Stay cool on China, Australia tells US

**Papewaio** · 01-30-2006, 01:38

AUSTRALIA'S new US ambassador has warned Washington not to let emotion drive policy on China, amid escalating rhetoric in Congress and from the Pentagon over China's economic and military rise.

In his first landmark foreign policy address since taking up the post last year, Dennis Richardson also told the US it had plenty to lose if China's economic boom stopped.
Mr Richardson's first seven months in Washington has coincided with increasingly alarmist talk about China in the US, including congressional measures to impose punitive tariffs on Chinese goods and outright hostility to a Chinese company's ultimately failed attempt to buy US oil group Unocal.

"China is not eating the United States's lunch in East Asia and it would be a mistake to allow that emotion to drive policy," Mr Richardson said.

He also told foreign policy experts at the Washington think tank Brookings last week - media were not invited to the event but speech notes were made available later - that the public debate about China in Australia had "a different tone to some aspects of the debate here in the United States".

"I suspect that one reason for this is that China's rise has been factored in at a national psychological level in Australia for quite some time."

Interesting, I'm not sure if the last bit is correct or not. China is seen as the next big powerhouse, must of the pundits are hopping that its economic success will drive social and democratic reforms as well.

Is there a fear of China in the US, a competive feeling or more of 'it could get bigger, so lets outsource more to them." ?

**bmolsson** · 01-30-2006, 02:30

Everyone expect a burst in the real estate bubble in US, leading to a decrease of consumer purchase power, resulting in a weak US economy. China would then be expected to take the lead. I personally think China will follow US down, since they need to off load their cheap stuff somewhere.....

**Seamus ó Cruadhlaoic** · 01-30-2006, 03:13

Originally Posted by Papewaio

Stay cool on China, Australia tells US

Interesting, I'm not sure if the last bit is correct or not. China is seen as the next big powerhouse, must of the pundits are hopping that its economic success will drive social and democratic reforms as well.

Is there a fear of China in the US, a competive feeling or more of 'it could get bigger, so lets outsource more to them." ?

IMO, US business is ahead of the politicians, and politicians are ahead of the populace, in terms of embracing China. The "Red Scare", Tienanmin Square, etc., are all still prevailing images. But the suits, and the media are trying hard to change that.

**Roark** · 01-30-2006, 04:54

I would have thought that the U.S. would be the first to recognise the incredible opportunities that exist in China now that their trade barriers are starting to come down...

**wolftrapper78** · 01-30-2006, 06:11

Thanks for the advise Mr. Richardson, but China is the problem starter. And their human rights record has been downright evil since the days of Mao and I personally don't see them improving in the near future.
Too bad, theirs is a great people.

**Roark** · 01-30-2006, 06:39

Who's Mr Richardson?

I wasn't giving advice. I was just trying to sus out whether my understanding of entrepreneural interest in China was borne out of ignorance.

Human rights issues haven't stopped the U.S. from doing business with certain countries in the past. Am I to understand that this is an issue which is raised arbitrarily?

**Papewaio** · 01-30-2006, 06:47

I suggest reading the whole article as Mr Richardson is the ambassador from Aus and it is not a 1-dimensional point of view.

**Louis VI the Fat** · 01-30-2006, 23:52

Mr Richardson's first seven months in Washington has coincided with increasingly alarmist talk about China in the US, including congressional measures to impose punitive tariffs on Chinese goods and outright hostility to a Chinese company's ultimately failed attempt to buy US oil group Unocal.

Oi, this sounds eerily familiar to the US' / the industrial world's reaction to the Arabs in the '70s and the Japanese in the '80s. Both stirred an almost paranoid worry that they were going to buy everything

It didn't work out that way in either case. But, this time, we're dealing with a country ten times the size of Japan. A country that on it's own is larger than the entire developed world combined.

Frankly, I haven't factored in the rise of China and the effect it will have on the world at a personal psychological level.

I suspect that one reason for this is that China's rise has been factored in at a national psychological level in Australia for quite some time.

**Don Corleone** · 01-31-2006, 00:07

The way America views China really depends on which portion of the relationship you're involved in. I work for a semiconductor manufacturer, so China is the #1 growth market for us. I'm there every 3 to 4 months for several weeks at a time. I personally find the Chinese to be very similar to America in terms of business outlook and approach, much more so than Europe or Japan. They're a pleasure to work with and are probably more understanding and tolerant of 'not quite right' design flaws then most other engineering heavy customers. They're very down to earth and will deal pretty honestly and frankly and tell you which design issues are a real problem for them and which are not all that important. Getting to know any one individual beyond the nicety phrase can be a bit difficult, but once you do, they're incredibly generous and loyal.

On the other hand, hardly a month goes by where you don't hear about some fairly large operation by Chinese intelligence services either here in the US or in 3rd countries. They're constantly data mining and attempting to hack into secure computer facilities.

Personally, I think the Communists truly have changed their spots and are even more capitalist then the most ardent Republicans. Their treatment of human rights and the environment leave a lot to be desired, but to be fair, they're fairly new to the table. I don't think they're going to risk their new found wealth by provoking a conflict with the US, and I'm certain we engage in covert operations against them too. My only point is there are reasons for the mutual suspicion beyond the traditional "Americans are a bunch of paranoid gits". The #2 man on their joint chiefs of staff DID threaten to nuke California a few months back, and the PRC leadership council refused to repudiate the statement. I'm sure he didn't mean it, but still, it's not the sort of thing business partners say to each other to sweeten deals...

**Papewaio** · 01-31-2006, 01:29

And hopefully business continues to bind the world together so that we don't go nuke each other.

And with time a rise in an educated middle class will change the landscape of the country... wanting nicer cars, houses, environment etc.

**Azi Tohak** · 02-03-2006, 20:41

Originally Posted by wolftrapper78

Thanks for the advise Mr. Richardson, but China is the problem starter. And their human rights record has been downright evil since the days of Mao and I personally don't see them improving in the near future.
Too bad, theirs is a great people.

Record since Mao? When have those in power in China ever cared about the poor?

I'm just waiting until China's economy pops. Maintaining a rate of 7-8% growth per year. HA! So then what will they do?

Azi

**AquaLurker** · 02-03-2006, 21:21

Then we have have less radicals from the states.

**rory_20_uk** · 02-04-2006, 14:11

American companies will trade with China regardless: IBM sold machines to the Nazis (card sorters, very useful for maximising Jewish labour).

When the Chinese get in trouble, so does the world. Do you want to see China selling dollars to help its internal situation? Currently it's helping to support the massive trade deficit the USA has got. If doing so no longer is possible all hell will break loose...