On what China needs from the US: "China knows that it needs access to US markets, US technology, opportunities for Chinese students to study in the U.S. and bring back to China new ideas about new frontiers. It therefore sees no profit in confronting the U.S. in the next 20 to 30 years in a way that could jeopardize these benefits." (And as Michael Hudson has noted, China's new economic push is all about its thriving internal market; "China doesn't need more dollars. Indeed, the more dollars it gets, the only thing it can safely do with them is lend them to the US Treasury, funding the military's "Asia Pivot" to encircle China.")
On Southeast Asia: "China's strategy for Southeast Asia is fairly simple: China tells the region, 'come grow with me.' At the same time, China's leaders want to convey the impression that China's rise is inevitable and that countries will need to decide if they want to be China's friend or foe when it 'arrives.' China is also willing to calibrate its engagement to get what it wants or express its displeasure."
On why the U.S. "lost" Southeast Asia: "China is sucking the Southeast Asian countries into its economic system because of its vast market and growing purchasing power. Japan and South Korea will inevitably be sucked in as well. It just absorbs countries without having to use force. China's neighbors want the U.S. to stay engaged in the Asia-Pacific so that they are not hostages to China. The US should have established a free-trade area with Southeast Asia 30 years ago, well before the Chinese magnet began to pull the region into its orbit. If it had done so, its purchasing power would now be so much greater than it is, and all of the Southeast Asian countries would have been linked to the U.S. economy rather than depending on China's. Economics sets underlying trends."
On Asian trade: "What are the Americans going to fight China over? Control over East Asia? The Chinese need not fight over East Asia. Slowly and gradually, they will expand their economic ties with East Asia and offer them their market of 1.3 billion consumers " Extrapolate that another 10, 20 years and they will be the top importer and exporter of all East Asian countries. How can the Americans compete in trade?" (that explains the Obama administration's desperation to push for a China-excluding TPP.)
On China going asymmetrical: "Economically and militarily, they may not catch up for 100 years in technology, but asymmetrically, they can inflict enormous damage on the Americans."
On the Party's fear of chaos: "To achieve the modernization of China, her communist leaders are prepared to try all and every method, except for democracy with one person and one vote in a multi-party system. Their two main reasons are their belief that the Communist Party of China must have a monopoly on power to ensure stability; and their deep fear of instability in a multi-party free-for-all, which would lead to a loss of control by the center over the provinces, with horrendous consequences, like the warlord years of the 1920s and '30s."
On why culture rules: "Can the Chinese break free from their own culture? It will require going against the grain of 5,000 years of Chinese history. When the center is strong, the country prospers. When the center is weak, the emperor is far away, the mountains are high, and there are many little emperors in the provinces and counties. This is their cultural heritage "Chinese traditions thus produce a more uniform mandarinate."
On the inevitability of being back to number 1: "They operate on the basis of consensus and have a long view. While some may imagine that the 21st century will belong to China, others expect to share this century with the U.S. as they build up to China's century to follow."
On why it's so hard for the US to accept it: "For America to be displaced, not in the world, but only in the Western Pacific, by an Asian people long despised and dismissed with contempt as decadent, feeble, corrupt, and inept is emotionally very difficult to accept. The sense of cultural supremacy of the Americans will make this adjustment most difficult. Americans believe their ideas are universal -- the supremacy of the individual and free, unfettered expression. But they are not -- never were. In fact, American society was so successful for so long not because of these ideas and principles, but because of a certain geopolitical good fortune, an abundance of resources and immigration energy, a generous flow of capital and technology from Europe, and two wide oceans that kept conflicts of the world away from American shores. Americans have to eventually share their preeminent position with China."
Now live with it: "The US cannot stop China's rise. It just has to live with a bigger China, which will be completely novel for the US, as no country has ever been big enough to challenge its position. China will be able to do so in 20 to 30 years." (Lee said that at the FutureChina Global Forum in Singapore, in 2011. Under Xi, China is already challenging the U.S.'s position.)
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