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Learning Economics By Sun Tzu's Strategy

You know Sun Tzu? He is a Chinese martial arts expert in 2500 years BC. War art book consists of 13 chapters. The first three chapters discuss the philosophy of war, the next three chapters discuss the theory of strategy, and the remaining seven chapters discuss the various factors. The most famous expression is "know my opponent and know yourself in a hundred battles then any winnings will not be in danger."

At the time of the revolution, Sun Tzu's theory of warfare used by the Chairman of the Chinese Communist Party (CCP), Mao Tze Tung to fight the reactionaries under the leadership of Chiang Kai Sek (Kuomintang). The result, with guerrilla tactics surrounded the city and the broad support of the lower class people, the CCP obtained a victory not only in northern China which is communist base, but also in southern China. On October 1, 1949, victory was read in front of the gate Gate of the Forbidden City, Beijing.

Now, in conditions of peace, the theory is studied and used to battle in the war economy and trade. This theory is also required to learn the cadres of the CCP and all policy makers in the land of the Bamboo Curtain. "There are 36 Sun Tzu's theory that should be studied carefully.
The idea seems very unusual. This theory not only to the war in the battlefield armed, but well used to war in the economic field, "said one of the cadre in a meeting last week.

The theory of Sun Tzu mentions the importance of unity of three factors, namely the state, the momentum, the solid, and the blank. The definition of the situation is all the circumstances of both parties. This situation is divided into two, namely can be defeated and can not be beaten. Things that can not be defeated it depends on yourself. While the momentum is the "moment" and the solid part or the blank is a "target".

Therefore, according to Sun Tzu, so that can not be beaten someone should make him the first place can not be beaten and then wait for the state of the opponent to be defeated. From there arises the sense defense and attack. "They know the opponent has been lost before the war. They know standing in place undefeated, and they knew his army had won before the war. "

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However, to make someone not to be defeated, there must be a combination of closed and open approach. Both properties are opposite each other though but is a unity that can not be separated. Closed at a certain momentum approach will give birth to an open approach, and vice versa and so on. The transition from a closed approach to the open approach should be done at the right moment.

This tactic is now applied to China to face the United States (U.S.) and its allies. Once the revolution won in 1949, China embargoed by the western countries. Nevertheless, China did not move at its founding to create a socialist society.
However, the closure conditions, China has built a powerful domestic industry, the manufacture of steel, weapons, atomic bombs, as well as aircraft. In agriculture, China's build fertilizer industry to increase productivity.

In the era of the 1980s, under the leadership of Deng Xiaoping, China's economic reforms and opening to the outside world.
Planting foreign investments opened the widest in the country can even say get a warranty. However, according to Deng Xiaoping, openness was done to strengthen socialism. China does not want to turn it into a capitalist country. Therefore, state enterprises and public sector remains dominant in comparison with the private sector. The result is the greatest for improving welfare and living standards of Chinese people. "There's a capitalist methods that we borrow to boost our economy. But in the process was still different. Here, most large companies and the state retained macro economy, "said the cadres.

In Guangxi, for example, a recent Wall Mart, the largest supermarket United States (U.S.) are allowed to be in the middle of the city. However, the existence of the Wall Mart does not hurt. Besides can accommodate all the products in the country, the existence of the Wall Mart add to the emergence of many retailers who offer a variety of snacks since benefited from a strategic location. In addition, near Wall Mart also stands a large department store owned by the government. The price in the retail and government-owned supermarket was cheaper than the products sold at Wall Mart.

After mastering the technology and science in various fields, China and then went into the World Trade Organization (World Trade Organization / WTO). China finally fluttering. All products browse all countries with a low price so as to make the European Union and the United States scramble to protect their production. Today, even when the economic crisis center clung U.S., China had mastered the letter about 20 percent of U.S. bonds.

As clearly understands the impact of the crisis, China is now slowly begin to divert attention from the production of consumer goods to increase agricultural industry. Therefore, China hopes the increase cooperation with Southeast Asian Nations (ASEAN) in agriculture.

Learning from Sun Tzu, the Chinese seem to learn that "those who are good at fighting are those who understand the momentum and did not demand his men. Instead, they were able to pick people with talent and skills different to take advantage of the different momentum. "

To that China still will defend socialism. Blending the closed and open approach. Foreign markets remain open but the state remains dominant. And this country will still be led by a proletarian party.


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