Trading with tyrants

In the US and in the UK and Europe, we have all been enjoying the effects of a liberalised Chinese Economy, cheap goods from china now proliferate the shelves of most shops. It is in fact the economic boom in China that has funded the American economy, including tax cuts and the wars in Iraq and Afghanistan. As America needs to borrow more, don’t forget it has a borrowing requirement of three trillion dollars and the whole of the annual tax revenue goes to pay for the tiny federal Medical Care system, most of that borrowing has to come from China.

Thus at first glance it appears odd that America should be playing host to the Dalai Lama, something that the Chinese government have criticised for happening. The spiritual leader of Tibet, who has to live in exile, will meet with president Bush, when the Dalai Lama will receives the Congressional Gold on Wednesday.

The BBC Story

Tibet was annexed by china in the 1950s and has occupied it ever since. Moving ethnic Chinese to the territory and repressing the native population. Well it represses its own population too, but that’s a whole other story.

Because of the economic links with China it seems odd for the Bush administration to risk upsetting the Chinese, but the links are a two way street, and China needs the American government to keep on borrowing from them to fuel its expanding economy. Without the US borrowing so much the rate of expansion of the Chinese economy would be less than a tenth of what it is now. Therefore beyond a bit of posturing nothing will happen that will really do anything to help Tibet, its people or even the Chinese people.

Therefore, buying Chinese goods keeps Tibet repressed, it helps prolong the war in Iraq, and more importantly it is helping to turn China into a global super power. One day we will learn not to trade with repressive regimes and more importantly stop allowing them to develop into global threats.

Further Reading