China's 'exceptionalism' will get it targeted
Wednesday, October 28, 2009 at 1:03AM OP-ED: Chinese Exceptionalism, By PHILIP BOWRING, New York Times, September 22, 2009
Great bit:
From a domestic political viewpoint, the Chinese attitude is understandable. Stability is the leadership's constant watchword. A freer exchange rate would hurt China's ability to import jobs and export goods. A floating currency and absence of exchange controls could lead to the extreme fluctuations seen in Shanghai share prices. But other countries have to cope with these issues. Why not China?
Developing countries do not like to criticize China publicly. They welcome brakes on U.S. superpower, hope to benefit from China's rapid trade growth and want Chinese support in pushing for better representation in international organizations. But do not imagine that a country -- for example, Indonesia -- coping with a totally open financial system and free currency at a time of global turmoil appreciates the exceptional favor that China still enjoys.
For sure, there are other reasons for global imbalances, such as oil prices and the unwillingness of Japanese and Germans to consume more. But any solution other than a sustained weak consumer demand in the United States must address not just the dollar's exceptional status but also that of China.
As China's "exceptionalism" is outed more and more, expect more friction. Long-time theme of mine: China will be targeted by all sorts of opponents and competitors as globalization's great purveyor and exceptional "cheater" much like U.S. was many decades ago.
(Via WPR Media Roundup)
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