Today I was struck by a sudden anomaly at my school. I noticed that students were carrying large boxes of school supplies in my class. When I asked a student if these were for a science project they said no. In fact, these were for a sale that students were participating in. A collective of small desks were set up underneath the building of my classroom to serve as stands for students to sell and trade their products on a market exchange. How novel I thought. An educational activity for students to practice the arts of capitalism on a micro scale.
The surprise wasn't warranted by capitalism practiced in China alone. You don't have to be a China expert nowadays to know that China is not a communist country. The current economic doctrine practiced by Beijing is state capitalism, and on a massive scale. Industrial Revolution Era skies, jungles of construction cranes, and massive shopping centers demonstrate that China is a giant capitalist machine pumping out enough exports for 5 Americas to consume. But still, despite China's new face, it is surprising that Chinese citizens at such a young age would be permitted (perhaps mandated) to practice such activities in an educational setting managed by communist party members.
However, if you really think about the dynamics of money and capital in Chinese culture, it isn't that difficult to discover a bridge to this conclusion. Chinese society is inherently capitalist by nature. You don't need to go to a shopping mall, stock exchange, McDonalds or Starbucks to see that. In fact, the best place to see Chinese capitalism in action is a local agriculture or seafood market. Such locations not only provide a cacophony of sounds, smells, and textures but also an opportunity to see Chinese capitalism at its finest. Numerous food stands will sell the same products (egg fried rice, dumplings, soup, BBQ kabobs) at a comparable price. The same goes for raw agricultural products from eggplants to egg-whites, from leaks to lichees, and from fish to chickens. Stand owners shout out the prices of their products to get the attention of fickle consumers. These are noisy and competitive environments, ripe for bargaining and business exchanges.
One unique experience in China is using improvised illegal public transportation, aka tuk tuk like motorized carts called San Lun Ches (three wheeled cars). These guys will always rip us white folk off, but by cheating us, I really mean charging people psychologically acceptable prices. For instance, a destination a mile or two away will cost around 30 cents for the average Chinese, but someone with my skin color will be offered the same ride for about $1. For the average ignorant westerner, the price comparable to a ride in the US sounds like a bargain, but for those who know better it's not. Nonetheless, these drivers are figuring their prices with a psychological cost benefit analysis. White guys are rich, so they probably will be willing to pay a higher price because they'll think they are getting a bargain anyways. Some people might find this racist, but thats a capitalist mindset if I've ever seen one. The fact that the Chinese business perspective is so capable and likely to cheat customers reveals an inherit capitalist dogma within Chinese culture itself.
The value of wealth and ownership extends to personal relationships as well, which is the very foundation of Chinese society. For instance, frequent customers are always treated with a sense of seniority at any establishment. In the pursuit of marriage, Chinese in-laws will not consent to the marriage of their daughter unless the lucky bachelor owns property (aka an apartment), has a well paying job, and sometimes even a car. During festivals such as the Spring Festival (New Year), Chinese people will pray to particular deities for good fortune for the coming year.
In fact, it's these relationships that have made China's ability to dominate the East Asian economic zone possible. Chinese communities have developed in the Philippines, Vietnam, Thailand, Indonesia, Malaysia, and other Asian nations over hundreds of years. Singapore itself is the product of overseas Chinese immigration and British imperialism. Chinese communities in these countries are condensed, closed and exclusive and it is these communities that tend to dominate the economy of these countries.
Overseas Chinese are noticeably richer than the local majorities in these countries. Even in the US, overseas Chinese communities tend to be economically successful and Chinatowns usually are environments where economic activity is vibrant and striking. Following China's turn towards capitalism in 1978, family relationships were extended from the mainland to overseas Chinese communities in order to advance foreign trade opportunities. Today Asia is covered by an expansive bamboo network of Chinese Guanxi (relationships) which give China an advantage in opening up new markets and business opportunities especially in Southeast Asia. In fact, some politicians in Southeast Asia, such as the exiled former Prime Minister Thaksin of Thailand, are ethnically half Chinese. The Chinese ability to succeed in a capitalist economy have made the Chinese people business leaders in almost every country in Asia.
Now I don't want my readers to get the impression that Chinese culture is a perfect example of Adam Smith's ideal free market. China has adopted a state capitalist model for a reason. Chinese society has developed under the management of a large and draconian bureaucratic state for most of it's history. Chinese cities such as Chang'An and Hangzhou were dominated by sophisticated public infrastructure and managed by complicated legal codes dictating the limits of trade and commerce. China's modern Communist System continued a long tradition of authoritative governance that values unity and stability over freedom of thought and action. In fact, the Presidency of China, the structure of the Politburo and the formality of official party ceremonies appear to be simply a modern adaptation of the traditional imperial court of the Middle Kingdom.
Still, despite China's authoritative civic culture, the culture of Chinese everyday life is capitalist by nature, and the Cultural Revolution and Great Leap Forward don't appear to have changed that.
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