The United States, China, and Trade, Part II: A China Security Analyst Weighs In

A good friend in the intelligence community offered to look over my previous blog post, The United States, China, and Trade, Part I: Has China Got it Right and Are We Missing the Point?, before I published it, and he made several astute comments that were not only thought-provoking, but drove home several key, no b.s., observations contrasting China's growing international relations and trade with that of the United States.  His comments stem from his intimate knowledge of Chinese culture, politics, and U.S.-China security issues, and while they are by no means classified information, I do need to keep his identity anonymous.  His take:

In 2007, trade on the global stage requires more than just waving around some greenbacks and wearing your american flag pin. Other nations are no longer as impressed by the simple fact that we're America.  In recent years, we've made it increasingly difficult for the newer markets (such as Africa, SE Asia, etc) and the bourgeoning economies of the world to do business with us.  Every trade agreement we attempt comes with all sorts of ridiculous, often self-righteous conditions (human rights, environmental considerations) that countries are in no position to meet at their early stages of development.  I'm sure that's what you mean when you talk about our "inflexibility". 

Further, the US seems reluctant to look any further ahead than next week when it comes to engaging in trade agreements. The attitude seems to be "if you're not gonna let us use your country as a landing strip or give us oil, then we aren't that interested." This is the other side of trade agreements, I think...the big "S" strategic side (highlighting the impact of economic and trade relations on security and defense). 

China is not simply making trade agreements to bring in capital, they're making trade agreements because:

1. it's the first and easiest way to make friends diplomatically
2. it builds interdependence. 

Countries who NEED you will take your side in disputes.  I think that aspect ought to bring home the idea to people that positive, pro-active, flexible trade practices abroad are our only hope for winning this race with China.

Right now they're whipping our asses because they don't judge, they don't ask questions, and they invest in infrastructure projects all the while giving very handsome "gifts" to the prominent citizens of whatever country they are engaging.  We dig wells and build schools for poor people, but the reality is that those who need a well don't hold much sway in their countries.  Those are great things to do, but we're gonna have to play China's game if we want to get ahead. 

Thought-provoking indeed...

More to come.