They’ll Never Fully Dominate
“Let China sleep, For When She Wakes, She Will Shake The World” is a famous quote often attributed to Napoleon Bonaparte, and whether or not he really said it, for the past 40 years, we’ve seen this country bounce back from abject poverty and into global supremacy, in the most dramatic and unprecedented fashion in human history.
Whoever analyzes what China’s progress has been like in the past 40 years sits there in disbelief; it’s almost fathomable that such exponential growth can occur.
But China represents a different mentality to dominance than the Dutch, Spanish, British, French and American empires, which have dominated the world for the past 500 years.
It’s a different type of beast and we now understand that they are again shutting their gates to the rest of the world.
Before we understand how China might be sabotaging itself again, by way of isolation and insulation, I want to show you why lack of embracing dialogue and flow of ideas – whether congruent to your own or starkly different – is a financially detrimental decision, for any region of the planet.
Take Australia, for example, which is the smallest continent by size, but the only one that is home to just one country. Its settlements are so sparsely populated that you can drive for hours and not see a single human being.
Its size is equivalent to the lower 48 states, which are home to 300M Americans, yet Australia’s entire population is only 26M, fewer than that of California or Texas!
There are islands with more inhabitants, like Java (148M), Madagascar (28M!) or Sumatra (64M), and even metropolitan cities like Tokyo (28M), Jakarta (33M) and Seoul (25M) that are home to a similar number of humans.
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Australia is basically divided into five cities, where 66% of the population resides (Sydney, Melbourne, Brisbane, Perth and Adelaide), so that some 85% of its people live on 0.22% of its landmass – a real urban jungle.
Israel, where I live, is home to some 9M people and counting, while in Australia, there’s a cattle farm that has 8 full-time employees and 10,000 cows, occupying the same space as the entire country of Israel.
Australia has been separated and isolated from the rest of the world for centuries, even for thousands of years, a fact that has held it back significantly.
When the industrial revolution began, it only had 650K inhabitants, so the exponential growth of technology and modernization didn’t occur. Immigrants from Europe preferred The United States or South America and skipped the idea of the long voyage to this country.
China was the poorest country on Earth, until it allowed foreign capital to flow and entrepreneurs to extract the value from its 500M peasant farmers, who fueled globalization and outsourcing.
China sees how the world is turning against its human rights and environmental regime and wants to be self-sustaining again, which will cost it dearly once more.
The U.S. has remained top dog for innovation, mainly because of its open-doors policy to brain power from other countries.
Its business environment and rule of law attract quality people, whereas China rejects them.
Many have written off the U.S. and declared China as the new empire, but I suggest you hold your horses, because as we know, rising to the top is one thing, but staying there requires 10-times more skill.
Stay optimistic on America; one thing you can do to understand just how powerful American enterprise is, would be to randomly pick 100 of the S&P 500 companies and listen to their earnings call, thus realizing how the top CEOs in the world are building the future and how America’s corporations are STILL ON TOP by a mile!
Never bet against America… no matter how grim it may look in the near-term.
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