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What China fears: US antagonism

China has long emphasised non-interference in the affairs of another country as a basic tenet of international law. So why is China adopting a policy of disapproval - but not outspoken condemnation - of the US invasion of Iraq?......

For China, this sends an uncomfortable signal not only about US military expansionism, but also about the fundamentalism of American politics, which is taking on an air of theology.

Analysts in China ask whether the war against Iraq is intended to supply fuel for the US' military-industrial economic model.......

The US government's debt burden of trillions of dollars to support its military-industrial growth may be mitigated by its military expansion and control over the Gulf region. Under this scenario, America's main creditors like Japan and China - which hold large amounts of US Treasury bonds - will become dependent upon US-controlled oil supplies for their own growth, giving the US unprecedented leverage over their economies.......

Historical parallels are worrisome. Half a century ago, Japan's East Asia Co-prosperity Sphere envisioned conciliatory regional governments (read: puppets) all "sharing" prosperity, built on Japanese military-industrial might and the raw materials, energy sources and cheap labour of Asian nations. The US military expansion in Central Asia and the Middle East envisions puppet governments in Afghanistan and Iraq, client states in Saudi Arabia and Kuwait, and a carving up of Palestine in the name of security.......

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China and India | Business Week

......an immature financial system that makes it hard for science-based startup companies to raise money, a copycat culture wherein intellectual-property pirates regularly rip off patents and copyrights, and weak links between China's universities and its top businesses.......

....."It's a capital-starved country," says Sanjay Anandaram, a partner in JumpStartUp Fund Advisors Ltd., a Bangalore venture-capital firm......"I don't know how many VCs will be interested in funding me, and I don't see that changing fast," [Sanjay Shah, CEO of three-year-old Skelta Software Ltd.,] says. "Without venture capital, India won't become powerful globally in software products."......

A New World Economy
The balance of power will shift to the East as China and India evolve