The other “surge”, China’s ForEx

April 12, 2007 at 6:17 pm | Posted in China, George W. Bush, globalization, international relations, Iraq | 5 Comments

China just announced that its Foreign Exchange reserves are up over 37% from last year.

China’s foreign exchange reserve reached 1.2 trillion U.S. dollars by the end of March, up 37.36 percent from the same period last year, the People’s Bank of China announced on Thursday.

“The rising trade surplus is the major factor contributing to the forex reserve boom,” said Cai Zhizhou, an economist with Beijing University. Low prices of Chinese goods contributed to the rising trade surplus, he said.

1.2 trillion dollars, sitting in Beijing, thanks to the continuing belief in one myth: Democracy will somehow magically appear if you throw enough money or troops at a nation.

Don’t get me wrong, I’m a firm believer in the notion that the United States should be relentless in the intelligent pursuit of a better world, where all humans are treated with dignity and live without the fear of violence from their government, neighbors, or abroad.

But let’s be clear: the money that is flowing into Beijing isn’t creating a Democratic society, nor are the troops flowing into Baghdad. The American people continue to get poorer, and more than a few continue to die, because of the continual belief in the idea that Democracy can magically appear.

For thirty years, we’ve been led to believe that throwing money into China would make the nation more Democratic, but nothing has changed. As James Mann points out in his new must-read The China Fantasy, American leaders (many of them Democrats, unfortunately) continue to promote this fantasy.

We’re fortunate that public opinion is beginning to change in Iraq, but withdrawal is still a long way away. How much farther off, then, are we from realizing our China policies need a significant overhaul? Unfortunately, it appears that we’re all-too-willing to bankrupt our nation to support a Stalinist regime.

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5 Comments »

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  1. Just wait and see when Chinese Yuan is being traded openly by retail traders…

    There will be more USD $$$$$ in China that will make the 1.2 Trillion dollar look like pocket change, and that being said, Chinese government will have no choice but to be more open to the WEST, and become more Capitalistic.

    Andy Shearman

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