China's All-Seeing Eye

With the help of U.S. defense contractors, China is building the prototype for a high-tech police state. It is ready for export.

by Naomi Klein

Thirty years ago, the city of Shenzhen didn't exist. Back in those days, it was a string of small fishing villages and collectively run rice paddies, a place of rutted dirt roads and traditional temples. That was before the Communist Party chose it — thanks to its location close to Hong Kong's port — to be China's first "special economic zone," one of only four areas where capitalism would be permitted on a trial basis. The theory behind the experiment was that the "real" China would keep its socialist soul intact while profiting from the private-sector jobs and industrial development created in Shenzhen. The result was a city of pure commerce, undiluted by history or rooted culture — the crack cocaine of capitalism. It was a force so addictive to investors that the Shenzhen experiment quickly expanded, swallowing not just the surrounding Pearl River Delta, which now houses roughly 100,000 factories, but much of the rest of the country as well. Today, Shenzhen is a city of 12.4 million people, and there is a good chance that at least half of everything you own was made here: iPods, laptops, sneakers, flatscreen TVs, cellphones, jeans, maybe your desk chair, possibly your car and almost certainly your printer. Hundreds of luxury condominiums tower over the city; many are more than 40 stories high, topped with three-story penthouses. Newer neighborhoods like Keji Yuan are packed with ostentatiously modern corporate campuses and decadent shopping malls. Rem Koolhaas, Prada's favorite architect, is building a stock exchange in Shenzhen that looks like it floats — a design intended, he says, to "suggest and illustrate the process of the market." A still-under-construction superlight subway will soon connect it all at high speed; every car has multiple TV screens broadcasting over a Wi-Fi network. At night, the entire city lights up like a pimped-out Hummer, with each five-star hotel and office tower competing over who can put on the best light show.

Many of the big American players have set up shop in Shenzhen, but they look singularly unimpressive next to their Chinese competitors. The research complex for China's telecom giant Huawei, for instance, is so large that it has its own highway exit, while its workers ride home on their own bus line. Pressed up against Shenzhen's disco shopping centers, Wal-Mart superstores — of which there are nine in the city — look like dreary corner stores. (China almost seems to be mocking us: "You call that a superstore?") McDonald's and KFC appear every few blocks, but they seem almost retro next to the Real Kung Fu fast-food chain, whose mascot is a stylized Bruce Lee.

American commentators like CNN's Jack Cafferty dismiss the Chinese as "the same bunch of goons and thugs they've been for the last 50 years." But nobody told the people of Shenzhen, who are busily putting on a 24-hour-a-day show called "America" — a pirated version of the original, only with flashier design, higher profits and less complaining. This has not happened by accident. China today, epitomized by Shenzhen's transition from mud to megacity in 30 years, represents a new way to organize society. Sometimes called "market Stalinism," it is a potent hybrid of the most powerful political tools of authoritarian communism — central planning, merciless repression, constant surveillance — harnessed to advance the goals of global capitalism.

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