GRAHAM ALLISON
America second? Yes, and China’s lead is only growing

China’s Tsinghua University dethroned MIT (above) as the top engineering
university in the world in 2015, according to US News and World Report’s
annual rankings.

By Graham Allison
May 22, 2017
In Boston, Commencement season is a time to celebrate our world-leading
universities, including engineering powerhouse MIT. But Bostonians might be
shocked to learn that China’s Tsinghua University dethroned MIT as the top
engineering university in the world in 2015, according to the
closely-watched US News & World Report annual rankings. Tsinghua’s recent
surge is not an isolated example. Everyone knows about China’s rise, but
few have realized its magnitude or its consequences.

Among the top 10 schools of engineering, China and the United States now
each have four. In STEM subjects (science, technology, engineering, and
mathematics), which provide the core competencies driving advances in the
fastest-growing sectors of modern economies, China annually graduates four
times as many students as the United States (1.3 million vs. 300,000). And
in every year of the Obama administration, Chinese universities awarded
more PhDs in STEM fields than American universities.

For Americans who grew up in a world in which USA meant “number one,” the
idea that China could truly challenge the United States as a global
educational leader seems impossible to imagine.

This is not the only reality Americans willfully ignore. In my national
security course at Harvard, the lecture on China begins with a quiz.
Students get a sheet with 25 indicators of economic performance. Their task
is to estimate when China might overtake the United States as the top
producer or market of automobiles, supercomputers, smartphones, and so on.
Most are stunned to learn that China has already surpassed the United
States on each of these metrics.

I then ask whether they believe that in their lifetime China will overtake
the United States to become the largest economy in the world. In last
year’s class of 60 students, about half bet they would live to see the
United States become number two, while half disagreed.

When I show the class headlines from the 2014 IMF-World Bank meeting
announcing that China had become the largest economy in the world, students
react with a mix of dismay and disbelief. By 2016, China’s GDP was $21
trillion and America’s was $18.5 trillion, when measured by purchasing
power parity (PPP), which both the CIA and IMF agree is the best yardstick
for comparing national economies.

Students are not the only ones in the dark about China’s rise. Most of the
press has similarly missed the big picture. The favorite story line in the
Western media about the Chinese economy is “slowdown.” The question few
pause to ask is: slowing compared to whom? The American press’s favorite
adjective to describe our economic performance has been “recovering.” But
despite its “slowdown,” China today is growing three times as fast as the
United States.

President Trump’s claims that we have been “losing” to China reflect, in
part, the reality of a shifting see-saw. A bigger, stronger China is
challenging American interests in the South China Sea, taking our jobs,
buying American companies, and replacing us as the primary trading partner
of nations not only in its neighborhood, but also in Europe, where China
recently unseated the United States as Germany’s largest trading partner.

Trump’s call to “Make America Great Again” struck a chord with voters.
Number one is who we are. But politically appealing slogans are not a
solution for the dramatic resurgence of a 5,000-year old civilization with
1.4 billion people, led by a president whose own mission is the “Great
Rejuvenation” of China — in other words, to “Make China Great Again.” To
construct a grand strategy for the China challenge that protects vital US
interests without catastrophic conflict, policy makers must begin by
recognizing these uncomfortable but undeniable realities.

Graham Allison is the director of Harvard Kennedy School’s Belfer Center
for Science and International Affairs and the author of the forthcoming
book “Destined for War: Can America and China Escape Thucydides’s Trap?”
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