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Threat of a Declining China

• arclein
will also be easy to put the Chinese economy on a war footing. China’s central planning institutions are well suited to the mobilization of resources for defense industries. A military buildup would also help to alleviate excess capacity problems in heavy industry. Total excess capacity in the steel sector, for example, already exceeds total U.S. capacity. Arms manufacturing is likely to be seen as a good way to put idle pl

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