Any questions? Contact us.

Sunday, June 30, 2013

The new old superpower (II)




As we said last week, 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 real world superpower.

The traditional definition of superpower has been usually linked to a powerful army. And regarding that, China still has a long way to go.

In recent years and especially since 2011, China has prompted several major military projects. These include for example several types of aircraft under development, among which are especially relevant the J20 and J31.

These two prototypes make China, along with the U.S., the only other country which has two models of flying 5th-generation aircrafts. Russia, the third runner in possession of this technology, is developing only one model. The rest, none.

But nothing exemplifies a superpower more than its force projection capabilities. That's where come into the picture the submarine and aircraft carrier forces the Chinese navy (PLA) is developing.

Both platforms are the spearhead of any modern army. They are the ones that allow a country’s forces to be deployed rapidly anywhere in the world and until now it is what so far has lacked the Chinese army.

However the Chinese still have many years of development ahead of them to even get closer to the American potential, let alone surpass it. But the mere fact that they are providing the basis for this kind of military power has more than one brain concern in Washington.

In their favor plays something else. China doesn’t seem to want to follow the militaristic model of the United States and Russia. Surely its armed forces will continue to go abroad on an exponential basis as its influence grows. But mainly it will be for maneuvers and for humanitarian missions -something they could not do during the 2004 tsunami but learned in time for the disaster of Fukushima.

This strategy fits well with the soft power approach that China has historically exercised and exercises today in Africa, Latin America and Asia. A power that was tested in Libya, when it was forced to evacuate the large population of Chinese expatriates working there in the oil and gas industry.

The high demand for energy and resources has made China open to the world to find them. Mongolia, Australia, Venezuela and Uganda are among the countries that have benefited from Chinese soft power commercial contracts.

The case of the African country is particularly striking. In a country where until recently infrastructure was nonexistent, today you can make your way through the jungle in wide six-lane highways. Even Top Gear presenters were surprised when they saw them in the Africa special. It is the Chinese gift to Africa in exchange for their resources.

But China has shown it is also willing to play aggressively. And when we talk about today’s battlefields of economics and business, the aircraft carriers are the international companies and submarines are the rating agencies.

The Asian giant has also begun to enter with authority into these areas. Chinese companies have been for years expanding themselves into the Western market, either by geographical reach (like the introduction of Chinese goods in Europe) or acquisitions of Western companies (like the purchase of Volvo).

Meanwhile, back in May China established its first Chinese rating agency together with Russia to counter Moody's and S&P, both American and highly criticized, also from the European Union, for being biased and pro-US interest.

However, if the Asian giant is truly to become a globally dominant economy, it still has a lot of homework to do.

The main problem that China has is the same that has allowed it to create so much so fast: it is the country of the copy. Early in its development, copycats served the Chinese industry to get a head start. However, they have become accustomed to it.

A recurring theme among expatriates in China is the lack of imagination of local subordinates. They know to follow orders and they know how to copy, but they are unable to create and innovate.

Their initiative is reduced with a generation that has grown up in the shelter of not having to think about anything, just engineer retroactively or follow the instructions from blueprints purchased in questionable conditions or stolen from a foreign server. A lack of initiative that is worsened by the internet censorship.

Of course there are people who innovate, but the results are... let’s say that far from perfect. The best Chinese products today are still based on other foreign projects. When China becomes the lead of the pack, they will encounter a serious problem of innovation.

The rest of the world is now also better protected against copying. An employee of a Spanish aeronautical company told me how on a visit of potential Chinese investors they had to isolate them so they could not see or copy anything. They went as far as blocking office windows that faced the factory grounds and test labs and took off the network the computers the Chinese investors used.

The energy hunger problem, on the other hand, will curb the Chinese industry’s growth. Despite the large planned investment in nuclear power plants, to maintain the current level of production growth, China would need to increase by 50% the consumption of coal. Something that will involve both environmental and economic difficulties.

Also, many Chinese still believe today that the best future for their children is outside of China. Without a winning mentality in China, it is difficult to create a leader country. This extent is joined by the problem of an aging population that is going to be increasingly older. The one-child policy has endangered Chinese generational takeover.

Despite all this, and even if only because of its demographic weight, China is bound to have an important role this century. Their elites know this and they are preparing the ground with the military build-up. Meanwhile, America is in decline, running away from a world police role.

It is also happening on the political level; China is building-up influence, venturing into issues that had not mattered before to Chinese officials, like the conflict between Israel and Palestine. To interfere in a regional issue so far from its area of ​​influence is a clear sign of the dominant role that China is called to exercise. Whether America likes it or not.

0 comentarios:


Are you afraid? Well, this works in that way. First you do what scares you and it's later when you get the courage
Twitter Delicious Facebook Digg Stumbleupon Favorites More

 
Worldwide blog©, WGMreports© and the texts included here are copyright of Javier Garcia Marcos.
All the pictures used in this blog are property of their respective owners. Any innappropiate use of them is unintentioned. Any image or link used without permission will be removed.
Powered by Blogger