Donnerstag, 15. November 2018

History Lesson


In my first post I announced that this is not just going to be a travel/expat diary, but that I also want to talk a bit about today’s China and what to expect from it. So instead of letting you know about my recent midterm exams and this one weekend trip to Nanjing that I did, let’s get serious.

For most of civilizational history, there were two dominant players on this globe: India and China (this is a fact we shamefully neglect in our history classes, where you get the impression that everything further east than Arabia was exotic hinterlands). 75% of the time AD, Europe was mostly forest with clans, shires and pre-states fighting each other, bad infrastructure and predatory public institutions. North America had no significant population. Then, through a number of intertwined developments, Europe got a headstart that is incredible and unique in historical terms, allowing it to dominate the globe for hundreds of years (this is – in my opinion – one of the most interesting chapters in history and I would love to extend, but it’s beyond the scope of this little blog). China reacted to this by isolating itself – not a great idea. India didn’t get to choose, the British simply subjected it – also not great.
When China was forced to open up by foreign powers in the second half of the 19th century, it was merely a shadow of its former self and easily dominated by countries a fraction of its size and population. This led to an overthrowing of the last dynasty government in 1912 and the and the proclamation of the Republic of China. Republic of China? Isn’t there a “People’s” missing? That word is only included in the name after 1949, as the Communists eventually win the endless civil war against the Nationalists and force the latter to flee to Taiwan, which remains the number 1 geopolitical issue in East Asia and a possible trigger for a US-Sino war in the future. What was meant to be a fresh start for China some 100 years ago turned out to be nearly 40 years of campaigning and internal fighting, making the country even weaker than it was before under the anti-modernist Qing government. A short intermezzo was provided by imperialist Japan in second world war, whose war-crimes were so abhorrent that it brought Nationalists and Communists together against it. Once the Japanese were defeated, they of course diligently turned back to infighting. A few million dead bodies later the Communists defeated the Nationalists and Mao Zedong as their Chairman became the first head of state of the modern People’s Republic of China (PRC).

There’s evidence that countries can actually benefit from communism if they’re at a very low development stage. If you manage to overlook mass killings, resettlements and incarcerations, many development indicators went up in during the first years of Mao’s reign. People had enough food (mostly), many learnt to read and write, some conservative social norms were overthrown and women gained more power and independence. That was before Mao went nuts however. Undisputed within the Communist Party to his death, his ideas could go unchecked, causing a massive famine (est. death toll: 36 to 45 million people) and scorched earth intellectually, economically and technologically.
Then came the miracle under the name of Deng Xiaoping. Since he took over as the effective head of state in 1976, there hasn’t been one year in which the Chinese economy didn’t grow. He’s usually modestly labelled a “reformer”, but matter of fact, the China that is now the worlds second largest economy and close to becoming a great power would not exist without him. His premise was simple: Economic liberalization that would make nobody’s life worse. That actually worked. As it is the rule with more capitalist economic models, some people have become super rich while others are still poor, but there’s nobody who is as poor today as people were in 1976.

After centuries of isolation, it took China 100 years to adapt and rearrange itself to the modern world around it, but from there on development happened at an insane pace. Skip forward one generation and a nation of subsistence farmers whose survival depends on their harvest has become the world’s production facility with a huge industry workforce, massive urbanization and an emerging middle class. Skip forward another 15 years to the present and you see that middle class being the majority in China’s more populous and developed eastern provinces. You also see an economic superpower that turns from producing and copying to innovating at a frightening pace.
For most of its rise, China received admiration and accolades – at least economically – from the West. At the same time, nobody outside of policy circles saw a serious challenge in the development. After all, the country is far away and can they do anything besides assembling and copying lol? This changed dramatically in recent years (even months), as policymakers became aware that yes, they can and it doesn’t really matter how far away a country is if its ambitions are global. They also realized that China will never go down the path that was envisaged for it, leading to a flourishing liberal democracy that integrates into the US-led global order. Instead, there is now an increasingly nationalist and illiberal autocracy that promotes socialism with Chinese characteristics which translates to excessive capitalism with the state as the ultimate decision-maker.

What’s to come? Right now, nearly every analysis is based on the premise that China will just keep growing and growing, maybe at 7%, maybe 5% annually. This leads pro-China experts to proclaim a new world order and con-China experts to prophesy doomsday. However, I’m invited to a delicious Xinjiang-Restaurant now (a cuisine blending Chinese and Middle-Eastern flavours) and thus can’t continue. Maybe this works as a cliffhanger so you’ll visit here again when I’m writing about the future.