Introduction:

     China has climbed from an isolated backward country into one with a growing influence capable of becoming a superpower rivaling the United States.

     In recent years, China has bought, borrowed, or stolen technology, which has catapulted its military capabilities into the modern high-tech arena.  No one can match China for sheer numbers of people, and now it can challenge most of the world in technological achievements.  The Clinton administration blindly sold sensitive technology to China and reportedly received campaign financing in return.

     The human rights abuses have received less attention lately as various foreign leaders flock to pay state visits to the country and give little or no condemnation of China's human rights record.  It seems that it is more important to placate than to demand reform.  In the meanwhile, forced abortions and sterilization continue to be state policy, and political and religious persecution continues unchecked.

     The "red dragon" no longer sleeps.  It is already anticipating a war with the United States in the next decade or so and may one day prove to be a mighty adversary for anyone who gets in the way.

     Just as China has emerged as a mass manufacturer, India is emerging as a giant in services.   Technical and managerial strengths in both China and India are becoming more important that cheap assembly labor. And, their relative strengths are complementary, not competitive.  For example, China has excelled in mass manufacturing, with multi-billion-dollar electronics and heavy industrial plants; India has specialized in software, design, services, and precision industry.  Their efficiency in back-office processing alone is legendary and outsourcing such work is expected to quadruple by 2010 to over $56 billion per year!

     These two emerging giants will transform the entire global economy.  China and India account for one-third of the world’s population. For the past two decades, China has been growing at 9.5% per year, and India at 6% per year.  Both are projected to continue at an annual rate of 7-8% for at least the next ten years. By mid-century, China should overtake the U.S. as #1. Together, China and India could account for almost half of the total global output.

     India’s younger workforce will give it a chance to catch up to China.  Due to its one-child policy, China’s working age population will peak at 1 billion in 2015 and then shrink steadily.  India has nearly 500 million people (twice the population of the U.S.) under the age of 19 and higher fertility rates.  By mid-century, India is expected to have 1.6 billion people, 220 million more workers than China.

Rockets, Russia, and the Korean Peninsula August 25, 2009

China and US Tensions Tighten Over Tibet, Ships March 10, 2009

Leaders of EU and China Meet January 27, 2009

China Update, Part 3: Communism in China by Mary Miller, Koinonia Institute

China Update, Part 2: Economics in China by Mary Miller, Koinonia Institute

China Update, Part 1: Religion in China by Chuck Missler

Kings of the East, Part 2 The Rise of India by Chuck Missler

The Centroid Continues Westward: The Kings of the East by Chuck Missler

The Rise of Asia: An Overlooked "King of the East"? by Chuck Missler

Energy Wars: The Coming Crunch by Chuck Missler

What's Really Going On? U.S. - China Relations by Carol Loeffler

From Our Private Modem: Feeding the Dragon? by Chuck Missler

News Sources

NEW! Korean Navies Fire On Each Other - North and South Korea said their naval forces clashed Tuesday in disputed waters, and each blamed the other for what is the first such violent incident in seven years. South Korean Rear Adm. Lee Ki Sik said the nation's forces issued three verbal warnings to a ship from the Communist north once it had crossed a demarcation line late Tuesday morning. The South Koreans then fired a warning shot, but when the North Korean vessel continued southward, the South Koreans opened fire. Lee said the North Koreans returned fire before heading back, their ship damaged in the exchange.

Shaking Down North Korea's Farmers Markets - North Korea's infamous penal system, which for decades has silenced political dissent with slave labor camps, has evolved into a mechanism for extorting money from citizens trading in private markets, according to surveys of more than 1,600 North Korean refugees. Reacting to an explosive rise in market activity, North Korea has criminalized everyday market behavior and created a new kind of gulag for those it deems economic criminals, according to a report on the refugee surveys.

Forecasts for Asian Growth Raised - The economies of China and India are set to grow by more than previously thought in 2009, according to the Asian Development Bank.

China Could Undermine US Military Power in Pacific - China's increasingly advanced weaponry could undermine US military power in the Pacific, Defense Secretary Robert Gates said on Wednesday. Gates echoed US intelligence guidelines that warned of Beijing's military modernization, US naval carriers and air bases in the Pacific faced new threats from China.

Trade War Brewing With China? - The Obama administration's decision to levy tariffs of up to 35 percent on imported Chinese tires and Beijing's threats of reprisal against some U.S. products have raised concerns about a possible trade war that could inflict serious economic damage on both countries.

Freed Journalists Criticized For Endangering Refugees - Laura Ling and Euna Lee, the two American journalists released after nearly five months in North Korean custody, have been widely portrayed at home as victims of unduly harsh punishment by a repressive government for simply doing their job. But...in South Korea, human rights advocates, bloggers and Christian pastors are accusing them of needlessly endangering the very people they tried to cover: North Korean refugees and the activists who help them.

North Korea's Kim Jong-Il Has Cancer - North Korean leader Kim Jong-il has life-threatening pancreatic cancer, South Korean TV news channel YTN says. Quoting unidentified sources from both South Korea and China, the report said the disease gives Kim Jong-il a maximum life expectancy of five years. YTN said Mr Kim was diagnosed with the illness last year, about the same time he was reported to have had a stroke. Mr. Kim, 67, was seen last week looking gaunt and walking with a limp, fuelling more speculation about his health.

Climate Change Bill Endangers US Jobs - The American Clean Energy and Security Act - the so-called "cap-and-trade" climate-change bill - that passed the US House of Representatives last month would give manufacturers in certain industries in the Communist People's Republic of China an advantage over their US competitors and put US jobs at risk, according to a report from the Government Accountability Office (GAO).

US Takes N Korea's Violent Rhetoric Lightly - US officials are closely monitoring the situation in North Korea, but said Thursday there are "no signs of an imminent long-range launch" of a long-range missile headed toward Hawaii. North Korea has vowed to enlarge its nuclear arsenal and threatened the US with "annihilation." But senior US officials are putting the ramped up rhetoric as part of a "continuing North Korea bluster" designed to coincide with the 59th anniversary of the outbreak of the Korean War.

US Journalists In North Korean Prisons - While starvation, vicious beatings, torture, and public executions are the normal fare in North Korean work camps, the American journalists who were recently given 12-year sentences will most likely not be treated as badly as normal prisoners. North Korea cannot afford to let American journalists describe the true conditions of its prison camps, and with world eyes on the situation, the two journalists cannot just be buried. Still, even with better treatment, Laura Ling and Euna are in for no picnic.

War On The Korean Peninsula? - North Korea appears to be preparing to test-launch its longest range ballistic missile, just days after Pyongyang warned that the Korean peninsula was on the brink of war. Analysts say the possibility that North Korea would start an all-out war with the South is low because Pyongyang knows its underfunded military is no match for the U.S.-backed modern military of its Southern neighbour. But the following scenarios could unfold...

Kings of the East - Chuck Missler What are the prophetic implications of the King's of the East and their rise as a world superpower? Click for more information - Audio Cassette

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