Understanding the China paradigm
China's economy is growing at a pace not comprehensible to the West or Japan or for that matter to any Western-educated economist. The growth of China's economy is not like Taiwan's, South Korea's or Israel's.
Three decades back, China adopted a ‘one child policy'. Prosperity was measured on a per capita basis. Couples who could have four children were now having only one child. Both parents started working. The per capita income, which was one-sixth of a family income, was now two-thirds of the family income. With no economic factors altered, the per capita income went up four times.
With the per capita income increased four fold with just an executive order, Chinese families had surplus money at their disposal. This money needed products. The West gave Chinese toys, fancy electronic goods, garments and many more items.
Then China started manufacturing Western technological products for their own home consumption. These products were priced very low since the Chinese market can only afford low-priced products. The West sold the technology and tools to China at Western prices.
China's market needed low-priced products. The only way to achieve this was to make products in large volume with the same investment in Western tools and machines.
So China learned to make products at low prices. China also learned to make the tools to make these products at low cost. Now China had a low-cost base from the investment stage onwards.
Many Western individuals who mattered felt relieved to have a nation who not only worked but also worked hard with no peripheral issues.
With a view of confidently usurping China's market, the West then proposed globalisation on a war footing. In other words, a third world war was started not with arms and ammunitions, but with technology, WTO, the mass media and television.
British history is a false story. The British never ruled any Asian nation in the modern sense. The British never taxed, nor issued passports or for that matter had any act of a modern government. The British were more like partners in the exploitation of locals along with the local rulers. The Church was part of the tools used for exploitation.
China did not allow churches to operate. While the Church of England claimed it was withdrawing investments in Indian companies, no such agitations could be kindled in China.
Besides that, all land in China was with government and allotting land resources was simple and open.
Then there three decades of opportunity in the form of:
- A pro-business government that allocated resources at a faster pace.
- A psychological state of mind that ‘we Chinese are poor so need to work harder.
- A psychological state of mind in the West that ‘ I am a Western worker so I am rich and have the right to relax and do less work'.
- Misguidance and the consequent complacency generated by Western media reports that because of the low exchange rate, China was pricing its products lower, hiding the important fact that China was importing most resources and value-adding for export. The Chinese are really efficient and are not like the Arabs who live on natural resources.
- Then there was the misplaced confidence of Western policy-makers in that in an open globalised world, Western companies could compete with Asian companies via a mass media frenzy replacing the gunboat diplomacy of the British for similar economic goals.
The above factors and many others have made China what it is today. Europe has to realise that China has a bigger population than all of Europe. For three decades, China has been training its manpower with better tools, better food and more commitment. The US and Europe, meanhwile, have lost a generation.
Europe and the US have made a whole generation look outward for the cause of their ills rather than looking inward to find out what is wrong. Quality and honesty are factors to be felt and realised - not argued or debated. The West wasted their energy in projecting Chinese products in bad light. But most people realised otherwise. China has proven that their products are worth the money people pay.
Now with three trillion dollars in reserves which are in reality IOUs of the West, China is an economic superpower, at a level no nation has ever achieved before in the history of world.
Even at this late stage, Western economists do not realise that the West is decades behind China. It is very silly to compare Germany to China. Germany shipping a product beyond 300 kilometres is called export. For China, shipping a product beyond 3,000 kilometres is export.
Western politicians are trying to instigate trouble for China through Taiwan, Tibet, India and some Muslims. Except for India, all other actors are inconsequential. As long as China does not enter into a direct confrontation with India, the possibility of the West defeating China militarily or even threatening China militarily remains a remote possibility. Twenty-first century China is not the19th century China.
The real fact of life today is that no country in the world including the US is as self-reliant as China is in technology, resources and manpower and in the spirit of its citizens and young people to work harder to do better. China is the superpower; all others are only shouting powers.
Hard work, honesty and fairness in dealing is the only way to success. It is time to tell your citizens to not look for excuses. Work hard.


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