By Chet Yarbrough
When China Rules the World
By Martin Jacques
Narrated by Scott Peterson
MARTIN JACQUES (AUTHOR, BRITISH JOURNALIST)
Martin Jacques has written an interesting book about China’s rise as a world economic power. His overview of the geo-political and Realpolitik relationships of the east and west are interesting; particularly in light of the Trump administration.
“When China Rules the World” has interesting details that inform but do not convince one that China will rule the world. The provocative title drives the bus but it does not reach its destination.
World control is a myth that causes wars and destroys the best and brightest, as well as the mean and maniacal.
What is happening in China is remarkable. China’s transition from Maoist communism to capitalist communism is a caterpillar turning into a butterfly; i.e. China has grown wings but it still lives in a world constrained by its environment.
Though President Xi is re-instituting some Maoist mistakes, China’s world wide investment in infrastructure is based on capitalist beliefs. Xi has an internationalist focus, just like that which made America great; at least, until Trump’s Presidency.
Chairman Mao’s cultural revolution and belief in enlarging collectivist ideology nearly destroys China’s path to prosperity
Xi is attempting to open new markets by financing infrastructure improvements in African, Middle Eastern, and Asian countries. He is creating customers for Chinese product.
Undoubtedly, Xi is also trying to seduce other nations into belief in Xi’s form of Communism. This is not unlike America’s intent to democratize the world.
Jacques argues that a 90% Han Chinese cultural domination of 1/5th of the world’s population will change the nature of the 21st century. In a limited sense, that is undoubtedly true. However, regardless of the type of government rule, human nature is the same.
Money, power, and prestige, are the primary motivations of humankind. Whether one is Han Chinese, Tibetan, Uighur, Indian, Hispanic, Black, or any singular ethnic group, all humans seek control of money, power, and prestige. These innate drives are the speedometer, brakes, and steering wheels of nation-state’ leaders and followers.
There are dominant factions in every culture that are not necessarily the majority of a culture’s population. Jacques’ early comments suggest China’s 5000 year history reflects a cultural conformity greater than any other country in history while later he acknowledges that the predominant Han population is highly diverse in its beliefs.
Cultural conformity is not the relevant issue; i.e., dominant cultures, whether a majority or minority of an indigenous population, are the game changers of a nation’s history.
Jacques argues that China’s cultural history of familial respect and veneration will have profound affects on the future of world economies. Jacques has a valid point. However, the history of modernization suggests that the fabric of extended filial obligation will be ripped apart in China just as it has in every industrializing nation.
China, just as all modernizing nation-states, will see deterioration of familial bonds.
Human nature is immutable. As an agrarian culture moves to the city and parents are compelled to work for wages, family structure and filial commitment deteriorates.
Of course, capitalism is not the same in China as it is in the western hemisphere. As Jacques reports, major capitalist businesses are state owned in China. They compete in the world market but government support mitigates much of the free enterprise ideal of capitalist economies. However, no nation-state operates as a free enterprise capitalist country; i.e. government has always played a role in capitalist nations. Government subsidy of industrialization is a matter of degree.
It may be that China will change the way industrialized countries compete but global economic domination is no longer possible in a tech savvy world that recognizes knowledge is power and natural resources are limited.
All the world knows how each culture in the world lives. With that knowledge, countries will gravitate to systems of government that serve its dominant culture best. Best is defined as what is most important to the dominant culture in the context of either money, power, or prestige.
Long term, China is facing a tougher road to modernize because of population, environmental degradation, and dwindling natural resources, but their short term prospects look better than most other nations.
As Jacques points out, China’s savings rate is over 20%, with a GDP growth rate 3 times that of America. The cost of dwindling natural resources is more affordable to China than most other modernizing countries. However, all economies are closely tied to each other and a major failure in America or Europe will have great consequence for the world economy which will significantly affect China’s short term advantage.
With a failure of a western countries economy, China’s drive toward modernization will be in danger. That danger is demonstrated today by America’s creation of a trade war with China.
Some argue this burgeoning trade war is hurting the Chinese economy more than the American economy. That may be true in the short term, but the efficacy of trade wars are questionable in the long term; particularly in our internet connected world.
Jacques’ book is worth its purchase price and a consumer’s time because he exposes some of the cultural biases of China that are not widely known. His suggestion that discrimination is as prevalent in China as it is in the United States is reprehensible, and disgustingly familiar. Globalization is real. Human nature is immutable. All mankind travels on the same space ship; i.e. our blue ball. At the very least, China is proving that our environment is fragile and natural resources are finite.