The place of India and China in the globalized world order.

It is often said that the US invents, Europe legislates, and the Chinese copy.

This statement is only partially correct and misunderstand the natural place that China has occupied in the global world order, a place that fits it perfectly like a glove.

China does not simply copy, it transfers, it distributes, it standardizes.

The US and Europe were the winners by the end of the 20th century, yet the population of the European Union nor the US was large enough to supply the rest of the world with products at the desired price point. At the start of the new millennium there were 6.1 billion people in the world, and the US with 5% of the worlds population was not big enough, nor cheap enough, to supply the rest of the world with their products. Europe similarly was incapable of the industrial base required to supply the world with cheap goods at rates where every country no matter how poor, had access to them in their markets.

The rise of China changed that, and China became as a gateway for the third world, the developing world, to have access to all the commodities and middle tier goods that were once limited to the wealthy or the first world. China became the factory of the world, and allowed the developing world to set up standardized expectations of what they could afford, instead of it being split into nation states where what goods you can be supplied with differed nation to nation.

Today, China has become the largest exporter in the world, providing goods and services at affordable rates to the rest of the world. As 17.87% of the world population, it has enough people to provide a true global industrial base that goes beyond the first world.

The largest exporter in the world however, suffers from a demographic crisis, which makes it impossible for it to maintain that industrial base at the same level of production and price point due to its fast rising quality of life and income. Once again a gap is created in the global supply chain, which is now filled by India, a nation state with population numbers similar to China, and with a per capita GDP low enough for them to fill the gaps wherever China's wages rise too far to be able to make any products at a cheap price.

China and India together make up more than 37% of the world's population, a large enough industrial base for a global supply chain to be able to provide all the necessary baseline products for the rest of the world without issue, even with the declining demographics of China. This also guarantees the place of China or India as the third richest economy in the world at all times, as these two countries act as the industrial base of the world that actually is capable of reaching every single corner of the world. In current year, India is set to surpass the GDP of both Germany and Japan by the end of the decade, which fits in with India becoming the new global industrial base of the world.

The downwards effect this has on the global supply chain is that no jobs would ever go to Africa on the global supply chain, simply because India and China together have already covered all corners and levels of the global supply chain below the developed economy high end products. This limits Africa's GDP growth to be always below that of India at all times, irrespective of what they do or do not do, at least until India becomes developed enough as to give up on producing lower end goods on the supply chain.

Africa gets left behind as the last player on the world chain simply because of how many larger players on the world stage are ahead of them globally. Between the US, Europe, and Asia, there is just not enough of the pie left for them to throw labor at.

This trend can also be seen in global immigration, where the US, Europe, and the middle east are able to satisfy all their migrant needs via taking in educated Asians, to the point that there are no more seats left for Africans to fill. In this manner Africa becomes limited in immigration flows, GDP growth, and industrialization, simply because of the existence of India and China further up the supply chain.

Due to these reasons, Africa becomes limited to supplying raw resources to the world as their primary market space. The bottom rung of the ladder. Which causes them to grow at the rate of global wage increase, and global market products becoming cheaper.

The role that China and India occupy in today's and tomorrow's world is one that was previously occupied by Japan, but Japan was never large enough to provide goods to even half the world, no matter how cheap they made them. This is why we can see Japan fail in the face of being surrounded by global behemoths right next to it.

Every new civilization or global power rises forth has to face the challenge of being a better system or more powerful in some manner than the adversaries around them and the predecessors before them to be able to sustain themselves. As India and China take up the bottom tiers of the global supply chain, any nation state that wishes to have any chance of rising any further above in the world would have to be able to match them in capabilities and numbers. In this manner the rise of China and India also pushes for the rest of the world to form ever larger unions, as when faced with the US, the EU, China, and India above them, none of the other nations of the world are powerful enough to hold their own against any of these players on the world stage.

Isolationist societies end up dying due to this reason, as the only way to survive is now expansionism and multiculturalism to gain a large enough size and scale fast enough to be able to compete against the big players of the world as it has become now. This is why cultures such as the East Asians are set to fail, due to their inability to adapt to a world where they need to join together with their neighbors economically, politically, and legislatively.

Conclusion:

India and China are the only countries large enough to actually supply the entire global supply chain. They take up the role of global distributors standardizing the goods available to the rest of the developing world. India and China taking up such as large chunk of the global supply chain limits the growth of all nation states smaller than them including Africa. The existence of large nation states and unions such as the US, the EU, India, and China, make it impossible for any other nation state that exists in its current form to be able to surpass any of them, and between these 4 big players there is no more meaningful space left on the global supply chain. This in turn causes the death of isolationist states and the rapid rise of regional unions through the century to be able to stay competitive.

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