In the Shadow of the Dragon

PREFACE

Knowing others is intelligence; knowing oneself is true wisdom. Mastering others is strength; mastering oneself is true power.

—Lao Tsu

Napoleon Bonaparte’s famous prophecy that “When China awakens, the world will tremble” has not fully come to pass yet, but it is clearly on the horizon. The Economis trecently noted that although China is now the world’s second economy, its share in global business investment is still only around 6 percent, and most of that is in wealthy countries, and to a large extent in the United States. In contrast, Great Britain accounted for more than 50 percent of overseas investment in 1914, and the United States accounted for a larger share than that in 1967. Whether or not it eventually surpasses the United ...