A question is asked: Why US and the West have kept pouring money and high technologies in into China to boost it to become the world 2nd largest economy and military although USSR collapsed in 1989? The question is asked by SONTRAN on The Economist.
First opinion on the above question is:
Why not pour money into the China? Has China clearly threaten West or declare it its enemy?
Next I will try to answer the question indirectly in the following discussion.
In a democratic capitalist nation, the government has very little control over the financial decisions of individuals and private organizations, the decisions involving foreign countries, organizations, and individuals. If a private organization is involved in a critical military contract with government, then government can influence its economic decisions involving foreign countries and organizations. But in other non-critical industries and contracts, the organizations are free in their decisions.
Initially, Western nations tried to improve relations with China probably to counter USSR, as implied by the question asked. The start of improving relations was in government control because it involved a lot of diplomacy. But when the Western governments agreed on trade with China, then private companies and organizations started to do most of the business.
Contrary to governments, private companies and organizations are concerned mainly with their reduced costs and expenses and increased profit margin. They rarely think about the social and long term economic impacts of their financial decisions. Governments are there to control the freedom of the private organizations through regulations when the impacts of private organizations decisions are not good for the country, society or other public goods. But, in case of USA, the private organizations have powerful lobbies in government that prevent the government from imposing any regulations that can affect the profit of private organizations.
And this is the reason, the USA and Western countries are pouring money and high technologies into China.
One side point is: The money and high technologies are poured in China not by USA and Western governments, but private organizations in those countries.The government then can't object because the trade with China also brings costs savings, more taxes, and environmental improvements as the dirty industries are shifted to China.
One can also say that the reason is the the ideologies of capitalism (which involves free movement of goods and services and capital) and democracy (in which governments can't force individuals and private organizations without proper reasons). But when we look at the past and current active policies of Western nations and USA, we can see that they don't care at all about ideology and morality when money is involved.
At the end, we can say that in the presence of free market and trade and monetary profit, geopolitics and ideologies become irrelevant.
First opinion on the above question is:
Why not pour money into the China? Has China clearly threaten West or declare it its enemy?
Next I will try to answer the question indirectly in the following discussion.
In a democratic capitalist nation, the government has very little control over the financial decisions of individuals and private organizations, the decisions involving foreign countries, organizations, and individuals. If a private organization is involved in a critical military contract with government, then government can influence its economic decisions involving foreign countries and organizations. But in other non-critical industries and contracts, the organizations are free in their decisions.
Initially, Western nations tried to improve relations with China probably to counter USSR, as implied by the question asked. The start of improving relations was in government control because it involved a lot of diplomacy. But when the Western governments agreed on trade with China, then private companies and organizations started to do most of the business.
Contrary to governments, private companies and organizations are concerned mainly with their reduced costs and expenses and increased profit margin. They rarely think about the social and long term economic impacts of their financial decisions. Governments are there to control the freedom of the private organizations through regulations when the impacts of private organizations decisions are not good for the country, society or other public goods. But, in case of USA, the private organizations have powerful lobbies in government that prevent the government from imposing any regulations that can affect the profit of private organizations.
And this is the reason, the USA and Western countries are pouring money and high technologies into China.
One side point is: The money and high technologies are poured in China not by USA and Western governments, but private organizations in those countries.The government then can't object because the trade with China also brings costs savings, more taxes, and environmental improvements as the dirty industries are shifted to China.
One can also say that the reason is the the ideologies of capitalism (which involves free movement of goods and services and capital) and democracy (in which governments can't force individuals and private organizations without proper reasons). But when we look at the past and current active policies of Western nations and USA, we can see that they don't care at all about ideology and morality when money is involved.
At the end, we can say that in the presence of free market and trade and monetary profit, geopolitics and ideologies become irrelevant.
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