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| Malaysia' Key Trade Partners 2010/2011 |
The story of Chongqing’s Bo Xilai and his wife, who most
likely murdered a British businessman and friend, has been in the news for more
than 2 weeks. Going through local newspapers, I was able to read almost every
day something new. Certainly, some people might wonder, why I am writing about
China, as I dedicated my blog to Malaysia. There are quite a number of good
reasons.
China has become one of the most important trade partners of Malaysia
and is in permanent competition with Singapore for the largest trading partner. (Malaysia SME 2010: Malaysia’s trade with China records healthy growth) Even though figures are interesting, I believe there is another reason to talk
about China. The country is in many ways overrated. No, I am not saying, don’t invest in
China. How could I? Most people would call me crazy and I admit it might be crazy.
China still grows at an incredible rate of 8,1 % in the first quarter of 2012.
One popular argument also goes like this: “ if only 1 % of the Chinese population
buys my product…”. Ok, I am not asking
anybody to ignore China and its potentials, but I would like to remind
investors to be cautious about it.
I am suggesting
diversification. Why is that? I could mention that just recently a journalist
of al- Jazeera has been expelled by not renewing her press visa (BBC May 2012:China expels al-Jazeera English reporter).
We could talk about the fact that this country is at best an autocracy, definitely
some kind of socialist one party game, but at least something without
democratic legitimisation. They crack down protests, impose censorship and have
political prisoners. Well, recently Chinese media follows the stance that the
Philippines are Chinese territory. (Irony Alert!!!) (Straits Times 10 May 2012: China TV claims Philippines as Chinese territory)
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| Bo Xilai |
However, leaving
all these issues aside, I want to talk about Bo Xilai and his story. He was a
man dreaming of being a big boy in Beijing and achieved already several high
provincial positions, such as Governor of Liaoning. He would become Minister of Commerce for one term and finally arrive in Chongqing. His strategy in opposing the current leadership
was based on populism, which comprised topics such anti-corruption campaigns and Mao –era communism. After all, it is not unusual that a rising star of the provinces wants to settle in Beijing. Besides, the central government does put a lot of pressure on their governors by setting specific growth and development goals. Often economic support programs and grants are connected to these goals. Obviously, the stakes are high, old elites feel threatened and China is simply no democracy with freedom of speech or press. In the end, Bo Xilai's story sounds like he fell for the greed, which he condemned so much. Sure, there are a lot of politics, but it will be hard to proof a plot of communist party against Bo. Furthermore, his family was involved in investment projects, which indicate corruption and fraud. (For more on the politics, I recommend this article, The Heritage Foundation2012: Bo Xilai’s Fall Is Not Going to Lead to Reform in China)
Stay tuned for a short summary of the saucy story on Bo and his wife as well as some really alarming facts about Chongqing's financial situation or should I say, China's situation?
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