China's decision in 1978 to pursue free trade and capitalism has unleashed an entrepreneurial energy unparalled in world history. China's economy is growing faster than any other economy in the world. And its growth is a beacon that raises the tide for much of the rest of the worlds' economies which would otherwise languish. America's entrepreneurs, like all others in the world, are elbowing each other for a share of the phenomenal trade pie created by this spectacular growth.

China's emergence as an economic force to be reckoned with could well be the alarm bell in the White House and Congress which would end the bitter squabbles over budget deficits, outsourcing of jobs, and rancor over tax policy. They should turn their attention to the real culprit that ails the American economy -- supporting research and technological innovation that drives productivity growth. The left and right wing ideologues that dominated the elections drown out the extraordinary productivity gains we have witnessed in America's recent recovery from recession.

China's phenomenal 9% growth in GDP throws down a gauntlet for the U.S. if its economy is to meet China's challenge. Also, India has moved up to tenth place in the world's fastest growing economies and adds yet further incentive for America in its drive to continue to grow productivity in order to sustain its leadership on the world's economic center-stage.

To do that, America's two political parties must form a coalition to solve healthcare policies that hamper corporate enterprise and competitiveness and education policies that hamper the workforce. Both of these impediments are major factors in continuing to accelerate productivity growth and GDP. The U.S. economy grew 4.9% in 2003, the largest gain since 1984. Consumer spending is up 9% since 2000. China's booming economy now becomes America's main economic competition to maintaining economic dominance.

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The Good News From China

The Bad News From China

Chronicle of China's Repressive Actions

China's Problems with Individual Rights

China's Rush to Arm and Proliferation

China's Transition Economy

America's Rush to Defend Itself

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