Paranoia about China could push the United States toward unwarranted belief that conflict and even war with the PRC is inescapable. In fact, China is just another aspiring country despite its size and historical baggage, and economic forces are at work that will slow its rise and perhaps reverse it. Beijing’s emergence as a peer military competitor appears doomed by a variety of domestic and technological factors. At best it seems destined to be a regional power; thus it needs be neither an adversary nor partner. Yet various shared interests call for engagement, which Washington should pursue without trepidation, seeking its “traditional” interest in maintaining the balance of power in Asia and working to reduce tensions. Conflict is not inevitable

China is widely proclaimed as the latest power that will drive the West and especially America into oblivion, but the United States continues to grow economically and demographically. Simultaneously, despite successes, China confronts economic challenges that will slow its expansion and reveal its threat as overrated. Moreover, Chinese leaders are retreating from the free-market reforms that brought success. An economically stable China is more apt to adopt peaceful political reforms, so Washington should seek policies that will benefit its trading partners, including Beijing, as well as itself. America need not assists China out of benevolent altruism. It is simply good business and sound politics to work toward free-market solutions that will keep a merely disagreeable relationship from turning hostile.

Rare earth elements (REE), specifically rare earth magnets, are indispensable to the defense industry. The United States must confront a threat to its lead in the technological innovation of military applications that use permanent magnets, particularly as China, which produces 97 percent of REEs and controls 37 percent of known reserves, reduces its exports. The National Defense Stockpile should be reconfigured to provide a buffer supply of REEs. The Government should offer incentives to resurgent domestic REE mining and refining firms and must also curtail further sale and export of such U.S. companies to China. Simultaneously, the Government should continue funding research into permanent magnets using alternative materials that could balance the demand for REEs