The Cold War taught us that inefficient planned economies can execute  priority projects well. Think Sputnik, the Moscow Olympics, and Russian  nuclear physics. Although its output never reached half that of the  U.S., the Soviet Union held us to rough military parity until the end of  the Cold War.
China will choose a new leadership in 2012, culminating a power  struggle between reformists and those who favor a return to neo-Maoism.  If the latter group prevails, the level of hostilities with China will  intensify beyond their current uneasy status quo.
China enjoys huge advantages over the former USSR that render it a more formidable military competitor than the USSR was:
The Chinese economy has been growing rapidly, while the Soviet  economy suffered a lengthy “period of stagnation,” as Gorbachev called  it. China is integrated into the world economy and, as such, has access  to advanced technology. The Soviet Union remained isolated, was subject  to restrictions on technology purchases, and had to rely on espionage to  obtain military technology. During the Cold War, we thought twice about  selling electric ranges or IBM computers to Russia. In 2012, we share  GPS technology and assemble Dell Computers in China.
The list of countries potentially hostile to the United States –  Iran, North Korea, Venezuela, Syria, and Russia — is frighteningly long  and could increase on moment’s notice to include Pakistan or any number  of Arab Islamist states. We already compete with China for controlling  military presence in the Pacific. China could decide to take Taiwan by  force, or China’s fragile peace with India could break.
Future military conflict with China is likely to be of a conventional  sort, rather than the hit-and-run terrorist engagement the Pentagon is  preparing for. To counter China, we need substantial conventional forces  and a large defense budget.
go to Forbes.com
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