Chinopoly: in a game of political stratagem, China is using Western capital and know-how to further empower and enrich Communist Party members, but its commitment to communism may bring its downfall.(CHINA)(Viewpoint essay)

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"China will be the world's next great nation," declared investment and commodities guru Jim Rogers in his 2004 bestseller, Hot Commodities. The 20th century, he noted, "was the American century. The twenty-first will belong to China." Rogers went on:

 
   Here's how important I think China will be: My daughter, who was 
   born in 2003, is learning Chinese. Her Chinese nanny speaks only 
   Mandarin to her, and I suspect that she might learn Chinese before 
   she learns English. In her lifetime, Chinese will be the most 
   important language in the world, next to English. If you are young 
   and ambitious, learn Chinese. If you have ambitions for your 
   children, persuade them to learn Chinese. 

Learning a second language has always been good advice for a young person, and in our ever-shrinking world makes more sense now than ever. And Chinese may be as good a choice as any. However, is Mr. Rogers going a bit overboard? Yes, but he's in crowded company. More than a few other "experts" in business, banking, economics, and political affairs have been preaching the same gospel. Headline stories proclaiming "The China Miracle," "China, the New Superpower," and "The China Century" have been proliferating for years.

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China's rags-to-riches-in-one-generation story is impressive indeed. Its journey from poverty-stricken, Third World nobody to top A-list business partner in 30 years is nothing less than stunning. The Asian Development Bank's Eminent Persons Group may be correct in claiming that "the speed and depth of Asia's economic progress are unprecedented in world history." While the bankers were writing about Asia in general, they undoubtedly had China foremost in mind.

Virtually overnight, Communist China has gone from a pre-industrial, rural society to the world's manufacturing capital. It is now the largest producer and exporter of consumer electronics, footwear, luggage, textiles, apparel, toys, household appliances, seafood, and numerous other products. It has amassed the largest foreign-exchange reserves in history, reportedly in excess of $1.4 trillion. And it is flexing that muscle in the global arena, investing in Africa, Latin America, Asia, the Middle East--and the United States. That money is now being used to buy up Western assets, including in the United States, as the article on page 16 explains.