104. Rise of China as a Superpower

The rise of China from poverty to its current position of leadership as the second largest economy in the world has become the most significant event of the twenty-first century. The purpose of this blog is to document an up to date track of the progress of China as it may ultimately evolve into the dominant position as the world's top superpower.

The origins of China's economic growth are of a relatively recent origins starting in 1993, though its progress is rooted in an ancient culture of many centuries.  The trends we will be extrapolating have started when the political leadership of China made the decision to participate in the adoption of a model that would propel China to benefit from the industrialization of its society. For that to be possible required the rapid acquisition of investment capital and of technologies of mass production.  In form that required the adaptation of capitalism as the engine of development, which in many respects duplicated the practices originally developed in the UK in hundred years of the age of the steam engines and subsequently by the USA in the fifty years of the age of the combustion motors.

China could  then benefit from the lessons of one hundred fifty years of capitalist forms to become ready for the next stage of history, which have been already emerging into a post-industrial, e.g. information-based society that was already germinating in the USA but was blocked from becoming adopted due to obsolete institutions.  However, before proceeding on a path towards a new and different society of the future  China had to first pass through the industrialization stage.

To industrialize requires the acquisition and the installation of modern capital without the social costs that were incurred when production was concentrated in factories.


Net trade - Exports minus Imports - become the key indicators what are the consequences of trading. As shown below, the net trade of China is positive, whereas the results of the net trade of the US is negative, which indicates that its contributions to the aggregate US economy is a net deficit. 


Summary:
China depends on its global trade as a means for achieving its rise as a global superpower.