by John M. Curtis
(310) 204-8700

Copyright Nov.16, 2009
All Rights Reserved.

          With the mighty U.S. economy limping along, President Barack Obama found himself with diminished prestige visiting communist China, where common interest lies not in ideology but in the bottom line of profit hungry corporations.  Insisting the world was looking for a “meeting of the minds” between the two superpowers, Barack made little progress on global warming, human rights, nuclear proliferation and global trade.  Speaking at a contrived town-hall meeting, the president urged China to be more open with the Internet, China’s window to the outside world, its leaders seem hell-bent on censorship, preventing its citizens from conceptualizing freedoms beyond its shores.  Barack called on China to share the “burden of leadership” with the U.S, extending its new economic clout to other countries.  Barack would like to see Beijing pony up to help the developing world.

            Arresting a CNN reporter for wearing a Mao T-shirt, the traveling White House was reminded that human rights continue to sink to new lows, despite China’s newfound wealth.  “I will tell you, other countries around the world well be waiting for us,” said Obama at a town-hall meeting with select university students, urging China to take principled stands on global issues, including climate change, economic development and nuclear proliferation.  With the U.S. mired in recession, Barack would like China to share-the-wealth in foreign aid to the developing world.  Chinese authorities, fearing that Barack might expose China’s Orwellian-like censorship, confined TV coverage to a local Shanghai station, with no coverage around the country.  Without lecturing China on human and civil rights, Barack has plenty to discuss with China’s pro growth President Hu Jintao.

            China’s leaders want Obama to stick to a common denominator:  How to multiply each nation’s wealth  China has no interest in debating Western values, or, for that matter, being lectured on human rights.  Feeding 1.3 billion people presents an inordinate task to the Peoples Republic of China.  U.S. agriculture and farming technology helps the Chinese streamline their production of grains and livestock.  U.S. computer technology has enabled the Chinese to compete on the world stage in the most sophisticated areas of manufacturing, especially in electronics.  China has borrowed heavily from the U.S. Space Program and now presses ahead with its own plans for manned space travel.  Since the late President Richard M. Nixon and his Secretary of State Henry A. Kissinger opened diplomatic relations with communist China in 1972, China has relied heavily on the mighty U.S. economy.

            China’s currency, the yuan, was based for years on a fraction of the U.S. dollar, enabling it to offer highly competitive manufacturing costs, attracting corporate investment around the globe, especially in the U.S. and Europe.  While the yuan severed its ties to the U.S. dollar in 2004, the Chinese government refused to allow it to float on world currency exchanges, fearing increased valuation.  China knows that too much prosperity can short-circuit its economic growth, pricing it out of world markets.  Pressure from Obama or other G-20 leaders to float the yuan have fallen on deaf ears.  Chinese President Hu and Vice President Xi Jinping know that the yuan must remain a small fraction of the U.S. dollar and Euro to remain competitive.  No amount of pressure from the U.S. or European Union changes China’s necessity of maintaining a cheap manufacturing base.

            Instead of pushing Hu on climate change or more openness, Barack should be find ways for China to buy more T-bills.  He should reassure China that there’s no better or safer place to invest than the U.S.  China has been pushing the Federal Reserve Board to retire its massive debt, leaving interest rates too low to protect its U.S. investments.  Speaking at the Great Hall of the People in Beijing, Barack told Hu that “the world recognizes the importance of the U.S.-Chinese relationship,” especially for global economic prosperity.  Most U.S. and EU countries rely heavily on Chinese manufacturing to keep companies profitable.  China’s leaders prefer talking about economic matters than human rights.  Obama tried but failed to convince Hu to open up China’s Internet access, currently heavily censored, keeping its people in the dark about the rest of the world.

            Barack’s best chance to prevail on Chinese leaders for more openness involves promoting better bilateral relations.  Economic joint-ventures, whether in agriculture, heavy manufacturing, technology or entertainment, are the best path to breaking down old barriers.  Lecturing about the American way doesn’t help create the kind of cooperation on the Security Council that gives the U.S. more clout with North Korea and Iran.  China holds considerable sway in Iran and North Korea, an important part of U.S. containment strategy on nuclear proliferation.  Barack wants more joint ventures on “green” energy projects to help deal with “greenhouse gas emissions” and “climate change”.  Showing more restraint in front of the cameras has helped Barack win more Chinese cooperation where it counts, dealing with America’s real enemies scheming for nuclear weapons.

John M. Curtis writes politically neutral commentary analyzing spin in national and global news.  He's editor of OnlineColumnist.com and author of Dodging The Bullet and Operation Charisma.