Yes, China has grown, but its growth has made it a hostage to its foreign customers. Nearly 20 percent of China’s gross domestic product is generated from exports, 5 percent of which are bought by its largest customer, the United States. Anything that could reduce China’s economy for the long term by about 20 percent is a desperate vulnerability.And he adds that China has not been successful in forming alliances with most regional neighbors. North Korea and Russia are the exceptions and neither is especially useful against the U.S. ability to stop buying Chinese products.
China faces a non-military threat from the United States, which relies on exports to China for about half of 1 percent of its GDP. If the U.S. simply bought fewer Chinese products, Washington would damage China without firing a shot. If China is a rising power, it is rising on a very slippery slope without recourse to warfare.
It’s true that China is a rising power, but as I said, it’s rising from the Maoist era. It has a significant military, but that military’s hands are tied until China eliminates its existential vulnerability: dependence on exports. Under these circumstances, the idea of initiating a war is farfetched. More than perhaps any country in the world, China cannot risk a breakdown in the global trading system. Doing so might hurt the U.S. but not existentially.
The United States has no interest in a war in the Western Pacific. Its current situation is satisfactory, and nothing is to be gained from initiating a conflict. The United States is not giving up the Pacific – it fought wars in Korea and Vietnam as well as World War II to keep it. The U.S. can’t invade mainland China or conquer it. It cannot expose its forces to massive Chinese ground forces. In this sense China is secure. China’s fear is maritime – isolation from world markets. And that possibility is there.
So ... the policy prescription is obvious.
Stop buying Chinese products.
