone, the anticipated US-China trade deficit will be more than 300 billion dollars.  This kind of dumping in the form of a trade deficit is quite like the Western powers trade deficit with China in the late 19th century, and with their own colonies in the 18th century.  The result was not only the destruction of the national economy of the colonized country, but also the prevention of its own market development.  There are disastrous consequences to both sides: not only has there been a seriously unfair distribution and increasing wealth gap, it also has created the recession in the United States.  Aggravated social problems will build.  The difference is that, in the nineteenth century the Western powers used their advantage of better technology, while today China is using its "advantage" of low human rights standards.


Now people only see the surplus of financial capital resulting in a recession.  But they did not notice that the source of excess capital is exactly from the unfair US-China trade.  Under the suppression of the CCP authoritarian regime, China's labor costs did not rise with economic growth.  This suppression constitutes dumping not by a single enterprise, but by a whole country.  At the same time, due to the slow development of China's domestic market, it did not provide the export market which should have been developed simultaneously for the USA.  Further, due to a deliberate monetary policy and non-tariff import barriers by the CCP regime, it has resulted in the huge U.S. trade deficit and rapidly widening gap between rich and poor.


As the GDP in China and the profits of the capitalists in both countries are growing, the markets in both countries are relatively shrinking.  This situation is the root cause of the current economic downturn.  It is all due to the unfair trade relationship between the non-free economic system in China and the free economic system in the United States.  Before the democratization in China, before China has a truly free and fair market economy, the US government must come forward to adjust this unfair trade relationship, to return to the relatively fair and equal position after the end of World War II.  Not only are these conditions necessary to end the recession in the USA, but also to impel China to raise its citizens' income and to enter a sustainable development.


Whether it is the capitalists in China or the USA, when there is a premise of high profit, they will not hesitate to support authoritarian regimes, nor will they want to improve technology and product quality voluntarily.  The current unfair trade system does not support sustainable development and democracy.  It is a retrogression of the global economy and politics, as well as a retrogression of human society.



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



(Written and recorded on July 14, 2011.  Broadcasted by Radio Free Asia.)



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Wei Jingsheng Foundation News and Article Release Issue: A644-W402

魏京生基金会新闻与文章发布号: A644-W402


Release Date: Aug. 6, 2011



Topic: The Way Out for China (Part XLII): Unfair Trade Hinders a Sustainable Development in China -- Wei Jingsheng

标题: 《中国的出路》之四十二:不公平的贸易阻碍着中国的可持续发展 -- 魏京生


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









-- 魏京生








































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