14 December, 2017

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Too Much China Connection

By Laksiri Fernando

Dr. Laksiri Fernando

Dr. Laksiri Fernando

Excessive reliance on another is not good for a person or a country. This is exactly what is happening today in Sri Lanka. The repercussions of such a policy will be disastrous for democracy and also the economy. Already the consequences are visible in both spheres.

‘Like getting chillies by giving ginger’ (inguru dila miris gaththa wagai) is a common saying in the country. Origins of the proverb goes back to early 17th century when King Rajasinghe II invited the Dutch to defeat the Portuguese and then at the end the Dutch colonised the country. This is also what happened when the British came.

Of course the Western powers (Portuguese, the Dutch and the British) used force to seek alliances and colonise the country. That was a few centuries ago. It was somewhat in desperation that the Kings or the Nobles sided with ‘one against the other.’ The colonisation was largely unintentional on the part of the locals (kings or the nobles).

However today, the submission for virtual colonisation is willingly done, and voluntary on the part of the political leaders. The reasons are so seemingly obvious; money and power. The ordinary people are mere victims of this process. It is a mind boggling question how an Eastern colonisation (Chinese) is better than a Western colonisation (British or American). This is the twenty first century and not the sixteenth or the nineteenth century. Colonisation of all forms and from all quarters are inimical to any country’s independence and wellbeing.

Ancient Relations    

Sri Lanka China relations have a long history. The famous Chinese monk Fa Xian came to the country in the 5th century to study Theravada Buddhism. It was a spiritual venture. There have been further contacts between the two countries, although not very prominent, as Sri Lanka was on the sea lanes of the ‘silk-road.’ Most prominent among these contacts was Admiral Zheng He’s adventures and confrontations with the Kotte kingdom in early 15th century.

China those days was looking beyond the usual trade or commerce with other countries perhaps like today. It was the second phase under the Ming Dynasty (1368-1644). It was akin to an initial form of colonisation effort or at least a strategy of ‘string of pearls’ like today. Zheng He had several voyages via Ceylon and wanted port facilities in Galle and Colombo. The exact history of the confrontation is not clear. However, when Alakeshvara, who was first a military commander/minister and then the real Kotte ruler broke his promises to the Chinese, he and his entourage/family were taken prisoner to Nanjing in 1411. According to the Collected Works of Yong Rong (1515), the following was what happened in brief.

Straight-away, their dens and hideouts we ravaged,
And made captive that entire country,
Bringing back to our august capital,
Their women, children, families and retainers, leaving not one,
Cleaning out in a single sweep those noxious pests, as if winnowing chaff from grain…
These insignificant worms, deserving to die ten thousand times over, trembling in fear…
Did not even merit the punishment of Heaven.
Thus the august emperor spared their lives,
And they humbly kowtowed, making crude sounds
Praising the sage-like virtue of the imperial Ming ruler.”

Undoubtedly there were exaggerations in the description. However, the conflict as a result of either broken promises to the Chinese or because of Chinese over ambitions in Ceylon is true. It is unclear how the colonial ambitions of the Ming Dynasty died down in Greater and South Asia thereafter. If not, Ceylon could have been a colony of the Chinese even before the Portuguese.

When it comes to colonialism or colonial influence, whether it comes from the West or the East doesn’t make much difference. To overlook this fact might be a terrible mistake in politics.

Present Dilemma

China Sri Lanka relations have been immensely useful and pleasing after independence. Sri Lanka was one of the first countries to recognize the Peoples Republic of China (PRC) after the revolution in 1949 although formal diplomatic relations started later. The relations became launched with the Rubber-Rice Pact in 1952 in the trading sphere. The relations further bloomed particularly during Sirimavo Bandaranaike’s period.

A Chinese academic once told me that she was one of the small girls who welcomed Mrs. Bandaranaike with bouquet of flowers in 1972. They undoubtedly had a good impression of her and the country. These also were the days of the Non-Align Movement (NAM). The BMICH in 1975 and the Exhibition and Convention Hall next door to the BMICH in 1998 were outright gifts of the Chinese.

The times have now undoubtedly changed. China today is more for business than for generosity or mutual relations. There is no question about that, if Sri Lanka is careful enough in these business dealings. It is not directly the Chinese government that deals with Sri Lanka today but some of the major companies and banks, of course under the patronage of the Chinese government.

Even on Sri Lanka’s part, those who deal with the Chinese companies or governmental corporations are allegedly not the properly appointed government officials or the business leaders, but the political cronies or the intermediaries of the ruling Rajapaksa family. Most damaging has been the bypassing of tender and evaluation procedures. It is equally despicable to hear how some of the ministers (SBD for example) openly defend these deals on the basis of ‘quick decision making’ or actually ‘making quick bucks.’

This writer does not intend to go into the details of these allegedly dubious business deals. Some of them are already exposed in Parliament and in writings of other authors. The purpose of this article is only to highlight the dangers of these business deals in terms of foreign policy (externally) and good governance (internally). However, two of the examples are as follows.

  • Port City. A major investor in the so-called Colombo Port City project is the notoriously corrupt China Communications Construction Company (CCCC). The whole venture has been agreed upon without any consideration for the environmental damage to the coastline of the Western Province. The project will not benefit the ordinary people, but the big business tycoons and China’s desire for a ‘string of pearls.’
  • Railway Highway Costs. Costs for the railway lines or road constructions speak loudly for the underlying corruption. Beliatte-Matara Rs. 1,430 million. Peliyagoda-Katunayake Rs. 1,890 million. Pinnaduwa-Matara Rs. 2,700 million and Kadawatha-Kerawalapitiya Rs. 7,560 million. One may think this is for the whole construction. Alas, No. This is only for one kilo meter! Look at the discrepancies of the costs.

I am here not even talking about the well-known projects like Mattala Airport. The operational loss last year was a staggering Rs. 2,750 million. It is possible that the presidential election was called in advance before these mega deals would become completely exposed.

Consequences

Sri Lanka undoubtedly is located at a strategic place where East and West meet in some measure at least at sea lanes. This was something emphasized by Professor A. J. Wilson in his ‘Politics in Sri Lanka’ (Macmillan 1974). This was acknowledged even in ancient times. With the East fast developing today, the strategic importance of Sri Lanka is undoubtedly enlarged. That is the reason for the notion of ‘Hubs.’

Basil Mahinda ChinaHowever, it is not only one country that Sri Lanka should be concerned about in this equation from the East. India is the closest country to Sri Lanka both geographically and culturally. Japan has been a traditional friend of Sri Lanka like China. Apart from South Korea, Malaysia and Singapore, Indonesia is a fast developing country in Southeast Asia. Australia is also an important partner in the Indian Ocean region and now an integral part of Asia.

On the Western side, beyond the Middle East, we do have our proper Western partners. We also should not ignore the interests of the countries in the African continent. Whatever the frictions at present or in the past, Sri Lanka’s interests dictate us to deal with the Western countries in an amicable and a diplomatic manner. That has been the major orientation of our admired non-aligned policy in the past. Sri Lanka should not conduct its external or international relations like a ‘bull in a china shop.’

Chinese President Xi Jinping stated during his visit to Sri Lanka recently that the two countries can set “a good example of how countries of different sizes can live in amity and cooperate with each other for mutual benefit.” That is true. However, China’s recent relations with some small countries in its immediate perimeters are not so good. Vietnam is one example. China is no longer the socialist country that many of us in Sri Lanka admired during our young days. During my last sabbatical in Japan (2005-2006), a Chinese Professor, who is now working in Japan told me that ‘China is now more capitalist than Japan.’ He was referring not only to the welfare system, but also the way the business ventures are being conducted.

China of course has been defending Sri Lanka or rather the regime against the accusations on human rights violations by the Western countries in international fora – some reasonable and others excessive or exaggerated. However, China’s human rights record itself is abysmal.

The price given for the ‘defence of the regime’ should not be total submission to a single country in international relations. Of course it is described as ‘defence of the country.’ It is possible that China is not directly asking for a price. It is more of a case of our present leaders offering the submission even without asking. Another obvious inducement for this submission appears to be the ‘commissions’ that the family and cronies accrue through the business deals.

Even from the West, there have been strings attached to aid, loans or even trade. But nothing reported as giving commissions. The regime’s present mood is against the West, at least in rhetoric. However, Sri Lanka should not go back to the traditional predicament of what happened when you ‘exchange chillies for ginger.’

Another major China repercussion is on governance. China is a one party state and not democratic. Human rights record is appalling. Principles of ‘rule of law’ – if you can call such – or ‘division of functions’ between institutions (what we call ‘independence’ in our parlance) are at least different. Even if there are few positive changes in terms of governance or democracy, it is a long way to go. It is a distant dream. Under the circumstances, it is completely foolish for Sri Lanka to emulate China in any manner in terms of governance, citing efficiency or development.

The emulation of China (or more closely North Korea) is a major reason for the present regime’s clear deviation from good governance, democracy and human rights. Not that those principles were perfect in the past, but the deviations or violations are considerable and endemic at present.

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Latest comments

  • 13
    2

    “invited the Dutch to defeat the Portuguese and then at the end the Dutch colonised the country. “

    The portugese were the ruthless slave traders of all and carried all the kallathoni from Goa to Lanka upto 1978. (they were able to stay in india because bombay was given as a dowry to the english throne 1616 Charles.

    Dutch was not even a republic but VOC Dutch the worlds first cooperation with the fastest ships in the world. Their business is well documented and only the Madras presidency had retained almost all documentation while nationalist in other states have destroyed evidence.(Ceylon Kerala)

    The VOC Dutch had a negotiated settlement with the British and handed over most of East India Company. the reason being Dutch Republic Netherlands was under siege from all Europeans because they were the envy- fast ships and golden balls- nutmeg wars.
    There is much the islanders have gained due to the meeting of Europeans just like you have being down under now.
    _______
    “as Sri Lanka was on the sea lanes of the ‘silk-road.’ Most prominent among these contacts was Admiral Zheng He’s adventures and confrontations with the Kotte kingdom in early 15th century.”

    The Silk Route was always from Roman Period for Silk to `Erode District`In Tamil Nadu Kāñci-pura, 75Kl from Chennai is still a town in the district- recent findings of pottery etc. date 500CE. When the Chinese came the Portuguese were already there and observing from 1497or the Arabs had traversed that route for 700 years for pepper the currency to Cochin.
    ________

    Today even the US needs Chinese money to fight the Chinese- they the Chinese the workshop of the world because of their different approach to education just filled in the gap for cheap goods at a time everybody was spending on security and in the unregulated financial US &EU. China exported by undervaluing their currency.
    Things are taking shape after the next big shock due in 6-8 months.

    • 7
      1

      Javi.

      Why did GL hold his both hands in an defensive position?

      Did he have any painful experience when he previously met Xi Jinping?

      • 3
        12

        Very funny, this idiot seems to think. Get a better sense of humour, ‘kata hekara’ moron.

        This kind of comment only shows that you need to be civilised, probably by shoving a hot iron up the tube.

        • 9
          2

          Why do you find your night school dinners cold??

          Well they are koon pool patha palu pala! (lonely douche)

        • 4
          6

          Dont worry that Javi is mostely representing the masses of the country today.

          As far as my analyses re concerned – Javi often speaks from his back side. That is most disgusting ailment which is conspicous in todays society. That is how he is brought up. When looking athe teh way minister of HIGHer Education holds speeches to this day, even streets mongers of Pettah seem to be more civilized. Time has come to rethink who introduced this culture to the island nation – RASCAL BUNCH RAJAPAKSHES should be hung by their balls for all the disaster they have made to this nation.
          Just becasue his term was able to eleminate LTTE terror can NO means licence him looting and ruining this nation. Rajapakshes should go home by the 9th of Jan.

          • 8
            3

            “Javi often speaks from his back side. “

            another alemán fueJi using cheap deodorant

            because he has a stinking cold dripping like a tap.

            dirty kido!

            • 1
              5

              No Mr.cesspit – the weather is still not that cold this time.

              You please learn to behave somewhat civilized.. I doubt whether this could ever be possible while being in the RAJAPAKSE rascal world.
              Today, if you would listen to CITY DRAMA as Darmasiri B makes it clear
              even a rapist would be bought a lambogini by the incumbent. So no place for respect and dignity of life. Your vocabulary proves us most.. that is the reason why I thought to add above (perhaps, you cant switch on to good, because you are like MASSA WAHANNE GOMA GODE MAI… ha ha h..

              • 2
                1

                “is still not that cold this time. “

                No definitely not because I just harvested the Saffron.

                you’ve a dripping nose perhaps it’s broken go check pronto!

                You play honkey donkey with the wrong un and then go cry at NV’s feet.

                Balu kollo!

      • 7
        2

        NV,
        Perhaps he castrated the fella like the common chinese pigs and sent the 2 submarines to drive the wedge into Hindia.

        The Goanese IIT ‘n was not interested in the post of defence because as seen by Manmohan it would be futile to antagonise China.

        Within weeks Modi reinvigorated the defence treaty and Rouble/Rupee with a weak Russia. Hindia has no friend in the west now and China has gained more. Modi has messed it up for himself and the nation by shooting his mouth and constantly accusing China of war games while he in fact was posturing thinking he had others weapons.

        Did you notice yet another founder of Infosystems sold all his shares for $1.1 billion about 10 days ago.

        Just the north south politics of retaining Iranian TATA as the key player.(see the Mughal thinking though they are Hindu fanatics)

      • 1
        6

        NV,

        hilfe hilfe.. diese komischer Typ Javi attackiert mich.

        Please please help Native the most decent on this forum, this estragend creature Javi insults me for nor reason. All I begged was nothing but to be bit civlilized with JVIs text..

        • 3
          1

          “All I begged was nothing but to be bit civlilized with JVIs text.. “

          you lie through your teeth it’s your gamme godde breed.

          Puta madre cabeza!!

          honkey donkey

      • 1
        6

        it was just becasue he thought he could become the NEXT PM.

      • 1
        7

        Stupid Vedda did you not notice that the Prof. Is covering the front side. Should the not be behind him ?

        • 5
          1

          Blistering yakkaring barnacles,

          Habit of lickomalt is showing your sense of stupidity.

          Tatthi Pere pappa, had conceived a huge Rocker fart that tickled his balls!!

    • 1
      0

      “Like getting chillies by giving ginger’ (inguru dila miris gaththa wagai) is a common saying in the country. Origins of the proverb goes back to early 17th century when King Rajasinghe II invited the Dutch to defeat the Portuguese and then at the end the Dutch colonised the country. This is also what happened when the British came.”

      Prof Laksiri, you have failed the academic ethic of acknowledging those you cite to make a point.

      Does not matter.

    • 0
      0

      Dr Fernando,

      Thank you for an excellent analysis.

      Could you kindly tell me where the Collected Works of Yong Rong could be accessed on the web?Any other original Chinese and other sources in regard to China’s relations with South and also South East Asia would be most appreciated.

    • 0
      0

      Dr Fernando,

      Thank you for an excellent analysis.

      Could you kindly tell me where the Collected Works of Yong Rong could be accessed on the web?Any other original Chinese and other sources in regard to China’s relations with South and also South East Asia would be most appreciated.

      Regards

  • 5
    0

    Prof Laksiri Fernando,
    Excellent as always except “the accusations on human rights violations by the Western countries in international fora – some reasonable and ******others excessive or exaggerated*******.”

    What are the excessive and exaggerated bits?

    • 2
      0

      Prof Laksiri Fernando,

      I am hoping you would respond.

      Thank you

  • 1
    1

    Dr. Laksiri Fernando

    RE: Too Much China Connection

    “Excessive reliance on another is not good for a person or a country. This is exactly what is happening today in Sri Lanka. The repercussions of such a policy will be disastrous for democracy and also the economy. Already the consequences are visible in both spheres.:

    This is very true. Don’t put all your eggs in one basket, the Chinese basket.

    This was sated by Thomas Paine in his Common sense pamphlet, in 1776 for the American Evolution.

    Paine said excessive dependence on England is bad for America and Americans were being dragged for petty European Empire and Kingdom wars, and America suffered in its trade.

    So, Dr. Laksiri Fernando, you can write about too, had you started on the Common sense Phamplet, Sri Lanka 2014, as a Chapter.

    Only 20 days left, but not yet late.

    Better late than never.

    Common Sense (pamphlet)

    http://en.wikipedia.org/wiki/Common_Sense_%28pamphlet%29

    Common Sense[1] is a pamphlet written by Thomas Paine in 1775–76 that inspired people in the Thirteen Colonies to declare and fight for independence from Great Britain in the summer of 1776. In clear, simple language it explained the advantages of and the need for immediate independence. It was published anonymously on January 10, 1776, at the beginning of the American Revolution and became an immediate sensation. It was sold and distributed widely and read aloud at taverns and meeting places. Washington had it read to all his troops, which at the time had surrounded the British army in Boston. In proportion to the population of the colonies at that time (2.5 million), it had the largest sale and circulation of any book published in American history.[2]

    Common Sense presented the American colonists with an argument for freedom from British rule at a time when the question of whether or not to seek independence was the central issue of the day. Paine wrote and reasoned in a style that common people understood. Forgoing the philosophical and Latin references used by Enlightenment era writers, he structured Common Sense as if it were a sermon, and relied on Biblical references to make his case to the people.[3] He connected independence with common dissenting Protestant beliefs as a means to present a distinctly American political identity.[4] Historian Gordon S. Wood described Common Sense as “the most incendiary and popular pamphlet of the entire revolutionary era”.[

    • 2
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      Machang amare, the Sri Lankan version of the common sense pamphlet has now been written, you will be pleased to know. It is called my3’s election manifesto. Now you can finally stop your call for someone to write it ( thank goodness).

  • 3
    2

    Prof. Laksiri Fernando,
    I am deeply grateful to you for your astounding insight.
    Your profound assignment is highly commendable and I extremely esteem it as priceless piece of writing for future under and post graduate students who prefer to follow international affairs and politics in the future.

    No any asian country which abundantly depends on China like Sri Lanka in our human history.

    So called development means unbelievable and unpayable loans with highest interest rates.

    Our country definitely will belong to China in the future and our future generation definitely will be in trouble.

    Like Sri Lanka now, no rule of law in China and invisible dictatorship is there. No respect for human rights. No democracy there.

  • 5
    1

    dear prof,
    if we think we are emulating china in terms of human rights and governance
    we (you) are totally wrong. this is the most convenient way of ruling the country, no good governance, less human rights or suppression of it. i do not think that the chinese have to teach these elementary things about bad governance and violation of HR.. we are quite capable of these violations on our own.we started violating the rights of the upcountry tamils in 1948. then came 1956. like this there are uncountable number of occasions. even the rights of the majority were continuously violated.ex;recent verboge of SBD against CBK. so pl. dont’ bring in china for our wrong doings and cover up our convenient strategies to safeguard our own trecherous behaviour.— -sundara

  • 9
    1

    “If not, Ceylon could have been a colony of the Chinese even before the Portuguese.”

    here you are knowingly or unknowingly playing the Modi Mooth Maro game.

    You are taking of someones who you hold in high esteem as true but unreal.

    But Kerala has the fishing gear used by the Chinese then and today the Keralaites run the school of IT’s (software design) along with TN folk But Modi neglected them for his buying and selling state Ahmedabad to be the city to collaborate with Chinas computer hardware city. Just like Passa’s Hambantota.

    The Chinese traded for gold like any other Asian and Lanka had none so there was no necessity.
    Anyway the island is an agricultural economy still and geared to western exports.
    66 years run by sihala buddhist – you robbed the music; the weekend drive upcountry on beautiful roads and the gas pipelines electricity etc- the schools hospitals democracy itself and its structures.

    _
    Yes in a big way the present administration has copied the one party rule and administration of China- eg. the men under the table (party man in china) at every government department etc.

  • 2
    2

    China is pariah state itself keeping its own citizens in labor camps, using prisoners in development work which is against the UN charter, censor the right of information and block every website that is not following the communist party ideology etc.

    The secret of Rajapaksas giving contracts to Chinese is this is the easiest way to get the commission as with western contractors, they need to follow accounting practices and audits as per their own govt regulations and China do not follow any.

    In this way, MaRa have got upto like 2000% commissions of projects and the future generations have to pay back these with a curse for Rajapaksas alive and dead.

  • 0
    0

    Fernando of Ex-Trotskyist turn lecture in some where began to write essays to toe line back to Re-colonization of established that New Liberal Economy-political order in Sri lanka by selecting MS as new President of Island.

    We have seen the problems since 2008 World that had to be addressed are not just within the US borders. The globalized economy one cannot fully address US EU and Japan, that problems it is Global demand that will determine by global growth of China and other emerging nations.

    It is difficult for US EU AND JAPAN to have a robust recover unless China other not share the world economy will be strong. And it may be difficult to have a strong economy so long than it consumes and other side should saving to meet the population continues to consume for more than it produces.

    IS that Fernando has no simple knowledge that has to be realized without China and India and other emerging countries there is not production and consumes market at Globe? And there is NO strong Global Economy?

    The peaceful rise of China economy, will advantage for Whole world Order, will definitely benefitted that the People of Sri lanka too..
    ALL types of Chinese Investment in large scale ensure and advantage that for New Economic Growth and development of sustanatibility of
    Sri lanka.

    Ongoing projects by Chinese investment could have been spent for Sri lanka, which restructuring the national economy and creating new dynamic enterprises has been given away to not to save old failed system of Economies. Other aspects President new economic policy, that Chinese Capital investment have been decidedly movement in the right direction after end of War 2009 May.
    The memories WAR are short for MS, CBK & UNP Ranil W…led political class and their leaders; that war against LTTE terrorist in thirty years until 2009 May, then 4 years and half new peaceful political-economy era has been emerged under the MR Presidency.

    Sri Lanka too will change by investment policy by Chinese capital, the cause not that only China become bigger player of Global investment by larger foreign investors. Hence China supposed to become to Largest World GDP soon.

    Why Fernando blind on fact, an opposed most viable and feasible of Chinese Capital Investment to ongoing important projects for development and Growth national our Economy?
    The within the sector ,most of the economist like Fernando who tried to forecast where the economy is going?

    The President shifting that deal new market who tried to make our national economy sector more efficient. Indeed President and Team many worked hard and that investment on spent good money to be ensure the investment get the highest return to ensure that it took shape economy of country as much as possible.

    MR Presidency who are played a role in creating the system and in managing it that including those SRI LANKAN WORKFORCE WHO WERE REWARDED BY IT INVESTMENT AND FAIRLY BE HELD ACCOUNTABLE.

    Fernando has learn simple fact China is engine of Growth and Development of Global Economy, that has been realized by WB, IMF, ADB, G20, EU countries, US, Australia and Japan.

    Why Fernando rejected Chinese’s investments in Sri lanka.
    Is that Fernando working on behalf of New political agenda of UNP Ranil. W… CBK and Poor rural elites of MS line, that SO-CALLED that ‘good governance of Democracy’ to surrender and undermine NATIONAL ECONOMIC SOVEREIGNTY OF SRI LANKA?

  • 1
    0

    I love what the Chinese did to our ruling heathens.According to what I read, they demanded Kapang from the Chinese visiting delegation to pay homage to Adams peak.

    The Chinese however decided that it was cheaper the route the whole lot and take them home and subject them to the plight described.

    Hope they will take MR family and retainers with them this time. They should not forget to take DJ – as they need to be entertained along the way.

  • 3
    1

    What a conundrum. Over the years I have marvelled at where our most adventurous Sri Lankans have headed for in pursuit of their dreams. China? Soviet Union? Japan? (much beloved of our political classes). No, they have gone mostly to the evil ‘West’. Where do our politicians (and others) send their offspring to study by choice? Where do our politicians go to for treatment when they have been shot in the head?

    An old lady in the Galle Fort told me the other day ‘there have been more Chinese on the job in Sri Lanka over the last 10 years than there were British in Ceylon in all the 150 years they lorded it over us’.

    When I asked Huflun Dung, the Chinese supervisor on the Colombo-Kandy road, when the task will be completed, he replied ‘hu no?’

    A Chinese contact in Shanghai told me candidly that, to the Chinese, Sri Lankans were only slightly better than monkeys. To which I replied ‘wu, wu, wu’.

    Yet most Sri Lankans these days take pleasure in knocking the west (including many who enjoy the hospitality of those same western countries). At least with our government, they are looking for that all important vote at the UN, and there is a quid pro quo that underlies much of their ‘friendships’. Now the Chinese have also offered our people much bait; for which we the people AND our children will pay for till at least the end of this Century. Some subha anagathaya!!!!!

    Who to tell these things to?

    Don’t cry for me Sri Lanka!

  • 0
    2

    Actually, there are two Chinas ruling in Beijing. The official face is that which talks of law, order, international justice and so on of a
    China keen to be acceptable as a leader in the world – her right.
    Then there is the other shadowy China – controlled, like in many countries, by various Mafias. They control banks, State-owned manufacturing institutions, mining, the manufacture of iron and steel, the lucrative Real Estate racketeers and so forth. All these have powerful patrons in regional Capitals as well as in Beijing. State banks have semi-autonomous powers and they do most of the financing within and outside China. They are not subject to the restriction of Interest rates like in other countries. The Chinese keep a careful watch on venal and pliable governments in Asia, Africa and elsewhere.
    The moment they home on one, they let the “robber barons” of China
    walk into that market with massive billion (US$)dollar projects.
    Most Suppliers of these projects suffer dubious past records but have the backing of the mafia that control the banks, which in turn have higher sponsors in ruling circles.

    It was reported the former Beijing strongman Jiang Zemin able supported by Wen Ziabao and Hu Jin Tao during their time had amassed massive wealth in the names of various close relatives – going into the hundreds of millions (US$) dollars. The scandal surrounding the murder of British businessman Neil Heywood, allegedly by Gu Kai Lai, the wife of the Provincial Chief Bo Xilai in Chongqing referred to palatial homes given to Bo Xilai in European capitals. Bo Xilai is now in prison. Surely, this could not have taken place without the Chinese political leadership knowing about it.

    It may well be the Rajapakses have bitten more they can chew with the Chinese in huge rackets. When the details of these eventually come out many powerful heads will roll.

    Backlash

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