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[...]... approximately 15 to 16 million itinerant farm workers will annually head to the cities in the next 30 years The China Daily8 China s urbanizing imperative is one of the most critical components of the Coming China Wars It is the result of a huge, fundamental, 8 THE COMING CHINA WARS and ever-growing disparity between the income levels and prospects of China s massive rural peasantry and the much more... growth—and thereby trouncing the competition in global markets In the process, China is effectively sowing the economic seeds of the Coming China Wars with the rest of the world And, in the worst wars from within” scenario, China is also setting itself up for its own environmental, political, and social destruction Low Wages for High-Quality Work What is stunning about China is that for the first time we have... abiding hope, particularly for the children, is that a better INTRODUCTION xix understanding of the complexities of the economic origins of the Coming China Wars will help lead to their peaceful resolution Cultivating such an understanding—and calling China and the rest of the world to action—are the ultimate goals of this book The fictional News Release from the year 2 012 leading off this Introduction... economic model for the rest of the world That is precisely why the greatest danger to the world community may be China s coming wars from within.” These wars from within may be triggered by any number of internal ticking economic and demographic time bombs that threaten to bring on that which the Chinese people fear most—“chaos” or luan 7 China s Wars from Within Over the past decade, the number of protests... major China Wars already well underway: 1 The Not-So-Swashbuckling Piracy Wars Following a centuries-old tradition of skullduggery in the South China Seas, China has become the world’s largest pirate nation China s modern buccaneers, with the strong support of their government, are not just stealing software and Hollywood xiv INTRODUCTION movies on DVDs They are blatantly counterfeiting virtually the. .. centres, their rush-hour gridlock, packed restaurants, glitzy shopping malls and young fashionistas chattering on the mobiles they change more often than their shoes But they are ringed with rusting “iron rice bowls”— the unviable, revenue-draining state-owned enterprises (SOEs) 6 THE COMING CHINA WARS whose progressive closure is a key to market reform China has shed 41 million SOE jobs and 21 million... machines to jeans and underwear (yes, boxers and briefs) Given China s demonstrated ability to conquer one export market after another, the obvious question is this: How has China been able to emerge as the world’s “factory floor”? The answer lies in China s primary “weapon of mass production” the China Price The nine major economic “drivers” of the China Price are as follows: • Low-wage, high-quality work... hostage to China s currency-manipulation policies You pay dearly at the pump because of the price-shocking effects of China s rapidly rising thirst for oil The Coming China Wars is not just a story about how China s emergence as the world’s “factory floor” is affecting you and your pocketbook The story is far larger than any one of us or any single country This book takes a tough, hard look at the eight... tech Combine the two, and America has a problem —Professor Richard Friedman, Harvard University3 4 THE COMING CHINA WARS It is difficult to estimate accurately wage levels in China because much of the data is of poor quality In addition, the government wants to hide the fact that numerous companies illegally pay their workers far less than the stated minimum wage Estimates that do exist put the average... blank 1 THE CHINA PRICE” AND WEAPONS OF MASS PRODUCTION The China Price They are the three scariest words in U.S industry Cut your price at least 30% or lose your customers Nearly every manufacturer is vulnerable—from furniture to networking gear The result: a massive shift in economic power is underway —Business Week1 China has an official policy for the economy to grow at 7%–8% per year, the rate . 87 Chapter 6: The 21 st Century Opium Wars The World’s Emperor of “Precursor Chemicals” 10 9 Chapter 7: The Damnable Dam Wars and Drums along the Mekong 12 9 Chapter 8: The Bread and Water Wars Nary. Drop to Drink 14 3 Chapter 9: China s Wars from Within The Dragon Comes Apart at the Seams 15 7 Chapter 10 : Of “Bloodheads,” Gray Dragons, and Other “Ticking Time Bombs” 17 7 Chapter 11 : How to Fight—And. better understanding of the complexities of the economic origins of the Coming China Wars will help lead to their peaceful resolution. Culti- vating such an understanding—and calling China and the rest of the world