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Statement of William H. Overholt1
Asia Policy Chair 
Director,
Center for Asia Pacific Policy 
The RAND
Corporation 
Before the U.S.-China
Economic and Security Review 
Commission
May 19, 2005 
Summary
China 
has
transformed 
itself
from 
the 
world’s
greatest 
opponent of
 
Globalization
and 
greatest
disrupter 
of 
the
global 
institutions we
created, 
into 
a
committed 
member
of 
those
institutions 
and
advocate 
of
globalization. 
It
is 
now 
a
far 
more 
open
economy 
than
Japan 
and 
it
is 
globalizing
its 
institutions to a degree
not seen in a big country since Meiji
Japan. 
Adoption
of 
the 
rule
of 
law, 
of
commitment 
to
competition, 
of
widespread 
use 
of
English, 
of
foreign 
education, and of
many foreign laws and institutions are not
just updating Chinese institutions but
transforming Chinese 
civilization. 
中国已经由以前世界上最大的全球化反对国和全球各机构的打扰者转
变成
全球化的提倡者和那些机构坚定的成员国之一。
它现在是一个远比
日本开放的经济体,并且正在使国内机构全球化,达到一个从日本明治
时期就从未出现
过的高度。
采取法制手段,
致力于竞争,
广泛使用英语,
实行国外教育和众多国外法律制度,这些不仅仅是在改革中国体制,而
是在重塑中华文明。
 
All
of 
China’s
economic 
successes
are 
associated
with 
liberalization
and 
globalization
and 
each 
aspect
of 
globalization has brought
China further successes. Never in 
world
history 
have 
so
many 
workers
improved 
their
standards 
of
living 
so
rapidly. 
Thus
popular 
support
for 
globalization
is 
greater 
than
in 
Japan, 
where
postwar 
recovery occurred in
a highly managed economy, or with the
former 
Soviet
Union, 
where
shock 
therapy
traumatized 
society.
In 
consequence,
China 
has
effectively 
become
an 
ally of U.S. and
Southeast Asian promotion of freer trade and
investment than is acceptable to Japan,
India and Brazil. 
中国所有经济上的成就都离不开自由化和全球化
,
而全球化的每个
方面又为中国带来更多的成就。
可以说在世界史上,
从来没有这么
多工人曾如此迅速
地提高他们的生活水平。
所以,
对全球化的欢迎
程度和拥护度高于日本,
战后日本的经济复苏产生于高度管理的体
制;或者和前苏联相比,那里动荡使社会元气大伤。于是,中国主
动成为美国
和东南亚的盟国,
一起推动更加自由的贸易和投资,
这
些都超过了日本、印度和巴西的接受范围。
The 
opinions 
and
conclusions 
expressed
in 
this 
testimony
are 
the 
author’s
alone 
and 
should
not 
be
interpreted 
as
representing 
those
of 
RAND 
or
any 
of 
the
sponsors 
of 
its
research. 
This
product 
is 
part
of 
the 
RAND
Corporation 
testimony
series. 
RAND
testimonies 
record
testimony 
presented by RAND
associates to federal, state, or local
legislative committees; government-
appointed commissions 
and
panels; 
and
private 
review
and 
oversight
bodies. 
The 
RAND
Corporation 
is 
a
nonprofit 
research
organization 
providing
objective 
analysis
and 
effective
solutions 
that
address the challenges facing the
public and private sectors 
around
the 
world. 
RAND’s
publications 
do
not 
necessarily
reflect the opinions of its research
clients and sponsors. 
Nonetheless,
rapid 
Chinese
globalization 
has
required 
stressful
adjustments. 
State
enterprise 
employment
has 
declined 
by
44 
million. 
China
has 
lost 
25
million 
manufacturing
jobs. 
125 
car
companies 
are
expected 
to
consolidate rapidly into 3 to 6. 
在这张证词中表述的观点和结论都是作者一家之言,
不应该被理解
为代表
Rand
或者这个研究的赞助商们。
这个产品是
Rand
公司证
< br>词系列的一部分。
Rand
的证词记录了由
Rand
企业联合出示的证
词,它分别呈递给联邦、
州以及当地立法委员会,政府指定的佣金
事务委员会,私人审查和监管单位。
Rand
法人是一个非营利研究
组织,
专门为面临挑战的全球公、
私部门提供客观分析和有效解决
方法。
Rand
的出版物不一定反映内部研究委托方和
赞助者的观点。
但是,
中国快速发展的全球化过程要求紧张的调
整。
国有企业的就
业人数下降了
440
0
万。
中国已经失去了
2500
制造业的工作,
125
家汽车公司将会快速合
并成
3-6
家。
China’s globalization successes are
profoundly influencing 
its neighbors.
India has learned from China the advantages
of 
a 
more
open 
economy.
Asians 
schooled
in 
antipathy 
to
foreign 
investment
and 
Latin
Americans 
with
protectionist 
traditions
are 
going 
to
have 
to 
be
more 
open 
to
foreign 
investment and less
dependent on loans in order to compete
with 
China. 
This
will 
transform
third 
world
strategies 
of
development and create broader global
opportunities for our 
companies. 
中国全球化成就正深远地影响着领国。
印度从中国学习到一个更加
开放经济体的优势。
被培养成憎恶外国投资的亚洲人和有着地方保
护主义传统的拉丁美人正学着必须更加开放地对待外国投资并且
不依赖于
借贷来和中国竞争。
这将会转变第三世界发展的策略并为
我们的
公司提供更广阔的全球机会。
 
Contrary
to 
early 
fears,
China’s 
rise 
has
stimulated 
neighbors’
trade 
and
foreign
investment 
rather
than 
depriving them.
Indee
d China’s recent growth spurt
revived
 
Japan’s economy and
saved key neighbors from recession,
possibly averting a dangerous global
downturn. 
和早前的害怕相反,
中国崛起已经刺激而
不是剥夺了邻国的贸易和
外国投资。
事实上中国近年来经济急剧
增长使日本经济复苏并且拯
救了主要邻国免于经济衰退,
可以说
避免了一场危险的全球经济衰
退。
Chinese 
growth
has 
brought
American 
companies
new 
markets. 
The
flow 
of 
profits
from 
China 
to
the 
U.S. 
is
as 
disproportionate as the
flow of goods. Inexpensive products
have 
substantially
improved 
the
living 
standards
of 
poorer
Americans. 
Inexpensive
Chinese 
goods 
and
Chinese 
financing of our
deficit have kept U.S. inflation and interest
rates 
down 
and
prolonged 
our
economic 
booms.
At 
the 
same
time, 
it 
has
caused 
trade
deficits 
and
social 
adjustments.
Chinese 
misappropriation
of 
intellectual
property creates losses for many of our
companies. A manic 
construction and
transportation boom has raised 
global raw materials prices, to the
great benefit of producers 
and a great
cost to consumers. 
中国的经济增长也为美国公司带来了新的市场
,
从中国流向美国的
利润也和货品一样不协调。
廉价的商品在提高了美国下层的物质生
活。
廉价的中国
商品和赤字,
使美国保持通货膨胀率和利率的下降,
使经济持续
增长。同时,它也导致贸易赤字和社会调整。中国不合
理的知识产权为我们的很多公司造
成了损失。
建设热和交通热使全
球原材料价格上涨,使生产商受
利并使消费者遭受损失。
 
China’s
success
 is one of the most important
developments 
of 
modern
history, 
but
projecting 
from
current 
growth 
to
Chinese global dominance or threats to
our way of life is just 
wrong. Unlike
the old Soviet Union, reformist China does not
seek 
to 
alter
any 
other
country’s 
way 
of
life. 
Its 
economy
faces world 
history’s
most 
severe
combination
 
of
banking, 
urbanization
and 
employment
challenges, 
and
by 
2020 
a
demographic squeeze that will have few
workers supporting 
many
dependents. 
The
best 
outcome 
for
us 
would 
be
a 
China that is eventually
like Japan, prosperous, winning in 
some
sectors, losing in others. Signs that China is
making 
rapid 
progress
in 
that 
direction
should 
be
welcomed 
, 
not
feared. 
中国的成功是现代史最重要的发展之一,
p>
但是从中国目前的发展就
认为中国会统治全世界或者会为我们的生活
方式造成威胁是完全
错误的。
不像之前的苏联,
改革者中国并不寻求改变其他国家的生
活方式。它的经济面临着世界史上最剧烈
的结合
----
银行业、城市
化和就业
的挑战,并且在
2020
年以前,人口统计学上的拥挤将会
p>
使更少的工人支撑这么多的家庭。
最好的结果就是
< br>---
中国最终会像
日本一样,繁荣,并在某些领域赢得
一席之地,或输给别人。中国
正在朝着那个方向飞速进步应该受到我们的欢迎而不是恐惧
。
 
China and Globalization
Before 
reform,
China 
was 
the
world’s 
most
important 
opponent
of 
globalization.
It 
had 
an
autarkic 
economy.
It 
opposed 
the
global 
economic
order. 
It 
opposed
the 
global
political order and the major global
institutions such as the 
IMF and the
World Bank. It believed that global disorder was
a 
good 
thing,
and 
under 
Mao
Zedong 
it
actively 
promoted
disorder 
throughout
the 
world,
including 
promotion
of 
insurgencies in most of
China’s neighbors, in much of Africa
and Latin America, and even in our
universities. 
 
Accompanying
foreign 
policy
disaffection 
was
domestic 
cultural despair on
a scale the world has seldom witnessed.
In the Cultural Revolution,
1966-
1976, China’s students
and 
others, 
under
the 
guidance 
of
Mao 
Zedong’s
peasant 
chiliasm,
humiliated 
a
majority 
of
senior 
government
and 
party
leaders, 
attacked
the 
country’s
major 
educational,
social 
and political
institutions, destroyed much of China’s
cultural heritage, and in general
tried to smash the country’s
establishment. 
For 
two 
centuries
Chinese 
had 
tried
a 
range 
of
ways 
–
socialism, 
capitalism,
empire, 
republic,
warlords, 
religious
fundamentalism, 
and
others. 
All
failed. 
Alienation
was 
so 
severe
that, 
along 
with
students, 
much 
of
the 
country
accepted 
that 
the
world 
economic
and 
political
order, 
and 
the
Chinese economic 
and
political 
order, were so
stacked 
against
them 
that 
any
path 
to 
success
had 
to 
start
with 
destruction of the
existing order. 
 
The
Cultural Revolution was actually just one small
episode 
in 
the
problems 
that
Chinese 
impoverishment
and 
political
division 
created
for 
the 
world
and 
specifically
for 
us. 
Had
China been prosperous and unified
throughout the twentieth 
century,
we 
would 
have
had 
European 
War
II 
rather 
than
World War II and World War I would have
been quite 
different. 
China
would 
have 
been
able 
to 
deter
or 
defeat
Japanese aggression. The cost of those
conflicts to the U.S. 
would have been
radically smaller because Pearl Harbor and
much else would not have happened. We
and the world, not 
to 
speak
of 
a 
billion
Chinese 
citizens,
have 
paid 
a
horrible 
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