November 10th, 2015
“[China's] economy is also driven by three main engines: domestic consumption, fixed-asset investment, and export. The interconnections among and relative weights of these sectors are mediated by the legacies and paths of China’s long quest for modernity since the Qing dynasty was defeated by European gunboats in the mid–nineteenth century. As such, any account that lacks holistic and historical perspectives is inadequate for a full understanding of capitalist development in China.” — Ho-fung Hung
This week, our featured book is The China Boom: Why China Will Not Rule the World, by Ho-fung Hung. Today, to kick off the feature, we have an excerpt from the introduction, “Sinomania and Capitalism,” in which Hung lays out what he hopes to accomplish in his book and explains what exactly he means by “the China boom.”
Don’t forget to enter our book giveaway for a chance to win a free copy of The China Boom!
After the collapse of Lehman Brothers in September 2008, which unleashed a global financial crisis, China’s export sector crashed at the turn of 2009. In a few months, however, the Chinese economy rebounded strongly into double-digit growth, where it largely had been since the 1980s. At a time when the global economic status quo seemed to be crashing, more than three decades of vibrant economic growth experienced in China—still ruled by the Chinese Communist Party (CCP)—induced excitement and even fantasy about the world’s future among writers on both the left and the right.
To be sure, left-leaning intellectuals and the business elite have different reasons for their euphoria about China, which Perry Anderson calls “Sinomania” (2010). For corporate CEOs, the rise of China and its apparently strong recovery from the crisis represent a vast, new, and limitless frontier for profit, just when business profitability in the advanced capitalist countries is seeing less and less room for expansion. For example, the business-school professor and veteran hedge-fund trader Ann Lee’s best-selling book What the U.S. Can Learn from China: An Open-Minded Guide to Treating Our Greatest Competitor as Our Greatest Teacher (2012) has drawn wide applause from business presses and consultants. The billionaire Donald Trump, who accused China of “stealing” American jobs during his entertaining bid for president in 2012, is in fact an admirer of how business is conducted in China, as he noted at an international hospitability conference in New York in 2008: “In China, they fill up hundreds of acres of land, constantly dumping and dumping
dirt in the ocean. I asked the builder, did you get an environmental impact study? He goes, ‘What?’ I asked, ‘Did you need approval?’ No, the Chinese said. And yet if I am the last guy to drop one pebble in the ocean here in this city [New York], I will be given the electric chair” (qtd. in Heyer 2008).
In the meantime, for some intellectuals, the rise of China represents the emergence of an ultimate challenge to Western domination. Others assert that China’s experience points to a “Chinese model” of capitalist development that is grounded in active state intervention (e.g., Ramo 2004). They see this “model” as a progressive and superior alternative to neoliberal capitalism, which is premised on unregulated free-market forces and has prevailed ever since Ronald Reagan’s and Margaret Thatcher’s free-market reform in the 1980s. State-directed “Chinese capitalism” is hailed for its supposedly better handling of economic crises and its greater effectiveness in sustaining uninterrupted rapid growth and poverty alleviation. Read the rest of this entry »