A Partial SWOT Analysis of China for 2011 - Opportunities
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A Partial SWOT Analysis of China for 2011 - Opportunities

This is an overview of some the primary opportunities of China in their continued economic development. Some additional opportunities are mentioned in passing.

In our continuing SWOT assessment of China in 2011, we will now examine three primary opportunities for China:

Opportunity 1 - To Become Economic Leader of the Pacific Rim

Right now, Japan is still firmly the economic leader of the Pacific Rim. China’s GDP has surpassed Japan, but that number is rather meaningless in comparison to per capita income and wealth distribution within the country. China has been steadily gaining on Japan since 1976 and will continue to do so in the foreseeable future, but they still have a long way to go and must make progress on solving their economic problems. IF, and this is a big IF, China can redistribute its resources within its population and continue to accelerate the increase of its per capita income to its inhabitants at the same time, THEN it has a chance to make a definitive move on Japan and China will also be able to keep India, another great developing country in Asia, at bay. If China fails to do this, then India will bypass them and eventually challenge Japan.

Opportunity 2 – Buy Up The Reserves of the World’s Natural Resources While Prosperous

China has an opportunity, which it seems to be intelligently seizing, of buying up as much of the world’s natural resources reserves while they are still one of the few prosperous economies in the world. Most of the other country economies are depressed right now, which makes them easy targets for China’s cash-heavy buyers. This opportunity will not last forever, and China realizes this. They must buy as much as they can while they can afford it. Prosperity never lasts forever.

Opportunity 3 – Make Political and Economic Gains While Prosperous

It is so much easier to make political and economic gains when a country is prosperous, rather than when it is in an economic downturn. People listen to you politically when you are economically successful. They turn a deaf ear to you when you are struggling economically. It is much easier to conquer a country or region economically than it is militarily. Money speaks much louder than weapons. Since 1976, China has pursued a peaceful coexistence policy with over 100 countries for political and economic cooperation, including with the United States, which is its favorite trading partner. It has normalized relations with the Mideast, something the United States can only dream about. China literally has no enemies in the world (although they are always in a constant competition with Japan and it ain’t too friendly, either) Hu and Wen are master negotiators and have done  more export business in the world than the last three American presidents combined.

There are additional opportunities, such as creating a new strategic alliance with the emerging Southeast Asian sector through ASEAN, solidifying its strategic alliance with Indonesia and Singapore, peacefully and economically merging with Taiwan, and creating more economic alliances with the formerly mistrusted Russians (mistrusted under Mao, but now again being wooed by the CCP).  We will discuss these additional opportunities at another time.

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