When you arrive in China nowadays, one of the first things you note is the emphasis placed on you, a non-Chinese person, being an outsider.

The reason the United States is not aging rapidly in terms of its demographics is because we accept people as newcomers to this society in numbers that far surpass any of our major peers or rivals.

When you arrive in China nowadays, one of the first things you note is the emphasis placed on you, a non-Chinese person, being an outsider.

Soon numbers of Chinese people will exit the work force, and the Chinese work force, which has already begun to shrink, will shrink in a vastly accelerated way. And so China's going to face huge retirement costs and Social Security costs, health care costs, related to this immense aging of the population.

The one-child policy was based on some faulty science and had, as an ambition, reining in Chinese population growth, so as to enhance the per capita wealth of the country.

Since the first Gulf War in 1991, the Chinese have been increasing their military budget roughly by 11 percent a year on average. There's no way that China will be able to sustain that sort of military expenditure. And then the most important reason is because of its population changes.

Baby boom generation in China will start to hit retirement age in the very next few years, let's say by the end of this decade.