barron's article on how the inscrutable hans' "peaceful rise" snake oil ain't selling so good any more

jun 28th, 2011 CE

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http://online.barrons.com/article/SB50001424053111903349804576403561272392884.html#articleTabs_panel_article%3D1 
 
Barron’s Cover 

SATURDAY, JUNE 25, 2011 

Dragon Fire 

By LESLIE P. NORTON

The U.S. military is getting ready to leave Iraq and Afghanistan. The next threat is much bigger.

Even the most casual observer seems to know that China’s economy has been growing at a roughly 10% annual rate for much of the past decade. Less recognized and arguably more important to the state of the world is the fact that China’s defense spending rose even faster than that -- 12% or more a year between 2000 and 2009.

"The accelerating pace of China’s defense budget increases is driving countries in the region, as well as the U.S., to react to preserve a balance of power and stability," says Jacqueline Newmyer, head of Long-Term Strategy Group, a Cambridge, Mass.-based defense consultant. "There is a real potential for arms races to emerge," she adds. "While once we assumed we’d have access to areas to conduct anti-terrorism or anti-insurgency operations, now we’re compelled to think about preserving our ability to gain access to East Asia."

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