The part played by the US cannot be underestimated. At the start of the Cold War, fearing the Superpower growth of the Soviet Union, US took the enigmatic decision of supporting Chiang Kai Shek instead of Mao Tze Tung, pushing Mao towards an alliance with the Soviets. Maybe being new to the taste of being a colonial power, US found Chiang an easier meat than Mao. Whatever that caused the decision, although China and the Soviets were natural enemies sharing common borders, they were forced into an alliance, moving China under Mao from just Marxist ideology into a full-fledged Communist nation. After China and Taiwan, US turned its attention on Korea splitting the country into two as China would not allow an unfriendly power to be located so close to its border in North Korea. Without this strange decision by the US, the history of China and Korea would have to be re-written. Now in this fast evolving economic environment, the US is doing a last ditch attempt to maintain its status quo. Having borrowed so much from the future to support its free-spending economy which had accumulated the large uncontrollable national debt, the US now faces a manmooth task of address its internal problems. Whether we like it or not, its global presence will have to be correspondingly reduced. It must be with this background that we have to look at the future of China.