The true extent of China’s troubles is just becoming apparent. The world’s perception of China is about to undergo a massive shift: from strong China to weak China. As it does so, global economics, politics, and security will be affected, as much as by what happens inside China as what happens in response to the new conventional wisdom.
Much like Japan did in the 1980s, China dominated the global consciousness in the 2000s. Pundits confidently asserted that China would soon be the world’s largest, most powerful nation – just as they did about Japan, thirty years previously. China’s undeniable growth from its low level of development during Mao’s years made it seem as if the next economic miracle had been found. Western economic behavior shifted to incorporate China into the global trading system, governments around the world overlooked China’s repressive government, and Western capital flooded into the country. At the same time, Beijing began building a military without peer in Asia, and started to assert its national interests, such as territorial claims in the region’s seas.
Yet hidden by the bright lights of Shanghai and Beijing, a different China was struggling to hold on to its achievements and ensure enduring growth. On one hand, China by 2015 was simply replicating the historical experience of other modernizing nations, as its growth slowed down and the costs of dealing with breakneck development became apparent. Beyond that, however, corruption, environmental disaster, massive waste, and malinvestment, combined to become a rot eating away at the core of China’s modernization. In the foreign arena, China’s coerciveness against its neighbors and its growing threat to principles like freedom of navigation raised doubts about how cooperative a powerful, but xenophobic China would be.
Asia expert, Wall Street Journal and Forbes contributor, and author of the forthcoming The End of the Asian Century, Michael Auslin will explore whether we have hit “peak China” and what it means for the global future. Is China already stagnating economically? Is slow growth the new normal? If so, how will the rest of the world adjust? Already, economies around the globe are reeling from the slowdown in China’s economy, while the idea of China’s “peaceful rise” has been eclipsed by its actions in the East and South China Seas. Will other Asian nations feel emboldened to gang up on Beijing in a bid to alter its behavior? How much more will Beijing repress civil society inside China, so as to crush any dissent and criticism of the government’s failings? These questions, and more, drawn in part from The End of the Asian Century, will shape global politics over the next decade.