Friday, August 21, 2015

Why I see China taking over the world in 2020

Calling on the Chinese to have faith and trust in themselves - Professor Chang Wei Wei. 

1.  For the past 30 over years there have been many positive and negative predictions on China. Looking back, most of the positive predictions have been realised but most of the negative predictions have been proven wrong. Before the opening of the 18th National Congress of Communist party, a BBC interviewer asked me, "Will China convene the next 19th National Congress of Communist Party?" I answered, "For the past 30 years, I don't remember any of your predictions having come true." The problem with western thinking is that if you are not following their way of society and government system you will surely fail. In 2011, during a debate with a Japanese American professor, I declared that my understanding of American politics is that the American political system is based on pre-industrial revolution ideas and in fact the Americans need more urgent reform than the Chinese... 4 years have passed; I think that I am even more correct now. This Japanese American professor has now published a paper "America in Decay". We should not just worship the American system blindly but evaluate it properly.
2. I have worked and lived in western countries for a long time; and now I feel that there are more bad than good. In one of my lectures, a participant asked me, "If China is so good now, why are there many who want to emigrate?" But my research shows that 70% of Chinese who emigrated to western countries have become even more patriotic. In the past 3 years, emigration from China is 190,000 people per year. Democratic Poland, with a 40 million population had emigration of 500,000 people last year! Our democratic Taiwan province, with 23 million population (less people than Shanghai); conservative figures put it at 1.5 million people working/living/studying in China.

 3. If you fly from Shanghai Pudong airport to any of New York's 3 international airports, you can feel like flying from a 1st world airport to a third world airport. Stay in a Newark suburb for a night and experience why you dare not go out at night. I have a friend in Newark medical school, and he remarked that the best medical specialisation is treating gun wounds. You will have lots of patients every day. In USA, the society is like a 1st world, 2nd world and 3rd world living together side by side. If you happen to be on the 3rd world side, your life expectancy is just like Africa's (50+). If you, like many of our students, through hard work, enter the 2nd world, you become middle class. For the past 20 years your real income has not increased; and you will be worried about your retirement.

4. Economically we have progressed well; poor people liberated from absolute poverty is 80% of world total. Our achievement exceeds the total of all other developing countries put together. I can see China overtaking USA's nominal GDP in 10 years. If you talk of GDP in ppp terms, according to IMF, China had already overtaken USA in 2014. (72.83% of overseas post-graduate students chose to return to China) a total of 1.44 million people. But critics argue that our population is 4 times the USA's, so per capita GDP is only a quarter of the US. But, we should also look at other parameters, using average household net asset (ie all assets and savings less debt). In 2010 USA average household net asset was USD77,300; in Chinese urban areas this is USD66,200. USA is a debt ridden nation, and the people are also heavily in debt. In terms of average household net assets China is already not far behind. The second parameter is life expectancy. China's now is 75 and America's 78, New York is 79 while Shanghai is 82. Even though US per capita GDP is far better than China, for the average household net asset and life expectancy China is only slightly behind. The reason behind this is China is a socialist country, and the state provides tangible welfare for the people.

5. In China, the richest 100 cannot influence national policy while in US the richest 30 can influence the White House. In USA elections, there is no limit to political donations by corporations and individuals. So democracy has become monetocracy.

 6. The western world keeps criticising China as an autocratic country as compared to themselves. A cold war era satellite photo contrasts the bright lights of West Berlin (progressive democratic country) versus a dimly lit East Berlin (backward autocratic country). But today, Berlin airport is small and primitive and their night scene is way behind Shanghai. So democratic/autocratic is irrelevant. What is relevant today is GOOD or BAD GOVERNANCE. So you can have a democratic bankrupt Greece or Iceland with bad governance.

7. One important part of politics is the method of producing a country's leader, using meritocracy to defeat a western democratic system. In China, the basic requirement to enter the Central Committee of Communist party other than qualifications is to have minimum 2 terms as Provincial Secretary (ie govern 100 million+ people with good results).

 8. Look at Xi Jin Ping; he governed 3 provinces Fujian; Zhejing & Shanghai totalling 120 million people and total GDP close to India's. He entered the Central Committee only with such experience and performance. Another 5 years to experience national political, economic, military and social issues before he became top leader. This is the most competitive system in the world. While it still has its shortcomings, the system ensures that it will not produce a 3rd class president like Bush junior. My thoughts were quoted by The Economist in their article "What's gone wrong with democracy?"

 My Final Conclusion: Chinese should have faith in themselves.

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