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Ta Kung Pao: The US Think Tank's "Top 10 Mysteries of China" Actually Have Solutions

admin admin Posted in2024-03-05 18:05:53 Views958 Comments0

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Ta Kung Pao: The US Think Tank's "Top 10 Mysteries of China" Actually Have Solutions


On February 9th, Hong Kong's Takungpao published an article saying that the US conservative think tank, The Heritage Foundation, recently released a report entitled "The Top 10 Mysteries of China in the New Decade" and attempted to provide answers based on Western perspectives. The author believes that just as most Westerners do not understand China, they would also find it difficult to provide satisfactory answers to the "Top 10 Mysteries of China". The mysteries that Westerners find puzzling actually have explanations.


The article summarized as follows:


The US conservative think tank, The Heritage Foundation, recently released a report entitled "The Top 10 Mysteries of China in the New Decade" and attempted to provide answers based on Western perspectives. The author believes that just as most Westerners do not understand China, they would also find it difficult to provide satisfactory answers to the "Top 10 Mysteries of China". The mysteries that Westerners find puzzling actually have explanations.


The report by the Heritage Foundation


The Heritage Foundation proposed the "Top 10 Mysteries of China in the New Decade": First, the mystery of China's contribution to the world economy. Westerners have two views: one is that China is leading the world economy singlehandedly, and the other is that China, as an "economic giant", is "devouring" the global economy and causing other countries' economies to "shrink".


Second, the mystery of China surpassing the United States economically in ten years. Will China surpass the United States? This is a question that many Americans are concerned about.


Third, the mystery of China surpassing Japan economically in ten years. Will China surpass Japan? This attention-grabbing question is actually just a matter of time.


Fourth, the mystery of China becoming the largest creditor of the United States. The US fiscal deficit continues to expand, and China keeps buying US treasury bonds. Is China a major creditor of the United States?


Fifth, the mystery of "Chimerica dividing the world". Many Westerners say that China and the United States are interdependent and inseparable, and will become the "Chimerican" alliance that rules the world.


Sixth, the mystery of the Chinese renminbi exchange rate as an important factor in the global economy. While the West continues to pressure China to appreciate its currency, China has always insisted on maintaining exchange rate autonomy and rejecting foreign interference.


Seventh, the mystery of China's prospects for economic reform. Since China's economy is related to the well-being of the world, the prospects for market-oriented reforms naturally receive much attention.


Eighth, the mystery of whether China's economy is "seriously imbalanced". China's trade surplus expands every year, but the share of domestic demand in GDP does not increase but decreases. Is China's economy improving or exacerbating its imbalance?


Ninth, the mystery of China's carbon emissions. Facing the issue of climate change, China is often criticized by foreign nations in international forums, but what is the actual situation of China's carbon emissions?


Tenth, the mystery of China's emissions reduction. To reduce carbon and save the Earth, everyone has a responsibility, so what strategies does the Chinese government have?


"The giant theory" is Western bias


The mysteries that Westerners find puzzling actually have explanations. The author attempts to discuss these ten points: First, China is the country with the highest "contribution rate" according to the United Nations, so there is no mystery. It is not a problem to describe China as an "economic giant," but the belief that China is "devouring" the global economy and causing other countries' economies to "shrink" is exactly the opposite of reality. The United Nations' evaluation of China as the "world's leading economic engine" demonstrates that "the giant theory" is just a bias of Western conservatives.


Second and third, China surpassing the United States and Japan in ten years are two different scenarios: It is difficult to say if China will surpass the United States in ten years since the US is a "skinny camel" being bigger than a horse. However, with regard to Japan, China's GDP has already exceeded Japan's in 2009, so what is the issue about within ten years?


Fourth, China is the largest holder of US Treasury bonds, which is well known to Americans. However, Chinese debt only accounts for 7% of the total US government debt, which is negligible. This also indicates that the US debt is so huge that it cannot be saved by a single creditor.


Fifth, the notion of "Chimerica dividing the world" is a statement made by Americans. Although G8, G20, and G2 are objectively existing entities, China has never had the intention of "Chimerica dividing the world." This reflects the habitual thinking of hegemony and also reflects the crucial role of China in Sino-US relations in the 21st century.


Sixth, the influence of the RMB exchange rate on the global economy is somewhat exaggerated. Data show that from July 2005 to June 2008, the RMB appreciated by 20% against the US dollar, but the Sino-US trade surplus still increased by 50%. The impact of exchange rates is not as significant as imagined. The exchange rate issue often becomes an excuse for Western politicians to divert attention from more important issues.


Seventh, Western opinions on China's prospects for economic reform have always been mixed. Pessimistic opinions insist on a "China's reform crisis" and exaggerate the so-called phenomenon of "state advances, private retreats," and so on. Of course, the once-in-a-century global economic crisis will also pose challenges to China, but overcoming difficulties is different from a reform crisis. The "reform crisis" in China is not a fact. China's GDP growth of 8.7% in 2009, which was the highest globally, is the best proof.


Eighth, is China's economy "seriously imbalanced"? The fact is actually the opposite. China adheres to a government-guided macroeconomic policy and becomes the first country to break out of the crisis. Serious imbalance has never occurred.


Ninth and tenth, China often becomes the target of foreign criticism regarding global climate change. However, to be fair, China is still a developing country, and the West's demand for China's emissions reduction is overly high, equivalent to restraining China's development. One fact must be emphasized: even in terms of per capita emissions, China is far behind Europe and the United States. Even so, China has made positive commitments to emissions reduction. Premier Wen Jiabao proposed that China's carbon emissions per unit of GDP should decrease by 40 to 45% by 2020 compared to 2005, and this has been included in the long-term development plan. What mystery is there about China's carbon emissions and emissions reduction?


The author believes that the above views from the Heritage Foundation are not so much the "Top 10 Mysteries of China" as they are the "Top 10 Misunderstandings of the West." They truly represent the ideology of a "conservative think tank".


"The Chinese comprehensive model" deserves attention


In the author's observation, China indeed presents the "greatest mystery" ── how did a former agricultural socialist country from the East become the second-largest economy in the world in just 30 years? And how did it make old capitalist powers like the United States and Japan "feel threatened" through reform and opening up, a system that was once criticized for being a planned economy? This is the "greatest mystery" that many Westerners are most reluctant to face!


The author believes that this greatest mystery eloquently demonstrates that the Eastern path, especially the "Chinese comprehensive model", has become a new development model that the world is increasingly paying attention to. What is worth noting is that the Chinese model is surpassing traditional concepts in history and advancing towards the direction of a "Thousand-Year Dream: A World of Great Harmony." This will be China's greatest contribution to global development, human civilization, and the world's future. (By Chen Qun)