One Thing in Common

As the United States remains embroiled in a bitter Presidential primary season, we can begin to see similarities emerge between the rust belt of the U.S. and the rust belt of China. Hillary and Obama have been courting the voters of the North Eastern states of Michigan, Ohio and Pennsylvania. President Hu Jintao and Premier Wen Jiabao have been hoping to gain political advantage by courting the North Eastern provinces of Liaoning, Jilin and Heilongjiang. Both the North Eastern quadrant of the US and the North Eastern quadrant of China have become industrial centers because of their close proximity to coal. They both reached a pinnacle during the fifties and sixties but since then have seen a steady decline in manufacturing and production, particularly in the areas of steel production. Both areas are faced with unemployment. Both are politically pivotal areas. China’s previous president, Jiang Zamin, concentrated his efforts in revitalizing the southeast coastal region including Shanghai, Guangdong and the Pearl River Delta. He was able to also center much of his political power in this area. President Jintao hopes that by seeking solutions to the problems of the industrial northeast he too will be able to draw support from workers in these areas. At a time when stability is of outmost importance to the CCP, the high unemployment problems and lack of social safety nets in these provinces are of particular concern. An extensive 10 to 15 year plan has been laid out that will attract development to the area. The Hu/Wen team, perhaps taking a few tips from the Hillary/Obama ticket, has also laid out a plan for pension insurance to replace the safety net of former SOE’s. We often hear that China is taking all of our jobs. Workers in Ohio and workers in Jilin may find out that they have more in common than they think!