Is America's heyday over? The new evidence does appear to suggest that this is the case. America's greatest economic and political influence upon the world may now be a matter for the historical record. America, the largest debtor nation in the history of the world, will likely live out the remainder of its national life in whatever role is assigned to it by the other nations it is indebted to. As investors move away from North America to pursue new business opportunities elsewhere, the center of economic vitality appears in plain sight for everyone. This center is without argument China. In fact, China stands upon the threshold of becoming the leading super power in the world today. If the 20th century was called the "American century," then the 21st century belongs to China.
There are some potent and understandable factors which explain this geo-political shift in the realm of international business. To begin with, China is making a lot more money than America. Their economic numbers are so good that the American business community can only dream about them! On the basis of profit alone, China is the world's leading center for market-based economics. In addition, China has reversed the trading partner numbers with the United States since 2006. In other words, China now trades with more countries around the world than the United States. So in business it is obvious that China has more economic ability, a larger and cheaper work force, and a government that is more committed to prosperity than does the United States.
The greatest challenge for western investors is to rightly understand the tremendous opportunities that China presents. The first place where everyone begins is the challenge of learning their language. The official language of the Middle Kingdom is Mandarin Chinese. Essentially, this is the legal language of the government, business, and educational community in the People's Republic. However, the language is only a part of the puzzle in getting familiar with the Chinese. Chinese culture, history, and customs are equally (and additionally) other aspects of this lengthy introduction. All of these areas are vital in knowing the people and nation of China better. One should not neglect any of them at the expense of the others. The result of this kind of neglect could easily be loss of time, loss of trust, and loss of money.
China has many new and old stories to tell. The rise of the Chinese star has come about through different momentous events and the extraordinary people who lived China's history. Even today in North America, there remains a need to dispel old ideas and prejudices about China. It is no secret that many western people think about China with ideas that may have been true in the past. After all, the Cultural Revolution is long since over. China is a rapidly modernizing, market-based society which has made fantastic progress in technology in a very short period of time. Their climb to the top of the world market is something to seriously ponder. The prudent business person will not overlook the new legacy China has lived before our eyes in the last two generations!
