The Bear and the Dragon

“You insult us, and then you expect us to invite you into our home?”

“Minister, America insults no one. A tragedy happened in the People’s Republic yesterday. It was probably something you would have preferred to avoid, but even so, it happened. The President of the United States has asked for you to investigate the incident. That is not an unreasonable request. What do you condemn us for? A journalist reported the facts. Does China deny the facts we saw on television? Do you claim that a private American company fabricated this event? I think not. Do you say that those two men are not dead? Regrettably, this is not the case. Do you say that your policeman was justified in killing an accredited diplomat and a clergyman holding a newborn child?” Rutledge asked in his most reasonable voice. “Minister, all you have said for the past three and a half hours is that America is wrong for objecting to what appears to be cold-blooded murder. And our objection was merely a request for your government to investigate the incident. Minister, America has neither done nor said anything unreasonable, and we grow weary of the accusation. My delegation and I came here to discuss trade. We would like the People’s Republic to open up its markets more so that trade can become trade, the free exchange of goods across international borders. You request a most-favored-nation trading relationship with the United States. That will not happen until such time as your markets are as open to America as America’s are open to China, but it can happen at such time as you make the changes we require.”

“The People’s Republic is finished with acceding to America’s insulting demands. We are finished with tolerating your insults to our sovereignty. We are finished with your interference in our internal affairs. It is time for America to consider our reasonable requests. China desires to have a fair trading relationship with the United States. We ask no more than what you give other nations: most favored nation.”

“Minister, that will not happen until such time as you open your markets to our goods. Trade is not free if it is not fair. We object also to the PRC’s violation of copyright and trademark treaties and agreements. We object to having industries fully owned by agencies of the government of the People’s Republic to violate patent treaties, even to the point of manufacturing proprietary American products without permission or compensation and-”

“So now you call us thieves?” Shen demanded.

“Minister, I point out that such words have not escaped my lips. It is a fact, however, that we have examples of products made in China by factories owned by agencies of your government, which products appear to contain American inventions for which the inventors have not been compensated, and from whom permission to manufacture the copies has not been obtained. I can show you examples of those products if you wish.” Shen’s reaction was an angry wave of the hand, which Rutledge took to mean No, thank you. Or something like that.

“I have no interest in seeing physical evidence of American lies and distortions.”

Gant just sat back in his chair while Rutledge made his injured reply, like a spectator at a prizefight, wondering if anyone would land the knockdown punch. Probably not, he thought. Neither had a glass chin, and both were too light on their feet. What resulted was a lot of flailing about, but no serious result. It was just a new kind of boring for him, exciting in its form, but dull in its result. He made some notes, but those were merely memory aids to help him remember how this had gone. It might make a fun chapter in his autobiography. What title, he wondered. Trader and Diplomat, maybe?

Forty-five minutes later, it broke up, with the usual handshakes, as cordial as the meeting had been contentious, which rather amazed Mark Gant.

“It’s all business, not personal,” Rutledge explained. “I’m surprised they’re dwelling on this so much. It’s not as though we’ve actually accused them of anything. Hell, even the President just asked for an investigation. Why are they so touchy?” he wondered aloud.

“Maybe they’re worried they won’t get what they want out of the talks,” Gant speculated.

“But why are they that worried?” Rutledge asked.

“Maybe their foreign-exchange reserves are even lower than my computer model suggests.” Gant shrugged.

“But even if they are, they’re not exactly following a course that would ameliorate it.” Rutledge slammed his hands together in frustration. “They’re not behaving logically. Okay, sure, they’re allowed to have a conniption fit over this shooting thing, and, yeah, maybe President Ryan pushed it a little too far saying some of the things he said-and Christ knows he’s a real Neanderthal on the abortion issue. But all of that does not justify the time and the passion in their position.”

“Fear?” Gant wondered.

“Fear of what?”

“If their cash reserves are that low, or maybe even lower, then they could be in a tight crack, Cliff. Tighter than we appreciate.”

“Assume that they are, Mark. What makes it something to be fearful about?”

“A couple of things,” Gant said, leaning forward in his limo seat. “It means they don’t have the cash to buy things, or to meet the payments on the things they’ve already bought. It’s an embarrassment, and like you said, these are proud people. I don’t see them admitting they’re wrong, or wanting to show weakness.”

“That’s a fact,” Rutledge agreed.

“Pride can get people into a lot of trouble, Cliff,” Gant thought aloud. He remembered a fund on Wall Street that had taken a hundred-million-dollar hit because its managing director wouldn’t back off a position that he’d thought was correct a few days earlier, but then stayed with after it was manifestly clear that he was wrong. Why? Because he hadn’t wanted to look like a pussy on The Street. And so instead of appearing to be a pussy, he’d proclaimed to the whole world that he was an ass. But how did one translate that into foreign affairs? A chief of state was smarter than that, wasn’t he?

It’s not going well, my friend,” Zhang told Fang.

“That foolish policeman is to blame. Yes, the Americans were wrong to react so strongly, but that would not have taken place at all if not for the overzealous police officer.”

“President Ryan-why does he hate us so?”

“Zhang, twice you have plotted against the Russians, and twice you’ve played your intrigue against America. Is it not possible that the Americans know of this? Is it not possible that they guessed it was the case? Has it not occurred to you that this is why they recognized the Taiwan regime?”

Zhang Han San shook his head. “This is not possible. Nothing was ever written down.” And our security was perfect in both cases, he didn’t trouble himself to add.

“When things are said around people with ears, Zhang, they remember them. There are few secrets in the world. You can no more keep the affairs of state secret than you can conceal the sunrise,” Fang went on, thinking that he’d make sure that this phrase went into the record of the talk that Ming would write up for him. “They spread too far. They reach too many people, and each of them has a mouth.”

“Then what would you have us do?”

“The American has requested an investigation, so, we give him one. The facts we discover will be whatever facts we wish them to be. If a policeman must die, there are many others to take his place. Our trading relationship with America is more important than this trivial matter, Zhang.”

“We cannot afford to abase ourselves before the barbarian.”

“We cannot not afford not to in this case. We cannot allow false pride to put the country at risk.” Fang sighed. His friend Zhang had always been a proud one. A man able to see far, certainly, but too aware of himself and the place he wanted. Yet the one he’d chosen was difficult. He’d never wanted the first place for himself, but instead to be the man who influenced the man at the top, to be like the court eunuchs who had directed the various emperors for over a thousand years. Fang almost smiled, thinking that no amount of power was worth becoming a eunuch, at the royal court or not, and that Zhang probably didn’t wish to go that far, either. But to be the man of power behind the curtain was probably more difficult than to be the man in the first chair … and yet, Fang remembered, Zhang had been the prime mover behind Xu’s selection to general secretary. Xu was an intellectual nonentity, a pleasant enough man with regal looks, able to speak in public well, but not himself a man of great ideas …

… and that explained things, didn’t it? Zhang had helped make Xu the chief of the Politburo precisely because he was an empty vessel, and Zhang was the one to fill the void of ideas with his own thoughts. Of course. He ought to have seen it sooner. Elsewhere, it was believed that Xu had been chosen for his middle-of-the-road stance on everything-a conciliator, a consensus-maker, they called him outside the PRC. In