China Rising

In 2006, China marked its twentieth year of rapid economic growth. It is increasingly acknowledged as
an economic and political superpower that could one day rival the US. However, little is still known in
the West about the dynamics of China’s politics and economy, and its impact on workers and the environment.
Does China’s “economic miracle” really live up to its name? Can China’s repressive state be
reformed? What voices for change are emerging? What are the implications of China’s actions on the
global stage? The annual TNI Fellows meeting brought together 40 activist scholars from across the
world to debate these issues, and to think through how global social movements should engage with
21st Century China.

The Economics of China Today

Presenter: Chaohua Wang

This session discussed the dynamics and prospects of
China’s “economic miracle”, its impact upon developing
countries and, in the wake of climate change, its potential
consequences for the whole planet.

In some ways, China’s growth can be compared to that of
Victorian England in its oversupply of goods and its
relentless global search for raw materials to fuel growth.
However, the speed of China’s growth, its reliance on low
costs rather than productivity, and the fact that its economic
rise is not backed by political and military domination
differentiates China from the British Empire. The
context of environmental meltdown also means that a 19th
century-style industrialisation would be a dangerous road
to 21st century development.

The consequences of uneven development and limited
attention to environmental issues can be seen in the rise
of rural unrest, land expropriations, a dangerous rise in
bad lending, growing wealth polarisation and a collapse
in social welfare. The Chinese government is yet to fully
face up to its global responsibility for a model based on
low wages and environmental damage.

Political debates in China Today

Presenter: Zhaotian He

2005 marked the 30th anniversary of the end of the
Cultural Revolution and the start of reform processes in
China, but how are we to understand the currents of
thinking and debate amongst Chinese intellectuals now?
1989 marked a clear turning point, leading to a strong
rejection of Communist Party and state rule on the one
hand, and suspicion of social movements based on idealism
on the other. However, this prompted an uncritical
idolisation of the market, a failure to analyse possible
alternatives, insensitivity to issues of equality and social
justice, and a lack of meaningful engagement with international
debates such as those on Iraq or Palestine.
A new left that is critical of neoliberalism is starting to
emerge, but it is yet to truly challenge or influence the
state in developing a substantive policy of redistribution,
or shift its emphasis away from the current model of economic
developmentalism.

The relationship between state, society and the global
economy is key to this whole debate. The current economic
model allies state repression with multinational
power to keep wages low. The commodification of everyday
life has increased the power of money in society, but
has also resulted in counter-effects like the rise of religious
groups such as the Falun Gong.

The myth behind China’s miracle and emergence
of alternative voices
Social movements in China Today

Presenter: Dale Jiajun Wen

The myth of China’s “economic miracle” is that it is creating
manufacturing jobs and increasing wages, but the
reality is that manufacturing jobs decreased 15 per cent
from 98 million to 83 million between 1995 and 2002.
Sweatshops have become the norm, average salaries are
falling and public services have declined. China is going
for a “bigger is better” model and the rural populations,
in particular, are suffering the consequences.
A number of movements are articulating alternatives to
this situation: the Rural Reconstruction movement, which
links students from more than 100 universities with peasants;
an environmental movement consisting of more
than 2000 NGOs; labour movements; and the New Left, a
largely nationalist movement against excessive foreign
control. These movements have changed the government’s
rhetoric but their impact on its practice is so far
limited to a few band-aid measures. The movements’ limitations
raise questions about redesigning and rethinking
the state, a major concern for many left movements
worldwide. These are particularly difficult issues in
China, with its repressive state institutions, the state’s
cooption by international capital at the national level, and
a vacuum of state power at the local level, which is now
often occupied by mafias and organised crime.

Energy and environment

Presenter: Eva Sternfeld

China’s carbon dioxide emissions per person are still a
quarter of those in the US, but the gap is closing rapidly.
Energy consumption has increased by more than 70 per
cent since 1990. China’s growth is highly dependent on
fossil fuels (67 per cent coal, 22 per cent crude oil) with
the building of 500 coal-fired power plants planned in the
next decade. Although the government is investing more
in renewable energies, which it hopes will reach 12 per
cent of total production by 2020, this relatively small proportion
is outweighed by overall increases in the country’s
energy use, and is in any case dependent upon an
expansion of nuclear energy, whose potential costs in
terms of contamination and storage are rarely questioned
in China.

Climate change is already having an impact in China with
shrinking glaciers, increased flooding, and a higher frequency
of sandstorms in North China. However, the popular
belief remains that technical solutions will resolve
the crisis, and there is resistance to taking measures that
curtail economic growth and enhanced competition with
the US. There is also little consciousness of energy efficiency,
in part as a legacy of the free provision of water
and heating. Whether or not the rising ecological crises
prompt a significant shift in thinking in China remains
an open question.

Labour organisation

Presenter: Dongfang Han

Official information about labour conditions in China is
very unreliable, but the picture painted by various reports
from the ground suggests that communist-style government
and capitalist working practices have led to the
worst possible scenario for labour. There are numerous
cases from across the country of local protests in
response to companies failing to pay workers or paying
pitiful wages. Protests against unhealthy and dangerous
working conditions are also widespread.

The Chinese authorities oppose independent union
organising. The official labour movement is only seen as
a tool to secure power, and there is fear of the Solidarnösc
example in Poland. Multinational companies exploit the
lack of union organising to prevent effective monitoring
of their suppliers, and have opposed laws affecting investments.
Repression has helped China to maintain its competitive
advantage of low wages, while the threat of China
is invoked throughout Asia and worldwide to keep wages
low.

The key question is how best to organise. Working within
the Chinese system to push for the application of existing
laws and codes of conduct may help in certain cases.
Sometimes it is the only pragmatic course of action, but
doubts were expressed over whether this can ultimately
help to build the kind of broad social movement unionism
needed to raise wages and social welfare standards
not just in China but worldwide.

China’s Global impact
Open discussion

This wide-ranging debate addressed various aspects of
the outlook for China and its impact on the global political
economy. Several participants struck a pessimistic
tone, reflecting the severe challenges posed by China in
terms of the race to the bottom on labour, environmental
disasters, its growing debt crisis, capital flight, and a crisis
in ideology. China’s potent mix of economic and military
power without democracy means that it lacks global
responsibility, and we should not look to China for meaningful
opposition to the US empire. Up to now, China’s
actions in Africa and its role in international forums such
as the UN or G33 have confirmed its largely passive or
negative impact. At the same time, several participants
felt that it was important not to view China as a single
block, as its direction is still not clearly fixed. There are
signs of openings within government and Chinese civil
society which could respond to engagement. There
remains a clear need for the better distribution of information
and alternatives within China, and for a more
nuanced analysis of China’s situation as a whole.

In 2006, China marked its twentieth year of rapid economic growth. It is increasingly acknowledged as
an economic and political superpower that could one day rival the US. However, little is still known in
the West about the dynamics of China’s politics and economy, and its impact on workers and the environment.
Does China’s “economic miracle” really live up to its name? Can China’s repressive state be
reformed? What voices for change are emerging? What are the implications of China’s actions on the
global stage? The annual TNI Fellows meeting brought together 40 activist scholars from across the
world to debate these issues, and to think through how global social movements should engage with
21st Century China.

The Economics of China Today

Presenter: Chaohua Wang

This session discussed the dynamics and prospects of
China’s “economic miracle”, its impact upon developing
countries and, in the wake of climate change, its potential
consequences for the whole planet.

In some ways, China’s growth can be compared to that of
Victorian England in its oversupply of goods and its
relentless global search for raw materials to fuel growth.
However, the speed of China’s growth, its reliance on low
costs rather than productivity, and the fact that its economic
rise is not backed by political and military domination
differentiates China from the British Empire. The
context of environmental meltdown also means that a 19th
century-style industrialisation would be a dangerous road
to 21st century development.

The consequences of uneven development and limited
attention to environmental issues can be seen in the rise
of rural unrest, land expropriations, a dangerous rise in
bad lending, growing wealth polarisation and a collapse
in social welfare. The Chinese government is yet to fully
face up to its global responsibility for a model based on
low wages and environmental damage.

Political debates in China Today

Presenter: Zhaotian He

2005 marked the 30th anniversary of the end of the
Cultural Revolution and the start of reform processes in
China, but how are we to understand the currents of
thinking and debate amongst Chinese intellectuals now?
1989 marked a clear turning point, leading to a strong
rejection of Communist Party and state rule on the one
hand, and suspicion of social movements based on idealism
on the other. However, this prompted an uncritical
idolisation of the market, a failure to analyse possible
alternatives, insensitivity to issues of equality and social
justice, and a lack of meaningful engagement with international
debates such as those on Iraq or Palestine.
A new left that is critical of neoliberalism is starting to
emerge, but it is yet to truly challenge or influence the
state in developing a substantive policy of redistribution,
or shift its emphasis away from the current model of economic
developmentalism.

The relationship between state, society and the global
economy is key to this whole debate. The current economic
model allies state repression with multinational
power to keep wages low. The commodification of everyday
life has increased the power of money in society, but
has also resulted in counter-effects like the rise of religious
groups such as the Falun Gong.

The myth behind China’s miracle and emergence
of alternative voices
Social movements in China Today

Presenter: Dale Jiajun Wen

The myth of China’s “economic miracle” is that it is creating
manufacturing jobs and increasing wages, but the
reality is that manufacturing jobs decreased 15 per cent
from 98 million to 83 million between 1995 and 2002.
Sweatshops have become the norm, average salaries are
falling and public services have declined. China is going
for a “bigger is better” model and the rural populations,
in particular, are suffering the consequences.
A number of movements are articulating alternatives to
this situation: the Rural Reconstruction movement, which
links students from more than 100 universities with peasants;
an environmental movement consisting of more
than 2000 NGOs; labour movements; and the New Left, a
largely nationalist movement against excessive foreign
control. These movements have changed the government’s
rhetoric but their impact on its practice is so far
limited to a few band-aid measures. The movements’ limitations
raise questions about redesigning and rethinking
the state, a major concern for many left movements
worldwide. These are particularly difficult issues in
China, with its repressive state institutions, the state’s
cooption by international capital at the national level, and
a vacuum of state power at the local level, which is now
often occupied by mafias and organised crime.

Energy and environment

Presenter: Eva Sternfeld

China’s carbon dioxide emissions per person are still a
quarter of those in the US, but the gap is closing rapidly.
Energy consumption has increased by more than 70 per
cent since 1990. China’s growth is highly dependent on
fossil fuels (67 per cent coal, 22 per cent crude oil) with
the building of 500 coal-fired power plants planned in the
next decade. Although the government is investing more
in renewable energies, which it hopes will reach 12 per
cent of total production by 2020, this relatively small proportion
is outweighed by overall increases in the country’s
energy use, and is in any case dependent upon an
expansion of nuclear energy, whose potential costs in
terms of contamination and storage are rarely questioned
in China.

Climate change is already having an impact in China with
shrinking glaciers, increased flooding, and a higher frequency
of sandstorms in North China. However, the popular
belief remains that technical solutions will resolve
the crisis, and there is resistance to taking measures that
curtail economic growth and enhanced competition with
the US. There is also little consciousness of energy efficiency,
in part as a legacy of the free provision of water
and heating. Whether or not the rising ecological crises
prompt a significant shift in thinking in China remains
an open question.

Labour organisation

Presenter: Dongfang Han

Official information about labour conditions in China is
very unreliable, but the picture painted by various reports
from the ground suggests that communist-style government
and capitalist working practices have led to the
worst possible scenario for labour. There are numerous
cases from across the country of local protests in
response to companies failing to pay workers or paying
pitiful wages. Protests against unhealthy and dangerous
working conditions are also widespread.

The Chinese authorities oppose independent union
organising. The official labour movement is only seen as
a tool to secure power, and there is fear of the Solidarnösc
example in Poland. Multinational companies exploit the
lack of union organising to prevent effective monitoring
of their suppliers, and have opposed laws affecting investments.
Repression has helped China to maintain its competitive
advantage of low wages, while the threat of China
is invoked throughout Asia and worldwide to keep wages
low.

The key question is how best to organise. Working within
the Chinese system to push for the application of existing
laws and codes of conduct may help in certain cases.
Sometimes it is the only pragmatic course of action, but
doubts were expressed over whether this can ultimately
help to build the kind of broad social movement unionism
needed to raise wages and social welfare standards
not just in China but worldwide.

China’s Global impact
Open discussion

This wide-ranging debate addressed various aspects of
the outlook for China and its impact on the global political
economy. Several participants struck a pessimistic
tone, reflecting the severe challenges posed by China in
terms of the race to the bottom on labour, environmental
disasters, its growing debt crisis, capital flight, and a crisis
in ideology. China’s potent mix of economic and military
power without democracy means that it lacks global
responsibility, and we should not look to China for meaningful
opposition to the US empire. Up to now, China’s
actions in Africa and its role in international forums such
as the UN or G33 have confirmed its largely passive or
negative impact. At the same time, several participants
felt that it was important not to view China as a single
block, as its direction is still not clearly fixed. There are
signs of openings within government and Chinese civil
society which could respond to engagement. There
remains a clear need for the better distribution of information
and alternatives within China, and for a more
nuanced analysis of China’s situation as a whole.