The Miracle of Capitalism
Two Weeks in China

November 17, 2009

Last month, I spent two weeks in China on a Trade Mission with other House members (including Republican colleagues Dennis Richardson and Ron Maurer). The visit was also meant to show respect for the 25th anniversary of Oregon's Sister State relationship with China's Fujian Province.

Some of my more liberal colleagues were impressed with the expanding Chinese high speed train lines being built between various cities. They dream of building a high-speed train line along the West Coast. Rep. Richardson explains why the numbers don't add up.

Pictures from the trip can be viewed at my Facebook page. Oregon and Fujian both have tremendous timber production potential. During our talks we shared with them Oregon's successes and missed opportunities.

The Oregon delegation got along well, although we clearly disagreed about many things. However, there was one opportunity for Oregon that we could all agree on--young Oregonians who have even a rudimentary understanding of Mandarin Chinese will have far more employment opportunities than their peers. We are convinced that more public schools need to offer Mandarin as a second language. I was delighted to learn that one of my local high schools is already offering Mandarin and I will be encouraging others to follow suit.

Before my trip, I had learned about a troublemaker in China whom I was determined to meet. Mao Yushi is a free market economist who runs the only independent economic institute in China. Yushi has at times been blacklisted from China's state-run media for his outspoken views. I was delighted that he agreed to meet with me and I invited Rep. Maurer to join us.

Mao Yushi discussed China's current and future challenges with us and tried to explain the cultural motivation behind some of the government's policies. A much older man, Yushi survived the terrible oppression of Mao Zedong and seems genuinely pleased with China's rapidly expanding prosperity. His greatest concerns centered on how the current Communist government will adapt to inevitable political changes that China's growing middle class will demand. Meeting such a distinguished citizen was truly one of the highlights of the trip for me.

China's middle class is estimated at 200 million. Under them is what I'll call "the labor/farm class" numbering around 900 million. The estimate of China's "dirt poor" is placed at about 200 million. The miracle that capitalism has worked in China and India must be seen to be understood. Capitalism has lifted 800 million people out of abject poverty. China's national bird should be changed to the Construction Crane.

It would be incorrect to call China a "communist" country: Their embrace of capitalism is too wide-ranging. However, the country is still authoritarian. Social freedom in China does not come close to that enjoyed by the American population. Still, the poorer classes notwithstanding, it may soon be possible to say there are more people in China enjoying a higher degree of economic freedom than in the U.S.