As the Chinese flag lowered with President Hu Jintao's departure from the US on Friday, $45 billion in deals as well as China's image advertisements were left behind. The visually appealing images were perhaps designed to help make a difficult mission easier to complete and ease the fears of Americans still fearful of China.

A diplomatic strategy that intensifies and exploits public fear of the little known worked in years past for the US on many occasions. In the 1980's, the Japanese economy, which competed with and frustrated US manufacturers, was the most recent nemesis.

Despite occasionally demonizing its rival, the US still endured hard times and successfully transformed its economy. The US and Japan established an economic pattern that caters to the needs and interests of both, without a cutthroat and zero-sum competition.

Historical analogue brings us to a similar picture today. This time the difference is that demonization is running full scale. Fierce Sino-US rivalry has transpired but China does not have the power to challenge US supremacy in many fields such as space, military and information technology.

The Japan-US competition has many implications for today's Sino-US rivalry. The market always follows an optimal trajectory toward efficiency in the long run. In the short run, competition may appear to be reducing the advantages of one country.

In the long run, the less efficient aspects transform to survive the market. Japan and the US have experienced this process. It is expected that China and the US will do the same.

Unfortunately, many dogged US media outlets are devoted to disseminating China-phobic fears in anxious anticipation that China's potential in the field of high technology such as new energy, will at last deprive US of some advantages. This fear is reinforced with the arsenal from politicians, who believe that "fear is a stronger force than love" and a belief that xenophobia will invariably bring cohesion and fortitude for the country.

This betrays the doctrine of having efficient markets that the West has given credence for centuries. US hypocrites have been playing a double standard game: blaming the manipulation of the yuan exchange rate while gravitating toward labor protectionism and spreading fears about China's technology threat.

The US has long been the epitome of entrepreneurship, innovation, and a fearless love of adventure. Today it still excels in and dominates many fields.

The US just lacks the willingness to face the serious challenges and opportunities brought by other emerging countries, including China. It should remember that prosperity comes from competition rather than fear.

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