Economic security is mesasured as a combination of the normalized values of the seven socio-economic security indexes to yield a composite measure designated the Economic Security Index (ESI). The ESI is defined as a weighted average of the scores of the seven forms of security, in which double weight is given to income security and to representation security, for reasons that basic income security is essential for real freedom to make choices and that representation security is essential to enable the vulnerable to retain income security. Understanding the complex systems nature of national security and why the economy is a part of the equation is crucial. The world is a very small place, and world peace may depend upon our ability to understand and articulate these issues—and in particular to recognize the importance of the economic element of national power. Each country is uniquely endowed with their own level of economic development, a capacity for risk management, a national culture and its position in the international environment, each will invariably perceive economic security differently. For developing countries, such as China, economic security is best defined as the ability to provide a steady increase in the standard of living for the whole population through national economic development while maintaining economic independence. In other words, there are two sides to the economic security ‘coin’: competitiveness and independent economic sovereignty. Competition generates healthy development while a degree of autonomy guards against undue external influence on the economy. Economic competitiveness is vital not only to stimulate national economic growth, but also to penetrate the international market. In an era of globalization, the two are inextricably linked as no country can close itself off to challenges from the outside.