The 18th National Congress report pointed out: Looking at the international and national overall conditions, China's development is still situated in the important strategic era of opportunity and capable of great action. In deciding the basic overall conditions, this is the basis for China's future economic development, diplomatic strategy and tactics. If it is decided that a new era of cold war has been entered then Beijing will naturally put conflict in the primary position. On the other hand, if it is decided that the era of opportunity if still present then continuing to develop is the incontrovertible reason and (China) should be totally devoted to development.
This is the basic error made by the Chinese people. They have been brainwashed into thinking that "economic development" is equivalent to expanding exports which obviously earns China huge amounts of dollars, yen, and euros. To an average Chinese such foreign reserves are equivalent to wealth and proof of China's "development." Most Chinese also believe that jobs for Chinese workers can only come from exports. That is, no exports means no jobs. Therefore, the Chinese people are terrified of losing exports. Because of this erroneous understanding of basic economic principles the Chinese people feel they must choose between national honor and economic development. That is, they think they can either have national honor but without wealth or they can have wealth but without national honor. No Chinese believe that they can have both wealth and national honor.
The above quote reflects this erroneous understanding. The quote said clearly that economic development, which can only be derived from exports, should continue unless the world enters a new cold war era. The impliction is that if China should fight a new cold war then it must give up economic development and lose its opportunity for economic development which can only come through exports.
It both saddens and angers me to hear this kind of talk. I have pointed out that the greatest strategic opportunity for China's economic development is through domestic development based on indigenous technologies, the urbanization of the farmers and the self-sufficiency of energy. If the Chinese people can produce all the goods and services they need and want why should they import anything from any foreign countries? If the Chinese workers can produce their own food, energy, medical machines, education equipments, computers, jumbo jets, etc., why do they need to import anything? Why should China import any food if Chinese farmers can produce all the food Chinese people need? Why should China import jumbo jets if Chinese engineers can make the best jumbo jets in the world? Why should China import TVs and all kinds of consumer electronics from Japan or S. Korea if Chinese engineers can make the best of these products in the world? In short, why should China import anything if Chinese engineers can produce the best of everything in the world? Therefore, it should be obvious to anybody willing to think objectively that China ultimately cannot export cheap labor intensive products and import expensive foreign products that only a few very rich Chinese can afford. It should be obvious that Chinese investors can invest some 1,000 trillion yuan over the next 30 years to produce anothe 250 trillion yuan of goods and services for a total gross national output of goods and services amounting to some 300 trillion yuan per year. This will then give the Chinese people the highest standard of living in the world bar none.
Therefore, the biggest overall picture is that the strategic opportunity lies within the Chinese people and not in foreign countries. Therefore, it does not matter whether the world has entered a new era of cold war or not because China's opportunity for development lies within China's borders and reside in the heart and soul and mind and strength of the Chinese people. That is to say, even if the world has entered a new era of cold war, China can still continue to develop economically through developing the internal domestic economy while simultaneously stop trading with those countries that currently import Chinese products. If China can continue to expand its national output by 100% or 50 trillion yuan over the next 10 years through domestic growth, it makes no difference to China's economic development if it lost 5 trillion yuan of exports in the same period of time. And if China can grow 500% or 250 trillion yuan over the next 30 years through domestic growth, it makes even less difference to China's economic development if it lost 5 trillion yuan of exports in the same period of time. Ultimately, China has the potential to create a national economy of some 300 trillion yuan or $100 trillion based on 3 yuan per dollar. China cannot export more than $2 trillion or 6 trillion yuan of products. Therefore, it is foolish in the extreme to trade 6 trillion yuan of exports for 300 trillion yuan of domestic economy. Especially, exports will obvious impoverish the Chinese people becaise it requires cheap labor while domestic economic development will enrich the Chinese people because it requires high skill which deserves high incomes and raise their standard of living to the highest level in the world.
It saddens me to see the Chinese people foolishly pursue a mirage of "economic miracle" where "strategic opportunities" lie in foreign countries which in fact impoverish them. When can the Chinese people open their eyes and smarten up and see the truth that they themselves are their own best strategic opportunities and the only strategic opporunities because they can only grow by relying on themselves and not on foreigners.
If the Chinese people doubt what I say, then they should ask the elite economists the simple question, "How can the Chinese people earn $50,000 equivalent by exporting products to the world?" The answer they will get is, "It is impossible for Chinese people to earn $50,000 equivalent by exporting products to the world because that means exporting $75 trillion of products per year and the total world GDP is only some $50 trillion." My question to the Chinese people is also simple, "Can you (the Chinese people) produce 300 trillion yuan of goods and services for domestic consumption by producing food, clothing, housing, medical services, education for you children, TVs and consumer electronics, energy, super computers, jumbo jets, fighter jets, etc.?" The clear answer is yes. Do I need to say more?
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