(1) The “ugly Chinaman” phenomenon predicted (correctly, I think) by VDH as being a future talking point in the world “beyond the wall” has been a talking point among educated Chinese for 30 years or so. There is in fact a founding text here, Bo Yang’s “Chou-lou-de Zhong-guo-ren” (The Ugly Chinaman).
(2) China is quite desperately resource-poor. This has good consequences in the long term. The govt. of a resource-poor nation can only finance its operations by farming the populace for taxes, which sooner or later involves getting their consent. The nearest thing to a dictator that Britain ever had was Henry VIII, but he had to crawl on hands & knees to Parliament to beg for funds. (Cf. a resource-rich place like Saudi Arabia, whose rulers really have no need for their populace at all — probably regard them as a nuisance. Or Iraq…) The downside, of course, is the temptation to foreign land-grabbing adventures — stealing other people’s resources.
(3) Whether or not “diversity” in your population is really a good thing is still an open question. In recent decades, both nations with lotsa “diversity” (e.g. the USA) have prospered, and so have nations with practically none (e.g. Japan.) India has plenty of diversity; China very little. So an India/China rivalry could be a test case for the thesis that “diversity” is good/bad/irrelevant under 21st-century conditions.






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