More Differing Views on China

  

Good counterpoints to my previous post:

Wiggins, whose orientation toward strategy is Wohlstetterian, offers a critique.

Opposed Systems DesignThe trauma of constrained ascendancy

….Mark correctly identifies a shift in Chinese behavior over the the past year or so. Where Mark’s analysis falls short lies in presuming that incompetence or short-sighted factions are responsible for this shift. The international relations theory of power cycles offers a richer way of understanding China’s position in the international system and how that has produced a change in its behavior.

Briefly, China’s relative rate of growth has begun to slow. After roughly 30 years of (accelerating) relatively faster growth than the major powers in the system, this trend has reversed itself. This is confusing, since in absolute terms China continues to grow and – by these same absolute measures – it came through the global financial crisis much better than the U.S. In tension with these trends, however, are a host of systemic factors that are constraining its growth (including demographic shifts, environmental degradation and inefficient capital allocations). The transition from early to late stage growth (or from labor-intensive to extensive or innovation-based growth) confronts China with new challenges. It becomes harder to accurately discern its place in the system and its trajectory of growth. This leads to more internal dissent among leaders trying to interpret these disparate trends and creates incentives to discard the cautionary policies of Deng (hide brightness, nourish obscurity). Before the first inflection point, time was on China’s side. A post-first inflection point China, on the other hand, begins to feel pressure to realize some of its ambitions before its window of opportunity closes. Hence, we begin to see cracks forming in the implementation of Deng’s strategy.

I have only read one paper on power cycles, recommended to me by Wiggins himself in his non-internet persona, so I am not qualified to comment on it’s theoretical strengths and weaknesses as an evaluative tool ( it would also help if were a quant rather than a qual academic). I will say that, as a rule of thumb, selective relative changes, those that are marginal in nature, are often perceived more acutely in terms of political angst than are absolute changes in real terms.

For example, agrarian populists in 19th century America were absolutely furious about the effects of a deflationary gold standard on crop prices relative to debt, liquidity and access to credit but not so exercised about the increases in purchasing power and access to consumer goods that farmers enjoyed that were unknown a generation earlier. Perhaps somewhere, there is a Chinese William Jennings Bryan in Shaanxi waiting to burst on the scene. 🙂 Or a von Tirpitz.  So there may be merit, in a macro-systemic sense, to Wiggins criticism of my post.

Dr. Thomas P.M. BarnettThe “rising near peer” returns the paranoid favor

….And we wonder why the Chinese military seem to think we’re their number one enemy?  Are we honestly that clueless or has our disingenuity broken through to some higher, slightly irrational plane?

Follow me into this brave, alternative world:

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