1 00:00:06,000 --> 00:00:08,000 [electronic beeping] 2 00:00:08,680 --> 00:00:10,920 [static hissing] 3 00:00:13,800 --> 00:00:14,840 [female narrator] February 1979, 4 00:00:14,920 --> 00:00:18,200 and the paramount leader of the People's Republic of China 5 00:00:18,280 --> 00:00:20,120 is taking in a rodeo. 6 00:00:20,200 --> 00:00:21,680 [crowd cheering] 7 00:00:23,920 --> 00:00:26,520 Deng Xiaoping is the first Chinese leader 8 00:00:26,600 --> 00:00:27,920 ever to tour the USA... 9 00:00:30,880 --> 00:00:33,360 even getting a VIP tour of NASA. 10 00:00:34,800 --> 00:00:36,840 After 30 years of isolation, 11 00:00:37,120 --> 00:00:40,680 Communist China is suddenly back on the international stage. 12 00:00:41,400 --> 00:00:42,720 And Deng is making it clear 13 00:00:42,800 --> 00:00:45,800 that they're ready to embrace the world, economically. 14 00:00:46,920 --> 00:00:48,520 He doesn't know it yet, 15 00:00:48,600 --> 00:00:50,240 but that approach will work, 16 00:00:50,320 --> 00:00:52,360 beyond all expectations. 17 00:00:58,400 --> 00:01:00,960 The population of China is huge, 18 00:01:01,240 --> 00:01:03,400 1.4 billion people, 19 00:01:03,720 --> 00:01:06,360 more than North America, South America, 20 00:01:06,440 --> 00:01:08,400 Australia, New Zealand, 21 00:01:08,480 --> 00:01:12,120 Scandinavia, and all of Western Europe combined. 22 00:01:13,440 --> 00:01:15,120 According to the Chinese government, 23 00:01:15,200 --> 00:01:17,480 nearly 16% of the population 24 00:01:17,560 --> 00:01:20,360 lives in China's 15 megacities, 25 00:01:20,440 --> 00:01:23,480 each with a population of over 10 million. 26 00:01:23,840 --> 00:01:26,720 There are only 47 such cities  in the world. 27 00:01:28,360 --> 00:01:32,200 As of 2018,  China is responsible for 18.6% 28 00:01:32,280 --> 00:01:34,280 of global gross domestic product. 29 00:01:35,480 --> 00:01:38,240 It exports 41% of the world's computers, 30 00:01:38,960 --> 00:01:41,360 34% of all air conditioners, 31 00:01:41,800 --> 00:01:45,440 and a whopping 70% of the world's cell phones. 32 00:01:45,520 --> 00:01:46,640 [ringing] 33 00:01:51,600 --> 00:01:55,000 China has become  a global economic powerhouse. 34 00:01:56,000 --> 00:01:57,160 How did they pull if off? 35 00:01:58,800 --> 00:02:02,800 And why was the rest of the world  so slow to notice China's rise to the top? 36 00:02:13,880 --> 00:02:14,800 [guns firing] 37 00:02:14,880 --> 00:02:16,360 During World War II, 38 00:02:16,440 --> 00:02:18,840 China and America are staunch allies 39 00:02:18,920 --> 00:02:21,880 in the battle  against Japanese imperial aggression. 40 00:02:23,520 --> 00:02:24,760 And like America, 41 00:02:24,840 --> 00:02:27,440 China throws itself into mass production 42 00:02:27,520 --> 00:02:28,800 on an epic scale. 43 00:02:29,920 --> 00:02:32,960 [man] Somewhere in China, a blanket factory in full blast. 44 00:02:33,640 --> 00:02:35,640 Three thousand women, working with handlooms, 45 00:02:35,720 --> 00:02:37,720 weave the blankets for the Chinese Army. 46 00:02:38,360 --> 00:02:40,520 [narrator] But after fighting the Japanese, 47 00:02:41,240 --> 00:02:43,480 China is torn apart by a brutal civil war 48 00:02:43,560 --> 00:02:46,160 between the US-backed nationalists, 49 00:02:46,240 --> 00:02:47,800 led by Chiang Kai-shek, 50 00:02:47,880 --> 00:02:51,520 and the Communist army  and its leader, Mao Zedong. 51 00:02:53,560 --> 00:02:56,680 In 1949, Mao sweeps to victory, 52 00:02:56,760 --> 00:02:59,600 establishing the People's Republic of China. 53 00:03:03,480 --> 00:03:05,160 -[crowd cheering] -In Mao's China, 54 00:03:05,240 --> 00:03:07,400 everyone is to share in the wealth. 55 00:03:08,680 --> 00:03:11,400 -[sheep bleating] -And that collective community 56 00:03:11,120 --> 00:03:13,800 will be represented by the state. 57 00:03:15,280 --> 00:03:18,200 Also, China is to be completely self-reliant 58 00:03:18,280 --> 00:03:21,760 -in terms of finance, food, and goods. -[pig squeals] 59 00:03:24,680 --> 00:03:26,120 No more stock exchanges 60 00:03:26,200 --> 00:03:28,520 and no more diplomatic or economic relations 61 00:03:28,600 --> 00:03:30,280 with the capitalist West. 62 00:03:32,480 --> 00:03:36,400 -China, and its 542 million people... -[crowd cheering] 63 00:03:36,120 --> 00:03:38,600 ...will be cut off  from the rest of the world. 64 00:03:39,800 --> 00:03:41,280 [gate clicking, slams shut] 65 00:03:46,000 --> 00:03:49,400 To modernize  his largely agrarian mega-nation, 66 00:03:49,320 --> 00:03:52,360 Mao encourages millions of peasants to leave their farms 67 00:03:52,440 --> 00:03:53,840 and work in factories. 68 00:03:56,360 --> 00:03:57,760 [cheering] 69 00:03:57,840 --> 00:04:00,680 And to make sure no one has a problem with that, 70 00:04:00,760 --> 00:04:03,160 he launches the cultural revolution, 71 00:04:03,520 --> 00:04:06,960 punishing dissenters by ordering them to reeducation camps. 72 00:04:07,400 --> 00:04:08,440 [shouting] 73 00:04:08,880 --> 00:04:11,760 Paramilitary groups attack bourgeois intellectuals. 74 00:04:11,840 --> 00:04:12,720 [shouting] 75 00:04:12,800 --> 00:04:14,800 Many cities are close to chaos. 76 00:04:15,400 --> 00:04:16,720 At least a million die. 77 00:04:16,800 --> 00:04:17,760 [chanting] 78 00:04:17,840 --> 00:04:21,320 Meanwhile, China suffers from widespread famine, 79 00:04:21,400 --> 00:04:23,000 a corrupt infrastructure, 80 00:04:23,800 --> 00:04:24,960 and a busted economy. 81 00:04:25,400 --> 00:04:28,200 It's largely ignored by the rest of the world. 82 00:04:33,160 --> 00:04:34,600 In 1960, 83 00:04:34,680 --> 00:04:38,000 China's economy is worth $59 billion... 84 00:04:40,400 --> 00:04:43,320 a figure dwarfed by the United States economy, 85 00:04:43,400 --> 00:04:46,200 worth $543 billion. 86 00:04:51,760 --> 00:04:53,720 But in the early 1970s, 87 00:04:53,800 --> 00:04:56,720 America decides it's time to win over Mao, 88 00:04:56,800 --> 00:04:58,360 taking advantage of a rift 89 00:04:58,440 --> 00:05:01,800 between him and his Communist counterparts in the Soviet Union. 90 00:05:04,800 --> 00:05:06,880 Richard Nixon becomes the first American president 91 00:05:06,960 --> 00:05:08,320 ever to visit China. 92 00:05:12,680 --> 00:05:14,960 After 25 years of isolation, 93 00:05:15,400 --> 00:05:18,240 Mao seems prepared to reestablish ties with America. 94 00:05:18,640 --> 00:05:20,600 And Nixon hopes to encourage 95 00:05:20,680 --> 00:05:23,200 an American-style democracy in China. 96 00:05:26,640 --> 00:05:28,640 [somber classical music playing] 97 00:05:33,240 --> 00:05:37,160 But when supreme leader Mao dies in 1976, 98 00:05:37,240 --> 00:05:40,160 his autocratic system doesn't die with him. 99 00:05:40,960 --> 00:05:43,120 It just takes a whole new direction. 100 00:05:46,960 --> 00:05:48,880 Enter Deng Xiaoping. 101 00:05:50,520 --> 00:05:54,000 When Deng takes China's reins at the end of 1978, 102 00:05:54,280 --> 00:05:58,560 he makes it clear that, while his party is not going to relinquish any power, 103 00:05:58,880 --> 00:06:01,400 China will consider opening up to the West 104 00:06:01,480 --> 00:06:03,320 if they can make a little money out of it. 105 00:06:05,640 --> 00:06:08,880 This is the reason for Deng's cheerful visit to America. 106 00:06:09,320 --> 00:06:11,400 He's sending a signal to the world: 107 00:06:11,760 --> 00:06:14,880 Communist China is open for business. 108 00:06:17,720 --> 00:06:21,160 And they start by embarking on a program of economic reform, 109 00:06:21,680 --> 00:06:26,200 creating four special economic zones, or SEZs. 110 00:06:27,280 --> 00:06:29,440 The zones will be allowed to play by different rules 111 00:06:29,520 --> 00:06:31,320 than the rest of Communist China. 112 00:06:32,120 --> 00:06:35,560 Here, factories will be able to export goods to the West. 113 00:06:36,240 --> 00:06:38,800 And importers will be able to trade 114 00:06:38,160 --> 00:06:39,920 with capitalist countries. 115 00:06:40,640 --> 00:06:44,440 The idea is that these zones will draw foreign investment 116 00:06:44,520 --> 00:06:48,160 and serve as mini economic engines for the rest of the country. 117 00:06:49,120 --> 00:06:50,200 And it works... 118 00:06:51,320 --> 00:06:52,640 spectacularly. 119 00:06:53,120 --> 00:06:54,520 [man] Just three years ago, 120 00:06:54,600 --> 00:06:57,680 this area housed a few villages and paddy fields. 121 00:06:57,760 --> 00:07:00,360 Today, it is a bustling commercial site, 122 00:07:00,440 --> 00:07:03,160 an industrial city being built from scratch. 123 00:07:05,520 --> 00:07:09,160 [narrator] China's leaders insist that these SEZs are just experiments 124 00:07:09,240 --> 00:07:10,640 in global trade. 125 00:07:11,480 --> 00:07:15,800 They remain dedicated to the ideals of Communism and Mao. 126 00:07:18,320 --> 00:07:20,480 One of the first special economic zones 127 00:07:20,560 --> 00:07:22,320 is the fishing village of Shenzhen, 128 00:07:22,400 --> 00:07:24,760 population 59,000. 129 00:07:26,280 --> 00:07:30,400 By 2016,  its population swells to 12 million. 130 00:07:31,920 --> 00:07:33,720 Its GDP per capita 131 00:07:33,800 --> 00:07:38,840 increases an astounding 24,569% 132 00:07:41,320 --> 00:07:44,320 Which explains why, over the next 30 years, 133 00:07:44,400 --> 00:07:46,840 China will begin designating more and more 134 00:07:46,920 --> 00:07:48,960 of these development zones. 135 00:07:51,240 --> 00:07:52,680 By 2005, 136 00:07:53,000 --> 00:07:56,120 China is constructing neighborhoods the size of Rome 137 00:07:56,200 --> 00:07:57,880 every two weeks. 138 00:07:59,680 --> 00:08:04,200 Between 2011 and 2013, China uses more cement 139 00:08:04,280 --> 00:08:07,320 than the US did  in the entire 20th century. 140 00:08:14,960 --> 00:08:17,800 In these early SEZs, 141 00:08:17,160 --> 00:08:20,800 factory managers take advantage of China's massive labor force 142 00:08:20,880 --> 00:08:24,360 to crank out huge quantities of low-cost exports. 143 00:08:24,800 --> 00:08:27,440 And productivity goes sky-high. 144 00:08:29,840 --> 00:08:32,720 Setting up in the development zone means tax-free profits, 145 00:08:32,800 --> 00:08:35,240 low-rents, and endless cheap labor. 146 00:08:36,840 --> 00:08:39,880 In one SEZ, Guangdong province, 147 00:08:39,960 --> 00:08:41,720 one commodity rules them all. 148 00:08:47,360 --> 00:08:48,280 Toys. 149 00:08:49,520 --> 00:08:51,960 With more than 1,500 toy factories, 150 00:08:52,400 --> 00:08:56,600 this zone emerges as  the world's largest toy production base, 151 00:08:56,680 --> 00:08:59,520 exporting billions of dollars worth  each year. 152 00:09:01,920 --> 00:09:04,400 [man] Anywhere else,  this is called capitalism. 153 00:09:04,480 --> 00:09:05,640 Here, it's titled 154 00:09:05,720 --> 00:09:08,120 "socialism with Chinese characteristics." 155 00:09:10,560 --> 00:09:13,400 [narrator] Socialism  with Chinese characteristics 156 00:09:13,120 --> 00:09:15,920 is how China starts fulfilling huge consumer demand 157 00:09:16,000 --> 00:09:18,400 for cheap goods in the West. 158 00:09:18,920 --> 00:09:21,200 Economically, China's catching up. 159 00:09:21,280 --> 00:09:23,520 But America's still number one. 160 00:09:27,320 --> 00:09:32,800 Between 1980 and 1990, China's economy almost doubles. 161 00:09:34,200 --> 00:09:35,720 But so does America's, 162 00:09:35,800 --> 00:09:37,200 keeping it far ahead. 163 00:09:42,720 --> 00:09:45,800 But with this opening up to capitalism, 164 00:09:45,200 --> 00:09:47,360 China's leaders now have a problem. 165 00:09:48,360 --> 00:09:50,520 Young people  are increasingly demanding more 166 00:09:50,600 --> 00:09:53,240 than just the right to pursue profits. 167 00:09:54,000 --> 00:09:55,760 In the spring of 1989, 168 00:09:56,280 --> 00:09:58,800 in Beijing's Tiananmen Square, 169 00:09:58,520 --> 00:10:01,240 students begin leading daily protests 170 00:10:01,320 --> 00:10:03,640 calling for democracy, free speech, 171 00:10:03,720 --> 00:10:05,160 and a free press. 172 00:10:05,560 --> 00:10:08,480 But on June 4th,  the ruling Communist Party 173 00:10:08,560 --> 00:10:10,720 sends the students a clear message: 174 00:10:11,800 --> 00:10:13,120 Economic freedom is one thing. 175 00:10:13,200 --> 00:10:15,760 Political freedom is something else. 176 00:10:16,720 --> 00:10:19,400 Tanks and troops are dispatched to the square 177 00:10:19,480 --> 00:10:21,880 and open fire on the demonstrators. 178 00:10:22,800 --> 00:10:25,200 [guns firing] 179 00:10:28,440 --> 00:10:31,560 The Chinese government never does release an official death toll. 180 00:10:32,000 --> 00:10:34,920 But the event will become known internationally 181 00:10:35,000 --> 00:10:37,320 as the Tiananmen Square Massacre. 182 00:10:38,480 --> 00:10:40,680 [guns firing] 183 00:10:41,640 --> 00:10:43,640 [ship horn blaring] 184 00:10:45,280 --> 00:10:48,600 But while taking a stick to those protesting their authority, 185 00:10:48,680 --> 00:10:50,440 China's leaders offer a carrot 186 00:10:50,520 --> 00:10:52,440 to those interested in making money. 187 00:10:53,200 --> 00:10:54,280 [overlapping chatter] 188 00:10:54,360 --> 00:10:56,200 In December 1990, 189 00:10:56,280 --> 00:10:58,720 they reopened the Shanghai Stock Exchange, 190 00:10:58,800 --> 00:11:01,000 sparking stock market fever. 191 00:11:01,680 --> 00:11:02,720 Money, money, money! 192 00:11:02,800 --> 00:11:05,280 [man] Shares are on offer,  and for the Chinese, 193 00:11:05,360 --> 00:11:07,160 it's a riveting new game. 194 00:11:07,920 --> 00:11:10,280 It's a chance to be a real capitalist. 195 00:11:11,120 --> 00:11:13,320 [narrator] China's still a Communist nation, 196 00:11:13,400 --> 00:11:15,800 but its transformation to a market economy 197 00:11:15,880 --> 00:11:17,400 seems almost complete. 198 00:11:18,200 --> 00:11:20,600 I dream of money, money. Yes. 199 00:11:20,680 --> 00:11:22,440 -[woman laughs] -Owning money. 200 00:11:22,880 --> 00:11:26,160 Getting money. I'll be millionaire very soon. 201 00:11:26,240 --> 00:11:27,200 [laughing] 202 00:11:28,840 --> 00:11:30,400 [narrator] What would Mao say? 203 00:11:36,160 --> 00:11:37,960 By the end of the 1990s, 204 00:11:38,400 --> 00:11:41,320 the signs of China's economic success are everywhere. 205 00:11:43,200 --> 00:11:45,960 Memories of the civilians killed in Tiananmen Square 206 00:11:46,400 --> 00:11:48,320 and the freedoms they were seeking seem to fade, 207 00:11:48,920 --> 00:11:51,960 as workers' wages and their quality of living climb. 208 00:11:54,160 --> 00:11:56,280 And foreign businesses rush to set up shop 209 00:11:56,360 --> 00:11:58,400 to reach China's billions of consumers. 210 00:11:59,840 --> 00:12:01,400 [engine revving] 211 00:12:01,120 --> 00:12:02,000 [speaks Chinese] 212 00:12:03,440 --> 00:12:05,200 Luxury items from abroad 213 00:12:05,280 --> 00:12:07,840 become highly-coveted status symbols. 214 00:12:08,440 --> 00:12:09,320 [horn honks] 215 00:12:12,360 --> 00:12:14,360 But most Chinese citizens can't afford  216 00:12:14,440 --> 00:12:17,160 expensive name-brand goods from overseas. 217 00:12:18,520 --> 00:12:21,360 A massive demand for counterfeit goods emerges, 218 00:12:21,800 --> 00:12:25,160 one that fuels a new boom for China's manufacturers, 219 00:12:25,240 --> 00:12:28,800 accounting for up to 8% of China's GDP. 220 00:12:29,880 --> 00:12:32,120 Okay, so here we have the new Bond DVD. 221 00:12:32,200 --> 00:12:34,440 In fact, we have the whole Bond series here.  222 00:12:34,520 --> 00:12:36,160 And this is just the tip of the iceberg 223 00:12:36,240 --> 00:12:38,680 when it comes  to China's counterfeit culture. 224 00:12:40,120 --> 00:12:42,840 [man] Sometimes it feels like everyone's faking it. 225 00:12:42,920 --> 00:12:45,000 Polo shirts, Burberry scarves. 226 00:12:45,800 --> 00:12:47,120 No Western brand is safe. 227 00:12:49,560 --> 00:12:51,960 [narrator] Soon, fake Chinese-made goods 228 00:12:52,400 --> 00:12:54,240 are finding their way around the world. 229 00:12:55,680 --> 00:12:58,280 And sellers of the real stuff aren't happy. 230 00:13:00,120 --> 00:13:04,280 [man] This Chinese chocolate maker is being sued by its more famous rival. 231 00:13:04,680 --> 00:13:06,120 Ferrero Rocher complained 232 00:13:06,200 --> 00:13:08,840 the product is too close for coincidence. 233 00:13:08,920 --> 00:13:10,240 This is Chinese name. 234 00:13:10,320 --> 00:13:12,320 -This product is made in China. -Uh-huh. 235 00:13:12,400 --> 00:13:13,480 -This, no. -Uh-huh. 236 00:13:13,560 --> 00:13:15,200 This is just an English name. 237 00:13:15,280 --> 00:13:16,800 -This is Chinese name. -Uh-huh. 238 00:13:19,560 --> 00:13:21,720 [narrator] The thing is,  China really wants 239 00:13:21,800 --> 00:13:23,680 to join the World Trade Organization 240 00:13:23,760 --> 00:13:26,520 to solidify its status on the world stage. 241 00:13:28,760 --> 00:13:30,680 [applauding] 242 00:13:30,760 --> 00:13:33,360 And it has President Bill Clinton's support. 243 00:13:34,200 --> 00:13:36,400 Opening the economy of China, 244 00:13:36,120 --> 00:13:38,720 the agreement will create unprecedented opportunities 245 00:13:39,200 --> 00:13:42,000 for American farmers, workers, and companies 246 00:13:42,360 --> 00:13:44,760 to compete successfully in China's market, 247 00:13:45,160 --> 00:13:48,400 while bringing increased prosperity to the people of China. 248 00:13:50,000 --> 00:13:53,360 [narrator] But those counterfeit goods become a real sticking point. 249 00:13:54,880 --> 00:13:57,320 America insists that China's leaders 250 00:13:57,400 --> 00:13:59,720 crack down on copycat manufacturing. 251 00:14:00,680 --> 00:14:02,520 [applauding] 252 00:14:02,600 --> 00:14:04,360 And China swears it will. 253 00:14:07,480 --> 00:14:09,360 But as of 2019, 254 00:14:09,440 --> 00:14:13,560 it's estimated that 85% of all the world's counterfeit goods 255 00:14:13,640 --> 00:14:15,400 still comes from China. 256 00:14:16,640 --> 00:14:19,640 Second place goes to Turkey, with 3%. 257 00:14:21,400 --> 00:14:22,960 China's top five counterfeit goods are... 258 00:14:23,400 --> 00:14:24,480 -[ringing] -...smartphones, 259 00:14:25,320 --> 00:14:26,880 luxury brand bags... 260 00:14:26,960 --> 00:14:28,680 -[footsteps] -...footwear, 261 00:14:29,760 --> 00:14:32,960 sports clothes like Nike and North Face... 262 00:14:33,880 --> 00:14:36,800 and it's estimated that 20% of cosmetics 263 00:14:36,880 --> 00:14:39,120 on the market in China are fake. 264 00:14:39,200 --> 00:14:40,680 [glass shattering] 265 00:14:44,840 --> 00:14:46,800 In the 1990s, 266 00:14:46,160 --> 00:14:48,200 the rest of the world also wants China 267 00:14:48,280 --> 00:14:50,240 to open up its state-controlled markets 268 00:14:50,320 --> 00:14:52,800 to more competition from outside. 269 00:14:54,480 --> 00:14:56,520 They say it's not fair the Chinese government 270 00:14:56,600 --> 00:15:00,000 blocks imports into China but still floods other countries 271 00:15:00,800 --> 00:15:01,320 with its exports. 272 00:15:03,800 --> 00:15:05,920 Again, China promises 273 00:15:06,000 --> 00:15:07,920 to work towards balancing its trade. 274 00:15:09,800 --> 00:15:12,160 And in November 1998, 275 00:15:12,240 --> 00:15:16,480 America agrees to support China's entry into the WTO. 276 00:15:16,560 --> 00:15:18,800 [cheering, applauding] 277 00:15:20,640 --> 00:15:24,280 Earlier today, the United States and China reached an agreement 278 00:15:24,360 --> 00:15:25,680 on the WTO. 279 00:15:26,160 --> 00:15:28,520 This is a truly historic achievement. 280 00:15:30,400 --> 00:15:32,360 [narrator] Clinton, like Nixon before him, 281 00:15:32,440 --> 00:15:35,160 hopes that Beijing's authoritarian government 282 00:15:35,240 --> 00:15:37,360 will loosen its grip over its people 283 00:15:37,440 --> 00:15:40,120 once it opens up to doing more business with the West. 284 00:15:41,400 --> 00:15:42,680 But that rosy-eyed optimism 285 00:15:42,760 --> 00:15:46,280 may be what blinds foreign powers to the aggressive juggernaut 286 00:15:46,360 --> 00:15:48,400 China's economy is becoming. 287 00:15:50,680 --> 00:15:52,240 By 1998, 288 00:15:52,320 --> 00:15:55,480 China's economy hits the $1 trillion mark. 289 00:15:56,760 --> 00:15:58,920 But America is still way ahead, 290 00:15:59,000 --> 00:16:01,800 hitting $9 trillion. 291 00:16:09,320 --> 00:16:13,280 Then, in 2008, an economic crisis hits. 292 00:16:13,360 --> 00:16:19,280 And this one is global, the worst economic disaster since 1929. 293 00:16:20,760 --> 00:16:25,360 In the US, more than 2.6 million people lose their jobs, 294 00:16:25,440 --> 00:16:28,320 1.8 million businesses shutter, 295 00:16:28,400 --> 00:16:32,680 and 10 million homes are foreclosed in less than two years. 296 00:16:34,480 --> 00:16:36,880 That December, China is hit too, 297 00:16:37,560 --> 00:16:39,840 as exports to the US dry up. 298 00:16:40,680 --> 00:16:43,360 People just aren't buying like they used to. 299 00:16:45,240 --> 00:16:47,480 [automated voice] Ho, ho, ho-ho-ho-ho! 300 00:16:47,560 --> 00:16:49,440 Merry Christmas! 301 00:16:49,520 --> 00:16:51,800 [man] It's no laughing matter. 302 00:16:51,160 --> 00:16:53,320 Someone canceled Christmas, 303 00:16:53,640 --> 00:16:56,520 as China discovers that all that glisters 304 00:16:56,600 --> 00:16:58,440 is no longer sold. 305 00:16:58,520 --> 00:17:00,520 [crowd clamoring] 306 00:17:01,840 --> 00:17:04,400 [narrator] Many Chinese factories  shut down, 307 00:17:04,480 --> 00:17:08,760 including one mega-factory that produces the symbol of the season. 308 00:17:08,840 --> 00:17:11,600 [man] The world's largest Christmas tree factory 309 00:17:11,680 --> 00:17:12,680 lies derelict. 310 00:17:13,880 --> 00:17:17,880 All around here, you will find dozens of factories like this, 311 00:17:17,960 --> 00:17:21,520 that have collapsed under the weight of empty order books, 312 00:17:21,600 --> 00:17:24,800 an empty and rusting reminder 313 00:17:24,160 --> 00:17:25,960 that, in the global economy, 314 00:17:26,400 --> 00:17:29,600 the global downturn knows no boundaries. 315 00:17:33,360 --> 00:17:35,240 [narrator] But remember, in China, 316 00:17:35,320 --> 00:17:37,160 the state runs everything. 317 00:17:37,440 --> 00:17:41,680 And China's new paramount leader, Hu Jintao, isn't worried. 318 00:17:42,240 --> 00:17:46,000 They'll just use the state's deep pockets to make up for any losses. 319 00:17:46,800 --> 00:17:48,200 [in Chinese] In order to develop  a political system 320 00:17:48,280 --> 00:17:50,960 that is socialist and democratic, we have to continue with the policy 321 00:17:51,400 --> 00:17:53,240 of socialism with Chinese characteristics. 322 00:17:53,560 --> 00:17:56,280 [narrator] With no free press  or political opposition 323 00:17:56,360 --> 00:17:58,280 to second-guess their policies, 324 00:17:58,680 --> 00:18:01,240 the Chinese government swiftly authorizes 325 00:18:01,320 --> 00:18:04,680 a $586 billion bailout. 326 00:18:06,520 --> 00:18:07,640 And Chinese factories 327 00:18:07,720 --> 00:18:10,680 quickly pivot from churning out goods for export 328 00:18:10,760 --> 00:18:13,440 to making goods for domestic consumers. 329 00:18:14,760 --> 00:18:17,680 For China, the crash of 2008 330 00:18:17,760 --> 00:18:19,880 turns out to be less of a knockout 331 00:18:19,960 --> 00:18:21,440 and more of a glancing blow. 332 00:18:22,560 --> 00:18:24,960 Soon, they're ready to rise again. 333 00:18:30,240 --> 00:18:32,560 Using its newfound economic leverage, 334 00:18:33,400 --> 00:18:36,920 China starts quietly investing in far-flung developing nations 335 00:18:37,000 --> 00:18:38,880 in Africa and Asia. 336 00:18:43,520 --> 00:18:45,400 One of the most ambitious policies 337 00:18:45,480 --> 00:18:47,880 is called the Belt and Road Initiative, 338 00:18:49,000 --> 00:18:52,160 a vast series of infrastructure projects around the globe. 339 00:18:57,440 --> 00:18:59,960 These include a 12,000-kilometer railway 340 00:19:00,400 --> 00:19:03,400 stretching from Yiwu in coastal China 341 00:19:03,120 --> 00:19:04,600 all the way to London... 342 00:19:06,960 --> 00:19:08,400 a massive network of highways 343 00:19:08,480 --> 00:19:11,960 connecting Eastern China to Pakistan's deep-water ports... 344 00:19:15,600 --> 00:19:19,120 and a 1,833-kilometer pipeline 345 00:19:19,400 --> 00:19:22,240 that can carry natural gas from Turkmenistan 346 00:19:22,320 --> 00:19:25,400 across Central Asia to the Chinese border. 347 00:19:25,920 --> 00:19:28,320 Around the world, China has invested 348 00:19:28,400 --> 00:19:31,480 more than $1 trillion in infrastructure projects, 349 00:19:31,560 --> 00:19:33,480 across dozens of countries. 350 00:19:39,400 --> 00:19:40,960 [fanfare playing] 351 00:19:41,400 --> 00:19:44,440 This latest strategy  of China's newest leader, Xi Jinping, 352 00:19:45,400 --> 00:19:47,960 really makes the West sit up and take notice. 353 00:19:48,560 --> 00:19:50,480 Is China taking over the world? 354 00:19:51,400 --> 00:19:52,400 [speaking Chinese] 355 00:19:52,480 --> 00:19:54,800 [crowd chants in Chinese] 356 00:19:56,920 --> 00:20:00,400 Supporters of China's international investments 357 00:20:00,120 --> 00:20:02,800 say that these infrastructure projects 358 00:20:02,160 --> 00:20:04,600 will lift millions of people out of poverty 359 00:20:04,680 --> 00:20:07,440 and create jobs in poorer countries. 360 00:20:10,280 --> 00:20:12,360 Critics say it's a land grab, 361 00:20:12,440 --> 00:20:14,800 using checkbooks instead of swords. 362 00:20:15,800 --> 00:20:19,280 Either way, it's increasing China's overall wealth 363 00:20:19,360 --> 00:20:20,920 at an astronomical rate. 364 00:20:24,880 --> 00:20:26,800 By 2018, 365 00:20:26,320 --> 00:20:29,400 China's economy is closing in on America's. 366 00:20:29,680 --> 00:20:31,280 It's not a matter of if, 367 00:20:31,360 --> 00:20:34,120 but when China overtakes the US. 368 00:20:36,800 --> 00:20:38,800 The best guess is by 2025, 369 00:20:39,880 --> 00:20:43,280 making China the world's number one  economic superpower. 370 00:20:48,360 --> 00:20:50,400 Less than 50 years ago, 371 00:20:50,120 --> 00:20:53,720 Nixon saw China as a struggling third-world country. 372 00:20:54,440 --> 00:20:57,240 Today, it's China that the rest of the world 373 00:20:57,320 --> 00:20:58,960 is playing catch-up to. 374 00:21:01,000 --> 00:21:04,600 Most will agree  that their brand of state-sponsored capitalism works 375 00:21:04,680 --> 00:21:06,520 when it comes to making profits, 376 00:21:06,920 --> 00:21:09,960 perhaps even better  than America's messy democratic system. 377 00:21:12,000 --> 00:21:14,400 But history tells us 378 00:21:14,120 --> 00:21:18,160 nations are not built on economic success and power alone. 379 00:21:19,160 --> 00:21:21,640 So how will China survive long-term? 380 00:21:22,960 --> 00:21:24,640 Will people demand more choice, 381 00:21:25,200 --> 00:21:27,160 more say in their own government? 382 00:21:28,120 --> 00:21:29,240 Whatever its future, 383 00:21:29,960 --> 00:21:33,600 it's safe to say no one is ignoring China anymore. 384 00:21:37,840 --> 00:21:39,840 [percussion music playing]