This week, we’ve been highlighting China’s 9 Principles for Replacing America as the Global Superpower
- Don’t provoke a powerful adversary.
- Turn your opponent’s house on itself.
- Be patient to achieve victory.
- Steal your opponent’s ideas and technology.
- Target an enemy’s weak points rather than relying on an accumulation of brute strength.
- Beware political states that have a dominant influence or authority over others.
- Deceive others into doing your bidding for you.
- Establish and employ metrics for measuring your status relative to other potential challengers.
- Maintain a deeply ingrained sense of paranoia.
Note these principles are excerpted from a book titled The Hundred Year Marathon: China’s Strategy to Replace America as the Global Superpower by Michael Pillsbury.
Quite an appropriate title given CNBC’s observation regarding the current escalation in the tariff dispute.
Let’s dig a little deeper…
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According to CNBC…
Eighteen months into the trade battle with President Donald Trump, China has come to terms that it’s fighting a forever war as conflicts have spread well beyond trade.
The time horizon may go well beyond the life cycle of the current U.S. administration.
China is preparing for a battle that could be as long as the U.S.-Japan trade war in the 1980s that lasted more than a decade.
More specifically, China is:
- Accelerating efforts in other countries to reduce its reliance on the U.S.
- Strengthening its domestic market by improving its internal distribution infrastructure, e.g accelerating the development of chain convenience stores.
- Welcoming US businesses such as Tesla and Costco.
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The bottom line: Don’t expect China to budge much on the issues that the Trump administration considers crucial:
- cyber intrusion into U.S. business networks
- forced technology transfer
- intellectual property theft
- currency manipulation
It’s going to be a long slog.
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