The Chinese are not only having problems in Africa, but their role in Latin America is also causing some tension. US capitalism certainly doesn't like the Chinese presence like as it considers Latin America its own back yard. Meanwhile, Colombians are up in arms because Chinese imports are destroying the local economy and small manufacturers. This process is threat to local manufacture much like British imports were in India more than a century ago.
The real thing: twice the price of the Chinese import |
It can’t be the fault of the Chinese, and living as I do in the land of identity politics surely the conclusion to draw is that the white man
made them do it. Or perhaps there is another explanation. The Chinese have been gorging themselves on
Latin America’s natural resources in order to feed the incredible boom and
growth the country has experienced over the last 20 years. I recall reading at one time that the Chinese
were consuming 43% of the worlds concrete.
They were the source of the Australian boom in raw material exports and
own a number of mines and the largest bank in Africa. They owned some 40% of US debt as they lent
us money to buy Chinese goods.
Latin America’s annual exports to China have risen to $86
billion from $3.9 billion since 2000 and China’s share of Latin America’s
imports has increased to 13.3% from 1.8% over the same period. On the one hand this has been a boon to the
region strengthening currencies and firms that are heavy exporters like those
in raw material production and making imports cheaper, but that is damaging
local manufacturers like the makers of the Sombrero Vueltiao who are having a
hard time competing.
Globalization has had a similar effect in the US keeping
prices low. Karl Marx wrote of this
process over 150 years ago, “The bourgeoisie,
by the rapid improvement of all instruments of production, by the immensely
facilitated means of communication, draws all, even the most barbarian, nations
into civilisation. The cheap prices of commodities are the heavy artillery with
which it batters down all Chinese walls, with which it forces the barbarians’
intensely obstinate hatred of foreigners to capitulate. It compels all nations,
on pain of extinction, to adopt the bourgeois mode of production; it compels
them to introduce what it calls civilisation into their midst, i.e., to become
bourgeois themselves. In one word, it creates a world after its own image.”
But
it is not “Chinese walls” in this
instance but the walls of a different nation state or region of nations
states----an entire continent. The
problem is that this process is, as Marx pointed out, inevitable in a market
economy. Capitalism is a state of
war. “Free
trade of the 21st century has rules. It’s not the law of the
strongest.” Colombian Trade Minister Sergio Diaz-Granados tells Business
Week but he’s wrong. In a desperate plea for rationality and human decency, “Free trade can’t be a vehicle for
destroying our culture” says Tuchin’s mayor. He’s wrong too.
Unfortunately
it can and has throughout the history of capitalism. There is no such thing as free trade. Combatants rise and fall in the battlefield
of the global marketplace and the big will destroy the small. Capitalism is not an egalitarian system of
production. Whole cultures, languages, and communities have been swallowed up
in the rapacious quest for surplus value.
They try to limit the conflicts after two world wars and endless
regional conflicts and competition for raw materials and markets but they
cannot reign in the beast. They are
driven by the laws of motion of capitalism to clash at some point.
The
Colombians have imposed tariffs on imported apparel and footwear in an attempt
to protect local producers and under pressure from them. The Chinese have tried to convince them that
they mean no harm, that they want a “balanced”
and not a one-sided trade relationship with China having a huge surplus. It is
a love/hate relationship as China as a raw materials consumer has brought great
wealth to sections of the capitalist class of Latin America. But as the great Irish revolutionary James
Connolly pointed out, "Capitalism
teaches the people the moral conceptions of cannibalism are the strong
devouring the weak; its theory of the world of men and women is that of a
glorified pig-trough where the biggest swine gets the most swill."
All
talk of free or fair trade in the market economy is nonsense. They all protect their home markets. They try to rein in the rampaging global
market forces and competition from other nation states by introducing
protectionist measures as the Colombians are doing or forming regional trade
blocs (Nafta impoverished millions of Mexican farmers unable to compete with US
agribusiness) but their more astute thinkers are well aware of the consequences
of such behavior. It was the infamous
Smoot Hawley protectionist legislation in the US that exacerbated the effects
of the Great Depression and the march to World War 2 as other nations retaliated
with measures of their own.
And
it is not only trade that becomes a more hostile arena. The hundreds of bases the US has built around
the world particularly in Central Asia and the proposed new bases in Australia
are all an attempt to contain China in the struggle for dominance in the global
marketplace. The interventions in the Persian Gulf and Saharan Africa by NATO
is to control precious resources and the profits that flow from them, oil in
the gulf, precious metals in the Sahara. Their talk of a global community and such
things as free or especially “fair” trade
is the diplomatic chatter of thieves and robbers. There will be further
escalation of tensions between western and eastern capitalism in the period
ahead, especially with China; it cannot be avoided.
Capitalism
cannot prevent the wars and conflicts that will increase in the struggle for
the global domination of depleting resources.
The only way out (of course, I’m open to discussing it) is a world
federation of democratic socialist states whose economies are integrated with
the global society and production of the planet’s needs and use of its
resources. Economies that have collective ownership and control of the
productive forces and the capital necessary for production and a rational plan
to them that produces for social needs not to increase the wealth of a tiny
global minority.
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