China's Economic Battle for Global Leadership

History shows that countries demonstrate their greatest strength when they are at war.  People unify for a common cause, reduce their individual needs and wants and sacrifice for the greater good.  We think of wars as being fought with weapons and soldiers, but the war of the new millennium is being fought on a monetary and labor scale across the globe.  While we don’t yet realize it in this country, America is in an economic war with China.  We have been in this economic battle for years, and are much closer to losing than we realize.

As the president and founder of an international financial consulting company that works closely with Chinese companies, I see the enormity of China’s global financial influence and power on a daily basis.  China gets up every morning focused on beating the West and is supremely committed to becoming the leading economic superpower in the world.  From small merchants to corporate CEOs, from young children to senior citizens, the entire Chinese population is united in their goal of usurping Western economic leadership. 

Chinese families get up every morning focused on how to advance economically and ensuring that their children are studying hard so that they can be extremely competitive in the future.  When I visit my Shanghai office, I marvel at the scores of families I see working together on the street selling products at all times of the day and night. 

At the provincial government level, the Chinese are focused solely on job creation and enhancing investments which ensure economic expansion.  Government leaders who are not committed to this are pushed out of office quickly.  At the national government level, policies are in place at the provincial level and below that foster economic progress.  Anyone who stands in the way is removed as China believes the needs of the many outweigh the needs of the few.   

In America, we believe we are still too far ahead of China to be duly concerned and remain committed to focusing on our individual needs.  Our federal and state governments continue to pass pork barrel programs.  Our campaign system is so broken that once a politician is in office, they have a good chance of being a politician for life.  Politicians rarely talk about our issues with China, let alone that China may surpass us as an economic superpower sooner than we think.  On top of this, China has five times greater population than we have in the United States, greater natural resources and a heck of a lot more reserve money than us.

When you look back at America’ history and review the Cold War and World War II as examples, our greatest times came when we were challenged.  These global events pushed us to put our country first and us second.  We were willing to make sacrifices then, just as the Chinese are sacrificing today, each and every day.  We need to think this way again.  We must start at the community level to create centers focused on economic competitiveness where job skills and corporate advancement are fostered along with education for our youth.  We need to have a sense of urgency. 

Over the last eight years, a few U.S. factions have stood up and said we need to solve the problem of job loss and diminished competitiveness, but not much was done.  Will this time be any different?

If you do not believe the seriousness of the situation and what I have shared with you, I implore that you visit China.  I will be there later this month where I will again see the battles and the ground they gain each and every day.   I am taking my two grade school sons to China this fall, not only because I think it will open their minds, but because I am concerned that for their generation, the world will be a China-centered one.  We need to wake up and realize that China is winning the battles, and at this rate, the war is almost over.  Will the USA lose its superpower status in the global financial system?

 

 

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Comments

[themodernleader]

The Chinese leadership in the 1980's learned that citizen knowledge, skill and motivation are the key ingredients in nation building. They placed virtually unlimited opportunities for the Chinese people to start new enterprises and joint enterprises with American companies. All the time these new enterpries were protected from foreign predatory capitalistic penetration.
Now the sleeping dragon has awaken. Nobody knows the ambitions of this organization that is building the greatest economic powerhouse in existence while cornering the world's precious metals, aluminium, copper, iron ore and oil. But it does not take too much imagination to recognize that unchecked power will be tempted to hold sway over the other countries of the world for their own advantage.

[themodernleader]

Amalek. A Mixed Economy includes fair business practices-­--strictly enforced--- for most manufacturing and business functions. The natural monopolies are operated as monopolies, either owned by locally owned cooperatives, the government or private corporations. They are strict;ly regulated as to size, geographic jurisdiction, salaries and wages, profit and so on.
I agree that labeling is unimportant. Function and government enforcement, guarantees of fair play, protection of the consumer, protection of monopolistic function and territory and so on are the important ingredients.
Internationally, the Chinese zealously, jealously guard their domestic industries and other commerce from foreign ownership or competition. The Americans have not and do not protect their commerce and manufacturing. This impudent policy has allowed foreign exploitation of American industry and technological dominance, an unmitigated disaster for American self-governance and independence.
International trade as we have known it fot the past 30 years is dead. The developing and some industrialized countries have selfishly practiced mercantelism. Mercantelism has gutted the once most powerful industrial, technological power in human history. Mercantelism has resulted in a world depression and major winners and losers. Continued mercantelism would result in a colonial system. I doubt if it would be tolerated for long without reverting to mass extermination of people through nationalistic wars.

[urbanguerilla]

I see this as yet another attempt by msm and corporate interest to soften the blow of a rapidly declining standard of living for american "consumers" ( merchant speak ). Mute wether it's deserved or not, thrift comes to late, if found at the bottom of your purse. As far as that goes, I work for a global energy company, and I see alot of lynch pins ready to fail in China's tent, as well, but at the moment, they do own us.

[themodernleader]

Joseph Meuse is correct. Chinese leadership is determined to be the primary economic power. To that end they are enfeebling an atrophying USA. Additionally, they are cornering the commodity market by buying the oil fields and mines.
None of our owned economists or other scholars address this obvious question: Where exists the best economic system? This question looms ever larger as our particular "The greatest capitalistic, economic system in the world" has collapsed and become essentially inopperable. Wise Americans should be searching history and the present for the best economies and find out why they succeeded in th past and are succeeding in the present.
The unknown, prescient Modern Leader economist has studied this question for many years. He discovered that the Mixed Economic System that was dominant in 20th Century America from FDR to the Age of Reagan and is now the economic system of the Chinese government is the most effective, efficient system for realizing the maximum employment, productivity, equitability, and proficiency of an organization (country) and its people. Our leaders should go to China and learn first hand how a successful organization functions. If not, they should study feverishly the policies of FDR, HST and Eisenhower.
What is the worst economic system? I will allow the reader to dreaw his own conclusions.

[Amalek]

Be careful with labels. They can mislead.

I would argue that China is perhaps an example of the "greatest capitalistic economic system in the world" today.

China government strongly supports business while carefully regulating it. The American system failed because we only got half of that right.

[Timwest31]

I think it also important to note that the "war" is as much a war of words and Joseph, you're helping the enemy then. The USA is still the largest manufacturer in the world and our economy is still close to 4x bigger than Chinas. I too have been to China Joseph -- I went because they stole intellectual property from my company -- simply stole it and copied it. They fudge their numbers and... basically lie. Americans need to do research before becoming Cassandras. Will China be a major economic force? Sure... until India rises. Research the China myth and you'll be amazed at the truth. Just becuase you see activity Joseph, does not mean it is productive­.... they are working out of fear and FOR NO MONEY! In China, some employees are forced to work for a year with no pay. Come on. Joseph, I'd find your article more credible if you hadn't gotten so many facts wrong. Calm down.

[Amalek]

Misinformed. Sorry you had your property stolen. As China further integrates into the world economy such behavior will become more difficult and easily prosecuted.

[Timwest31]

Quite well informed actually. :) I tell it like it is... facts. Sorry if they conflict with people's personal agendas.

[Timwest31]

"On top of this, China has five times greater population than we have in the United States, greater natural resources and a heck of a lot more reserve money than us"


Sorry Joseph, but that claim is absolutely NOT correct. China is actually very poor in natural resources. You should do your research if you're going to make a statement that is patently false.

[yappnmutt]

that's not true. the only reason china appears to be deficient in natural resources is because much of it is unexplored for natural resources. there are some estimates that china has as much coal as the usa. there was na article just this past week that china may limit its rare metal exports sending the world into a bit of a panic because in some cases china is the only miner of some of these metals.

[Timwest31]

I'm sorry... "appearst to be deficient?" Sorry, but it is a fact that China itself has commented on. Believe me, China has searched high and low for the raw materials they need within their own borders and came up empty. You mentiong Coal...so? Coal is just one natural resources. So you know, "natural resources" refers to timber, minerals, water, oil, natural gas, coal, gold and other metals, etc.

The main natural resources listed for China are: coal, iron ore, petroleum, natural gas, mercury, tin, tungsten, antimony, manganese, molybdenum, vanadium, magnetite, aluminum, lead, zinc and uranium -- the supply is limited and some are very low grade quality.

But NOTE: Joseph said "has greater natural resources" and that is simpy not at all accurate. Sorry to say and you can research this quite easily, but one reason why China imports so much in the area of natural resources is because they are lacking their own. As just ONE example: water. In China, 90% of their cities’ groundwater and 75% of rivers and lakes are polluted. Because of this widespread water pollution, 700 million people drink contaminated water every day and they are projecting that in the next few years, 30 million people per year could become "enviromental refugees."

I suggest you do your homework and use sources that are direct, unbiased and matter-of-fact.

[peterg76]

War is far, far more horrible than mere competition, though as far as competition goes, of course, the US lost long ago.

[yappnmutt]

i don't think china is at economic war with the usa. i think the chinese leadership is more concerned with establishing a strong defense from what is perceived as an aggressive usa. their strategy has been to make the usa dependent upon china for its economic survival. china has already succeeded. the ultimate irony is an american business and political leadership who think china is dependent upon the usa. the strategic mistake the usa made was that china would act like japan. it was thought the chinese would roll over like the japanese and accept usa political and economic dictates as a consequence of usa advantage. the japan has just now seen a way out of this dysfunctional relationship, borne of a post sense of obligation, with the election of hatoyama. the usa leadership has never understood the japanese. there is no hope china could ever be understood. that's part of the reason why there is confusion about how the usa should respond to chinese "threats" to usa economic and political hegemony. the usa leadership and think tanks like stratfor don't realize that china will sacrifice the value of its dollar cache to protect itself from usa aggression. this is the essence of the reason why china thinks it has the advantage now.

[mleenyc]

America enjoys superpower status only with the consent of the world. The US economy is buoyed by the US dollar hegemony, which requires global consent. So long as the US bears the burden of the expense of military peacekeeping duties, western and asian countries abide by the superpower reign.

If the US decides to invade a country that posed no threat to it, for its oil and gas reserves and for a foothold in mideast politics, alienates the billion or so muslims around the world, and actively pursues a unilateral effort for full spectrum dominance of the world, then the global constituency will react.

China has declared a fundamental policy of non-interference in foreign governing processes in its global engagement and economic trade. This is close to a diametrically opposite approach to that of current US policy involving its pre-emptive military ventures, hidden or camouflaged geopolitical goals and supportive engineering of color revolutions and regime changes against governments deemed contrary to US interests.

It is no longer a question of whether China will match US economic output, barring unforseen catastrophic events, but when.

But I would not view the topography as a global battle, as has been the current thinking and position of the US military industrial complex and earlier communications of the US mainstream media and neo-conservative think tanks. Compare the relationship between the former superpower Great Britain and the current superpower USA and ask if there is a current life-and-death struggle between them.

[urbanguerilla]

co-sign.

[cybereye]

You hit the target!

[Halsey]

Um..am I the only one who doesn't CARE if we are not #1?...
Every empire has its end...why should WE (the USA) be different? I believe I'd prefer acceptance of not be the ONLY superpower left....we could stop being the world's policeman.­.stop sending our young soldiers out to fight unwinnable wars (invasions actually).­..our ecomony depended on consumeris­m...after 9/11..W told us to shop or "they'd" (terrorists) win..go by a useless toy at WalMart..a­nd keep our country GREAT... doh? LET China work on the Muslim issue (they've a LOT of Muslims in various provinces)­..Let RUSSIA deal with Afghanistan (they are the ones with the border..an­d yes..we should have let the Soviet empire have it way back when...THA­T was a Carter error, then Reagan...e­tc etc etc)... I'd be fine with being post- (way post) war Germany...­rebuild a different society..N­OT based on buying useless stuff...bu­t building great things.

Am I alone in this desire to be #2?

[den1953]

Thank you for the article this is the most troublesome problem for this country China has already moved toward green jobs and right now there on a path to out source products through out the world the US is only starting to excel in this field now. They have already made strides to over come our country by 5 years as a major industrial power.

[Aaror]

How close China is to winning the war? Um, they already won.
Now they just have to decide on what sort of surrender they want from us. If they want unconditional surrender they threaten to sell (dump) all their US dollar denominated assets, which would destroy the US financially but hurt China. I don't know what the plan is to declare victory, it is possible China is delaying to stay on a "war footing," as long as possible. But rest assured the war is over, we lost.

[Thermodynamics]

In the early 80s I filled up my car a few times with LITERS of gas, here in the US. But as soon as Reagan got in he stopped the metrification program.

We are the only country in the world that uses inches, feet, gallons. How can we sell stuff to other countries? Their wrenches won't work on our stuff.

That was when I realized that the Reagan administration was not pro-business in a way that helped manufacturers be competitive. Their pro-ness was mainly reserved for top level big business, which was about manipulating money, not making stuff.

[Amalek]

I have said that if Obama wants to get health care reform through, he needs to distract the republicans with a call for conversion to the metric system. Poor Rush and Hannity will blow arteries.

[ShanghaiGuy]

I'm sorry, but the "nation united in economic war" characterization seems well divorced from reality, at least in the China where I have been living and working for nearly nine years.

[quote]"from young children to senior citizens, the entire Chinese population is united in their goal of usurping Western economic leadership­."[/quote]

In my daily life in Shanghai I deal with folks ranging from businesspeople to high school kids to blue collars, and I have to say the above quote strikes me as rather absurd. Those Chinese families getting up early every morning to man their fruit stands are usually not thinking much about usurping western economic power. They are thinking about earning enough money to buy a refrigerator, or maybe send a kid to school.

Sure, very many Chinese are eager for their country to develop economically and compete globally, and are willing to work hard to be part of that. But few Chinese I know spend much time focusing on "defeating the west". In fact, given the vastness and diversity of China, it's hard to think of Chinese being "united" in much of anything, much less some sort of zero-sum global "war of the new millennium". Most of them are just regular folks trying to improve their lives, not unlike people anywhere else.

To ascribe to the efforts of the "Average Zhou" sinister goals of economic domination is unfair to the Chinese, and unhelpful to understanding China's evolving place in an interdependent global economy.

[Amalek]

You have captured the Chinese spirit well in your post. Chinese are intensely proud of their culture and achievements and like Americans can easily be riled up by patriotic themes. Yet they don't define their future as being in a state of war with the West. They will want recognition for their achievements, but they are not rooting for the demise of Western civilization.

[btest]

Great post.