Honeywell Chairman and CEO, Dave Cote, recently participated in an interview at the Council on Foreign Relations with Rana Foroohar, Assistant Managing Editor, Economics and Business, Time Magazine; Global Economic Analyst, CNN. The discussion focused on the impact of emerging economies on the global economy, the political and economic environments of both China and India, the Trans-Pacific Partnership (TPP), monetary policies, and infrastructure. The session also featured a question and answer session from the audience, which was comprised of Council members, senior executives, and local media.
When discussing how China will be the 21st century economic story, Cote stated, “In the 21st century, we have a tendency to look at China sometimes like the Japan phenomenon and say, ‘OK, Japan grew. Here’s how it did it. And, this is what’s going to happen in China.’ I’m not sure that’s the right parallel. I believe that when we get to the end of the 21st century, we could very well be saying that China was to the U.S. in the 21st century as the U.S. was to the U.K. in the 19th century. That could very well be the parallel. China’s economy is the number two economy in the world now and thirty years ago they were the number 20 economy. I don’t think they’re going to keep growing at 8 percent, but there’s a very good chance they will continue growing at 5 or 6 percent while the U.S. grows at 2 ½ percent. If you start to match up those curves or just run those curves out, you’ll find that in 20 or 30 years, China will be the biggest economy in the world and still have a lower GDP per capita, meaning a lot more potential growth to come. I think that could be the 21st century story that gets written at some point. And, I just don’t think we’re paying that much attention to it as Americans.”
This meeting was part of the Bernard L. Schwartz Lecture on Business and Foreign Policy and CEO Speaker series. The series focuses on two areas: the evolution of the relationship between business and government in the making of foreign policy, and ways for government to make better use of business in solving foreign policy problems and for business to become more engaged in the making of foreign policy. The Council on Foreign Relations (CFR) is an independent, nonpartisan membership organization, think tank, and publisher.