After China’s astonishing advances in the past three decades, its economy is now the second largest in the world and could overtake that of the United States within 15 years. Contrary to popular belief, China’s new leaders are characterised by mental agility and a willingness to experiment and innovate. They see globalisation not as a threat but as an opportunity. The US and the West have two choices in dealing with the Chinese challenge: competition or collaboration. A collaborative approach, particularly in the military and information.