My answer to China owns over $1 trillion in US treasury. Is this an advantage or disadvantage for China when it com…
Answer by Ken Larson:
The economic models for the two countries are diametrically opposed, yet locked at the hip.
The US has make China its factory for producing goods and China has made the US its largest customer.
Where would China be without Walmart and where would Walmart be without China?
China invests in U.S. Debt because the U.S. dollar is strong. World wide the U.S. dollar is the common currency for trade and the U.S. GDP is unmatched on the face of the earth.
Image: “THE ECONOMIST”
From a military perspective the US far exceeds China in weapons and technology but China must have territorial expansion to deal with its economic model (Exports).
In the high tech arena, both countries are neck and neck in cyberspace as unintended consequences, hacking and criminal activity endanger both.
To believe these two countries would go to war against each other ignores economic and geopolitical reality. To say it could never happen ignores human error, unintended consequences of cyber warfare and human nature.
Bottom line – War as we have known it in the past is now dead. A new competitive arena has arrived on the world stage and it must be carefully managed by the leaders of these countries.