Watkins: China’s Rise at Our Demise?

Watkins: China’s Rise at Our Demise?

I collect kaleidoscopes as a way to remind myself to view the world in different ways. I find that life, like looking through a kaleidoscope, can sometimes be full of constant and unpredictable change.



And make no mistake — change has come to Michigan and America. I view the contrast of this change through the lens of my travel through China these past 20 years and discover we are living through tumultuous, tough and transformational times.

What we once had, if not entirely gone, is fading. There was a time when America stood head and shoulders above the rest of the world. Michigan, once the “arsenal of democracy,” was the region that put the world on wheels and provided the muscle behind the U.S. economy.

That was then — this is now.

How much the world has changed was driven home by the reactions of both China and the United States to our latest weapons’ sale to Taiwan — $6.4 billion to be exact.

Why do U.S. officials seemed shocked when China reacts negatively to our actions? China contends that Taiwan is a renegade province that must reunite with the mainland. They view our actions as interference in their internal affairs.

How would the United States react if China provided Cuba with billions of dollars worth of weapons? This international snub seems exacerbated by President Barack Obama's scheduled visit with Tibet’s Dalai Lama in mid-February.

There’s no doubt this meeting, while reinforcing our human rights’ values, will further stoke China’s indignation and nationalistic fever.

So what? you may ask. As a weaker country in the past, China had fewer cards to play to express displeasure with America’s might. Today, with a booming economy and hundreds of billions of our currency, they are eating our lunch.

How has our world relationship changed? Consider this:

Old paradigm

?United States was the sole economic and military superpower. We could thump our chest and the world jumped.

?United States used threats, economic sanctions/investments and military action to control our interests in weaker states.

?China was nationalistic and closed off to the world.

?Millions of Chinese died in the ideological insanity of its Cultural Revolution and “Great Leap Forward.”

New paradigm

?China moves from the back seat to the front seat of world power.

?China boasts the world’s fastest growing, most dynamic economy, likely to surpass Japan this year as the world’s second largest economy.

?China exerts its economic and soft power around the globe.

?China is nationalistic and strong.

?China throws open its doors to the world and exports globally.

?China becomes the U.S. banker, underwriting our debt to the tune of $1 trillion, surpassing Japan as the largest overseas holder of our debt.

?China seeks new international rules, breaking the once dominant U.S. status quo to accommodate their rise.

I recall thinking and arguing after standing in Tiananmen Square with the students over 20 years ago that engaging with the Chinese scientifically, educationally, economically and culturally was the best way to promote freedom and democracy in China.

Eamonn Fingleton, in his book, “In The Jaws of the Dragon: America's Fate In The Coming Era Of Chinese Hegemony,” states, “It could be argued that rather than America changing China, China has changed America.”

 


A ‘Middle Kingdom’ perspective

Along with kaleidoscopes, I collect maps of the world. From the Western perspective, maps show North America in the center. But historically, China referred to itself as the “Middle Kingdom” and occupied the center of the world. It’s all perspective. An Asian map places China dead center.

China has experienced 30 years of phenomenal economic growth, lifting hundreds of millions from abject poverty to the middle class. And with an economic bounce coming out of the world recession, China grew at 10.7 percent in the last quarter of 2009.

Yet with 1.4 billion people, one-fifth of all humanity, it remains a developing nation.

Even with its newfound prosperity, hundreds of millions of Chinese are still scraping by, living on the equivalent of a few dollars a day. As inequity grows and global information flows, maintaining social and ideological control over the masses is proving no easy task for Chinese President Hu Jintao.

The U.S. economy and our system of governance has lost some of it luster in China as we remain stalled with crushing debt and massive unemployment. When asked how long the world’s largest borrower could remain the world’s greatest superpower, former Federal Reserve Chairman Alan Greenspan, in a profound understatement, responded, “Not indefinitely.”

Equally challenging is the palpable anger many U.S. citizens feel toward the greed on Wall Street and poor political leadership that has wreaked havoc on main street America.

The Chinese economy is a magnet to U.S. companies with its mega markets. Consider it is reported that only 4 percent of China’s people own their own automobiles, creating much room for growth.

In 2009, for the first time, China produced more autos than the United States and General Motors doubled its car sales in China in January.

Our hope for competing with China in the future is sitting in our classrooms today.

The competition our children and nation face is fierce and unrelenting. Our biggest fear should not be the outsourcing of jobs to China, but that as our economic engine sputters, China’s speeds forward with investments in education, infrastructure, and new technology, making it increasingly competitive on the world stage — all at America’s expense.

Change on steroids

The race for creativity, education and innovation will define this century.

The stakes are high for getting our relationships, strategies and polices toward China on the right path. There is not an issue facing the planet today that does not intersect at the crossroads of America and China: Taiwan, the world economy and currencies, the aging population, global warming, Tibet, Uyghur, weapons of mass destruction and rogue nations, and fair trade and fighting terrorism.

These will remain flash-points and how we manage these issues with China will not only impact our two countries, but all humanity.

For all our futures, let's hope our respective leaders can maintain a global view toward mutual interests — one that is not only sustainable but leads to stability and responsible behavior from all stakeholders.

 

 

Tom Watkins has a life long interest in China and has traveled extensively throughout the country since 1989. He is the former Michigan State superintendent of schools, 2001-05 and the president and CEO of the economic council of Palm Beach County, Florida, 1996-2001. Read more by Watkins at:domemagazine.com
Contact Tom Watkins at tdwatkins@aol.com.

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