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By Michael Backman (auth.)

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Protecting Commercial Shipping Lanes Throughout history, the foreign and military policies of the major powers have been determined by the need to protect commodities supplies. 3 He points out that Britain nearly took the side of the Confederates during the American Civil War because of its large cotton imports from the American south. Britain went to war in South Africa against the Boers largely to control that country’s gold deposits. And after oil replaced coal as the fuel for the Royal Navy, Britain greatly expanded its role in the Middle East.

The other thing that China will do is to supply weapons and military technology to countries that are under threat and are important suppliers of resources to China, in much the same way that the US and Britain arm Saudi Arabia to safeguard it as a supplier of oil. Will China trigger an arms race in Africa as it seeks to arm its commodity suppliers there? Quite possibly. Reaching Out China has started to play an active role on the world stage in international security issues. And an even greater role is assured.

This is barely possible for Japan. Demographics are at the heart of the problem. Japan simply doesn’t have enough young people forming families and new households, with all the spending that goes with it, to keep the economy growing. 33 34 Asia Future Shock Instead, it has a lot of older people who are retired or are facing retirement, who have spent their lives acquiring all the goods they need and are now more concerned with looking after their savings. 3 million, which is more than 50% higher than that for all households.

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