POREG VIEW: So, the long overdue paradigm shift in the way the world deals with China is taking place. As expected of it, the United States has taken the lead as John Pomfret’s report in the Washington Post says in the context of GE selling locomotives to Pakistan in the face of stiff competition from China.
Islamabad always views Beijing as its all weather friend and considers the relationship with Washington as uni-dimensional with US concerned only with its interests. The GE deal and the recent Wen Jiabao visit should make Pakistan wear its thinking cap and realise that it is being taken on a ride by the Chinese capitalism.
China has not singled out Pakistan though. It has adopted the same predatory tactics in other Asian countries, notably Sri Lanka, Africa and even Latin America. Its sole concern has been how to make money and more money. And its sole belief is that money has no colour.
Towards the end it is the Chinese ministry of commerce and not the foreign office which is dispenser of aid business deal packaged as mutually beneficial trade offs. In Pakistan, it was rail engines in return for building a rail line. And in the African country of Tanzania, telecom gear is offered in return for fishing rights.
Such deals are possible only when the entire State acts as one enterprise like in China and not each wing on its own as in the case of several other interlocutors of China.
That the United States has put its business act together is clear from another report that says that the American defence department has decided not to buy Chinese solar panels unless China agrees to open its government procurement. In any country, it is the government that is the biggest buyer and mover. President Obama’s decision will hurt the Chinese where it matters – the pocket.
Japan and France also are not far behind in blunting the Chinese edge with both willing to give more flexible loans on low rate of interest. From business to diplomacy and strategic issues will be the next logical step. And China can only demur as the world puts it on notice.
The message of Year 2011 is loud and clear. It is that the rules of the game will be one-sided till the rivals wake up from their slumber.
