China's Futures: Scenarios for the World's Fastest Growing Economy, Ecology, and Society
Ogilvy and Schwartz founded a firm in the 1980s to help businesses plan long-term strategies in an uncertain, rapidly changing world. In this short, breezy, and thought-provoking book, they now imagine China in 2022. Rather than offering one forecast, they describe three possible scenarios, each of which depicts a radically different evolution. The first foresees a widely prosperous, thriving, and increasingly democratic China. The second predicts that China will be economically successful but dominated by around 50 extended families with international connections and threatened by regional factions, perhaps even courting civil war. A third sees corruption and inefficient distribution becoming so pervasive that a popular general seizes political control after regaining oil-rich territory in Russia's Far East -- and proceeds to restore order, reduce crime, and reestablish a tough, authoritarian state. The authors urge Western firms to test their business plans against all three scenarios, since in their view none can be ruled out.
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A single-minded focus on the U.S. trade deficit with China ignores a new reality: since the early 1990s, the ground beneath U.S.-China relations has been shifting. Shallow links based on trade have given way to deeper ties characterized by rising U.S. foreign direct investment and sales by U.S. foreign affiliates in China.
Nixon was not the only one who went to China; Ronald McDonald is there now, too. McDonald's triumphed -- in a cultural zone where many adults think fried beef patties taste bizarre -- by catering to China's pampered only children, the so-called little emperors and empresses. The "Golden Arches" have become part of the landscape of Beijing and Hong Kong. But is McDonald's trampling local culture in the name of a bland, homogeneous world order? Not really. Global capitalism pushes one way, and local consumers push right back. Herewith, a parable of globalization.
No, it is not a silly question -- merely one that is not asked often enough. Odd as it may seem, the country that is home to a fifth of humankind is consistently overrated as an economy, a world power, and a source of ideas. Economically, China is a relatively unimportant small market; militarily, it is less a global rival like the Soviet Union than a regional menace like Iraq; and politically, its influence is puny. The Middle Kingdom is a middle power. China matters far less than it and most of the West think, and it is high time the West began treating it as such.

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