While the world cup started and is currently captivating the media, it appeared to me that another event seems to have passed quite unnoticed. Following the disaster of the Greek economic situation,
China came in the form of a white knight. It might be a good deal for debt-ridden Greece but I wonder how this situation will turn out. China has already been strongly developing its ties in Africa and in the Middle East. It seems like China is trying to get a foothold in Europe so it could better protect its own interest. This deal would mostly concern maritim arrangements in the Piraeus port and some touristic contracts. Somehow, it reminds me of the way the EU soft power operates: investing heavily in developing countries and then forcing them to adopt positions more favourable to EU standards, most of the time they concern human rights and other subjects linked to freedom and lifestyle or simply business wise, it could be related to a sort of bullying. Same goes for China, unfortunately for Greece; the Chinese government does not have the same credentials as the EU governments of nowadays. In a parallel story,
India is suspicious of Chinese exportations and its government is taking measures to ensure that Chinese equipments do not contain spywares, so Greece could provide the perfect foothold on Old Europe for the Chinese to install more spywares. Interestingly, I could not find a lot of articles in the western press on this event but I found a 2009 article, in French on
this Chinese website, talking about a China-Greek deal in the Piraeus port but recently nothing bar an article concerning the rehearsal of a Greek tragedy at the Experimental Theatre of Beijing......
While browsing this website I found an article describing how China was slamming US pressure on RMB exchange rate and another one, including a poll, trying to find some argument to explain this situation, as if this situation was only affecting the US. The low exchange rate of the Chinese currency is a major component in China’s economic growth as it favours its exportations. At the same time, China and its government want to have the respect of the world for their achievement and keep their currency at the level of a developing nation, in a word they want to have their cake and eat it. What stroke me was the rhetoric employed which is bare of any critical spirit: everything seems to between China and the US when it comes to troubles and otherwise China is a peaceful nation. It is not surprising, yet it is the first time I have ventured on these kind of “news” sites and it was a shock.
However the million dollar question is what would happen when China’s soft power on developed nations will not be enough; indeed, it is plausible to believe that developed nations should be more reluctant to be told what to do as they have more choices and power than developing nations, and what would then happen to China’s "harmonious world"?
-C
I really like this article and I think you make a lot of strong points. China maintains a currency that is pegged as if it is a developing country, though it is not. It is also gaining power in developing regions like the Middle East and Africa, in addition to the power that it already maintains in Asia.
ReplyDeleteI had not heard of its growing role in Europe. I think this is concerning for the 'old', developed powers. However there is some benefit that I see. If they are bound, China can't let the nation fail because its interests are intertwined. It is a comfort as an American. If the dollar fails, China loses out on billions because it owns a lot of American debt. Now if Greece is tied to China, there is a lot of reasons that China will not let it fail--it needs the consumers.
it might be a comfort to the people of these countries tied to China's interest, but I fail to see the advantage for China if its government is not trying to gain a foothold in the policy of these countries. Otherwise what's the point?
ReplyDeleteIs it really credible that the US are going to pay in full the debts that were bought by China?
I m a bit perplex about that
You make such a valid point about the US being unlikely to pay for its Chinese debts. My conjecture is that the US wanted to pay back much if its debt on inflated dollars.
ReplyDeleteDo you think that China will remain out of policy is those countries that it has economic interest? I think that patience is a virtue (one that I do not have) and there is nothing to suggest that they will stay out of policy issues in the future. Marx felt that in time capitalism would fall from basically its own destruction. Can't they be waiting?
i think they are setting some long term goal but I still dont understand how it is going to serve them apart from setting China as an economic power saving other nations and to get recognised as a greater nation (technically what the western powers did in the past). it s a patient (you should definitely work on this virtue hehe) strategy and they are taking benefit of the others which is not a bad idea but beg the question of their integrity. One cannot predict the future and only offers some possibilities, but there is not a lot of them to say in this case.
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