I have just read
an interesting article about China,
and the fact that I am from a presentation that details how my job will be
outsourced in the next few years’ only decreases my enthusiasm for China.
The Negative Nancy inside is aroused, but again, if anyone listens to China's
president Hu Jintao, a student of ancient Confuciasm, they will not fail to
notice his frequent harping on the need for a harmonious country. Not
everything is rosy on the mainland, mmh?
A few days ago,
we were all made aware of a unique ingredient in China's
food stuffing: the cardboard. Unbelievable, even outrageous, but yes, the
concerned indeed admitted incorporating cardboard shavings in food, but denied
exporting it to America.
This was the latest addition to the dangerous products
churned out by China. From poison laced seafood, harmful toothpaste lining American
bathrooms to toxic medication or even tablets lacking active ingredients
altogether. Three main problems have
sprouted:
-
China's over reliance on exports and a weak
consumer force.
-
A primitive financial system
-
R&D programs that undermine
innovation.
China's
growth in the last three decades at 9.5% is unparalleled. In this light, the
above mentioned problems can easily be dismissed as minor ailments of an
achieving nation.
In many ways it has shown great strides in growth. It is
the world's export juggernaut, from t-shirts to pharmaceuticals. (It
unfortunately dampens the excitement of sending a younger sibling souvenirs
from America
made in China.)
We can count on China's
express-ways and hotels being up and ready by the summer Olympic Games in 2008. It is known
that China meets its goals in record time. At the same time, China
is dogged by production of dangerous products, endemic corruption and a
spreading eco-crisis.
On 07/10/07 Zheng Xiaoyu, the former commissioner
of the State Food and Drug Administration (SFDA) was executed for accepting
bribes that amounted to $850,000. These bribes allowed an illegal speedy approval of 8 drugs,
which included one anti-biotic that killed 9 people. Corruption is so endemic
it has its own vocabulary i.e.
San Zhong Quan Hui- Sounds like "3 cups all possible" that
refers to the 3 glasses set out at bouquet (for liquor, wine, and beer). This
translates to ‘officials spending more time on dining & wining" as opposed
to working.
Yan Jin Yan Jin- "Research, research"-sounds like cigarettes liquor. The joke is that when a bureaucrat says "we will carefully
research your request", he is actually asking for cigarettes and alcohol, a
traditional method of bribery. Of course cashwould be acceptable.
Zou Hou Men-Literally means go through the back door.
Tu Huang Di- "Local
emperor"
Perhaps this execution
was a stern warning for the corruption players in the Beijing
government.
Residents in some
cities close to manufacturing plants are forced to spend heavily on drinking
water, for their faucets at home produce a smelly yellowish sulfur smelling
liquid is supposed to be water. Such establishments always seem to take
responsibility swiftly by building water treatment plants, but refuse to hire
people to run the treatment plants.
According to the Director of the global health studies program
at Seton Hall
University, nearly half of China's
people cannot afford to see a doctor when ill. 70% Lack health insurance, and
30% refuse to go to the hospital due to the costs. While the Beijing government
may have good intentions, a large portion of the economy and social life
outside is controlled by local communist parties in Counties and cities. Cases
of people owing $500, 000 in medication costs are common. Prescription drugs
are oversubscribed, with doctors and hospitals getting kickbacks from drug
companies.
Technology wise, China
has some of the best equipped laboratories from nanotechnology to optics. The
international scientific journal entries from China
have been on the rise. In a given year, China
universities churn out about 60,000 doctorates in science and technology. However
this does not equal innovation according to the director of Carnegie
Mellon University's
electrical engineering department. Much of the lab work in non-impressive, and
focus is mainly on turning technology into money making products rather than
in the discovery of breakthroughs. A lot of the research is useless. Even worse,
not too long ago a Chinese scientist was sentenced to over 34 years for attempting
to steal American intellectual property. He was nabbed as he
was about to leave for China.
It was a pathetic sight, as the middle aged scientist broke down in tears, after
serving the US
for a long time in the security department.
Intellectual property has been subjected to pirating,
counterfeiting and knockoffs. The current president of Twin Poplars and former
head of the US
IT office Beijing- Anne Stevenson-Yang, did not hesitate to add her observation
that China
rewards repetition.
While Beijing boasts of  its homegrown alternatives to
technologies like DVDs, WI-FI, and super fast third generation 3G cellular
service, these ideas were pioneered elsewhere, and as a result have cost Chinese
companies highly. 3G services has been delayed by regulators because the available Chinese technology is years behind schedule.
In the financial
Markets, China
bourses raise money for powerful state enterprises, rather than for dynamic private
companies. Last year alone, no private company was listed on Shanghai's
Stock Exchange, and the current electric board has only 15% of listings that are privately owned.
There are several shortcomings, but some argue
it would be unfair to compare China
to America and Europe
that took centuries to develop modern financial methods, food safety guidelines,
Pension system and Environmental protection programs. But again, the
developments in Europe and America,
including social reforms were achieved after upheavals that led to elections of
new governments. South Korea and Taiwan
tamed crony Capitalism following traumatic democratic transitions. In contrast,
the Chinese communist party does not tolerate political change. Dissidents are taken down with the full force of the law.
Another way out would be getting the Communist Party out of business,
but such revolutionary changes seem impossible politically. This can only lead to one conclusion; the flawed China
will be around for a few more decades to come.
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Well, here is some news. The UK was a dirty pverty ridden backwater as long ago as the 1980s, there was grand pollution you speak of in China is also found in pockets of the USA ( Erin Brokovich anyone). Oh, and China owns the USA. In fact I am recommending, going even shrill, begging everyone to exit their dollar positions in an orderly manner, cus the CHinese will not keep holding the greenback up for too long. Soon, they will start exiting to PMs and the big crucnh will start.
China does have problems, big big problems, but China is also on an inexorable rise to the top. The Japanese also started by copying off others, soon enough the situation was reversed and it was other copying off of them.
IP theft? Don't be naive. Everyone does it. Heard of the Israeli caught stealing defence secrets?