The Two Unifiers
China(9,500,000km squared ) and Europe(10, 160,000 km squared) are of a relatively similar size give or take an area the size of Poland. However, unlike Europe, China does not have a long history of debilitating wars fought against neighbouring states.
The two leaders who are credited with uniting China after war are thus enshrined today. These two leaders are separated by over 2000 years.
The first Emperor, Qin Shi Huang (259-210 BC), who unified all the old states of China and subsequently instilled economic, social and cultural reforms. Some of those included building the Great Wall to centralise the state/keep out the Mongol hords, but he also buried alive 460 of the day's intellectuals in burials sites close to where his grand Terracotta Army was later found.
The second is of course, Mao Zedong, whose statues adorn pretty much every city. His greatest achievement was in essence defeating the Chiang-Kai-Shek- led Kuomintang and unifying China after 100 years of foreign influenced rule and the cival war that followed after Japan had exited in 1945. Some of his reforms included instilling women into the working environment and creating a simplified writing system. Also Mao deployed a similar tactic to his predecessor, but nonchalantly dismissed any claim that he was similar to the First Emperor in a speech to his part cadres, he exclaimed
" He buried 460 scholars alive- we have buried 46,000 alive", he continued, "You intellectuals revile us for being Qin Shi Huangs. You are wrong. We have surpassed Qin Shi Huang hundred fold".
" He buried 460 scholars alive- we have buried 46,000 alive", he continued, "You intellectuals revile us for being Qin Shi Huangs. You are wrong. We have surpassed Qin Shi Huang hundred fold".
China's out of date philosophy
Thus China has kept a unified, singular state for the majority of its 5000 year history. They are in the majority one race of people (Han ethnicity makes up about 93% of the population). Having been at the forefront of the worlds innovations between the 1st and 18th century, its no surprise the Chinese for China is 'Zhongguo' 'middle kingdom' i.e. the whole world revolves around them. They essentially don't need other countries help.
Chinese people's cultural heritage is more established than more than most countries in the world. However the reason why they had so much foreign influenced rule in the 100 years between 1850-1950, was because they weren't able or willing to rid to change from their norm. They have had an almost obnoxious belief that their way was the right way.
However, since Deng Xiaoping reforms in 1978 that opened up China to the world, the country has drastically caught up with other around them.
The latest economic reforms first initiated last year, and expected to be extended even further this month, could prove an even greater step forward for the Chinese government, and they are taking place here
in Shanghai.
Free Trade Zone
Shanghai officially launched Mainland China’s first Free Trade Zone (‘FTZ’) in September 2013. The 29-square kilometre FTZ area marked a positive step forward to boosting reforms.
Quoted in South China Morning Post, First Premier Li Keqiang stated that he ‘wanted to make the zone a snapshot of how China can upgrade its economic structure’. He added that the ‘FTZ is not only a trial program of the country’s reform and opening up strategy, but also offers an important opportunity to drive renovation and facilitate the transformation of development’.
The move makes Shanghai an increasingly competitive location for international business and commerce. This is partly due to the FTZ loosening the tax burdens, hence lifting the city’s ease of conducting business. The Shanghai FTZ offers easier investment access to both foreign and domestic capital and services.
Sources from the Ministry of Commerce of China and the Management Committee of the Shanghai FTZ have given further implementation details into the future liberalization movement in the FTZ expected to be released this month, these plans include:
- Further deregulation and liberalization in the investment and financing sector.
- Expand the cross border using of RMB to further internationalise the currency.
- Further the liberalization of the banking interest rate. Currently, the nationwide interest rate is state-governed; the plans if they go ahead would mean banks in the FTZ could offer a lower interest rate to drive investment.
- Reforming of foreign exchange management. Currently, trade goods are able to be purchased in an RMB convertible currency. This measure is also gradually being introduced into capital items as well.
Implementations
These reforms show many things.
Not so long ago in China's history, China denied the Brits entry to import our Opium from India on to their shores. This kickstarted the Opium wars, which Britain won quite convincely. The Treaty of Nanjing, 1842, followed that led to us getting Hong Kong as well as three other trade sea ports.
Many other Western countries followed to do an unequal treaty after unequal treaty with China. It was the century of shame for China.
Mao from 1949-1976 rid China of most of its foreign influences when he came to power.
This therefore is within a lifetime of people living in Shanghai right now. The FTZ is another signifier of the future being very readily shown in the face of the past.
The point here is that rather than the Chinese living in the present dominated by their tradition of being a unified, singular state they are essentially dropping their habits and embracing the future by embracing Western business like never before. For a country that is steeped in history, this change really is so uncharacteristic, and worth noting.
That probably explains why it is just a pilot scheme. However with 12 other cities around China putting in their request to get a Free Trade Zone, the demand is there.
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Now there is the other side of the coin and that is the how the Western world acts who have been given an opportunity to establish themselves in the Free Trade Zone.
Early signs haven't been encouraging though. Pretty crazy given British ships used to bombard Shanghai to sell their Opium. Surprisingly then foreign capital enterprises only make up 3-5% of the companies occupying space in the FTZ. This could be identified because foreign investors want to understand China’s policies first, while the domestic government moves forward stably.
However, I feel that the Western world are too dismissive of setting up in China, because they would rather cater for them in their own country.
As you have seen recently in the news, Chinese rather than just making their presence felt in starting up takeaways on the street corner, they are now investing huge amounts of money in the centre of London. Plus China's biggest e-commerce company Alibaba is about to float itself on the New York Stock Exchange.
These recent examples just go to show that China is trying to internationalise itself in the business world. Will we see the Western companies now do it in mainland China?
