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    Greater China
     Jun 2, 2012


Page 2 of 2
China battens down the hatches
By Peter Lee

It takes a village, apparently, to button up a lawyer-activist in China, and the amounts expended on supervising and harassing Chen - estimated at over 8 million yuan (US$1.26 million) - are a source of wonder.

What is perhaps an even more remarkable source of wonder is the fact that variants of this extravagant system are applied to perhaps one million Chinese that no one has ever heard of. As reported by Charles Hutzler of AP, hundreds of thousands of Chinese activists, dissidents, miscreants, parolees, and suspicious characters are kept under intensive surveillance similar to Chen's.

The operations are funded by "stability maintenance" funds from

 

the central government, part of the $110 billion the government spends each year on domestic security and order.

The article recounted the case of Yao Lifa, a schoolteacher who ran afoul of the system when he tried to run as an independent for a local political office 25 years ago. The current system of tight surveillance has been in place for a year or so.

Yao told AP how his surveillance is managed, including a significant outsourcing to gym teachers in the school he used to teach at:
Anywhere from 14 to 50 people a day are on the local government payroll for his round-the-clock surveillance - what he calls the "Yao Lifa special squad". They get 50 yuan, $8, for a day shift and twice that for night work. Often, he said, hotel rooms, transport, meals and cigarettes are thrown in.

The sums add up in Qianjiang, a city of struggling factories and one million people set in the center of the country. Basic pay runs about 1,000 yuan, or $160, a month for an entry-level teacher and goes to three times that amount for a veteran, Yao said.

"This isn't bad for teachers," said Yao. "An English teacher probably wouldn't take it. They can earn extra money giving private tutoring. But gym teachers can't do the tutoring. Besides, their superiors have told them to do this. They can't not do it." …

He said he heard the school and education bureau were arguing over $48,000 for his surveillance.

"I have many acquaintances. Some of them work in police stations," Yao said. "They tell me 'Really we could use a Yao Lifa. If we had one, we could make more money.'" [3]
According to Hutzler, an article in Caijing reported on a village in south China in which a quarter of the local government personnel were on the stability payroll.

This would appear to be more than "stability maintenance". It's a form of central government support to shore up the finances and legitimacy of the local government, ie, the local communist apparatus.

Call it CCP welfare, or "workfare". Well, maybe call it "goonfare."

It is, to put it mildly, not a good thing for the CCP when the local face of the party is a crew of musclemen hassling schoolteachers. To add to the problem, and the perception, for many local officials, the temptation to graft off the imperfectly supervised "stability maintenance" funds is reportedly irresistible.

Now that this system is in place, it is difficult to see how the central government can abolish it - unless, in addition to howls of protest from local cadres, it is interested in dealing with a surge of local unrest and disgruntled petitioners, and a legal system that is not up to the task of protecting the rights and serving the aspirations of its citizens.

The fundamental problem is that, contrary to the party's hopes, breakneck economic growth over the last decade has not translated into an outpouring of gratitude or support for the Chinese Communist Party. "Socialism with Chinese characteristics", like another triumphant economic system we all know and love, has inequality built into it.

In Western capitalism, the power of the "1%" is diffused, anonymous, entrenched in every institution, and embedded in every political party. Even after the colossal rich man's cock-up of the 2008 financial crisis, for instance, 99% of Americans were unable to summon up the united political will to confront Wall Street, let alone engage in a satisfying politico-economic jacquerie against the moneyed elite.

However, in China, the political problem is much more severe, because inequality clearly benefits party members - and princelings within the party - disproportionately. Overall gross domestic product (GDP) growth, that scorecard of economic success that infatuates state planners, foreign businesses, and economists alike is, for China, a two-edged sword, since it ineluctably widens the perceived income and social justice gap.

Therefore, there is a lot of anxiety inside and outside the party about closing the wealth and justice gap ranging from traditional command economy nostrums like subsidized housing to fancy free-market panaceas such as reforming the pampered, cash-rich state run corporations through private corporate competition and public wealth sharing through increased stock ownership.

In fact, it would be useful to consider that China is now trying to turn away from macro-economic management of the economy, with its implication of passively waiting for the tide to lift all boats, to politically targeted financial and investment policy meant to selectively grow vulnerable sectors of the economy at the expense of industries and institutions that have emerged as political liabilities.

However, these solutions don't go very far in addressing the disgruntlement that suffuses Chinese society like a toxic fog: the idea that Chinese wealth creation is primarily an exercise by which the CCP enriches and entrenches itself.

It's not easy - or perhaps even feasible - to remove the dead hand of the party from economic and political life, or from the consciousness of the Chinese citizenry under the current system.
Things are less than ideal even after - and, to some extent because of - a decade of rampant growth. Now, of course, China is looking at a period of slowed growth as a matter of policy as well as necessity, one that will presumably leverage even greater perceived economic and social injustice onto the shoulders of the resentful Chinese citizenry.

The West's faltering effort to free itself of the incubus of its failed economic policies means a eurozone crisis and bad news for China's export economy. At the same time, China is still dealing with the inflation and real-estate bubble hangover from its massive 2009-10 stimulus and cannot risk fueling inflation by dumping a lot of money into the economy.

If the CCP finds itself unable to finesse the looming economic and political crisis through a savvy combination of political and economic policies, the alternative - a bout of xenophobia and domestic repression that reveal the party in its least attractive light both to the world and its citizens - is not going to be pretty.

Notes
1. CCTV host Yang Rui: Arrest foreign thugs, shut up those who demonize China and send them packing, Shanghaiist, May 19, 2012.
2. Click here for the text (in Chinese).
3. Watching dissidents is a booming business in China, Yahoo! News, May 28, 2012.

Peter Lee writes on East and South Asian affairs and their intersection with US foreign policy.

(Copyright 2012 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication and republishing.)

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