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Memo to the Presidents of America and China on Peaceful Coexistence (3)

14:26, April 16, 2010

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What American policymakers have done since The Rise and Fall of Great Nations was published is to increase America's military and social expenditures by using America's credit and borrowed money. That unsustainable process reached a self-evident crisis in 2008, which American policymakers are now trying to manage by borrowing and using still more of America's credit.

That is a temporary stimulus that bought some time in which new American economic and military policies should be designed and deployed. That needs to begin immediately in a permanent and therefore fundamental improvement of America and China's economic and military relations. America's 20th century success is broken. America's economic crisis must be fixed with new policies quickly or it will not be manageable by anyone. Existing American policies and strategies do not achieve that.

China's economic and national security success result, in part, from China's policymakers unilaterally implementing the Principles of Peaceful Coexistence. Americans' traditional economic and national security mindsets and strategies did not prevent America's economic and national security current crises and cannot solve them.

President Obama must "look for truth in facts" and find unconventional economic and foreign policies and defense strategies to bring America back from the brink of economic collapse. That is what Deng Xiaoping successfully did beginning in 1978 by economically and militarily implementing the Principles of Peaceful Coexistence with America and all other nations.

Today America's federal deficit, debt and use of credit have reached levels that are unsustainable. In 2009, 18% of America's federal budget went to military spending. Paul Kennedy warned in 1986 that if America continued to devote 7% or more of its GDP to defense spending while other nations allocate a far smaller proportion, it would have less funds available for civilian investment, commercial research and development and divert a higher proportion of its scientists and engineers from the design and development of consumer products for the world market. In that case, he stated, "it seems inevitable that the American share of world manufacturing will steadily decline, and its economic growth will be slower" than those countries "dedicated to the market place and less eager to channel resources into defense."

Kennedy stated, "These tendencies place the United States on the horns of a most acute dilemma over the longer term. Simply because it is the global superpower, with far more extensive military commitments than a regional power like Japan or Germany, it requires much larger defense forces - in just the same way as imperial Spain and Victorian Britain. A low investment in armaments, may for a globally overstretched power like the United States, leave it feeling vulnerable everywhere; but a very heavy investment in armaments, while bringing greater security in the short term, may so erode the commercial competitiveness of the American economy that the nation will be less secure in the long term."

The analysis in The Rise and Fall of Great Nations strengthened China's policymakers' commitment to Deng Xiaoping's policies of China opening up to foreign investment and not over investing in military assets. American policymakers can only solve the dangers for America that Kennedy spotlighted 25 years ago by aligning America and China's economic and national security in a new era of the American and Chinese civilizations' collaboration.

John Milligan-Whyte is called the "new Edgar Snow" and the "21st century Kissinger" and is the only non-Chinese to be elected the winner of the Social Responsibility Award from the China Business Leaders Summit. John Milligan-Whyte and Dai Min are the executive producers and co-hosts of the Collaboration of Civilizations television series adapted by the eight books they wrote in the America-China Partnership Book Series published in English and Mandarin in 2009-2010 that created the "New School of America-China Relations." They founded the America-China Partnership Foundation and Forum in 2008 and the Center for America-China Partnership in 2005, which was recognized in 2009 as "the first American think tank to combine and integrate American and Chinese perspectives providing a complete answer for America and China's success in the 21st century."
E-mail: info@CenterACP.com; john.milliganwhyte@gmail.com

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The articles in this column represent the author's views only. They do not represent opinions of People's Daily or People's Daily Online.

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Dai Min

John Milligan-Whyte and Dai Min are the executive producers and co-hosts of the Collaboration of Civilizations television series adapted by the eight books they wrote in the America-China Partnership Book Series published in English and Mandarin in 2009-2010. They founded the America-China Partnership Foundation and Forum in 2008 and the Center for America-China Partnership in 2005. E-mail: info@CenterACP.com

http://english.people.com.cn/90001/98705/99725/6953944.pdf