Published in the late nineties, He Qinglian's book China’s Pitfall (also translated as China’s Descent into Quagmire )—tracing the country’s socio-economic problems following two decades of reform—made the whole country take notice. Later, her article Analyzing China’s Evolving Social Structure went further in revealing the endemic corruption inside the CCP. Her work took China—and later the world—by storm, but the phenomenal success came at a price. The Chinese government took action, placing He on 24-hour surveillance. Despite such close observation, she still managed to flee the country.
In 2001, Hsu Tung-ming of the Taipei Times reported, “At a time when the Chinese Communist Party (CCP) is celebrating its 80th anniversary, ‘economic development outweighs everything’ has now become the mainstream opinion inside the party. Ironically, the New York Times revealed on July 3 [2001] that the famous Chinese economist He Qinglian, an outspoken critic of China’s corruption, had fled to the US to escape a crackdown on freedom of speech. He’s case has highlighted China’s long- criticized human rights situation. Her observations and criticisms of the economic development after Beijing’s reformation and opening are worth studying.”
Ms. He continues to comment on the state of Chinese economy and society, as well as uncovering the lies it has been successfully selling to foreign investors. On November 12 and 14, she will be in Chicago presenting a lecture detailing the political and social environment in China, and how it impacts on foreign investment.
In a recent article entitled The Boat and the Water , Ms. He spells out how foreign investors actually help perpetuate China’s economic prosperity myth. She writes, “… foreign companies that have suffered a crushing defeat in the Chinese market deceive their head offices with reports of outstanding performance. On many occasions, I have heard senior managers at major corporations say in private that carping about the losses suffered by China-based subsidiaries is not advantageous to US companies, because a company's image is an important factor in the valuation of its stock. Moreover, in the world of American industry and commerce, China is generally considered the world's last major unexploited market. By investing in China, companies express confidence in their own future. If they pull all their investments out of China, their corporate image is liable to take a beating.”
While profit is an important motivating factor, foreign investors also give the altruistic claim that they help to promote China’s democratization. Ms. He admits that while foreign investment “has brought China advanced management techniques and employment opportunities,” they have helped bring far more damage to the country and its people. She writes, “… in order to keep well relations, foreign businessmen have successfully urged their governments “not to criticize China's human rights record and political system. This has substantially decreased international pressure on China's government to improve human rights, and as a result, the human rights situation in China continues to deteriorate.“
In fact, instead of overseas investors influencing Chinese democratization, these businessmen become indoctrinated into the Chinese corruption system. In order for foreign businessmen to make investment in China worth their while, they must play the same game as the corrupt Chinese leaders. “… Foreign companies that want to do business with China… have to pay bribes, but the money from those bribes comes from China anyway, so it’s no skin off their backs. As the cost of paying bribes is made up for in huge mark-ups, foreign companies have adopted a wise strategy of ‘making a big profit at a relatively low cost,’ which requires them to play by the Chinese rules of the game, accept ‘Chinese characteristics,’ and participate in corruption. In fact, when it comes to handing out bribes, Western companies have become disciples that surpass their masters.
The title The Boat and the Water refers to the traditional Confucian idea that water can bear the boat, but it can also capsize it. Meaning, a ruler had better maintain a reasonable relationship with the people or else there will be trouble for him. However, it seems as if modern Chinese governmental officials have, for the time being at least, avoided the repercussions of the old axiom “… now that corrupt officials can retire abroad and do not have to share the polluted environment or the degraded and insecure society that they have created for their people, they can conduct themselves as they see fit without bearing the consequences.”
In addition to her lecture on the 8th floor of the Harold Washington Library on State and Congress in Meeting Room 8S 14 & 15 on Monday, November 14th. 11:30 am to 2:30, He Qianting will join immunologist and molecular biologist Dr. Lili Feng at Northwestern University's Evanston Campus in Room G02 of Annenberg Hall, 2120 Campus Drive, on Saturday, November 12 from 3 to 6 p.m.