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ECONOMICS OF CHINA AND MEXICO.
Term Paper ID:30251
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Essay Subject:
Analysis of how future economies of the two countries are dependent on U.S. relationship.... More...
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8 Pages / 1800 Words
7 sources, 12 Citations,
APA Format
$32.00
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Paper Abstract:
Analysis of how future economies of the two countries are dependent on U.S. relationship. Political outlook for Mesico and China. Economic opportunities. Mexico and NAFTA and free trade agreements. Political reform movements in Mexico. China's privitization efforts. "Most favored nation" status. State-owned and Western styled management systems. U.S. role in globalization.
Paper Introduction:
CHINA AND MEXICO: POLITICAL OUTLOOK FOR BOTH
Perhaps, among all the so-called “trading partners” in the world that directly concern the U.S., both our neighbor, Mexico, and the vast land-mass called The People’s Republic of China pose both the greatest opportunities and also some danger. The opportunities are economic, of course. The danger lies in human rights and a difference in political attitude and the very nature of its people and their leaders. We need to get an overview of where relations and political futures of these two vastly different nations are headed. First, Mexico.
From the time many ultra-conservatives wailed that the NAFTA pact would destroy American jobs, the fact that it has brought some economic growth and stability between Mexico and the U.S. has seemed to benefit Mexico’s border states more than it has U.S.
Text of the Paper:
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"On the face of it, it may appear that theconditions of landless peasants in Mexico's poorest provinces have littlein common with, say the concerns of the European working class.However...imaginary barriers (have been transcended)...attracted by theprospect of creating logistical problems for international gatherings ofbankers and corporate bosses." (Ali 2 1 2) Even with "impeccable" right-wing credentials, Fox is dealing to eliminate the problems of Chiapas andother poverty areas as quickly as possible. While the influx seems to have slowed, jobs have to be developed aswell as the skills to handle them. Even at the outset. relationships. The principlesof quality control and imposition of a Western-styled management systemalso are slowing total infusion of capital into China. CHINA AND MEXICO: POLITICAL OUTLOOK FOR BOTH Perhaps, among all the so-called "trading partners" in the world thatdirectly concern the U.S., both our neighbor, Mexico, and the vast land-mass called The People's Republic of China pose both the greatestopportunities and also some danger. Exactly what would be a definition of China's foreign policy(excluding the desire to have Taiwan rejoin mainland China)? In assessing Mexico's politics andpoliticians, the author sees it as a sort of pyramid. In conclusion, the futures of these two totally different countriesare somehow linked. Whoopposes Free Trade? Fox needs to persuadeAmerican politicians (including California, where he paid a recent visit)that there is more to Mexico than "illegals" attempting to cross into theU.S. "'Thefight continues,' Zapatista commander Zebedeo told the crowds." (Anon 2 11) China, on the other hand, remains a restive giant in Asia. Yang, Dali L.(April 8-9, 1999) "Conclusion: PRC's Political andForeign Policy Changes" "PRC Reforms At Twenty" International Conference,Taipei. So, politically and economically, Fox isdetermined to make reform a priority. makes the idea of "Free Trade" to the ordinarycitizen seem unfair and even discriminatory. There are some economists and politicians who have some negativecomments about globalization and America's role in it. The world, whether China likes it or not, has become so globalizedthat each nation must become involved or lose any sort of economicopportunity. It would be naïve tosay that we "need" whatever Mexico or China produces. No author listed: "Fox's Program Plans" WorldNews.com (accessed April4 2 1 www.mexicocity.com/?action=display&article No author listed: "Zapatistas Return to Chiapas" BBC World ServiceApril 2, 2 1 vianews.bbc.co.ukhi/English/world/Americas/newsid_1255 /1255449.stm There seems to be the belief thatthe freest possible movement of goods and services maximizes economicefficiency, hence human well-being. "...theAsian financial crisis, manifested in dramatic revenue shortfalls andrampant corruption by state agents,...finally galvanized the Chineseleadership to implement a massive restructuring of the government as wellas adopt 'best practices' that will transform the ethos of government."(Yang 1999 16) One of the "noteworthy" tendencies during the reform era"has been for personal loyalty groups to shift to bureaucratic politics:'where you stand is where you sit'." (Baker 1999 5) The People's Republic of China is not really concerned withproselytizing its brand of communism. It is not necessary to have economic gains fromColumn A and forced to accept Column B's Human rights. The opportunities are economic, ofcourse. (Perhaps it is worthnoting that Bush's first "foreign" trip was to meet with President Fox inMexico.) What China attempts to teach the West is that profit and Humanrights are not linked. employment figures. "The President sitson top of the pyramid, but his real job is to balance what her perceives as'the national interest'...He is the powerful referee who can interpret therules, but he must make sure the teams keep playing the game." (Riding 198567) "What then, is the Mexican form of government? However, the multi-billion dollar (and yen and euro) investment in a nation with more than twobillion consumers, cannot stand on humanitarian principles. Alternative model of MexicanPolitics" accessed April 4, 2 1 Dittmer, L. There is a new President in Mexico, ending a one-party rule that hasthrottled Mexico for generations. The linkage,however, has to be focused on the economies of the two countries- and thatfuture is very much dependent on U.S. The danger lies in human rights and a difference in politicalattitude and the very nature of its people and their leaders. As Mexico is slowly changing, so isChina. At least, there is a stability in hispromises which seem do-able and soon. We need toget an overview of where relations and political futures of these twovastly different nations are headed. But, NAFTAhas not penetrated the South. Mexico and Chinamust do it on their own. China had sent its premier, Jiang Zemin, to berate Washington for itsHuman Rights policies. But, whatever they see is seeing them through Western eyes. WhileCapitalism is creeping in, human rights violations- from forced labor topolitical and religious persecutions- continue to be contentious,especially between America and China. needs to be both wary and aware.We cannot be the world's policeman as well as moral judge. Knopf. "Fox has pledged a more honest, business-like administration. In other words, Free Trade has a human face. China has been dragged kicking and screaming intoprivatization, because state-run enterprises have been unable to compete,and were so poorly managed that, if they produced anything at all, it wastoo expensive and too badly put together. (April 8, 1999)."Reform and Chinese Foreign Policy"address at "PRC Reforms At Twenty" International Conference, Taipei. "AlthoughChinese foreign policy certainly underwent a profound transformation withthe inauguration of the 'reform and opening' policy at the end of 1978, italso retain elements of continuity- an essentially goal-rational foreignpolicy that sets clearly prioritized strategic objectives." (Dittmer 1999) Yang (1999) sees the possibility for a continuing change in thereformation and reformulation of the Chinese bureaucracy in the need tomake some substantive (if, to the outside world, cosmetic) changes. (1986) Distant Neighbors (1985) New York: Alfred A. Protectionism New York: H.W.Wilson Co. Tounderstand both the Latin culture in Mexico and the Asian tradition inChina we need to look beyond our own concepts of what "should be" and facethe realities of what is possible. President Fox, head of the conservativeNational Action Party, is a great hope for many Mexicans, especially thosein poor and rural areas, including those in Chiapas, where there had beenrevolution and battles which former President Zedilla did not discourage.But, with a new President and a new agenda for the Mexican economy, comeadditional worlds pressures. He even scowled as he was boycotted by Tibetan lamaswanting their nation back. IBM and Philip Morris, AT &T and GTE, GM and Chrysler are now familiar names in Chinese manufacturing..We now have to deal with China. First, Mexico. The nation also seemsto have an identity crisis, Early in the book, Mr. Riding (1985) makes twoastute observations: "The Mexicans have no difficulty understanding eachother....Yet they anguish when it comes to explaining themselves." (Riding1985 3) He then also criticizes the Mexicans for interpreting the worldaccording to their emotions. But 2 billion people cannot be "changed" overnight. There is no doubt that Mexico's future- economically and perhaps evenpolitically, is closely tied to American sentiment. For one thing, somecall America's global outlook "naïve". It will not be easydislodging the privileged, no matter which political party is in power. It is difficult to predict what theAmerican "spy plane" incident, and the apparent loss of a Chinese pilotwill do to economic negotiations. NAFTA has, of course, been a boon for many Mexican workers. NAFTA wasbeginning to work: "As we enter the second year (1995) of NAFTA, anyone inthe labor movement who may once have been cool to the idea of cross-bordercooperation is beginning to realize its absolute necessity....The cross-border movement is still too new to see clearly which tactics will be themost successful, but whether organized by unions or looser networks ofworkers, it is heading in the right direction." (Miller 1996 24) In a bookDistant Neighbors (1985) the author makes some telling statements which,some sixteen years later are still applicable: One of the problems, ofcourse, is that Mexico's economic plans have failed. Senate to approve Most Favored Nation status as anexample of Western prejudice against Asia, using the issue of "humanrights" as a lever to deny China that status. fartherSouth. Politically, things have not changed, evenwith Vicente Fox as new president. There is much opposition by liberals tothe "most favored nation" status China is receiving. In fact, there is the possibilitythat the idea of doctrinal Communism, as practiced under Mao and Chou-enLai will fade into the background. has seemed to benefitMexico's border states more than it has U.S. And, it sees the fact that it took some time and a lot ofargument in the U.,S. It is not a questionof Capitalism working with State- and Private-controlled Communism inindustry and investment, as much as their being able to adapt to theprinciples of trade and management supervision that the Westernconglomerates are used to. There is also the fallacious perceptionthat, if free competition is good nationally, it is even better globally. Instead, we shoulddevelop such opportunities not just to import, but to build our exports.Economists and social critics are concerned about human rights violationsin China. References Ali, M. There are no scheduled high level meetingsbetween President Bush and any top Chinese official. Riding, A. Ajob lost in the U.S. The goalof trade agreements such as NAFTA, was increasingly "free trade". From the time many ultra-conservatives wailed that the NAFTA pactwould destroy American jobs, the fact that it has brought some economicgrowth and stability between Mexico and the U.S. From an economic standpoint, until NAFTA came along, Mexico hadlittle exportable goods other than petroleum products. Critics said a fewyears ago, and still some are concerned, that the government seemed tooffer the options of stagflation (which they called Argentinization) oralmost complete foreign control of local firms (which they referred to asCanadization). "Draft Text of MEI 99-38 . Miller, Henri (ed.) (1996) Free Trade vs. Business Week cites aMexican political scientist who says it is 'a buddy system'....InMexico...it is a group of 'buddies' that make up the '1 families' ofMexico, the 'oconsentidos de sistema, 'the privileged classes." (Baker 2 11) This is a system which needs to be changed. It is economic explosions that nowconcern China. Communism, China style, hasstepped down to be more in sync with Hong Kong. He wants to improve the economy, reform taxes,overhaul the justice system, and give state governments more power." (Anon2 1 1) In fact, according to World Bank News (2 1) Fox has launched PlanPuebla-Panama, a $25 billion series of infra-structure projects designed tospread the benefits of NAFTA and increased trade with the U.S. While Mexico's new regime is making an effort to rightsome wrongs, China is resolutely making no such effort. Whatever theamount and the timing of change, the U.S. This continues to be Fox's accommodation of the Zapatistas who hadsome 15 , people cheering them upon their arrival in Mexico City. Ross Perot, of course, who still rails against NAFTA,as well as many unions in the so-called "needle trades" who are seeingtheir jobs move to Mexico and Latin America, as well as Southeast Asia,where labor is paid a very small percentage of what American workers wouldcommand for the same jobs. That really haslittle meaning for those executives who see those billions of resurgentChinese as potential consumers? (April 4, 2 1) "Mexico: The Zapatista Paradigm"DAWN/Internet Edition: http:// Dawn.com Baker, G.
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