Saturday, June 15, 2013

The Long Term Interdependence of the U.S. and China

  1. When you look at the interdependence of the U.S. and China one must look back to the year 1972 when Nixon and Kissinger first went to China. Why did they do this? The reason is simple. First, Mao Tse Tung was the leader of China and even then there were expected to be eventually 1 billion people in China and after all China has been an empire for about 5 thousand years. So their culture has been developing for a long time.

    Nixon and Kissinger and Mao Tse Tung and Deng Xiaoping engineered this interdependence. It could be seen more as a marriage of convenience by both sides. China had almost infinite workers and the U.S. needed those workers never to turn on the U.S. as an army (especially after dealing with World War II). 

    So, the 4 of them over time engineered this "Great Interdependence" of the two countries. I suppose you could call it a marriage based upon both necessity and economics. But, if the U.S. and China ever got a divorce it is important to note it could be the end of human civilization here on earth for a variety of reasons.

    So, when the two countries vie for economic and political supremacy it must be viewed in many ways like two marriage partners who legally married each other in 1972. Even if you look at the way China tied the value of it's currency (this is still true today in many ways too) to the dollar you can see how in some ways both the success of China and the U.S. are in lockstep like two married people.

    I was listening to one knowledgeable commentator saying how at this point China is the most like the U.S.'s banker than anything else. If we want money to do something here in the U.S. we borrow it from China. So, in this way China is our financier and we are the idea man with ideas to be financed.

    However now, China is stealing intellectual properties from the U.S. quite quickly and economically this is sort of like one of the partners in a marriage stealing money before it can earn interest in the bank without telling the other they are doing this. Of course, the U.S. knows this is going on. 

    But, imagine when you had married your wife was from very big family and you married her so her relatives wouldn't all come and kill you in your sleep. Now, your wife and all her relatives are rich and have loaned you money to start many businesses. So, you both are rich. But now, all her relatives are sneaking into your internet stashes of money making ideas. What do you do?

    This is about where the U.S. and China are now in their long marriage of mutually acceptable convenience towards mutual wealth and well being.

     

     

    1972 Nixon visit to China - Wikipedia, the free encyclopedia

    en.wikipedia.org/wiki/1972_Nixon_visit_to_China
    Indeed, by their willingness to engage in summit meetings with us, with Nixon going to China in February, 1972, and to Moscow in May, 1972, the Russians and ...

  2. Nixon goes to China - Wikipedia, the free encyclopedia

    en.wikipedia.org/wiki/Nixon_goes_to_China
    The phrase "Nixon goes to China", "Nixon to China", or "Nixon in China" is a historical reference to United States President Richard Nixon's 1972 visit to the ...


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      en.wikipedia.org/wiki/Mao_Zedong
      Mao Zedong, also transliterated as Mao Tse-tung About this sound listen (help·info), and commonly referred to as Chairman Mao (December 26, 1893 ...





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      I realized as I read at Wikipedia of Nixon's visit to China that Zhou Enlai and Kissinger in person started the ball rolling so I realized I needed to include him in this process.
      1. Zhou Enlai - Wikipedia, the free encyclopedia

        en.wikipedia.org/wiki/Zhou_Enlai
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        Leading figure in the Chinese Communist Party (CCP) and premier (1949–76) and foreign minister (1949–58) of the People's Republic of China, who played a ...

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