Bill Kelso
1.The Economic Challenge of China
If we look at the first challenge China poses to the US, the key threat arises from its stunning rise as an economic power. What initially revived China’s economy was the decision of the Communist party to adopt a capitalist system of economics. But even more importantly China’s capitalist system initially flourished because of its large population. Just as the dramatically spurt in population around 1900 lead to the rise of industrialization and mass production in Europe, a hundred years later, China’s huge population has led to a second growth in industrialization and mass production but this time in the heart of Asia.
The Growth of Industrialization in China
While the dramatic rise of industrialization in China was similar to Europe, the conditions were different in the two regions. China managed to financially prosper when the Cold War ended and America established the “New Internationalism” which stressed free trade and globalization. Chinese businessmen and American businessmen soon realized that in light of the new free trade agreements, that they could significantly reduce the costs of their manufacturing goods if they shipped their factories to China where there was plenty of cheap labor. After all, the Americans realized that in light of China's endless supply of workers, they could pay Chinese workers significantly less than they paid American workers.
As China industrialized, America began to deindustrialize. As Shanghai prospered, Allentown in Pennsylvania became the home of abandoned workers and crushed dreams. While the lower prices of Chinese made goods financially benefited American consumers, it adversely hurt the American working class who saw its membership in the ranks of the middle class slipping away.
This simultaneous process of industrialization of Asia and the deindustrialization of America, made China the manufacturing capitol of the world. As China’s factories prospered, much of Europe and America became dependent on China for the products that sustained their economies.
But ironically enough, the process that enabled China to become initially prosperous has reached its climax and may soon be coming to a close. As previously millions of people in China left the countryside to work in urban areas, China now finds itself running out of cheap labor. Before long American businessmen, always seeking lower wagers, may begin to move their factories to Vietnam or India.
The Growth of High Tech Industries in China
Because China recognizes this demographic development, it has changed its economic policies. In place of being a country that is noted for its cheap labor and low manufacturing costs, China now wants to move up the supply chain and be recognized as a nation that produce sophisticated and high technological goods.
To achieve this second objective of dominating high tech, China is investing considerable sums to improve their educational system by stressing the importance of STEM subjects like math and science. China believes that in a short time it will surpass America in terms of soft power as it will soon have the best educated population who will dominate high tech subjects like artificial intelligence, robotics, computer software, advanced materials, biotechnology.
American Desire to Stress Equity rather than High Tech
While China is stressing academic excellence and the development of a high tech meritorious society, many American educators are arguing that American education should stress equity, and diversity rather than excellence or merit. Whereas in the 1960s the US tried to raise the academic training of minorities, today the sentiment seem to be to lower the standards for all students. The desire seems to make everyone equal even if it makes them equally unprepared for a high tech world. This attitude has gain widespread popularity among many high school and college administrators. Even politicians are signing on to this new American approach to education. The former governor of Oregon argued that Oregon should deemphasize all STEM topics.
In school districts from California to Virginia specialized high schools that stressed math and science like Lowell high school in San Francisco have come under attack. After all many supporters of Critical Race theory, which is popular in states like California, Oregon and New York, even argued that teaching math and science is basically racist in nature.
Besides deemphasizing math and science, many school districts are also deemphasizing AP classes. As part of a large movement in American education to lower academic standards, many school administrators recently announced that they are getting rid of homework or deemphasizing completing it on time.
Even universities are getting into the act. Every year US News and World Affairs evaluates and subsequently ranks colleges in the US. Part of that ranking depends on how rigorous and academically demanding the colleges evaluate new applicants. Because colleges are lowering admission standard, they are starting to refuse to cooperate with US News because they don’t want their rankings to suffer.
The Decline in American Education
The impact of this divergence in Chinese and American attitudes is now becoming apparent. In international tests of students in math and science, China and most Asian nations rank at the top and the US ranks close to the bottom. The scores of US students rank even lower than their counterpoints in Europe.
We find a similar pattern when we look at university education. In a recent study of the top 2000 universities in the world, China for the first time surpassed America with 338 universities compared to 280 for the US.
If we look the rankings of the top 100 universities in the world, the US fares a little better at the moment, but the trends are worrisome. For example, the number of American universitas in the top 100 universities in the world declined from 43 to 34 while the number of Chinese universities in this elite group increased from 2 to 7. While America is faltering China is clearly making significant gains in its desire to surpass America as the technological leader of the world.
The Decline of America in High Tech Industries
And a new study by Australia bear outs that prediction. In a major study of critical technologies by the Australian Strategic Policy Institute they found that in 37 out of 44 critical technologies, China is in the lead. The key areas dominated by China includes drones, machine learning, electric batteries, nuclear energy, and critical mineral extraction. China’s dominance in some fields is so entrenched that all of the world’s top 10 leading research institutions for certain technologies are located in China.
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