Further to my argument that Environmentalism is the new discourse to replace things like Capitalism during the Cold War era, the other bogeyman that I am absolutely tired of hearing about is China. I remember some time ago a movie, The Art of War (2000) came out presenting China as the new “Other” to replace Russia in the post-cold war era. That idea was put on the back burner after Terrorism became the new “Other” rather rapidly after a certain notable and over referred-to event in September of 2001. Also the fact that in the mean time China has become the world’s factory and a major consumer or Australian exports has helped divert our attention from the less desirable associations with the country. But now after a 7 year diversion we seem to be coming back to the whole China as the bogeyman concept. And this year more than ever.
Opening the paper in the last few days one of the biggest news stories was that “China” wanted to buy a share in BHP, having acquired stock in Rio, as part of a strategic move to prevent the take merger of the two mining juggernauts. A fair strategy as Korea has just agreed to pay triple the amount for iron ore for their steel manufacturing, and no mining company is going to sell for less to other clients now, especially if there is one major player in the supply market. I found it unusual that no matter how many articles I read on the issue (which turned out to be a non-issue, with “China” having no intention to buy, but pushing up prices regardless), I couldn’t find out who “China” was. A country doesn’t just buy stocks or manufacture goods or engage in trade. Businesses and sometimes governments do that. But there was no mention of who in China was interested in buying BHP. It’s almost as if we were expected to think, “Oh China buying ‘our’ mining company, that’s bad, they’re not a good country.” It’s the sort of ignorance which is unhelpful and the sort of parochialism which has no place in the free market – be it trade, stock or even derivatives. Any one can buy or sell stocks in Australia as they please and we’re even looking at a set up where US players will be able to directly buy and sell shares in Australian companies so that companies don’t have the expense and effort of dual listing or choosing to trade in the US over Australia. At the end of the day, it’s a stock market, it doesn’t matter who is buying and selling, as long as they have the cash. It’s not a market for discourse about anything but investment, returns, yields, profits and losses. Any money is good money.
But what was most amusing about this was Swann’s comments this morning that any interest in BHP, which “China” bought would have to be subject to a test of being in the national interest. First of all he didn’t get the message that they were no longer interested and secondly he hasn’t got the message that the stock market is about raising funds for Australian Companies to carry on their business as executed by Australian managers, and generally, employing Australian workers. The source of the funds should not be open to question in a free market. Rejecting Chinese investment (regardless of which party is doing the investment – private or public sector) in our stock market is like the Salvos refusing to allow someone Jewish to door knock for the Red Shield appeal. Sure they may not be the same group as you, but they’re willing to play on your team.
The other bogey is this whole Tibet/Olympic Torch Relay thing which is becoming something of a media circus. We all know China has an appalling track record for human rights, not just in Tibet, but in their whole country. Given their OHS standards, I dread to think how many workers died building the stadiums and facilities. Despite it, the IOC has chosen Beijing as the venue for the Olympics. And the violence which has happened in Tibet was obviously stirred up at a strategic time when the eyes of the world are on China, but that’s no reason to jump on the Tibet band wagon. What about Nepal, they’re having an election in the midst of Maoist rebels agitating violence as well. In fact that’s been happening for several years now. And what do we hear about it? Close to nothing. We all know about Tibet, we don’t need day after day of protesters throwing themselves under the virtual regiment of police and security personnel running with the torch. Make me wonder why it’s so important that they keep running. It’s just a sodding torch, and we already know that the games are on. It’s not like it’s Ancient Greece and we need a messenger to be sent around the country to let us know to head down to Olympia for some sports and games. And I feel kind of sorry for those who were supposed to run with the torch. I know a number of the legs of the run have been cancelled or shortened. I also remember when the Sydney Olympic games were on there was a big deal about who was chosen to run and why and so on. It’s hyped up to be an honour. But it’s all because we’re trying to demonise China as the bogey man again. I have to say our PM is well and truly on the band wagon and he is pretty brave telling one of our major trade partners to pull their socks up in their own language (so as to leave no room for doubt).
The fact of the matter is that China is a dictatorship, not a democracy. And they may have many of the trappings of an industrialised, progressive capitalist economy, but they are far from a free market. Really, what else do we expect? If we’re so convinced that the country is evil and we should have nothing to do with it, what would be more meaningful than boycotting or protesting the games, it to stop buying stuff manufactured in China. But we all know none of us feel strongly enough about it to refrain from consuming what is rapidly becoming the only affordable consumer goods in the world.
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