China Expert John Manzella Purports China’s New Confidence Masks its Desire to Control World Energy Market

Joining Truth for America as a returning guest was John Manzella, president of Manzella Trade Communications (www.ManzellaTrade.com) and an author and speaker on global business and policy, China and today’s new economic realities. He focuses on shaping opinions, advocating positions to Members of Congress, and providing strategic analysis to several of the world’s largest corporations, associations and government agencies.

Manzella characterized China as the “Land of Opposites.” It does just the opposite of what you think it might do.

He noted that for years Ford Motor Company’s slogan was “quality is job one.” If China had a slogan, it would be “stability is job one.” He thinks that the focus on social order, which will continue to trump other policy concerns, is reflected in the Chinese leadership’s level of control and intense focus on job creation.

“Even though instability is feared, China has developed a new post-recession confidence, which rejects the West’s model of free market capitalism, and now views their economic model as superior,” said Manzella.

A reflection of this is the rise in Chinese consumption even while U.S. domestic consumption falls, which means China may rely less on U.S. markets. Today, according to Manzella, the American share of world consumption is 27 percent; China’s is 9 percent. By 2020, both countries’ share is projected to merge to 21 percent.

“One of the biggest threats to America’s future is China’s position as the largest holder of U.S. treasury securities — a position of enormous influence. China’s dominance has given it new confidence, which is reflected in its more assertive focus on its own interests: the development of domestic technologies, the creation of national champions and the protection of certain strategic sectors.

Manzella reminded the audience that Japan was once the Asian leader that the world looked up to. Now China recently surpassed Japan to become the world’s second largest market. One reason is that Japan is a capitalist nation at heart, but China doesn’t have this same agenda.

China is quickly advancing up the technology chain. “It’s now the world’s largest manufacturer of wind turbines and is becoming a leader in solar panel, and hybrid and all-electric vehicle production. Plus, it has become more aggressive in its quest to secure limited global energy resources and raw materials to support its soaring growth,” said Manzella.

Rich Roffman agreed and suggested that China wants to dominate the world, because if they don’t, they won’t be able to control their own people, and will lose them, creating severe national instability.

Manzella picked up on the potential threat to China’s continued dominance. One of their real weaknesses, according to Manzella, is that China is satisfied with the status quo and doesn’t put great resources behind domestic innovation.

“Innovation has always been an inherent American strength, and will give us the edge against China. But we have to do a better job with our education system, creating new generations of skilled workers who can fuel innovation. Ultimately, this will lead America back to its leadership position,” said Manzella.

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