22 December 2024

Five Ways To Counter China’s Economic Might

Tatsuya Terazawa

The expansion of the Soviet Union posed a geopolitical challenge for more than four decades after the end of the Second World War. The West, led by the United States, won the Cold War through a strategy of containment. The Soviet Union collapsed because its economy could no longer support the burden of the massive arms race.

The geopolitical challenge of our generation is how to deal with the rise of China. While the Soviet Union could boast military might while lamenting its economic weakness, China enjoys both military and economic prowess. The West knows how to address the challenge in military terms. But unfortunately, we have little experience dealing with a potential economic superpower. The following five points are the necessary elements to deal with the rise of China.

1) Playing Offense, Not Just Defense

The typical strategy by the West has been to deny access to technologies. The Biden administration hoped to slow China’s advances by cutting the flow of technology. While this strategy still has relevance in sectors where the West has a clear advantage, unfortunately, these sectors are becoming much smaller as China is advancing in technology. In fact, in a growing number of sectors, China is now ahead of the West.

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