The new old superpower (I)

The decline of the U.S. as a lone superpower looms on the horizon. China comes pushing hard. Sometime between 2015 and 2020, depending on whose analysis you rely on, the Asian giant will become the world's largest economy.

In a time where soldiers have given way to traders and territorial invasions to company takeovers, that means power and control.

It has been a relatively short journey for China. Its economic evolution has been exponential in the last three decades. Back in 2003, China was the world's sixth largest economy. In 2004 it overcame France. In 2006 it was the turn for the United Kingdom to bite the dust. In 2009 fell Germany. And in 2011 Japan gave away the silver medal. Now only the US stands in the way to the top.

Today, China leads the ranking of population by country. But also in the number of internet connections, energy consumption per capita and the country vehicle fleet. These factors -its huge population and huge domestic market- are what have allowed the country to grow at an average rate of around 10% annually.

This growth has gone hand in hand with the Chinese increase in the life quality index. The Chinese live in general way better now than just a decade ago and have gained in that time what others countries accomplished over half a century. On average, their wages have grown too 10% annually since 2006.

Something similar has happened with the development of the industry. In twenty years it has seen a fast pace industrial revolution that in Europe and the U.S. lasted for over 200 years. Today it is the largest manufacturer in the world of all kinds of goods.

Contributing to this explosion was the massive rural migration to the cities. 120 million Chinese people have left behind the fields to sit behind machines at factories in huge new cities with the population of entire countries.

It also helps its industry that China controls the production of rare earth metals, essential elements for all kinds of modern electronic devices, from mobile phones to washing machines.

The economic boom and rapid development has brought unique situations. It has extremes that to the foreign eye cause shock and awe. As the good replicators they are, the Chinese took what they wanted from the capitalist system -the economy- and what they wanted from the communist system -the administrative organization- creating a quirky cocktail, which is unique and sometimes extremely wild.

The communist legacy makes the Chinese bureaucracy extremely dreaded, especially by expatriates working there. It is a mixture of communist-era rules and timid liberal openings as difficult to navigate as a maze. Moreover, that same mixed bureaucracy makes sometimes the capitalist economy to have to bend around stupid or wild assumptions, creating a result that is neither capitalist nor communist but a mixture of the worst of both.

A clear example of this are the nail houses. In the 60s, the communist government could expropriate land at will paying very low compensation. With the introduction of private property laws in 2007, the owners won some bargaining power. 

This led to stupid situations. Throughout China there are examples of residents who refused to sell their homes and builders built everything from shopping centers to roads around them. The results are simply surreal in most of the cases.

However, one of the things that the Chinese have learned to do extremely well is to protest. Sometimes their voices are heard, sometimes not.

In recent years, the environmental issue has been a continuing focus of protests: the depletion of aquifers, pollution of the air or the cancer villages are just a few examples.

Corruption, human rights and civil rights have been at the center stake as well, this last one a field where the artist Ai Weiwei has been its most prominent spokesman in recent years.

However, advances in both environmental issues and human rights and civil rights issues have been timid. The Chinese government considers both a collateral damage that it is willing to take if in exchange progress is achieved.

That is not the case with corruption, an area where Beijing’s government seems to be starting to consider more seriously.

Inside its own country, the Chinese government has been concerned to make clear to its own citizens that the global importance of the country has increased. The architectural mega-projects like the world's largest dam, the highest altitude railway or one of the longest bridges in the world have put China once more in the map.

But not only concrete jungles drive Chinese pride. Since it hosted the Olympic Games in 2008, China has come to control them in the arena in the latest edition in London. In addition, part military, part civilian, the Chinese indigenous space program is a feat that few countries can boast.

This increasing prestige has been joined with the increase in living standards. Higher wages have made the Chinese tourists the biggest spenders outside its borders and, therefore, the most desirable. But also be the most problematic ones.

China has all the ingredients to become a great power. It already is one at the regional level. But doubt remains about whether it can be constructed also as a world superpower.