China’s Rise – Response to New York Times Article

China’s rise is viewed with concern by this morning’s NYT article “China’s Economic Empire”.  The United States is familiar with the prowess of state corporatism, as a spawn of the British Empire. Canada, my country, is a direct product of an authoritarian state working in concert with a corporate entity, namely the Hudson’s Bay Company. So we all know the expeditious nature of the union of state power and state sponsored companies. Is the alarm raised by the NYT justified?

There is a grand bargain between the West and China, China you may have access to our markets and we yours; oh, and by the way, we have expectations with respect to human rights as well. There is always a harmonic in relations between parties as they move through actions related to agreements, the constant undulation between one’s interests gaining ground and the other’s gaining ground. When one sees the tally of China’s acquisitions and activities offered by the NYTs this morning, one quakes a little; it seems that China is on the upswing in the satisfaction of their interests and the Western satisfaction of interests seems to be waning. It is important to note however, as the financial mass of China grows and wields greater influence they move form an independent entity to an interdependent state of being.  Perhaps we can take some comfort in this fact, and while being wary of China’s prowess and its direction, understand they are a nation leaving an era of deprivation with much residual social inequity and, still, hunger – a nation seeking a better lot.

With that as a back drop, one can begin to contemplate the power of the profit motive. The sheer wonder of the profit motive, when pursued in an unfettered fashion as China is seeming to do, is the predictability that it provides. While one sees the Nationalist elements of China’s modality, the pragmatism of their pursuits are of some comfort.  The challenge is interfacing with China in a manner that offers a balance between China’s assent and the West’s influence; this is the nemesis of our interface, to some extent we tremble at the sight of our own history before us.  So in accepting that all matters of the human endeavor come with both promise and pearl, with one eye always open, we can begin to contemplate the ever present question of a serial entrepreneur; how can I make money here?

Clearly, there are several sectors that can benefit and none better than the Agricultural & Forestry sectors. If there is a requirement of 2000 gallons of water to make a ton of steel and a ton of wheat; where might China focus its attention? The long term trend, given China’s consumption patterns bodes well for upscale food stuffs, the stuff Canadian agriculture made of.  Further, our forest industry is benefiting and will benefit more as Western building practices gain mass in the Chinese market. China is only one factor, in a confluence of factors supporting the long view in the Agro & Forest businesses, British Columbia’s old friends will be back.