Comments from Henry Liu on China and the WTO

Julio Fernández Baraibar julfb at
Mon Dec 27 17:36:57 MST 1999

Here is our comrade Henry again.
Congratulations to him and I hope we can enjoy his posts as before.
Julio FB
-----Mensaje original-----
De: Louis Proyect <lnp3 at>
Para: marxism at <marxism at>;
pen-l at <pen-l at>
Fecha: Jueves, 23 de Diciembre de 1999 01:56 p.m.
Asunto: Comments from Henry Liu on China and the WTO

>[I posted Alex Cockburn's article in the latest Nation about the WTO and
>China turning into a "yellow peril" to the Marxism list and cc'd Henry Liu.
>This was his reply.]
>The WTO/China controvercy can only be fully understood in the larger
>geopolitical context.
>Since the fall of the USSR, US-China relations, which had been fashioned as
>strategic "China card" against Soviet expansionism, has been devoid of a
>strategic anchor.  China is increasing being cast by the US as a potential
>enemy, instead of a potential ally to be wooed.
>As a prime enemy, China must be demonized.  China has not changed; only US
>strategy has.
>As the sole remaining superpower, the US is drifting towards moral
>the extreme form of cultural imperialism.  The US is no longer satisfied
>peaceful co-existence with opposing ideologies.  It now aims at using its
>preeminent military and economic power to impose American values for the
>world.  These values include neo-liberalism, capitalistic democracy, market
>globalization and structural racism.  It promotes inequality as a
>merit, exploitation as a neccessary economic principle, creative destrucion
>religion, deregulation of capital as progress, predatory practice a
>while diluting workers rights and environmental protection through
>Offical US policy on China, with the Nixon doctrine of avoiding the use of
>troops in Asia still operative, emphasizes the strateggy of "peaceful
>evolution", which is defined as moving China toward an acceptable US mode.
>This policy tries to kill two birds with one stone: reforming socialism in
>toward market capitalism and putting US domestic redundant labor under
>through job exports.
>Yet the flip side of this official policy is the need for a popular
>of China.  Not since the Korea War has there been such a powerful coalition
>US domestic hostility toward China, with the extreme right, the extreme
>labor, environmentalist and liberals all hopping on the anti-China
>each for their own separate purposes.  China becomes the line in the sand
>stopping globalization.
>Take for example conservative gruru Kevan Phillips who
>wrote: "The historical evidence from the two previous great economic
>world powers (the Dutch and the British) is that whatever financial
>elites want--high-profit global priorities--is bad for ordinary
>citizens, who are more vulnerable and require that domestic economics
>come first."  THE STEALTH COUP The Los Angeles Times  November 21, 1999
>This is also the point made by environmentalists, that globalization pushed
>whole system towards accelerated self destruction.
>The protests of Seattle hopefully marked the return of the social protests
>the 60's when popular frustration and distrust of official policy prompted
>street militancy in the US.
>Opposition to WTO has provided an anti-government focal point in the US
>that may
>spread all over the the world.  The Reagan/Thatcher policies
>have created in the 80s a false prosperity that alienated the masses
>even in the advanced Western economies.   The Clinton years have
>continued this trend.
>The supposedly liberal, populist tradition of the Democrats
>have been betrayed by Clinton's neo-liberal policies.  The current
>Clinton prosperity benefited mostly only the rich domestically and
>The new millennium will see the re-emergence of populist anti-government
>protests worldwide.  The lightening rod may well be WTO, unless the US
>in deflecting the hostility toward China. The paradox is that US hostility
>towards China works to keep China in a garrison state mentality and works
>against American strategy of "peaceful evolution".
>There is a prospect for the exploited in all parts of the world uniting
>the exploiters, a form of neo-internationalism of
>the oppressed, reviving the ideals of the failed Third International
>(Comintern).  Workers of the world should unite against global
>capitalism, rather than allowing it to divide workers in rich countries and
>those in poor countries as enemies.
>China's false hope that Western capitalism will save China from poverty
>will prove to be a fantasy.  Western capitalism aims to produce in China
>a new compradore class to help it exploit the Chinese masses.  The
>willingness of the KMT (the Chinese Nationalist Party) to play that role
>been the main reason for its demise.  Mao Zedong, upon establishing the
>immediately withdrew from GATT, the predecessor of WTO, for very good
>The principles behind Mao policies of Great Leap Forward and Self
>Reliance are correct.  Only the execution was flawed.   Mao, due to a lack
>understanding of science, failed to see the futility of catching up
>on the West in sunset industries, such as steel production.
>China should push forward with new frog-leaping technology such as
>communication where China can close the gap quickly and easily.
>The major flaw in China SOE reform strategy is its acceptance of high
>unemployment as a path to efficiency.  As a national policy, it is a
>sub-otimization trap.
>China must stop looking to capitalism and market fundmentalism as a
>solution, especially at a time when the battle by capitalism to capture
>may well determine the survival of global capitalism itself.  Global
>needs the huge Chinese market to keep itself from implosion.  It is the
>logic of neo-imperialism.
>Let this strange bedfellow coalition of US demostic politics go ahead and
>China out of the WTO.  It may help those of us in China who are working to
>resist Chinese WTO membership. Poisonous as the current US anti-China
>is, it may be the needed vacine that finally saves China from capitalism
>Western neo-imperialism.
>Henry C.K. Liu
>PS: Louis, please resubscribe me to your list, although I cannot promise
>frequent posting. Thanks.
>Louis Proyect
>Marxism mailing list:

More information about the Marxism mailing list