Comment by echelon

This argument is Peter Zeihan's thesis too, and I'm not sure it'll be what actually comes to pass.

China still has an enormous population, and if they convert their society from production to domestic consumption and ride the value-add wave, they'll follow the American growth equation. And with more people to bolster that economy, to boot. You can already see this in their dominance of electronics, drones, EVs, and green tech. They're doing advanced, bleeding edge work in all of the industries that matter.

BYD, DJI, Eufy/Anker (vs iRobot), Lenovo, Alibaba, ... China is a formidable powerhouse in advanced products and value-add. These companies absolutely rival the best of what America and the West have to offer. And if your argument is one of demographics, these companies are staffed with young educated workers from a huge and healthy pipeline of STEM grads.

I think of all the predictions about the future of China - from the incredibly bearish ones like Zeihan's "death of China", to the bullish ones that declare this the "Chinese century" - I think the truth lies somewhere in the middle.

I don't see how China doesn't become a larger version of Japan or Germany or the US. Despite some demographic and economic headwinds, they've got an incredible head start.

If America aims to compete and remain in the top, it needs to stop doing things that look like Brexit that lead to degrowth and isolation. China isn't magically going to get weaker and provide free opportunity to the United States. On the contrary, it's fantastic peer-level competition that the US should use as motivation to work harder.

China is an incredible growth and innovation story, and a bar that all countries should hold themselves to. It's no time to slouch. Competition fosters the best innovation anyway.