China Unveils Frightening Futuristic Police State at Olympics

So far, the Olympics have been an open invitation to China-bash, a bottomless excuse for Western journalists to go after the Commies on everything from internet censorship to Darfur. Through all the nasty news stories, however, the Chinese government has seemed amazingly unperturbed. That's because it is betting on this: when the opening ceremonies begin friday, you will instantly forget all that unpleasantness as your brain is zapped by the cultural/athletic/political extravaganza that is the Beijing Olympics.

Like it or not, you are about to be awed by China's sheer awesomeness.

The games have been billed as China's "coming out party" to the world. They are far more significant than that. These Olympics are the coming out party for a disturbingly efficient way of organizing society, one that China has perfected over the past three decades, and is finally ready to show off. It is a potent hybrid of the most powerful political tools of authoritarianism communism -- central planning, merciless repression, constant surveillance -- harnessed to advance the goals of global capitalism. Some call it "authoritarian capitalism," others "market Stalinism," personally I prefer "McCommunism."

The Beijing Olympics are themselves the perfect expression of this hybrid system. Through extraordinary feats of authoritarian governing, the Chinese state has built stunning new stadiums, highways and railways -- all in record time. It has razed whole neighborhoods, lined the streets with trees and flowers and, thanks to an "anti-spitting" campaign, cleaned the sidewalks of saliva. The Communist Party of China even tried to turn the muddy skies blue by ordering heavy industry to cease production for a month -- a sort of government-mandated general strike.

As for those Chinese citizens who might go off-message during the games -- Tibetan activists, human right campaigners, malcontent bloggers -- hundreds have been thrown in jail in recent months. Anyone still harboring protest plans will no doubt be caught on one of Beijing's 300,000 surveillance cameras and promptly nabbed by a security officer; there are reportedly 100,000 of them on Olympics duty.

The goal of all this central planning and spying is not to celebrate the glories of Communism, regardless of what China's governing party calls itself. It is to create the ultimate consumer cocoon for Visa cards, Adidas sneakers, China Mobile cell phones, McDonald's happy meals, Tsingtao beer, and UPS delivery -- to name just a few of the official Olympic sponsors. But the hottest new market of all is the surveillance itself. Unlike the police states of Eastern Europe and the Soviet Union, China has built a Police State 2.0, an entirely for-profit affair that is the latest frontier for the global Disaster Capitalism Complex.

Chinese corporations financed by U.S. hedge funds, as well as some of American's most powerful corporations -- Cisco, General Electric, Honeywell, Google -- have been working hand in glove with the Chinese government to make this moment possible: networking the closed circuit cameras that peer from every other lamp pole, building the "Great Firewall" that allows for remote internet monitoring, and designing those self-censoring search engines.

By next year, the Chinese internal security market is set to be worth $33-billion. Several of the larger Chinese players in the field have recently taken their stocks public on U.S. exchanges, hoping to cash in the fact that, in volatile times, security and defense stocks are seen as the safe bets. China Information Security Technology, for instance, is now listed on the NASDAQ and China Security and Surveillance is on the NYSE. A small clique of U.S. hedge funds has been floating these ventures, investing more than $150-million in the past two years. The returns have been striking. Between October 2006 and October 2007, China Security and Surveillance's stock went up 306 percent.