High Price of Cheap Imports
With the variety and choices of how, where and when we shop these days, I think we should all be exercising a little caution on what we spend our dollars on. China has become the factory of the world with its abundant cheap labor and thousands of factories turning out everything from low end plastic toys through to high end electronics. The result of the massive scale they achieve through their manufacturing means we have far more products available to us at cheaper prices than ever before. We then feel our dollar goes a lot further and we can afford more ‘stuff’. There is also the benefit of China taking our mineral resources to fuel the global demand for their products. This may appear that the nation benefits greatly from these exports but a look at the two mining states of Western Australia and Queensland and this is not overly apparent. The combined debt of these two states is in the order of $AUD120B.
This debt is not the issue here though. Many developing nations have turned to China for funds through the Export-Import Bank of China (EXIM) or welcomed Chinese companies in to their countries to exploit their resources. There is evidence that much of China’s activity in these developing countries is done to ensue China locks in supply of the resources and energy it requires to keep developing. Environmental, social and ethical matters are either ignored or pushed aside. There is also the fact that many of the Chinese companies that do business in the developing world have ties back to the Communist Party in China. This is a concern. China openly flouts any laws that concern human rights. Having one political party controlling the population has also meant that there is little to no meaningful opportunity for questions to be asked of the government’s activities. NGO’s can be a good counterpoint to bad practices by corporations and governments, but these are unable to function within China. China’s only citizen to win a Nobel Peace Prize, Liu Xiaobo, was jailed for his opinions on human rights in China. This is the case for many other outspoken critics of the practices of the Communist Party.
Western corporations that are either privately or publicly owned can face a plethora of criticism if it is deemed their practices are unlawful, environmentally bad or breach individual or a groups human rights. This is not the case for these Chinese corporations who have taken over mining operation in countries that Western firms have deemed not meeting their corporate social responsibility mandates. While the Chinese firms do sometimes meet resistance in the countries they operate, the local government are often more than happy to step in and allay any unrest as the enticement of Chinese money is all too strong to ignore.
We mustn’t be blind to what is going on in other nations and continents that are out of line of sight. It is all too easy to keep supporting a regime through countries reducing tariffs and consumers demanding cheaper and cheaper products. However, we need to think about where it is all leading. China’s One Belt One Road plan is being eagerly greeted by many as they become part of the continuous export of Chinese made goods to different parts of the world. A dig a little deeper in to the concerns of India in to this expansion and you can get a sense of how the perceive the threat of being slowly strangled by China encircling them is becoming a real threat.
I’m not saying here that all Chinese companies are complicit in these types of practices. It is the ruling regime of their country that ultimately needs accountability. They have gained huge growth through the millions of their citizens that work tirelessly to improve their own lives.
So, next time you are looking to part with some of your hard earned cash, think about where the money ends up and the cost associated with unsustainable mining, deforestation and manufacturing. Look local if you can. Support imported products from regimes that do not sweep human rights abuse under the carpet.
