China Story part 2

China Story Part 2

China helped the Entente powers, serving the British and French forces with labourers before WW I ended. During WW II, the U.S. and Chinese were allies. The Chinese fought alongside American and British troops in Burma.

Though the allies decisively won WW II, the Soviets were another claimant to the victory, emerging as a parallel power block with Eastern Europe and practising Communism, which began its spread across the world.

China chose Communism, as did Vietnam, Laos and Korea in Asia. Communism’s likely spread in Japan rattled the U.S. Japan’s occupation of the Korean Peninsula ended after the former’s defeat and North Korea invaded the South. The U.S. entered the war to contain the spread of Communism. Similarly, the U.S. fought in Vietnam, trying to keep away the Communists from seizing power.

During the cold war period, the power of the communist Soviets empire became the prime concern for the U.S., which prompted the U.S. president, Richard Nixon and the Secretary of State, Henry Kissinger, in a diplomatic offensive turning towards China. If the cheaper Chinese manufacturing costs were an allurement to the U.S., China’s support to the U.S. was a political necessity to contain the Soviets. Kissinger’s visit singularly made China a powerhouse in fifty years. It became a member of the UN Security Council in 1971.

China realised that to have a say in international politics, it had to grow economically. With the dismemberment of the Soviet Union in 1991, China suddenly realised its strength. It Joined the WTO in 2001 and continued its exponential growth, with no god, no opposition party and with ironclad CPC’s stranglehold. China promoted private mega enterprises with huge support and subsidies. Forbes 2021 Billionaires list says that China has 698 billionaires, including 71 from Hong Kong and 1 from Macao.

These super-rich entrepreneurs started wielding power and influence, often bribing their way to favourable policies. With 1% of the population controlling their total wealth of US$ 74 trillion, the gap between the poor and the rich became wider than ever before. Many from the 39.5 m Chinese diasporas, spread worldwide, despise Communist-ruled China, as do the out-lawed and persecuted Falun Gong members, estimated between 2 million to 60 million.

The Chinese Government had to hurry and re-establish a poor-friendly image soon to prevent a mass political reprisal.The Chinese Government recently pulled the plug from Jack Ma’s Ant group planned IPO after his mild criticism of the Government. Over half a dozen billionaires, including Guo Guangchang, Zhou Chengjian, Ren Zhiqiang, Xiao Jianhua, have vanished from public life. The Chinese Communist Party asserts its absolute control and is unrepentant about it. There is a churn, and the Chinese Government is trying to keep the public happier, even at the cost of making the super-rich its sacrificial lambs seems to be the present game plan.

However, the U.S., the godfather for China’s prosperity, views China now as its prime adversary and a challenge to international order. However, China cannot douse the private entrepreneurial spirit now or ever.  Any attempts to interfere with a free market economy might result in a backlash and collapse of the Government.

None expected a sudden collapse of the Berlin Wall, the collapse of the Soviet Union. For China, it is time to act maturely in instilling confidence as a responsible nation, which seems increasingly lacking and challenging.

India gains by default.

Sampath Kumar

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