Bottom line: China is a huge threat to America’s sovereignty at the moment, however, over the long term, they are not — all we have to do is keep our government intact and legitimate (insofar as possible), and wait them out.
Here’s the thing: they own a lot of our debt. Tom Murse of About.com reports that China owns 1.2 trillion dollars of US debt — more than any other individual stakeholder — and they use this debt, as well as its connections to corporate America, which, of course, feeds back into the American political machine, to influence our politics. The Chinese government is openly coordinating with US Businesses. This is a major problem, because it allows them to have a say in American politics; case in point, gun control. Why would China be calling for gun control in the US?! This is something that must be addressed on the federal level, on the state level, on the local level, and on the individual level. Right now, it seems Americans, fortunately, are standing their ground by purchasing guns and ammo at record rates, which is encouraging. But it is unsettling that China has so much obvious influence over American politics.
This influence is exacerbated by the fact that so much American industry has moved to China. However, the tides are already shifting on this front, as Vivek Wadha of Forbes reports. This brings me to my next point, which is: why China is not a threat over the long-term. Part of the reason for this is its currency manipulation coming home to roost, however, the root of China’s inevitable decline in influence and economic power is its one child policy.
China’s economy is on decline, and the reason for this is that what once drove their economy — cheap labor — is going away as their population declines. Their one child policy will halve their population, and they have not yet relinquished it, which means it will halve twice. Furthermore, because of Chinese cultural preferences for male children, their population will halve again even after they’ve gotten rid of the onerous policy. The Chinese already have ghost cities created through economic over-extension, and their troubles are going to get worse, not better. Soon, they will have one quarter of the population supporting the other three quarters. At that point, their economy will completely collapse, and they will not be in a position too mount any kind of existential threat to anyone.
In the short term, we must closely watch Chinese influence. In the long-term, however, China is not something we need to worry about.