Public Territory Theory and China Opportunity

Recently the PD journalist attended some seminars in Argentina, at which such issues as the economic globalization, security and anti-terrorism, multilateral trade negotiations are discussed. Attended at the seminars are scholars, entrepreneurs and diplomats from the US, Europe and Latin America. A pleasing scene is that China was mentioned many a time in each and every seminar, and the people expressed objective and active attitude towards China's development and rise.

Some people may wonder why those in the minority against China can keep on making noise or even influence their government decisions whereas so many foreign investors and customers who have benefited from China's development do not show any objection to anti-China noise.

The "Public Territory Theory" in Western economics may help understand this phenomenon. According to the theory, due to over-pasture, a public rangeland will unavoidably run into such a situation that no one takes care of it. On the contrary, a private ranch is always carefully maintained because its interests belong to minority. Actually, an interest group does exist behind each of the anti-China argument. Not long ago, some American enterprises' condemned China for exporting cheap goods. This is a fine note to this theory. These enterprises regard the American textile market as their own "private ranch". They are easy to unite and glad to impose political pressure by using media and canvass. On the contrary, it is impossible for customers to be united for protecting the "public rangeland" even though they benefit from the Chinese products. As a result, things in line with majority of customers are not protected. While small number of enterprises affected by such things form a group exerting an effective pressure, forcing government to restrict the import of the Chinese textiles. The recent anti-dumping of the China-made color TV sets can be another case of the theory.

"Public Territory Theory" is often embodied in the political life of the US, e.g. subsidy policy for the American agriculture, which is criticized by the international community. The policy is actually not welcomed at home either. However, the farm owners, just a small number of the whole population, are easy to form an interest group. For years, they make efforts to protect their subsidies by canvas and donation for election. In this way they get in a lot of subsidies. On the contrary, taxpayers in other industries cannot possibly form a special group just to object the subsidy.

The "Public Territory Theory" offers us a mirror helping us see the true reasons behind certain policies and public opinions. Once got an understanding of the "Public Territory Theory" and western political games, we need not feel pessimistic. Anyhow, the act of infringing public farm for one's own interest will not be welcomed. The reality is the best proof: amidst the anti-China rows, the "China opportunity" theory, without being publicized, has become popular. It spreads fast even in Latin America, a territory far away from China.

A report of the UN Conference on Trade and Development says that China will be one of the first choices for direct foreign investment in the future years. In the eyes of numerous customers, China is a provider of inexpensive and quality goods; while to the international investors, China is a country full of opportunities. The note of the World Bank in its book "China in 2020" says that the rise of China brings opportunity for the development of the world, just like what the U.S. did in the 19th century and Japan after World War II. It hasn't imposed any threat to the world. Instead, it has provided the world economy and trade with motive force. The conclusion of the book is "Go invest in China, share the profit."

Source: People's Daily Online