China Is a Paper Dragon - The Atlantic - 0 views
www.theatlantic.com/...618778
china gdp rivalry US competition trade market repression history crisis
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“We’re in a competition with China and other countries to win the 21st Century,” Biden said. His aides describe the president as preoccupied with the challenge from China.
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As Biden said to the nation from the well of the House of Representatives, the authoritarian President Xi Jinping is “deadly earnest” about China “becoming the most significant, consequential nation in the world. He and others—autocrats—think that democracy can’t compete in the 21st century with autocracies.”
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Worried about Chinese students’ high scores on comparative math tests? You’re looking at the curated outputs of highly selective groups of students. Whereas public school is free through high school in the United States, China’s government only covers the costs of elementary and middle school. At many Chinese high schools, families have to pay tuition and other expenses, and these outlays are among the highest in the world. Consequently, 76 percent of China’s working-age population has not completed high school.
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The book argues that China’s economic, financial, technological, and military strength is hugely exaggerated by crude and inaccurate statistics.
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The claim that China will “overtake” the U.S. in any meaningful way is polemical and wrong—and wrong in ways that may mislead Americans into serious self-harming mistakes.
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China may well surpass the United States as the largest economy on Earth by the 2030s. China was also almost certainly the largest economy on Earth in the 1830s. A big GDP did not make China a superpower then
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many of the advances cited as Chinese strengths don’t hold up to close scrutiny. American analysts often publish worries about China’s growing navy, and especially its two aircraft carriers. But, Beckley writes, “Chinese pilots fly 100 to 150 fewer hours than U.S. pilots and only began training on aircraft carriers in 2012,” and he adds that “Chinese troops spend 20 to 30 percent of their time studying communist ideology.”
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in the 1800s, the Chinese empire had a GDP much larger than that of Great Britain. The Chinese army of 800,000 men also enormously exceeded Britain’s troop numbers. Yet when the two states clashed in the two Opium Wars, from 1839 to 1842 and again in 1858, China was crushingly defeated. Why? A great part of the answer, then as now, was the cost of repression.
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Many Chinese college students describe their universities as “diploma factories,” where student-teacher ratios are double the average in U.S. universities, cheating is rampant, students spend a quarter of their time studying “Mao Zedong thought,” and students and professors are denied access to basic sources of information, such as Google Scholar and certain academic journal repositories.
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Chinese firms’ total spending on R&D as a percentage of sales revenue stalled at levels four times below the average for American firms. … Chinese firms remain dependent on foreign technologies and manual labor and have a rudimentary level of automation and digitization: on average Chinese enterprises have just nineteen robots per ten thousand employees; U.S. firms, by contrast, use an average of 176 robots per ten thousand employees.
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But isn’t China sprinting to overtake the United States? Yes, but it’s stumbling badly in that pursuit. China now leads the world in retractions of scientific studies due to fraud; one-third of Chinese scientists have admitted to plagiarizing or falsifying results (versus 2 percent of U.S. scientists); and two-thirds of China’s R&D spending has been lost to corruption.
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The Chinese military’s first and paramount mission is preserving the power of the Chinese Communist Party against China’s own people. The U.S. military can focus entirely on external threats.
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The lines that plot the comparative GDP of the United States and China distort the real balance of power between the two societies, Beckley argues, because China must devote such a large share of its resources to basic subsistence needs to avert the overthrow of the state.
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this might be a useful moment to hear a contrary voice. In 2018, the Tufts University professor Michael Beckley published a richly detailed study of Chinese military and economic weaknesses. The book is titled Unrivaled: Why America Will Remain the World’s Sole Superpower.
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Nineteenth-century China faced an average of 25 local uprisings a year. Most of its troops had to be deployed to suppress rebellions and control banditry, leaving few available for war-fighting.
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A final piece of the answer is that technological copycats face huge disadvantages against technological innovators. They will always lag behind the more creative rival, not only in the factory, but on the battlefield. “Repeatedly during the Opium Wars … Chinese armies of thousands were routed in minutes by a few hundred, or even a few dozen, British troops,”
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Beckley seeks to highlight the immense defects of gross GDP as a measure of national strength—factoring in the costs of repression—and the strategic predicament of China’s location, barred from the open ocean by a ring of potential enemies on its eastern front, extending from Russia, through Korea, past Japan, to the Philippines, and then to Vietnam.
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He said that he had become more alarmed by China’s aggressive and repressive intentions, but remained as dubious as ever about Chinese capacities.
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Sanders lost the nomination, but he won the debate within the Democratic Party over trade policy. In his address, Biden committed to extending and enlarging “Buy American” favoritism in government procurement. His administration is maintaining Trump’s anti-China tariffs and is “reviewing”—not yet removing—tariffs against the European Union and other trade partners. Biden economic advisers warned during his campaign that trade expansion would rank low on their list of priorities, and so it is proving.
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The Trump administration raised the defense budget by more than $100 billion a year, and the spending increases have continued even after the campaign against ISIS came to an end. More and more of the money is being directed to preparations for a conflict with China.
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China’s language and behavior is assertive and provocative, for sure. China’s power is rising, yes. Its behavior at home and abroad is becoming more oppressive and more brutal; that’s also tragically true.
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as Americans muster the courage and will to face Chinese realities, that reckoning needs also to appreciate the tremendous capabilities of this country, and the very real limits besetting China: a fast-aging population, massive internal indebtedness, and a regime whose worsening repression suggests its declining popularity.
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two deep truths about Chinese society: It’s about to be home to a lot of old people, and trust in the state is very low, and for good reason.
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As China’s population ages, it will deplete its savings. Chinese people save a lot to compensate for the state’s meager social-security provision. For three decades, the savings of ordinary people financed the spectacular borrowing of China’s state-owned enterprises
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What happens as the savings are withdrawn to finance hundreds of millions of retirements? Again—who knows?
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China misallocates capital on a massive scale. More than a fifth of China’s housing stock is empty—the detritus of a frenzied construction boom that built too many apartments in the wrong places
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China overcapitalizes at home because Chinese investors are prohibited from doing what they most want to do: get their money out of China. Strict and complex foreign-exchange controls block the flow of capital
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More than one-third of the richest Chinese would emigrate if they could, according to research by one of the country’s leading wealth-management firms. The next best alternative: sending their children out. Pre-pandemic, almost 1 million young Chinese attended Western universities. Pre-pandemic, only about 10,000 Americans were studying in China; single thousands were from other Western countries—and almost all of them were in the country to study language, not any academic specialty.
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U.S. policy makers should look to the future with a little more confidence and a lot more trust in trade, markets, and the superior potential of a free people under an elected government.