Ted Koppel In China

"The People's Republic of Capitalism" is Ted Koppel's next in-depth special for The Discovery Channel. It runs Wednesday through Saturday at 10PM EST. I encourage everyone to watch it as we'll get to see what's really going on over there.

We typically get dribs and drabs from the MSM and it's always got the network's slant on it. "China is taking our jobs" or "China helps keep products cheap for Americans" and so on. While these are both true, they don't tell the whole story. With Ted, we can at least expect an extensive report. Every so often, I'll mention something here, but there's no way I can read/cover it all. I expect to get schooled. :)

While some will criticize his dry delivery on Nightline, since ABC canned him, Koppel's been rejuvenated. Just check out any appearance of his on The Daily Show since then (though his most recent appearance plugging the China doc is missing from that list as I write this). He's even got a sense of humor (see "Giant Head of Ted")! The Discovery Channel has allowed him to cover whatever he wants without worrying about TV execs breathing down his neck with ratings reports. Can't have serious discussions at 11:30 at night. Nope. That's talk show time! Maybe if he'd been on Sunday mornings fighting for Tim Russert's marketshare, ABC would've kept him around.

Ok, I'm rambling. Watch "The People's Republic of Capitalism."

Follow Up
The series takes place in Chongqing, a city of 13.5 million people in southwestern China, and the surrounding countryside. The city is expected to increase in population and size to become a megacity of 25 million within the next decade.

Part 1 examined how tightly linked China's economy is to the US. While Koppel didn't point fingers, one can obviously see that the global economy and the desire for cheap products in the US is what drove businesses to send manufacturing to China. Labor is so cheap as there are too many people available to work. There is no need to automate or use machinery for many menial jobs, like rebar reclamation, as the government has a more pressing need to keep people working. The Iron Law of Wages come to fruition. But while people need Wal-Mart to get the stuff they need, they really are killing the economic future of their fellow and future Americans. We are doomed.

There is a love of American brands in China. There's a perception of quality and the prosperous Chinese are willing to pay the extra money for American cars (Black Buicks are a status symbol) and furniture, even if some to all of those products are actually manufactured in China.

But unless the Chinese workers are allowed to unionize to demand better wages (a couple of dollars a day is common), I can't see things turning around. But for every industrial worker employed now, there's an estimated 2 or 3 more in the countryside looking to get in. Expect labor protests to be broken up by the government and "scabs" brought in.

Part 2 revealed that there's a measure of cultural tolerance in China, so long as it doesn't get political. Gay bars are allowed to exist but gay pride parades are forbidden. The Catholic Church, though illegal, is tolerated so long as it stays out of politics. Falun Gong membership will get you arrested. Even prostitution is overlooked as the government realizes that it needs to permit its workers to blow off some steam from time to time.

People trust the government, for now. It keeps chaos at bay and provides stability. That's what the majority want. There is no free speech or press. They may not love their government, but they trust it to keep order. So long as everyone is making money, and some private property ownership is permitted, they'll be content with whatever the government tells them.

Part 3 expounded on China's love with the automobile, reflective of America in the 50's. In fact, China's development of its countryside will closely mirror that of our own country during that time period, complete with an interstate highway system and suburbs. It won't be long before China has more cars and asphalt than the US (est. 2030). Forget the images of thousands of blue clad workers riding bicycles to manufacturing plants post-cultural revolution. Those days are dead and gone. But to keep pace with 25,000 cars sold per day, they're going to need a lot of cheap gas.

In another year or two, Chinese car manufacturers will sell their cars here. And even American brands will be exported to the US once the capacity is there.

Part 4 talks about corruption in China and, in case you hadn't heard, it's epidemic. Anti-corruption training is given to law enforcement in attempts to reign in corrupt businessmen and government officials and foster a level of integrity within themselves so that they'll resist bribes. Operas, plays, public displays and videotaped confessionals all play a part. But, as you can surmise, it isn't working. There were 24,000 convictions in 2006 alone but it still goes on. Even the death penalty doesn't appear to be a deterrent.

Growth in Chongqing is off the charts. Old neighborhoods are being bulldozed over to make way for new apartment buildings, despite the protests of the residents of those neighborhoods. The government acknowledges that there were 87,000 protests nationwide (primarily in rural regions), but the Chinese won't see those protests on their TV's or in their newspapers because the police won't allow pictures to be taken or acknowledge that arrests are made.

While peasants are slaving away, living in run down shacks, they're trying to get their kids into boarding school for a decent education so that they don't have to follow in their parents' footsteps. Meanwhile, there are people who are clearly making tons of money. $800 belts! The government buys the homes of the poor for next to nothing and sells them to developers who make millions in construction. But that's not all. In industry, bribery is commonplace and often goes unpunished. That is, the bribers aren't punished though the bribe accepters are. That leaves the bribers free to continue to exploit those who would live within the rule of law. The government turns a blind eye to this as it must be pro-business at all cost. It doesn't want foreign investors to be scared away.

The earthquake that rocked western China this year revealed how fragile the foundation for all this growth is. How much of the destruction can be attributed to sub-standard building materials is unknown. As we learned last year, Chinese captains of industry have no qualms about sacrificing safety to maintain profits (please keep that in mind when those Chinese cars come to our market). While we often bemoan the same of American companies, they always have to worry about being sued. That doesn't happen too much in China. All an employer has to say to the Chinese government is, "If you have a problem with it, then I'll shut down and you'll have to find work for my workers." And if those numbers are in the thousands, then the government will back down. In a country where people are paid to chip mortar off of bricks, a sudden influx of unemployed workers is too bitter a pill to swallow.

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DED