The truth is that our business enterprise is competitive because we are ahead inindustrial revolution and our most endowed land attracts vast number of talentswho seek opportunities. Ideology is very fickle. A nation can change her ideologyon a dime as we witness China’s transformation. During the last three decades of reform and opening up she has proved that her hybrid system of combined stateeconomy with market economy can work quite well. Many foreign talents that usedto come from Europe, Japan, China and India are now returning home becauseeconomic opportunities in their homeland are growing because of increasedprosperity. This phenomenon is well known as we saw Japanese and Taiwanesescientists and entrepreneurs returning home during the last Century and recentlysome Chinese and Indian talent are doing the same.If current American provocation is unchecked there may come a point China will beforced to retaliate in action by discontinuing to subsidize our twin deficits. Thisreaction will most likely to lead to all out confrontation. The first to suffer isAmerican consumers who will need to pay higher prices for essential goods tomaintain our living standard. Next will be American and Chinese businessesbecause 70 % of imports from China are under joint venture management withforeign companies make more profit than that of Chinese business. It may not befun to watch the domino effects of worldwide trade protectionism and stock marketscrash, but it will happen like the 1929 world depression. When this does occur thereis no telling who will be the bigger loser.Luckily the world will recover from the next depression if it should occur despiteour efforts to prevent it. The question is who will be more likely to recover from itfastest? America has never had a major calamity that took place in our home landother than the Civil War. China, however on the other hand, during the lastCentury, experienced the devastation of numerous imperial aggression wars, theJapanese occupation, two major civil wars, the Cultural Revolution and the recentdevastating Szechuan earth quakes. She showed remarkable resilience inrecovering from all those calamities. In addition, as an ancient culture, she is theone showed continuous unity for a long uninterrupted history of five thousandyears.As a dynamic young nation, America does not have a deep rooted ancientcivilization as bounding force. China is a cultural state and not a political state asdiscussed in essay 3 in following Appendix. China is more centralized and cohesiveas demonstrated by her developing pattern during the last three decades and herfast recovery from the last global economic crisis. (See Martin Jacques, “
WhenChina Rules the World
”, 2010). As world’s manufacturing center, China certainlywill be the first to have the get up and go to ex[port consumer goods to the rest of the developing world. Remember in any depression, when the stock marketcrashed, cash is king. Whereas America is currently heavily in debt, China has twotrillion dollars of foreign currency reserve, adding the 700 billion from Hong Kong,this will make 2.7 trillion. She and other cash rich nations in Asia will certainly
2