Commentary

China Watch

Forum Digests

Columnists

Letters

The recyclable nature of fortune

By Brendan John Worrell (chinadaily.com.cn)
Updated: 2009-02-01 13:42

Like many here in China over the last week or so I spent time with extended family as part of the Spring Festival. One particular conversation I had with a Chinese man in his mid 40's stuck in my mind. It was at lunchtime and I was a guest in his dining room. To be more specific, I'm married to his elder sister's daughter.

Looking at me concertedly while pouring a glass of homemade plum liquor, Jiu Jiu (uncle) stated that it was much easier for me, as a foreigner, to find work in his country than it was for him, a Chinese, to make a living and provide for his family. Feeling a tad guilty and unable to argue, I simply agreed with him and kept on eating his food. When I'm nervous I eat. Well actually, I scoff.

Now just prior the conversation had highlighted a Chinese person who had moved to my country, Australia and was making over 200,000 RMB a year. This was seen as a positive thing and I commented that such a salary was quite normal back home, bearing in mind possibly a quarter of that would be taken off in tax and the ensuing cost of living was much higher, minimizing the true savings available at the end of the day.

Nevertheless the bright point was some of this money would make its way back to China and that workers extended family. The general mood was we were all helping each other. And it all got me thinking about the incredible linkages that have been established around the globe and how at present we are all up to our necks in strife emanating from the global financial crisis, that acronymic spawn of Satan, the ungodly GFC.

Previously the symbiotic relationship between Australia and China was on a blessed upward trend. Huge trade volumes were being forged with record prices met for iron ore, gas and coal which Chinese industry was eager to purchase. All this helped boost Australia's economy, and my mother's retirement savings that had been invested in supposedly 'safe' stock options. At the same time this trade satisfied China's thirst for construction and manufacturing and the country would also profit by selling flat screen TVs and refrigerators back to Australian consumers. And it seemed this complementarity was eternal.

Then quick as a flash, the US sub-prime mortgage crisis started hitting the headlines and before we knew it, investment banks were closing, jobs were getting lost, certain countries were going bankrupt and credit had been frozen across major markets. In time, demand for Chinese exports froze, at the same time leading to a plunge in mineral exports, Australia's currency and stock exchange took a hammering and only last week Prime Minister Rudd is predicting a modest evaporation of nearly $5 billion off Australia's annual exports and the resultant destruction of domestic jobs. His warning, 2009 could be, "one of the most troubled years of our age".

Talk about a post Olympic hangover!

Meanwhile my mother and my brothers are now in a panic realizing her retirement portfolio has been effectively gutted and our miscreant ways are now in need of a more responsible filial rapport.

At the same time as Rudd was making his statement, record summer temperatures were being felt across southern Australia, no more evident than at the tennis where 44c had been recorded in Melbourne.

Drawing full circle I was walking to my local supermarket here in Beijing and counted 4 major coal burning chimney stacks spewing plumes of carbon into the air to support the home heating requirements for citizens here.

Now before we start the blame game it can be argued that privilege often rests on another's less than fortunate plight. Also, that the export of certain products (i.e. coal, iron ore and gas) entails a cost elsewhere down the line. All totaled simplistic condemnation of Bush Jnr. or Greenspan, Sarkozy or Rudd just isn't adequate in today's world.

Months earlier when oil was up around $140 a barrel many critics in Australia were blaming Rudd. Now when it is down to $41 and jobs are getting lost and trade is creeping to a halt - it's his fault again.

My point is that while farmers Down Under experience drought and city slickers melt, it needs to be remembered that the revenue coming into Australia for so long has been attributable to a buildup of global greenhouse warming gases and before we start blaming all our woes on China and it's pollution, we need to remember that Australia is the world's biggest coal exporter.

Ideally, and I confess now more than ever to being an idealist, in times of rapid change and huge layoffs, what we need is restraint, understanding, time to step back and look at the bigger picture, the hindsight of history and the faith and courage to be optimistic where possible.

Pointing the finger has never really solved problems and it doesn't look like it is going to now. And even though Wall St. has taken a beating as of late how many among us didn't secretly ogle and desire all that wealth that was up for grabs and silently wish we were one of those high flying investment bankers?

Quite frankly it is human nature that is responsible for this present economic and environmental dilemma, and while the ongoing World Economic Forum at Davos has seen leaders storm out in frustration let's hope later at the United Nations Climate Change Conference in Copenhagen in December more patience and resolve can produce consensus.

We got ourselves here, let's hope we can get ourselves out.