I see the future of China as growth. I think that historically China has often gone through periods of consolidation, and then periods of sort of weakening central authority. They undoubtedly face tremendous challenges.
Like any developing country, it has an inequality of wealth. In the Chinese case, it is particularly [pronounced] by the fact that they decided they couldn't make the whole country move forward simultaneously, so they've started region by region. So the interior regions are much less well off than the coastal regions. And this is certainly a huge challenge, because it produces a flow of populations from the poorer regions to the richer regions.
Create the impression of endless willingness to compromise and you almost invite deadlines. That's the challenge we now have in North Korea and have had in North Korea for 10 years. In this sense, diplomacy and foreign policy and other elements of political activity have to be closely linked and have to be understood by the negotiators
The Chinese military budget today is officially listed as, I think, about $15 billion. But even if you double it, that's only a tenth of ours. So the possibility of China challenging the United States for the next ten years over the Pacific is next to zero. There could be a conflict between us and China over Taiwan, but I think that, too, will not occur with the proper policies on both sides.
China had never had to deal in a world of countries of approximately equal strength, and so to adjust to such a world, is in itself a profound challenge to China, which now has fourteen countries on its borders, some of which are small, but can project their nationality into China, some of which are large, and historically significant, so that any attempt by Chinese to dominate the world, would involve in a disastrous for the peace of the world.
I don't know what happens in the next years. But I cannot now design a policy in which we try to keep China from developing, because in some years, if they develop, they might be rich enough to challenge us, and adopt the principle that we will hold down any state that might in the future become strong. That would make us a world empire for which we wouldn't have the talents or the convictions.
I am against portraying China as the demon of the global community. China has grasped more quickly than other countries what globalization means and what it demands. The country has learned how to use other people's innovations for itself. India, incidentally, is not far behind China in this respect. Both are not nations in the European sense, but rather cultural communities with enormous markets. The challenge of the future is to work out how to deal with that.
The challenge is whether China as a rising country, the United States as the superpower, can develop a cooperative relationship in this period before nationalism becomes so dominant in China as a substitute for communism, and a kind of self-righteous isolationism in this country that substitutes China for the Soviet Union.
I have been observing China for more than 30 years and am impressed how logically and wisely it tackles its problems. Obviously the international system could be unbalanced by China's rising power - if we don't prepare ourselves for the new competitive situation, that is. But it is an economic challenge, not aggression on the level of Hitler.
I have said there are three principles that should be followed. One, we should maintain the "one China" policy that every American president has articulated, including President Reagan. Secondly, we should make clear that we want a peaceful resolution. And three, Taiwan should not challenge that arrangement in a way that will provoke a conflict. Those are three perfectly clear principles. I haven't used any of the other slogans.
There are some people who think that at some time in the future, China may challenge us for supremacy in the Pacific, and therefore, what do we do today to prevent that? And you, of course, will say that we will try to thwart any economic progress in China. If we engaged in such a policy, we would turn a billion-plus people into nationalist opponents of the United States.
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