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China’s Future
The End of the Original 
Chinese Dream 
China is no longer the state as Mao 
intended.
Future? 
• Peaceful rise . . . gentle giant act 
• —Tom Friedman 
• Slow motion revolution 
• —Ian Johnson 
• Rogue economic superpower—Paul 
Krugman
What can go right? 
• Economy & employment 
• Exports & Consumerism in China 
• Standard of living improves 
• Social harmony 
• International respect
Hard Work Ahead! 
High growth? 
low cost labor =small middle class 
Slow growth? 
higher labor costs=larger middle
More to do! 
China must find new sources of growth. 
Chinese leaders are trying to deflate a real 
estate bubble.
What can go wrong?
Population 
• Expansion—1.5 billion people by 2030 
• Approaching zero population growth 
– Due in part to 1979 population control 1-child 
policy 
• Aging population with life expectancy 
assumed to lengthen by 2030
Consequence 
• 2030 China’s median age will be over 41, 
higher than Europe or the U.S. 
• In this future China, there would be more 
than three senior citizens for each young 
child.
Can Growth Continue?
China’s Future 
Demographic outlook? 
Rising nationalism? 
Aggressiveness? 
Or 
Peaceful evolution? 
mature international responsibility?
Threats 
• Increasing wages for blue collar workers. 
• Slow economic growth. 
• Managing the transition from a lower 
income to a higher income society. 
• World Bank report 2012
Social Inequality 
"When China's leader Deng Xiaoping said, 'To 
get rich is glorious,' (Did) he imagine that the 
gap between rich and poor in China could 
have serious political implications." 
Zeng Xiangquan, a labor economist at People's University.
The Happiness Factor 
Despite much lower levels of income, life 
satisfaction among urban Chinese was 
almost as high as in the developed world. 
Richard A. Easterlin
Questions 
Can China continue to prosper while limiting 
freedoms? 
Will China’s remain content by offering economic 
freedom? 
Will China use the free market to satisfy its 
energy needs? 
Will China become aggressive and take what 
energy it needs?

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China's future

  • 2. The End of the Original Chinese Dream China is no longer the state as Mao intended.
  • 3. Future? • Peaceful rise . . . gentle giant act • —Tom Friedman • Slow motion revolution • —Ian Johnson • Rogue economic superpower—Paul Krugman
  • 4.
  • 5. What can go right? • Economy & employment • Exports & Consumerism in China • Standard of living improves • Social harmony • International respect
  • 6. Hard Work Ahead! High growth? low cost labor =small middle class Slow growth? higher labor costs=larger middle
  • 7. More to do! China must find new sources of growth. Chinese leaders are trying to deflate a real estate bubble.
  • 8. What can go wrong?
  • 9. Population • Expansion—1.5 billion people by 2030 • Approaching zero population growth – Due in part to 1979 population control 1-child policy • Aging population with life expectancy assumed to lengthen by 2030
  • 10. Consequence • 2030 China’s median age will be over 41, higher than Europe or the U.S. • In this future China, there would be more than three senior citizens for each young child.
  • 11.
  • 12.
  • 14. China’s Future Demographic outlook? Rising nationalism? Aggressiveness? Or Peaceful evolution? mature international responsibility?
  • 15. Threats • Increasing wages for blue collar workers. • Slow economic growth. • Managing the transition from a lower income to a higher income society. • World Bank report 2012
  • 16. Social Inequality "When China's leader Deng Xiaoping said, 'To get rich is glorious,' (Did) he imagine that the gap between rich and poor in China could have serious political implications." Zeng Xiangquan, a labor economist at People's University.
  • 17. The Happiness Factor Despite much lower levels of income, life satisfaction among urban Chinese was almost as high as in the developed world. Richard A. Easterlin
  • 18. Questions Can China continue to prosper while limiting freedoms? Will China’s remain content by offering economic freedom? Will China use the free market to satisfy its energy needs? Will China become aggressive and take what energy it needs?