On a bullish note, there could be a big wall of money moving into China. One of my 401ks, due for a rollover, went 100% on FSEAX about a month ago. Will be out by Xi's Congress. We just can't quantify Taiwan. Nothing personal.
It depends what is meant by #1 or dominant world power. China is already a dominant world power, as is the US and Europe. But China cannot become THE dominant world power for several reasons. China is a homogeneous country with little experience composing with diversity. Which leads to another reason, that's it's a dictatorship and thus not willing to compose with diversity. China attracts few other than on a purely economic level and to be THE, a nation must inspire. Militarily China is very powerful, but its rigid hierarchy precludes it from establishing meaningful relationships other than strictly economic or through domination. 1 China (and North Korea) cannot subjugate dozens of nations, which includes mighty ones. As is being discussed, China has a steep demographic problem with a 50% decline by 2040. Although the 1 Child policy of the 60s is dead, its consequence will be felt for a long time. Furthermore, China's prosperity is leading to fewer children, regardless of government incentives to have more. Demographics is China's greatest threat, not the US. China has an astounding number of scientists, engineers and researchers who have nothing to prove to the world. Their contributions will be key in improving the lives of the world's population. It seems absurd to risk everything on an ego quest to reclame Taiwan from their Chinese family. Then again, look at Russia and Ukraine....
@xandman, what about the racism of the Japanese people against everybody else, ie. the superiority complex they had or still have over all other "races"? They, as a whole nation, even prefer to go extinct (ie. die-out) before letting any migrants into their alleged sacred country... Ie. "pure blood" etc... They are IMO a sick racist nation.
Yeah... The rest of the planet eradicated racism and welcomes foreigners and refugees with open arms! If it wasn't for the Japs...
Japan has a demographic problem (aging population). They don't want any migrants, they rather prefer developing some silly robots for caring for the elder population... If that's not proof of their racism...
They should somehow encourage young people to have kids. Whether it's through economic incentive or shutting down the internet.
Racism. That label has been slapped around too lightly. Groups will always try to preserve their cohesiveness. It's a form social protectionism, if you will. A natural impulse. Even a single nation will demonstrate this on a regional and local level. I am guessing a lot of Texans want Californians and Chicagoans go back where they came from. I do and I'm from Chicago. imho, I don't think the Japs crossed that line on that account. I am sure they have committed something long ago which would be atrocious now. Everybody has.
Seems you got a few things wrong. First, Japan got awfully close to becoming the dominant nation, and that with a 140 million people. China has 1.2 billion and they are technologically now on either an equal footing or even more advanced in certain areas than the US. China is a net exporter unlike the US, meaning, America lives or dies with the health of its consumers. Not so China. Covid is temporary and I don't quite understand why you cite it in this context. China or Japan and poor elder care? What are you talking about? No country and culture takes better care of its elderly than China. Typically still now several generations live under the same roof unlike in the US or Canada. The US will kick and scream exactly like the UK once did and it already does but the relative decline is inevitable and has already started years ago. On almost every perceivable metric the US has dropped down into mediocrity while China pushes higher and higher. I am greatly opposed to stifling personal freedom and communism but I don't ignore and put blinders on regarding economic might and general improvements of a society.