US trade policy and China's resistance to political liberalization

¶ … United States Trade Policy With China Has Affected Civil Liberties Inside China

The work of Ying Ma states that:...the fundamental underpinning of American policy toward China today - and U.S. democracy promotion in China - is economic engagement." (2007) Ying Ma also relates that over twenty years of trade between the United States and China has "drastically altered the face of Chinese society, resulting in an unprecedented expansion of economic, social and personal freedoms for ordinary Chinese citizens." (2007) However these improvements in Chinese society have "not been translated into political liberalization. These Chinese Communist Party (CCP) shows no interest in meaningful political reforms and has continued to rely on repression and brutality to maintain its rule." (Ma, 2007)

IDEALISM vs. REALISM

Idealistically speaking economic liberalization results in political liberalization and "As markets spread, people acquire greater wealth and have a stronger interest in participating in the political process and protecting their property. Freer markets thus give rise to political regimes that are more tolerant of human rights and are more likely to safeguard them. (Dorn, 1996) the work of Ying Ma entitled: "China's Stubborn Anti-Democracy" states the fact that: "Many China observers have long been predicting that China's encounter with market forces or liberal institutions and instruments from the West would spur inevitable democratic change. These observers have been right that China would become more pluralistic and multifaceted. But they have been delusional in thinking that Chinese leaders would simply roll over and relinquish power when presented with new challenges to their rule.

The Trade Resource Center in its article "Trade and Political Reform: Liberalized Trade Strengthens Democracy and Empowers Citizens" states that liberalization of Trade results in structural changes that are essential to democracy including those as follows: (1) Increased trade encourages the elimination of corruption and the establishment of the rule of law. Strong, transparent legal and regulatory regimes are necessary to attract investment and encourage economic exchange and also serve as the building blocks of free societies;

2) Increased trade facilitates the exchange of new ideas and exposure to different ways of thinking and organizing economically, civilly and politically;

3) Free trade agreements promote the rule of law, government transparency, increased citizen participation in the political process and freedom from central state regulation." (the Trade Resource Center: Business Roundtable, 2007)

Additionally stated is that economic reforms enable the emergence of a middle class that is "economically independent and politically aware." (Ibid, 2007) Stated is:

1) Trade liberalization raises concerns and creates a larger middle class of citizens who enjoy new opportunities, more choices and more control over their daily lives. Increased trade opens societies to new technologies, communications and democratic ideals;

2) in China, an emerging middle class is benefiting greatly from China's recent economic growth. Chinese citizens are now becoming independent homeowners, traveling internationally, studying abroad and engaging in international commerce; and (3) Governments that grant citizens the right to engage freely in commerce find it difficult to simultaneously deprive citizens of political and civil liberties." (the Trade Resource Center: Business Roundtable, 2007) Additionally related in this work is the statement of Daniel T. Griswold of the CATO Institute of: "The most economically open countries today are more than three times as likely to enjoy full political and civil freedoms as those that are relatively closed. Those that are closed are nine times more likely to completely suppress civil and political freedoms than those that are open." (the Trade Resource Center: Business Roundtable, 2007)

The truth is, according to the work of Edward Gresser in the Progressive Policy Institute article entitled: "Trading in Myth" that: "We now live in a global economy, created by trade agreements like the North American Free Trade Agreement and enforced by the World Trade Organization. This global economy leaves workers jobless at home and exploited abroad, as businesses escape to poor countries where they pay lower wages and ignore environmental laws. The opening of our borders, meanwhile, has exposed families to pollution and unsafe food." (2007) Gresser relates that during the 1890 Progressive movement liberalism emerged in America setting out ideals that are still adhered to by liberals inclusive of: "...a special concern fro the poor and a commitment to civil rights and civil liberties; a strong national government to protect the weak and promote the common good; and a foreign policy built on alliances, international law, and humanitarian initiatives, as well as on a strong military." (2007) Trade promotion has occurred upon the platforms of income tax and aversion of war evidenced in the statement of Franklin Roosevelt in 1936 in Argentina:

Our present civilization rests on the basis of an international exchange of commodities. Every nation of the world has felt the evil effects of recent efforts to erect trade barriers of every known kind. Every individual citizen has suffered from them. It is no accident that the nations which have carried this process farthest are those which proclaim most loudly that they require war as an instrument of their policy.... It is no accident that, because of these suicidal policies and the suffering attending them, many of their people have come to believe with despair that the price of war seems less than the price of peace." (Gresser, 2006)

TRADE LIBERALIZATION and DEMOCRATIZATION

Liberalization of trade toward democratization for a country such as China is a process and through this process of a "gradual introduction of markets in China" as China is opened to the world outside" is stated to result in a system that makes "the Chinese people freer" while reducing government's power. China is present at a point where the country has "...passed the test of economic growth..." But has yet "to achieve a true market system with widespread private ownership and a political system that respects human rights." (Dorn, 1996) the first step is sated to be the "end of collectivized agriculture in 1978 and the return of farming to families..." which transformed "the whole dynamic of economic, social and political life in China. Farmers are stated to have become "risk takers, created new markets, developed rural industries and migrated to urban areas. Farmers were no longer slaves to the state..." (1996)

Dorn notes the statement of Jianying Zha (1994:202) in the book "China Pop" that:

The economic reforms has created new opportunities, new dreams, and to some extent, a new atmosphere and mindsets. The old control system has weakened in many areas, especially the spheres of economy and lifestyle. There is a growing sense of increased space for personal freedom."

Dorn states that the optimism of Zha would certain be shared by anyone who has: "...seen the vibrancy of the market, the dynamism of the people, and the rapid growth of urban areas..." (1996) Dorn states: "Commercial life in China is evolving naturally as people flee the countryside for improved living conditions and the chance to strike it rich in the growing nonstate sector. Villages that were once small fishing centers along the southern coast are now booming with the flow of trade and people." (1996) Additionally related is that: "Ambitious young people want to become capitalists, not communists. A recent survey found that young people ranked being an entrepreneur first among 16 job choices and employment with the national government eighth (Kristof 1993). Freer labor markets have led to a growing demand among college students for business courses, and universities are responding. The CCP has lost much of its credibility and is no longer the major route to success." (Dorn, 1996) Freedom to trade has led to an expansion in the middle class which is a class who holds a very large stake in the future of China. (Dorn, paraphrased) Dorn writes: "If democratization is to proceed in China, the government needs to allow further experimentation with new forms of ownership." (1996) After having allowed this, the country of China will witness a natural progression via trade liberalization into democratization. Dorn states: "A lot of the educated urban Chinese echo this way of thinking." (1996)

CREEPING DEMOCRATIZATION (MINXIN, 1995)

There is reason to believe, therefore, that institutional change in China will bring about what Princeton University professor Pei Minxin (1995) has called "creeping democratization." (1996) According to Dorn the work of Pei (1994) held that: "...the gradual development of China's legal system toward affording greater protection for persons and property, the growing independence and educational levels of members of the National People's Congress, and the recent experiments with self-government at the grassroots level will help move China toward a more open and democratic society. He points to the upward mobility of ordinary people, occasioned by the deepening of market reform, and to the positive impact of China's "open-door" policy on political norms. In his view, public opinion and knowledge of Western liberal traditions, such as the rule of law, "have set implicit limits on the state's use of power" and have promoted the democratization of the legal system. People are starting to use the court system to contest government actions that affect their lives, liberty, and property. There has been a sharp rise in the number of civil lawsuits against the state, and individuals are beginning to win -- perhaps as many as 20% of -- their cases, according to official sources." Pei 1994: 12).

The opening of the legal system is important because it paves the way for the transition from "rule by law" to "rule of law." (Dorn, 1996) Marcus Brauchli writes in the 1995 Wall Street Journal that:

The state's steel-clad monopoly on the legal process, which makes the courts just another arm of government, is corroding. China's economic liberalization... has spawned a parallel legal reform that raises the prospect of rule of, not merely by, law."

Brauchuli (1995) went on to state that it is "legal ambiguity..." [which] "...remains a 'ruthless weapon for harassing the population." Dorn notes the statement of Brauchuli who recognizes that fact that: "...legal ambiguity remains a 'ruthless weapon' for harassing the population. Until that facet of China's institutional structure changes, no one's rights will be secure." (1996)

The work of Ying Ma relates that in spite of what the United States or even the citizens of China may desire, "the Chinese Government has so far quashed and neutralized pressure for fundamental political change. Beijing controls and stunts precisely those instruments that contribute to the success of broad-cased domestic opposition: It cracks down on political opponents, co-opts potential ones, and indoctrinates the masses. It is eagerly attempting to maximize economic modernization while minimizing its liberalizing effects." (Ma, 2007) Ying Ma states that there are several "concrete steps" that might assist promotion of democracy in China. The first of these steps is that" the United States should not wade into the quandary of slowing Chinese economic growth and cannot stop the Chinese government from institutionalization itself or co-opting its rival political groups,..." however it is possible that the U.S. can do more toward combating "other sources of authoritarian resilience by strengthening China's political opposition and countering the regime's restriction of coordination goods that range from press freedom to the ability to organize." (Ma, 2007) Secondly, Ying ma states that the U.S. should concentrate on an effort of confrontation of the government of China concerning the Chinese governments: "...aggressive ideological indoctrination of its citizens against democratization." (Ma, 2007) Promotion of democracy in China could be accomplished through a U.S. provision of funding and support for "the free flow of information through the Chinese Internet." (Ma, 2007)

In the work of Ergul Haliscelik entitled: "The World Bank the European Union's Cooperation on China" states: "Neither isolationism nor unilateralism is a credible response to globalization. During the last two decades China has experienced tremendous changes. These changes affect nearly all aspects of Chinese society, as well as China's relations with the outside world." (2006) Haliscelik (2006) reveals the current policy of the EU toward China which has been a policy termed "A Maturing Partnership: Shared Interest and Challenges in EU-China Relations." (Haliscelik, 2006) the policy has the following goals:

Engage China further, both bilaterally and on the world stage, through an upgraded political dialogue;

Support China's transition to an open society based upon the rule of law and respect for human rights;

Encourage the integration of China into the world economy by bringing it fully into the world trading system, and supporting the process of economic and social reform that is continuing in China; and Raise the EU's profile in China"

It is additionally related that EU companies have invested significantly in China with new annual flows of utilized FDI averaging approximately $4.2 billion in the past five years which brings EU FDI stocks to above $35 billion. The following figure illustrates these specific trade statistics.

Merchandise Trade with China (Imports and Exports)

2000-2004 and Average Growth Percentage

EU25 Merchandise Trade with China 2000 2001 2002 2003 2004 Average growth 2000- 2004 (%)

Imports 74.369

81.619 89.606-105.397-126.737 +14.3

Exports 25.758

Balance -48.610 -51.065 -54.737 -64.228

Source: Haliscelik (2006)

The following table labeled Figure 2 illustrates the total in $billions of China's Top Five Trading Partners 2004.

Total in $billion of China's 2004 Top Five Trading Partners

Source: Haliscelik (2006)

Haliscelik (2006) states that a major theme in the relations of the EU and China have been surrounding human rights. The European Commission has set out a 'Country Strategy Paper' (CSP) which is a framework for the EU and China period of cooperation. The CSP is stead to have proposed "three priority areas for action" which are inclusive of:

1) Economic and social reform;

2) Sustainable development (environmental protection, social development, economic growth); and 3) Good governance (e.g. The rule of law, the fostering of grass-roots democracy and civil society, and the protection of economic, social, political and civil rights)."

In a 2005 presentation by Daniel Griswold stated is that trade policy is "...ultimately about more than jobs and GDP. it's also about the kind of wider world we want to live in. One blessings of globalization is the reduction of global poverty. Trade promotes faster economic growth, and growth reduces poverty." (2005) the country of China has demonstrated the greatest poverty reduction program in the world's history due to "domestic reforms and trade liberalization."(2005) Griswold concludes by stating that globalization is "tilling the soil for democracy and greater respect for human rights. Our best hope is to promote political and civil liberty in countries such as China..."

Griswold call the integration of China into the global economy "one of the great stories of our time." Much of the efforts at the Center for Trade Policy Studies has been focused toward assisting Americans in comprehending the positive aspects of trade with China. The Hoover Institution: 'China Leadership Monitor' initiative reported by Joseph Fewsmith in the work entitled: "The Political Implications of China's Growing Middle Class" states:

China's middle class has developed rapidly over the past three decades. If one assumes that there was no one, or at least very few people, who could be considered middle class in 1978, there are now probably around 50 million people who can be considered middle class. Although the emergence of such a group in three decades is impressive, given the size of China's population, it will be many years until we can speak of China as a middle-class society. In the meantime, despite indications that the middle class is more participatory than their economically less well off neighbors, there is no indication that the middle class -- much less the wealthy -- desires to challenge the political status quo. The fact that many more people identify themselves as middle class than can be reasonably classified as such by sociological criteria indicates that large swaths of Chinese society identify with middle-class aspirations. Alongside many fissiparous tendencies in China, this is one trend that suggests social cohesion." (2007)

SUMMARY & CONCLUSION

This work has made a thorough review of available literature relating to U.S. trade relations and policy with China and the impact that free trade has had upon human civil rights and democracy in the country of China. One of the important outcomes of free trade in the country of China has been the reduction of poverty leading to growing power vested in citizens of the country and less power vested in the ruling party and in fact the rapid change in China has been termed to be a 'transformation' in many primary aspects of living demonstrated in the improved economic and financial aspects in China as well as serving to impact political aspects in the country as well. While it would be unrealistic to believe that the monopoly ruling party intends to relinquish its power at this time, the government in China does not appear to be ready to shun the economic benefits of trade liberalization even if that means making room for the effects of democratization that goes along with economic benefits.