Jones - Chinamerica: the uneasy partnership that will change the world

ChinAmerica

THE UNEASY
PARTNERSHIP THAT WILL CHANGE THE WORLD

HANDEL JONES

Copyright 2010 by Handel Jones. All rights reserved. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher.

ISBN: 978-0-07-174425-6

MHID: 0-07-174425-8

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To my parents, David and Ruth Jones, who gave me life

THE GROWTH OF CHINA is clear, imposing, and seemingly inevitable. Meanwhile, the United States is operating with large deficits and a perceived and real loss of its global leadership role. What does this mean for the future of America and China and the generations of citizens of both as yet unborn?

ChinAmerica provides great clarity of the characteristics of the Chinese people and their ambitions for themselves and their nation. If any sense is to be made of the future relationship between the two countries an understanding of the evolving trade and competitive dynamics between them is essential and this ChinAmerica delivers.

ChinAmerica is essential for government and business-people who want to understand China as well as to anyone who has an interest in geopolitics and global markets.

The consequences, which even great nations suffer, because of internal inefficiencies and the pressure from outside competitors, need to be understood in detail. It is clear from the book that unless the United States makes radical changes in investment and competitive strategies, a dramatic weakening in global competitiveness and wealth is inevitable.

Pleas from the United States for level playing fields and the protection of yesterdays industries will not save the day. It is no good asking or expecting China to change its trajectory. China is on a growth path with a confidence and ebullience that has not been seen in the world of economics since the United States in the early postwar years. It is the United States that needs to change and to change dramatically and soon.

This book is relevant and timely for readers in each of the megapowers. Predicting the future is more often than not a fools game, but grasping what is actually happening today and how that will shape the future is not. Thanks to Handel Jones experience over many years this book provides an excellent basis for at least determining the risks and opportunities facing both nations. It is a very valuable and timely contribution.

THE IDEAS IN THIS BOOK came together after decades of my being involved with international businesses and meeting thousands of very smart and knowledgeable people. Ideas and concepts need to be substantiated by recent and verified data, and I would like to thank the large number of acquaintances who provided the input that enabled me to validate or discard these concepts.

To understand China, there is the need to spend time there and feel the pulse of the people who live there. My many visits to China, especially those in late 2009 and early 2010, have been invaluable in enabling me to meet a wide variety of people who have contributed input to my understanding of the strengths and weaknesses of China. I would like to thank the people in China who have shown me the factors driving the industrialization of China.

A significant amount of the coordination of the research in China has been done by Zhou Min, who also provided valuable feedback on the data.

A book is more than just a gathering of insights and facts. I would like to thank the members of the International Business Strategies (IBS) team who assisted me in the development of this book. Research and editing of the information have been admirably done by Sarah Noc and Joanne Kim. Sarah has also managed the production process efficiently. Robin Soe contributed in the verification of information, and Jay Marcorelle provided invaluable guidance and support. Lastly, IB Kim has provided strong suppport and has been instrumental in making sure all the pieces fit together.

A number of industry experts in academia and in the electronics and venture capital industries provided valuable ideas and were vital sounding boards for providing feedback on my views. I would like to thank Richard Kulle, John Dickson, Don Lucas, and Dr. Henry Kressel for their input on early concepts.

Other industry officials who provided guidance included Michael Jones and Megan Jones. They provided feedback on the banking perspectives with respect to China. By being in Hong Kong and traveling extensively in Asia, Michael has developed a deep understanding of the role of China.