{"id":11047,"date":"2015-09-24T12:47:07","date_gmt":"2015-09-24T04:47:07","guid":{"rendered":"http:\/\/chinaworker.info\/?p=11047"},"modified":"2015-09-25T09:59:34","modified_gmt":"2015-09-25T01:59:34","slug":"xi-jinpings-first-state-visit-to-the-us","status":"publish","type":"post","link":"https:\/\/chinaworker.info\/en\/2015\/09\/24\/11047\/","title":{"rendered":"Xi Jinping\u2019s first state visit to the US"},"content":{"rendered":"

Sino-US tensions increasing as China\u2019s economy stumbles<\/strong><\/p>\n

Vincent Kolo, chinaworker.info<\/p>\n

China\u2019s president Xi Jinping began his week-long visit to the United States, touching down in Seattle on Tuesday 22 September, where he met with top CEOs including the bosses of the biggest US tech companies Apple, Amazon and Microsoft. He was also met by protests, including by Seattle’s socialist city council member Kshama Sawant, who together with supporters demonstrated in solidarity with Chinese workers and demanded independent trade unions and democratic rights.<\/p>\n

For China\u2019s one-party dictatorship, Xi\u2019s first state visit to the US comes at a particularly testing and difficult time. China\u2019s economy has stalled this year, decelerating sharply from a downturn that began in 2014. The latest economic data only adds to the gloom. The preliminary Caixin China manufacturing purchasing managers\u2019 index (PMI), a gauge of factory output, fell to 47.0 in September, from 47.3 in August. Any reading below 50 indicates contraction. The September figure is the weakest since the depths of the global financial crisis in 2008-9.<\/p>\n

GDP forecasts lowered<\/strong><\/p>\n

China\u2019s stock markets, which have plummeted 40 percent since June, erasing around $5 trillion in share values, fell again on the PMI data, striking a sour note as Xi began his US tour and complicating his main mission which is to \u201crestore confidence\u201d in China\u2019s economy.<\/p>\n

The latest dips on the Shanghai and Shenzhen stock exchanges were accompanied by sharp falls on global markets, including Wall Street, reflecting growing fears that China, an engine for global growth especially among so-called emerging markets and commodity exporters, could tip the world economy into recession. In the days before Xi\u2019s arrival in the US, several banks and international institutions including the OECD, Asian Development Bank, and Barclays, downgraded their forecasts for China\u2019s GDP growth.<\/p>\n

In a lengthy interview with the Wall Street Journal (owned by media mogul Rupert Murdoch who had a private audience with Xi in Beijing last week), Xi assured his American audience that his capitalist reform agenda would continue, \u201cwhatever happens\u201d. Fond of figurative speech, Xi said the reforms \u2013 entailing a bigger economic role for private and foreign capital, more deregulation and privatizations \u2013 were \u201can arrow shot that cannot be brought back\u201d.<\/p>\n

\"The<\/a>
The South China Sea has become one of the flashpoints in a \u201cnew cold war\u201d.<\/figcaption><\/figure>\n

Conflicting messages<\/strong><\/p>\n

While the US side intends to press the Chinese president\u00a0over issues such as militarisation of the South China Sea and cybersecurity, seeking to extract some advantage from the Chinese regime\u2019s current difficulties, Xi sees the visit as a podium from which to calm fears of a Chinese recession or \u2018hard landing\u2019. His problem is that China\u2019s own economic data, and the fragility of the global economy upon which it increasingly depends, act like a persistent heckler interrupting this soothing message.<\/p>\n

Capitalist leaders around the world have become increasingly spooked as China\u2019s worsening economic slowdown and financial instability\u00a0threaten to blow Xi\u2019s reform plans off course. Beijing\u2019s surprise change to its currency regime in August, following a costly and ultimately futile attempt to stem the stock market rout, raised fears of a Chinese devaluation.\u00a0This\u00a0further shook\u00a0confidence in Xi\u2019s team and punctured the widely held view of the global capitalists that China\u2019s leaders are competent economic managers.<\/p>\n

US-Sino relations have entered a more turbulent era as China\u2019s rise has increased the pressure upon US imperialism to defend its position as the \u2018global policeman\u2019. This is especially the case in Asia where tensions are rising as shown by the vote in Japan\u2019s parliament at the weekend to abolish \u2018pacifist\u2019 clauses in its constitution thereby\u00a0allowing Japanese troops to fight alongside US forces, or other allies, in overseas wars. Japan\u2019s nationalist right-wing leader, Shinzo Abe, whose military policies are supported by the Obama administration\u00a0but opposed by a big\u00a0majority of Japanese people,\u00a0has made no secret of the fact that his\u00a0constitutional \u201creinterpretation\u201d is tailored to meet the \u201cthreat from China\u201d.<\/p>\n

South China Sea<\/strong><\/p>\n

This is just one of many important shifts in Asia\u2019s geopolitical map, beginning with US president Barack Obama\u2019s 2011 military \u2018pivot\u2019 to the continent, which is designed to check China\u2019s growing economic dominance in the region.<\/p>\n

China is far and away the biggest trading partner with the ten\u00a0economies that make up the Association of South East Asian Nations (ASEAN), home to 600 million people. Bilateral China-ASEAN trade was worth 480 billion dollars last year compared to 100 billion dollars worth of trade with the US. China\u2019s financial power across the region \u2013 buying up Australian iron ore mines and Indonesian banks \u2013 has\u00a0also emerged as\u00a0a counterbalance to traditional US and Japanese dominance. This is the background to what is becoming an increasingly dangerous dispute over the South China Sea, which may result in some tense exchanges between Obama and Xi later this week.<\/p>\n

China and several of its neighbouring states have overlapping claims to uninhabited islands and the surrounding territorial waters, which are believed to be rich in mineral and energy deposits, but which also have important military implications. US spokesmen have stepped up their war of words in recent months in protest over China\u2019s land reclamation and construction of airstrips and other military or potential military features in parts of the South China Sea.<\/p>\n

The US and its key ally Japan have boosted\u00a0military cooperation with the governments of the Philippines and Vietnam, which are both embroiled in infected sovereignty disputes with China over parts of these disputed waters.<\/p>\n

The losers in this military\u00a0muscle-flexing competition\u00a0are the workers and poor farmers in China, Vietnam, Philippines and other Asian nations, as governments drum up nationalism and increase arms budgets at the expense of urgently needed social spending on housing, education and environmental protection including defences against rising sea levels and other effects of carbon-driven climate change. Far from trying to find solutions, the US and Chinese ruling elites are exacerbating the problems as they vie for regional pre-eminence in what is sometimes referred to as the \u201cnew cold war\u201d.<\/p>\n

\"US<\/a>
US spokesmen have protested over China’s enlargement of islets and reefs in the South China Sea.<\/figcaption><\/figure>\n

Cyber warfare<\/strong><\/p>\n

Prior to Xi\u2019s visit, the Obama administration levelled a series of charges against Beijing over hacking attacks against US companies by Chinese government and military entities. The Chinese side responded by sending their head of internal security Meng Jianzhu to Washington to try to defuse the issue before Xi\u2019s visit. Obama has called for an international framework to prevent the internet from being \u201cweaponised\u201d but this is very much a case of the pot calling the kettle black.<\/p>\n

The US state, as whistle-blower Edward Snowden revealed, has bugged the phones of 120 heads of government around the world and operates a truly gigantic and intrusive global cyber espionage machine. Commenting on calls for reprisals against Chinese state-backed hackers, former NSA and CIA Director Michael Hayden exclaimed, \u201cWhat are we going to do? Steal Chinese state secrets? We do that anyway!\u201d It is possible that at the meeting of the two leaders in Washington a \u2018code of conduct\u2019 will be announced to limit the scope of these attacks, but this is unlikely to count for much in practice.<\/p>\n

Interdependence<\/strong><\/p>\n

But as the queue of US corporate leaders waiting to shake hands with the Chinese president illustrates, and this\u00a0included Bill Gates, Warren Buffet and Apple CEO Tim Cook, the relationship between the world\u2019s two largest economies is a complex one \u2013 with economic interdependence deepening side by side with strategic rivalry. For Boeing, which Xi visited on Wednesday, China now accounts for almost a quarter of its airplane sales. Apple counts China as its largest single market as well as its main production base.<\/p>\n

The US Federal Reserve\u2019s decision last week to put on hold a long awaited increase in the benchmark lending rate, the first in nine years, also shows the strong financial and economic linkages between the US and China. This was recognition by the Fed of the fragile state of emerging markets (EM) which account for 40 percent of global output and are the hardest hit by China\u2019s slowdown. The shift of US monetary policy away from \u2018quantitative easing\u2019 and interest rates set close to zero, has led to plunging currencies and capital flight from \u2018EM\u2019\u00a0economies.<\/p>\n

A feature of US diplomacy towards the Chinese dictatorship has been to play down the issue of \u2018human rights\u2019 \u2013 i.e.\u00a0state repression \u2013 apart from some perfunctory references made on the side-lines of the official talks. For capitalist governments it is more important to discuss business deals and try to extract economic concessions.<\/p>\n

\"Socialist<\/a>
Socialist Kshama Sawant leads protests against Xi Jinping’s visit in Seattle.<\/figcaption><\/figure>\n

Democracy and\u00a0\u2018colour revolution\u2019?<\/strong><\/p>\n

Likewise, while Chinese media furiously denounced \u2018Western powers\u2019 \u2013 and Washington specifically \u2013 for fomenting a \u2018colour revolution\u2019 in Hong Kong one year ago, referring to the mass Umbrella Movement calling for democratic elections, this has completely disappeared from Beijing\u2019s vocabulary during Xi\u2019s US tour. The absurdity of this accusation is shown by the fact that three representatives of the Hong Kong pro-democracy movement are also currently visiting the US in a bid to shadow Xi\u2019s visit. Despite being sponsored by the Democratic Party-linked \u2018NGO\u2019 Freedom House, the dissidents\u2019 attempt to meet with US government representatives failed. The US government values \u2018democracy\u2019 in much the same way as Beijing values \u2018national unity\u2019: these are\u00a0propaganda weapons to advance their power and economic interests.<\/p>\n

Under Xi Jinping there has been an increase in arrests of dissidents, more stringent internet controls and censorship, and a crackdown in the universities and news media against \u2018Western values\u2019. The liberal or \u2018political reform\u2019 wing of the regime has sunk into deep pessimism. This layer\u00a0favours gradual and limited opening up of the current authoritarian system out of fear that unbending hard-line repression will trigger a revolutionary explosion. Xi\u2019s anti-corruption campaign, which he has used to consolidate his control within the regime and to win over the public, has created huge tensions at the top and aggravated the economic downturn. Nationalism and repression, mixed with renewed pledges on neoliberal economic reform\u00a0\u2013\u00a0these are the hallmarks of Xi\u2019s rule.<\/p>\n

US companies have been among the main beneficiaries of the draconian laws and harsh factory conditions that enslave Chinese workers. Companies such as Apple, Dell and HP \u2013 tech companies that Xi Jinping met with this week \u2013 use suppliers in China that routinely flout safety, overtime and anti-discrimination laws, and underpay their workforce. The adoption of \u2018codes of ethical standards\u2019 by US multinationals is a smokescreen, much like the government \u2018human rights\u2019 discourse, because of half-hearted enforcement and refusal to tolerate\u00a0the one force that could really make a difference: genuine trade unions as opposed to the scab-ACFTU that masquerades as a union in China.<\/p>\n

The latest example of this came at Foxconn\u2019s giant Longhua plant in Shenzhen in the past week. 15 workers were dismissed by the company, which is China\u2019s largest exporter, because they unfurled a banner protesting the non-payment of social insurance contributions. The workers\u2019 action on 8 September, which was a brave attempt to rally the wider workforce of 100,000 at the plant, was timed to coincide with a visit by Foxconn\u2019s Taiwanese owner, the billionaire Terry Gou Tai-ming. Foxconn, which became famous for a wave of suicides by young workers in 2010 and has a reputation for military-style sweatshop discipline, is also the largest manufacturer of Apple products such as iPhones.<\/p>\n

While US capitalists and right-wing politicians condone and profit from these conditions, it is socialists like the Seattle protesters who show solidarity with the struggle of Chinese workers to win\u00a0their rights. As Kshama Sawant and her\u00a0co-signatories declared in an open letter to Xi Jinping:\u00a0\u201cWe stand in solidarity with the workers of China in their struggle for democratic rights, including the right to organize in independent trade unions. Multinational corporations exploiting the present sweatshop conditions in China, enforced by your government, will be confronted with our opposition and resistance.\u201d<\/p>\n

\"Protest<\/a>
Protest by workers at Foxconn in Shenzhen \u2013 these workers were promptly sacked.<\/figcaption><\/figure>\n","protected":false},"excerpt":{"rendered":"

Sino-US tensions increasing as China\u2019s economy stumbles<\/p>\n","protected":false},"author":33,"featured_media":11049,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[132,148,124],"tags":[195,174,1007,3703,2543,2625,1633,897,4825,4827,2990,915],"class_list":{"0":"post-11047","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-china","8":"category-international","9":"category-news","10":"tag-capitalism-in-crisis","11":"tag-china-2","12":"tag-democracy","13":"tag-independent-trade-unions","14":"tag-kshama-sawant","15":"tag-obama","16":"tag-repression","17":"tag-seattle","18":"tag-sweatshops","19":"tag-umbrella-movement","20":"tag-united-states","21":"tag-xi-jinping"},"yoast_head":"\nXi Jinping\u2019s first state visit to the US - 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