Op-Ed Contributor

China’s Rise Isn’t Our Demise

Published: September 7, 2011

Then, as now, there were concerns about what a growing China meant toAmerica and the world. Some here and in the region see China’s growth asa threat, entertaining visions of a cold-war-style rivalry orgreat-power confrontation. Some Chinese worry that our aim in theAsia-Pacific is to contain China’s rise.

I reject these views. We are clear-eyed about concerns like China’sgrowing military abilities and intentions; that is why we are engagingwith the Chinese military to understand and shape their thinking. It iswhy the president has directed the United States, with our allies, tokeep a strong presence in the region. As I told China’s leaders andpeople, America is a Pacific power and will remain one.

But, I remain convinced that a successful China can make our country more prosperous, not less.

As trade and investment bind us together, we have a stake in eachother’s success. On issues from global security to global economicgrowth, we share common challenges and responsibilities — and we haveincentives to work together. That is why our administration has workedto put our relationship on a stable footing. I am convinced, from nearlya dozen hours spent with Vice President Xi Jinping, that China’sleadership agrees.

We often focus on Chinese exports to America, but last year Americancompanies exported more than $100 billion worth of goods and services toChina, supporting hundreds of thousands of jobs here. In fact, ourexports to China have been growing much faster than our exports to therest of the world.

The Chinese leaders I met with know their country must shift from aneconomy driven by exports, investment and heavy industry to one drivenmore by consumption and services. This includes continued steps torevalue their currency and to provide fair access to their markets. AsAmericans save more and Chinese buy more, this transition willaccelerate, opening opportunities for us.

Even as the United States and China cooperate, we also compete. Istrongly believe that the United States can and will flourish from thiscompetition.

First, we need to keep China’s rising economic power in perspective.According to the International Monetary Fund, America’s gross domesticproduct, almost $15 trillion, is still more than twice as large asChina’s; our per-capita G.D.P., above $47,000, is 11 times China’s.

And while there is a lot of talk about China’s “owning” America’s debt,the truth is that Americans own America’s debt. China holds just 8percent of outstanding Treasury securities. By comparison, Americanshold nearly 70 percent. Our unshakable commitment to honoring ourfinancial obligations is for the sake of Americans, as well as for thoseoverseas. It is why the United States has never defaulted on itsobligations and never will.

Maybe more important, the nature of 21st-century competition favors theUnited States. In the 20th century, we measured a nation’s wealthprimarily by its natural resources, its land mass, its population andits army. In the 21st century, the true wealth of a nation is found inthe creative minds of its people and their ability to innovate.

As I told students in Chengdu, the United States is hard-wired forinnovation. Competition is in the very fabric of our society. It hasenabled each generation of Americans to give life to world-changingideas — from the cotton gin to the airplane, the microchip, theInternet.

We owe our strength to our political and economic system and to the waywe educate our children — not merely to accept established orthodoxy butto challenge and improve it. We not only tolerate but celebrate freeexpression and vigorous debate. The rule of law protects privateproperty, lends predictability to investments, and ensuresaccountability for poor and wealthy alike. Our universities remain theultimate destination for the world’s students and scholars. And wewelcome immigrants with skill, ambition and the desire to better theirlives.

America’s strengths are, for now, China’s weaknesses. In China, I arguedthat for it to make the transition to an innovation economy, it willhave to open its system, not least to human rights. Fundamental rightsare universal, and China’s people aspire to them. Liberty unlocks apeople’s full potential, while its absence breeds unrest. Open and freesocieties are best at promoting long-term growth, stability, prosperityand innovation.

We have our own work to do. We need to ensure that any American willingto work can find a good job. We need to keep attracting the world’s toptalent. We must continue to invest in the fundamental sources of ourstrength: education, infrastructure and innovation. But our future is inour own hands. If we take bold steps, there is no reason America won’temerge stronger than ever.

As vice president, I’ve traveled half a million miles around the world. Ialways come home feeling the same confidence in our future. Some maywarn of America’s demise, but I’m not among them. And let me reassureyou: based on my time in China, neither are the Chinese.