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In Cadence

Cadence of Conflict: Asia, December 23, 2019

Author SymphonyPosted on

China’s in over its head. They got somewhat of a trade deal, though they never had much to bargain with because their economy is much more dependent on imports than the US economy. So, their trade deal can’t have gone as well as they would have liked, so they were always going to be unhappy, no matter what they got. They won’t be happy, even though they plan a signing photo op come January.

Beijing-rooted leaders in Hong Kong are genuinely confused about the public outcry. In all likelihood, the Chinese truly don’t know how much they afflict and oppress their own people. Because they are out of touch with normal life—because they rely on inhumane means to silence any opposition—they probably believe dissidents are genuine misfits. Beijing remains oblivious to how cruel and rightly despised its rule is. Had Beijing even tried to know what real, ordinary people really, truly think, they might not have been surprised by Hong Kong’s harsh rejection. But, Beijing never cared enough to try to ask in the first place. So, Beijing despises Hong Kong, all the while doing so under the delusion that its spite is well-deserved.

The British have politely demanded that Beijing honor the 1984 Sino-British Joint Declaration and hold talks with Hong Kong protestors. From Beijing’s perspective, this is as unimaginable as a Chinese demigod being willing to hold a dialog with a cockroach. Make no mistake, Beijing does not feel that Britain is making any kind of request; it is purely interpreted as an insult, like demanding one to kiss one’s own rear end. However incapable Beijing is of understanding the polite demand, let alone obeying it, the demand remains legally binding. Britain is building a case for nullification and Beijing believes that every way out is an illusion meant to insult.

Then, there’s Huawei. The trade agreement China holds no cards to oppose with won’t matter. Huawei needs customers and Europe is skittish, to say the least. Huawei needs money because the Chinese government needs money. Central planning squandered loans on enormous, countless, empty buildings. The concept of “scalability” is foreign to the government that always gets what it wants, until it can’t afford to anymore. Even then, the Chinese won’t know why they can’t afford to anymore because they can’t understand “scalability”. Huawei’s losses will weaken China’s position further when it comes time for round 2 of the US-China trade negotiations.

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In Cadence

Cadence of Conflict: Asia, December 16, 2019

Author SymphonyPosted on

China is desperately grasping for straws. While German parliament is planning to ban Huawei against the will of their head of state, Chancellor Merkel, a Chinese ambassador sends a message that “there will be consequences”—when diplomatic channels go to the head of state, not parliament. The Chinese ambassador is like a dog barking up a tree; German parliament doesn’t care what the Chinese ambassador says. But, in China different branches of government don’t matter because that’s just a “silly Western thing”. So, the Chinese don’t know how German government works because the Chinese presume that Germans lie as much as the Chinese do.

Moreover, the Chinese Communists have overlooked one blaring flaw—if Huawei isn’t controlled by China’s government, that would make it the only entity in China not subject to passive-aggressive threats under pain of organ harvesting. Moreover, if Huawei were the independent company China’s government claims it is, China’s government wouldn’t be so defensive of Huawei being banned from Germany.

China has many weaknesses, self-contradicting diplomacy being the least. Its labor force is shrinking. Its economy is much more dependent on exports than America’s. Its tech sector is even more dependent on importing American-made components. Tit-for-tat tariffs don’t favor China in that regard. The Chinese don’t spend as much on their military as America does, regardless of the hype from State-run Chinese news outlets. And, it doesn’t own a very big piece of the pie when it comes to US Treasury bonds—the greatest liquidation threat China could make there is to offer a temporary discount price to willing investors. The cost would be China forfeiting any leverage it had by owning such a small part of America’s debt, while America’s economy might skip two beats at most, then nevermore.

Then, we have the anti-Trump camp. Many economists who haven’t a clue where wealth comes from despise America’s president. Everything needs to pay for itself, otherwise it will die in a suicide cult of bankruptcy. Maybe NATO shouldn’t be in Germany, maybe it should, but the answer—one way or the other—will only surface if NATO requires Germany to pay for its own national defense. Bowing down to China may have made a few American companies rich—regardless of making a few million Americans poor—but it was never going to last long. Even though China took American money and started bullying their neighbors, those who profited from those greedy companies in particular are angry. But, most Americans aren’t fooled anymore.

Trump played his cards well, and he’s still got plenty of chips left to ante up for many rounds to come. That isn’t good news if you’re a member of the Chinese Communist Party, hoping to help the party dominate America.

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In Cadence

Cadence of Conflict: Asia, December 9, 2019

Author SymphonyPosted on

Money doesn’t lie; it’s in the airline figures. Cathay is reducing its capacity, largely from loss of demand for flights in and out of China. Hong Kong Airlines is dropping long hauls to and from Australia, the US, and Canada. Clearly, both Chinese nationals and Pacific English speakers have lost confidence in Hong Kong. Hong Kong was special—for tourism, culture, lifestyle, trade, finance, and a slough of other things—all because both Chinese and the English-speaking West had easy and overlapping access. They could meet, they could do business, they could speak their own language, and they could enjoy Chinese culture without the oppression of a Confucian-Communist government. But, neither wants to play ball anymore.

In response to the US ending exports of riot-control weapons and defining autonomy as “being autonomous”, China banned the US Navy from making port stops in Hong Kong. The port stops had been an encouragement to international business, reassuring investors that everything was alright between the US and China. But, apparently China doesn’t want that illusion of reassurance to continue. And, more importantly, China obviously is less fearful of the US Navy making its R&R port calls in Taiwan instead.

Watch for many things to shift to Taiwan. While the first finance leaders in Hong Kong are exiting to Singapore, watch for a swath to relocate in Taipei once Singapore’s galore wears off and finance centers discover the difference in real estate prices and cost of living.

China will still be angry enough to blow a few gaskets when the US Navy does make more port calls in Taiwan, it’s just that they are less fearful of it for the time being. China’s leaders have been had, largely due to their thirst for respect, which blinds their judgement. But, they are incapable of learning, so they are only going to be had more and more.

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In Cadence

Cadence of Conflict: Asia, December 2, 2019

Author SymphonyPosted on

Opinions on Asia aren’t just flying, but swarming the Pacific. Hong Kongers vote against China in an unmistakable slap to Beijing’s face, then Beijing blames the US—because Beijing still thinks that voters only vote how the government tells them to. And, everything is all America’s fault anyway, right?

It took a day of silence for Beijing’s media machine to figure out how to spin the election. Beijing accused Hong Kong’s dissent on violence. But, that doesn’t hold since last week’s election went uninterrupted. Yet, Beijing sticks to the same script.

A commentator predicts that Hong Kongers don’t want independence—even though they already declared independence on October 4. Perhaps Doris Lam’s article on Channel News Asia was an attempt to tell Hong Kongers what they should want. Or, it could have been an attempt to tell Beijing to think that Hong Kongers don’t want what they want. Either way, it is a delusional olive branch in the form of a typical long-worded think piece. There is a growing trend of commentators who make their articles longer when they know that few readers will accept their opinions.

After Trump signs two laws about Hong Kong—one to define an autonomous region as autonomous, the other to stop exporting police tools for riot-control—Beijing calls it “interference”. Then, Trump drops tariffs on China because good ole Benjamin is hard to argue with. Yet, Beijing wants more. Now, as in Chinese business negotiation, China wants to change the deal after everything has been agreed to. They want even lower tariffs in Phase One.

Great Britain wants UN access to Xinjiang.  China wants the world to believe Xinjiang is happy, an Islamic utopia; new documents prove otherwise. China also faces a food shortage, but a good marketing effort is underway for investment in Chinese farming. Stopping any possible abuse of Uyghurs in Xinjiang is interference in Beijing’s opinion, but accepting foreign money to build better farms isn’t. Perhaps Beijing will call it interference if the rest of the world does not invest in Chinese farms.

Taiwan’s election is fast approaching. Though Tsai Ing-Wen, the pro-democracy incumbent president, leads in the polls, many Taiwanese are scared that there are too many voters in the old, beaten-down generation for her to win a second time. Older Taiwanese, like many Chinese, have been so dominated by East Asia’s shame culture that they truly believe that “bigness” always wins and therefore they must vote for politicians who will surrender to China. Younger Taiwanese have seen this older generation get its way so many times, even polls can’t keep them from being scared. But, as John Maynard Keynes said, “Men will not always die quietly.” Few things drive voters to the polls like fear of dying at the hands of politicians who want to surrender. Tsai Ing-Wen is set to win by an even greater margin than she did in her first term—and everyone has something to say about it.

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In Cadence

Cadence of Conflict: Asia, November 25, 2019

Author SymphonyPosted on

Hong Kong’s election results from yesterday have confirmed the general public’s view: Hong Kongers reject China’s actions. Not that it will make a difference—elected officials don’t hold a majority in Hong Kong’s legislative process. But, pro-Beijing officials were voted-out, replaced with pro-democracy candidates who campaigned on “5-demands”. There had been speculation as to how much Hong Kongers supported the “5-demand” protests; this morning there is no doubt. Taiwan, the US, and the UK generally oppose the manner of Chinese expansion; this morning we know Hong Kong does too.

It was always easy to see why.

When the US Senate unanimously passed its own version of a bill that would annually evaluate whether Hong Kong was autonomous enough for it to be treated autonomously, China went berserk and accused the US of interfering. When Hong Kong’s High Court overturned Hong Kong’s recent ban on masks, Beijing rebuked the court, thereby proving that Beijing believes Hong Kong is not a separate jurisdiction from the rest of China. Apparently, Beijing thinks Hong Kong should have its government utterly determined by Beijing, but should be treated as if the opposite were true. In America we call this “wanting to have your cake and eat it too”; in China it’s called “Communism”.

US Congress has sweeping bipartisan agreement to determine what the US does in its foreign relations. The US decides whether to sell riot gear to another country. China calls this “interference”; in America that’s called “blame-shifting”. Albeit, China has been illegally interfering in Hong Kong, Taiwan, and even working to undermine Australia’s government, according to a Chinese Communist spy who recently defected Down Under. $200M USD to thwart Taiwan’s election—and China thinks the US is meddling by not selling rubber bullets to Hong Kong police. It’s no wonder yesterday’s election turned out as it did.

Several students holed up in Polytechnic University in Hung Hom tried to walk out, but police chased them back in with tear gas—purportedly because they wanted the students to leave. That was a few days before the US Senate passed its bill about Hong Kong’s autonomy being defined by autonomy. While the intentions of the police seem to be contradictory, there is a greater danger Hong Kong’s government is blind to.

While under siege and later trying to escape, the students and countless new protestors who joined the cause because of the police response, have learned new skills. They are gaining practice at launching Molotov cocktails, shooting police officers with old fashion archery, rappelling in free air, organizing supply and movement lines, along with other aspects of urban guerilla resistance that neither Hong Kong’s police nor China’s PLA are trained for. Carrie Lam has turned these now three plus million protestors into one of the most formidable military forces in Asia, if not the most per capita.

A civilian military is necessary for any nation’s independence. Before these protests, Hong Kong never met that unwritten-yet-real requirement. Since Carrie Lam made the decisions that she did, now Hong Kong has a different truth. As relevant and telling as yesterday’s election was, the more important election is coming in March, when Hong Kong’s October 4 Declaration of Independence scheduled its provisional election. With a now-experienced civilian militia, Hong Kong has all the pieces it needs for a successful revolution. That should not be ignored, but it is.

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In Cadence

Cadence of Conflict: Asia, November 18, 2019

Author SymphonyPosted on

America and China are getting fed up with China and America being fed up with each other. Americans tried patience and negotiations; that didn’t work. China hid its agenda for global domination, denouncing so-called “interference” except when China did the interfering. Now, China’s true colors are showing and it looks like a lot of debt. Municipalities and local governments are buried in debt, which is eating at China’s central economy like Asian ants on a morning worm.

Amid riots and threats, encroachments by police on university campuses and by China upon Hong Kong rule, the primary issue in Hong Kong is the upcoming revolution election in March. On October 4, Hong Kongers declared the current government already nullified and that interim government elections would take place in March. That election is not the primary concern for most reports coming out of Hong Kong, if it gets mentioned at all. But, that election should be the primary concern of China, the United States, and the current—and denounced—Hong Kong government. Perhaps those upcoming elections have not been taken seriously, and, if so, that would be perhaps the most serious miscalculation.

But, rather than carefully calculating the right way forward, China is more concerned with optics—not with causing good optics, but with countering bad optics with more mere optics.

The same Plague from the Black Death has re-emerged in China’s Inner Mongolia province. Historically, whether in 541, 1347, or 1894, the Plague always had its origins in the Far East. Rather than promptly confronting the source, the Chinese are basically doing what the San Francisco government did in the early 1900s: covering it up.

Even Chinese soldiers play the optics game. Chinese Communist PLA soldiers are not allowed to leave their garrisons in Hong Kong without a formal request from Hong Kong’s government. But, they did anyway—to clear streets blocked by protestors. They didn’t clash with protestors, they simply picked up stuff in the street, mostly bricks. They weren’t armed nor did they wear fatigues; they wore running shorts and OD-green T-shirts, the same that they exercise in on a daily basis. But, they weren’t invited by the Hong Kong government. As a result, their presence was technically illegal, though seemingly helpful in the minds of some residents who want to drive down the street.

Interestingly, the unarmed, seemingly-harmless soldiers were accompanied by cameras; it was a publicity stunt. Voices in the British Commonwealth are especially concerned because this beautiful, warm, kindhearted photo-op sets a precedent of PLA soldiers breaching Hong Kong illegally. Chinese thinking puts logic before law, which feels like justice at first, but then operates with no standard of conduct, deciding right and wrong from one moment to the next. In other words, Beijing thinks that China’s soldiers must not enter Hong Kong uninvited—unless they want to.

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