Why China’s Economic and Military Growth Does Not Mean World Leadership

Thomas DeCaro / February 10, 2010

Despite China’s 8.7 percent economic growth last year, double-digit annual increases in defense spending since the early 1990s, and holding $800 billion in U.S. treasuries, it is far from overtaking the U.S. role as global leader.  Its closed economy, undervalued currency, and state-controlled exports keep getting in the way.

In a recent column, Heritage Vice President Kim Holmes explains why. The Chinese invest heavily in our economy because it’s freer than their own. China only comes in at 140th out of 179 economies ranked in the latest Heritage Foundation/Wall Street Journal Index of Economic Freedom. Its controlled economic system blocks the very domestic reforms that China needs to lead in an open economic system. Even its growing military strength is no qualifier for great leadership status, because its actions do not foster confidence and trust. Finally, its values are not globally shared. (more…)