China's hegemony is built on cheap labour which has started to dry up, according to analysts from 2013 there would be a negative growth in labour force.
So yeah i can see where china is going
Just a few points, I have no intention to get into an argument here:
A. China does not have hegemony irrespective of what some newspapers might say.
B. China's population is not projected to decline until mid 21 centry (~2050), and when that happens it's a good thing -- adequate workforce's good for economic growth but over population creates tension and poverty (like what you are seeing in China now).
C. The Chinese have realised their current export-led growth model has reached a near tipping point: the developed nations laden with debt are likely to face stagnate growth for a prolonged period of time, (when a country's debt to gdp exceeds ~50%, there are serious economic "crowding out" implications, already the US and Europe are showing signs of these symptoms), you cannot forever rely on the foreign consumptions to stimulate domestic growth. Instead China has to switch to a domestic consumption based model so it can grow regardless of foreign demands, policies such as raising minimum labour wages, increasing social safety nets, develop/improve rural area incomes are steps towards this new policy shift. One thing for sure, over the years you'll see less shirts made in China and more made in Vietnam or other cheaper labour countries etc.
D. China did pretty good for the past 4000 years, it's the last century it messed up bad, we'll see where it's going exactly but I have a sense that it's going to be pretty okay.
E. Regarding Chinese companies should learn from leading Indian companies on management styles, international expansions etc, absolutely it should, knowledge and expertise has no borders and should be welcome everywhere.
If you are interested here is a debate between Stephen Roach and Martin Wolf on China, Roach's view on China's economy is very insightful.
