China Versus the West : The Global Power Shift of the 21st Century

by Tselichtchev, Ivan; Yongxin, Yang; Richter, Frank-Jü; rgen

• ISBN13: 9780470829721
• ISBN10: 0470829729
• Format: Hardcover
• Copyright: 2012-03-20
• Publisher: Wiley

Summary

A provocative look at the rise of China and how it will impact the global balance of power This book provides a fresh, often contrarian view of the rise of China and the ongoing shift in the global balance of power. Drawing upon his experience as a leading academic researcher based in Japan, Ivan Tselichtchev reveals how, despite her growing dominance in production, trade, finance, and consumption, China has failed to increase her power significantly in many other key areas. Exploring how the global economic crisis helped facilitate the power shift, China Versus the West sheds new light on how this Asian giant so successfully turned that disaster to her advantage. Offering in-depth analyses of domestic markets and considering the role the expansion of those markets will play in Chinas growing economic power, the book explores the looming challenges to economic growth. Controversially arguing that, despite the dramatic shift in the balance of power, China does not have the will or the ability to dominate the world economy, the book presents a major challenge to widely accepted ideas of where the global economy is headed. Presents a comprehensive picture of the balance of economic power between China and the West, and what lies ahead Looks at the major challenges facing Chinese economic development, including increased global competition for natural resources and an emerging global deficit in everything from commodities, to machines, to consumer products Draws upon author Ivan Tselichtchevs unique, multinational background to offer alternative insights into this crucial turning point in global politics An in-depth, extensively researched discussion of an array of issues of vital importance to understanding the shift of power from West to East, China Versus the West provides a thorough look at this important topic in a compact, reader-friendly format

Author Biography

Ivan Tselichtchev, PhD, is currently a professor at the Niigata University of Management, Japan. He is an internationally renowned expert and writer on the Asian and global economy and business, actively writing in English, Japanese, and Russian. He is the author of four books, coauthor of Asia's Turning Point (Wiley), contributor to many other academic publications, and the author of nearly two hundred articles. Teaching in Niigata since 1994, he has also worked as a part-time faculty member in a number of leading universities in Japan and lectured in different countries around the world. He is a commentator for the CNBC international TV network. In Gorbachev's perestroika years, he was awarded the Labor Valor Medal and in 2004, the Cabinet Office of the Government of Japan named I. Tselichtchev Seikatsu Tatsujin (A Master of Life), signifying a person with outstanding achievements and lifestyle.

Table of Contents

Foreword	p. xiii
Preface	p. xvii
Acknowledgments	p. xxi
Introduction	p. xxv
China as the World's Leading Producing, Exporting, and Financial Power: To What Extent, Where, and Why?	p. 1
GDP: Toward the U.S.-China Duopoly	p. 3
Notes	p. 6
Manufacturing Output: China Is Already the Number One	p. 7
Note	p. 8
Merchandise Exports: From China's Lead to China's Dominance?	p. 9
Where China Is Leading and Where It Is Not	p. 13
Group One Industries: China Is the Top Producer and the Top Exporter	p. 13
Group Two Industries: China Is the Top Producer, but Not the Top Exporter	p. 22
Group Three Industries: China Is Neither the Top Producer Nor a Major Exporter	p. 25
Key Features of China's Manufacturing Lead	p. 25
Anatomy of China's Merchandise Trade Surplus	p. 26
Net Exporter and Net Importer Sectors	p. 27
Domestic Private Companies Have Become the Major Surplus Creators	p. 27
Note	p. 28
Chinese Domestic Manufacturers versus Western Manufacturers	p. 29
The Four Segments Analytical Framework	p. 29
Chinese Manufacturers' Global Offensive: Four Stages	p. 31
Western Manufacturers: A New Way of Thinking Is Required	p. 41
Option One: Stay at Home and Differentiate the Product	p. 43
Option Two: Move to China	p. 45
Western Governments Have to Initiate an Export Counteroffensive	p. 46
A Big Battle for the Chinese Market	p. 49
China-Bound Exports of Capital Goods: East Asia Is Leading	p. 50
China-Bound Exports of Consumer Goods: Opportunities Are There, but You Have to Work Hard Not to Miss Them	p. 50
China Trap	p. 51
At-Home Chinese Companies Are Active in the High-End Niche	p. 52
Competition with Domestic Capital Goods Makers Is Getting Really Tough	p. 54
Global Services Market: The West's Edge and China as Number Five	p. 57
China Joins the Ranks of Leading Services Exporters, but the United States Is Far Ahead	p. 57
China's Trade Deficit	p. 59
China Has a Structural Weakness in Services That Is Difficult to Overcome	p. 61
The U.S. and EU Surpluses in the Services Trade with China Are Meager	p. 61
The Right Time to Capture the Chinese Market	p. 62
Note	p. 64
Is China a New Financial Superpower?	p. 65
China's Overseas Assets	p. 65
$3 Trillion-Plus Foreign Reserves: Implications for China and for the West	p. 66
China Has Become the Largest International Lender for Developing Countries	p. 69
China's Outbound Foreign Investment: Accelerating, but the Lag Remains	p. 70
Chinese Households' Financial Assets: Still Tiny	p. 72
Is China a New Financial Superpower? Yes and No	p. 73
Conclusions	p. 75
The Global Downturn and Beyond: Western Capitalism and Chinese Capitalism 79
The Global Crisis Was Not Really Global	p. 81
Western Crisis: Three Major Factors	p. 85
Unaffordable Consumption and Households Deeper in Debt	p. 85
Gambling Capitalism	p. 89
The Failure of State Regulation, Corporate Governance, and Business Morality	p. 91
Still, Western Capitalism Is Alive, But. …	p. 95
Calm Down: No End of Capitalism	p. 95
Soaring Public Debts as the Biggest Crocodile	p. 103
The Welfare State Has to Be Trimmed More and Faster	p. 108
Is China Structurally Stronger Than the West?	p. 113
Improvement of Lending Practices and Persistent Fight with Overheating	p. 114
Enhancing Regulatory Standards for Banks	p. 116
Healthy Public Finance	p. 118
The Chinese Model of Capitalism	p. 121
The Need for a New Conceptual Framework	p. 121
The Chinese System Is Not State Capitalism: A Great Shift to Private Property	p. 122
Creating Market-Style State-Owned Companies 124
Fierce Competition and the Culture of Self-Responsibility	p. 128
Chinese Capitalism: Definition	p. 129
A Digression about China's Structural Weaknesses and Political Evolution	p. 130
Global Rebalancing Will Not Be Easy	p. 137
Can the Idea Work?	p. 138
Private Consumption in China Is Already Growing Fast	p. 138
Yet Expansion of China's Domestic Demand Is One Thing, and Rebalancing Is Another	p. 140
Too Rapid Increase of China's Consumption May Have Dire Side Effects	p. 142
Present Position: Imbalance or Equilibrium?	p. 143
Conclusions	p. 146
The China-West Economic Wars: And the Winner Is. …	p. 151
China's Choice Is to Further Expand Trade Surpluses and Keep the Yuan Weak	p. 153
The Rationale for Not Appreciating the Yuan Faster	p. 153
The Rationale for Increasing Savings and Exports Rather than Consumption	p. 155
Environment: China Going Its Own Way	p. 157
Global Climate Talks: Doubts Remain If Not Increase	p. 158
Concern about the Impact on Growth	p. 160
A Wider Angle Is Needed	p. 161
China's Pro-Environmental Drive	p. 162
China-West Environmental Cooperation	p. 163
China As a New World Leader in Green Business?	p. 166
A Fight for Natural Resources: China Sets New Rules of the Game	p. 169
Changes in the Global Markets	p. 169
Chinese Model of Tapping Resources	p. 170
African Saga	p. 172
He Acts While Other Men Just Talk	p. 173
China Has Become a Major Source of Development Aid	p. 174
Indigenous Innovation: Seeking to Command Advanced Technologies by All Means	p. 177
The West is Creating China as a New Technological Superpower	p. 178
Soaring Foreign Investment in R&D Centers and Production Upgrading	p. 179
China's Technological Strategy	p. 181
Technology Transfer Enforcement	p. 182
Company Acquisitions: Chinese Are More Active than Westerners	p. 185
Acquisitions Asymmetry	p. 186
The Chinese Government Is Tightening Regulations	p. 187
Western Governments Are Blocking Chinese Acquisitions of Technology and Resource Firms	p. 188
Chinese Acquirers Are Backed by the State	p. 189
Conclusion: The West Needs a Cohesive China Policy and Unconventional Responses to China-Posed Challenges	p. 191
Epilogue: China, the West, and the World	p. 199
References	p. 211
About the Author	p. 221
Index	p. 223
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