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The Daily Sabbatical/CEIBS | Feb 2, 2011 | 2371 views

Reframing the American View of China

The meetings of the top American and Chinese leaders in Washington were arranged to iron out differences and formulate collaboration and commitment, to move from being foes to being friends

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ne message became clearly evident during last week’s historic visit of Chinese President Hu Jintao to the United States: that the US government and the American people urgently need to reframe their views of China. A deep look at China, its history and tradition, reveal common aspiration and shared values with the US. The meetings of the top American and Chinese leaders in Washington were arranged to iron out differences and formulate collaboration and commitment, to move from being foes to being friends. However, now that the diplomatic ceremonies have taken place, and before they fade into memory, both governments must take advantage of the momentum built up by the talks and urge their respective governments to push forward policies that are driven by mutual respect and sustainable trust, to the significant benefit of both nations.

mg_43742_china_flag_280x210.jpgChina's growing global influence is not a random phenomenon. For the last three decades, China's political leadership has played a critical role in shaping the transformation of China from a Planned Economy to an unparalleled growth in recent history. To understand China's rapid globalization and amazing economic achievements, we must assess the way its leadership thinks, strategizes, and mobilizes the nation’s resources. We must dig deeper into the psychology of the Communist Party leadership and the policies that are transforming China into a formidable global player. In 2007, China dislodged the United States from its leadership position as the world’s primary engine of global economic growth. China's rise to power is well thought out and carefully crafted. At the center of this remarkable growth lies a unique leadership model with core competencies well aligned to the Chinese context. So far, Chinese officials have performed as competent architects of economic growth and as shrewd psychologists regarding human behavior. The "invisible hand" of China’s leadership is far from reactive or random; the government measures every move it makes, from determining the release of land to the public, to setting exchange rates, and from promoting the growth of selected key industries or individual companies, to hand-picking specific politicians to guard the gates while transforming China into an international economic leader.

China's investment in Africa and its interest in building strong ties with oil producing countries demonstrate long-term thinking driven by bold tactical actions. In his famous book, The Art of War, renowned Chinese thinker Sun Tzu states that the best general is "the one who wins the war without fighting". China is winning global economic and diplomatic “battles” through clear and compelling leadership that think strategically, then back up their economic development plans with the nation’s committed labor force.

China is propelling full steam ahead, and any attempt to stop this progress is futile. Only recently, the US government began to recognize that negotiating with China via “hard power” methods such as coercing China to modify its currency rate or publicly criticizing its domestic policies will not push the Chinese to submit. In fact, U.S. interests are better served by examining its own state of affairs; America’s mounting fiscal debt, declining competitiveness, and political in-fighting are the root causes for its current malaise. By issuing warnings to China, the U.S is putting itself on a collision course that is risky and may trigger more instability and further economic decline. China’s achievements have not caused the decline of the U.S. economy.

In fact, China’s economic successes have been caused by much more than the oft-named reasons of cheap labor or unfair trade practices. Most Americans understand little about modern day Chinese, their painful past, their revived pride, their industrious attitude, strong family values, boundless drive for education and learning, and unbroken resiliency. Over the past three decades, China has elevated more than 300 million people from poverty to the middle class. The nation has built one of the most extraordinary infrastructures in the world. It has improved its public transportation system. It successfully hosted the Olympic Games in Beijing (2008) and the World Expo in Shanghai (2010). While American unions and management were fighting bitter internal wars, the Chinese government, with the help of its creative and driven employment pool, improved its manufacturing base by increasing efficiency and profitability. China has transformed a substantial number of State Owned Enterprises into publicly held, and newly competitive, companies. China's rise to economic power is less due to its currency exchange rate and more the result of an innate commitment to hard work in the pursuit of a better life. The U.S. should demonstrate more respect and admiration for the pioneering spirit of today’s China. Despite the common belief that China is amassing a fortune via the production of goods for sale to US consumers, reality is quite different: While made-in-China Barbie Dolls sell in US toy stores for more than US$20, Chinese makers receive less than 50 cents per doll.

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