Cadence of Conflict: Asia, March 13, 2017

Forget Japanese waters, headlines worry about North Korea and Hawaii. South Korea has their own two cents to add over the assassination of Kim Jong-un’s half brother at Kuala Lumpur International. China says that North Korea and the US are like two trains headed on a collision course. China has a kind of “plan” to bring the US and North Korea together, but the US won’t make concessions for obeying a UN resolution and there is no mention of China cutting off its supply. It seems China wants to be the “great reconciler”, but the rift is too far between East and West. Japan’s answer is to strike first.

Taiwan may be able to make its own response. This week, the US handed off two Perry-class frigates to Taiwan. Taiwanese naval officers will learn how to operate the frigates from the US Navy and the ships should set sail in May. This is a very interesting development since President-elect Trump received a phone call from President Tsai, and since the US still has yet to deliver on several military sales, especially F-16s, that closed during the terms of former Presidents Obama and Ma.

China’s response to events this week is two-fold. An editorial with a persuasive tone appeared in China’s state-run Global Times, arguing that India would help itself more if it cooperated with Chinese strategies rather than Japanese and US strategies. Xi Jinping also underlined and emphasized China’s great need to catch up on technology. This comes in the wake of the coming American Lockheed Martin F-35 “Lightning II” fighter jet and the US Navy’s new electromagnetically trajected railgun. China’s response is both telling and predicting.

While China has made advances, both in approaching Tomahawk cruise missile technology and in nearing the completion of its first home made aircraft carrier (reverse engineered from a Soviet era carrier), China still feels claustrophobic. Taiwan, Japan, South Korea, and India, not to mention the distant-yet-present US are all naval forces too close to China’s back yard. Xi feels the “squeeze”. China is in a tight spot.

President Xi also revisited his long-standing mission of countering squander and corruption within the Communist Party. By underlining the points he did, he seems to be vying for equity and credit. Doesn’t China’s leader have enough credibility or does Xi know something the West doesn’t? Regardlessly, the greater wild card is India. China believes that India is on the fence and is open to persuasion—and China is correct. Soon, India will feel its own squeeze. The question, then, will be whether India feels inclined to side with China rather than forces farther to its east or if India will decide to reverse engineer Western technology write persuasive editorials of its own.

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Cadence of Conflict: Asia, February 27, 2017

Americans love flags. The over-sized flag, the “Star Spangled Banner”, was a strategic tool of Fort McHenry at the Battle of Baltimore and the US national anthem itself is named after the flag. If the United States ever truly intended to communicate that it believes Beijing seats the rightful government over the island of Taiwan, then Washington DC would have demanded that Taiwan fly the Chinese Communist flag over its own flag, like Hong Kong does. But, it didn’t and they didn’t ask. The test of what Donald Trump thinks about China is not a question of how many times he sees the word “China” on his globe at home, but what flags he accepts flown where.

Is China wise to what’s going on? Perhaps money is making all the difference. China’s PLA Navy is headed for an increased budget. If money was China’s answer, perhaps money tipped-off Beijing in the first place.

According to Obama Treasury rules, China is only 1/3 of a “currency manipulator”, exceeding a $20B trade deficit with the States. The other two rules relate inflation to GDP and official currency purchases to GDP—two things where China plays by a different set of rules than American economics. China “declares” its own currency value, it is not determined by the markets, making what the US refers to as “inflation” irrelevant to China. The second irrelevant Obama rule relates to “official” currency purchases. If only economics were only affected by “official” purchases, many other economic problems would be solved. But, economies are affected by “actual” purchasing, not merely whatever we happen to label as “official” this decade. The Chinese, especially, are experts at looking good “officially” while doing the bulk of their work under the table. Why else would Asians be so focused on cram schools and testing?

Then, there is the task of calculating “GDP” in a heavy back-and-forth trade economy. In 2011, the US slapped tariffs on China-made solar panels, which were made with materials imported from the US, which China also slapped a tariff on. Not only is actual “domestic” product difficult to measure in a “Venn diagram” of overlapping markets, there is also the problem that China’s government behaves like a company itself—benefiting from tariff revenue, thereby triggering another slew of investing and purchasing opportunities. If economics were a pair of glasses, China operates in ultraviolet light that no pair of US lenses can detect.

So, not only were the Obama Treasury “currency manipulator” rules an attempt to measure the light with a wind sensor, Trump gets what Trump wants. If China is destined for the “currency manipulator” list, it will get on that list one way or another, and there is a laundry list of ways that can happen.

But, then, there is North Korea.

While the “experts” lecture the world about how “trade wars” always backfire, China harbors its own trade war with the government in Northern Korea. Kim Jong Un isn’t happy with Beijing and Beijing wants to talk about it with the US.

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Cadence of Conflict: Asia, October 31, 2016

Cadence of Conflict: Asia, October 31, 2016

Chinese President Xi has been hailed with a personality cult akin to support for Chairman Mao, at least in some circles. As if the Xi personality cult wasn’t enough, China also saw a bloodless victory in the Philippines. In an effort to seek their own so-called “independence”, Philippinos’ new choice of a president has thrown-off many ties with the US in exchange for more dependency on China. China still patrols disputed Philippine islands, but fishing boats don’t get harassed any more. It probably makes sense in the Philippines every bit as much as it made sense to France and Italy 80 years ago.

The Pacific resembles pre-WWII Europe with more and more likenesses every week. NPR reported that Philippine President Rodrigo Duterte will stop swearing as much. That headline probably made sense to NPR, given the situation. As for swearing and the Pacific, Hong Kong, with no military, is putting up the greatest fight against China. Lawmakers “swore” during their swearing-in, contrary to some stipulations that no Hong Kong lawmaker can object to Chinese rule.

The Philippino “switch” was always going to happen. Their desire for “independence from other countries” will eventually drive them to fly China’s flag above their own, just how China’s desire for respect provoked Beijing to provoke the West, just how “America and her interests” drove the US to fly its flag at military posts in countries across the globe thereby frustrating Beijing and Milan.

With Taiwanese public continuing strong objection to Chinese patrol expansionism (75:18%), with Hong Kong (under China) wanting out from China, with the Philippines shifting sides, and with Cambodia cozying up to Beijing, we could see more jersey swapping in the coming months. Japan and South Korea are standing against North Korea on nukes—by cooperating with the US. That coalition could very easily extend to Taiwan, as far as N Korea nukes are concerned. The islanders of Taiwan oppose nuclear “anything”, just like post-Fukushima Japan.

Taiwan also has a close cooperation with the US military, the kind of cooperation the Philippines just renounced. The Pentagon has yet to give an elaborate position on the Philippines’ wave-making. In war, if the Philippines violates any alliance agreements, the Pentagon could declare the Philippines as “rogue” and get the excuse they need to use force. Who knows what would happen then.

China’s “no-objection” policy for HK lawmakers has given Great Britain whatever excuse the Crown needs to anchor the Royal Navy in Hong Kong, much like Queen Victoria did against China via Taiwan. When Southeast Asian Islands start spitting at each other, Hong Kong could could get snatched-up in a Pacific-West coalition. Having no military could be the only reason Hong Kong can court sympathy from the West. Guarded by mountains between the New Territories and Shenzen, Hong Kong would be strategic. The West would then see Hong Kong as the “trump card” while China would come back with the Philippines as the “wild joker”.

The Philippines and Hong Kong don’t seem to have figured out that every island is just another pawn. The Pacific Daily Times Symphony Editorials take no sides, except the side of foresight: It was all predictable.

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Cadence of Conflict: Asia, October 17, 2016

Cadence of Conflict: Asia, October 17, 2016

China expanded its network this week. The focal point was the BRICS summit. But, China also expanded its network into Space, sending Shenzhou 11 to the Tiangong 2 Space laboratory.

Meanwhile, back here on Earth, China’s solar, trade, and finance network expanded into roads with India, fighting terrorism with Russia, and world peace with South Africa. Aerospace was also on the table; South Africa has drones, solar batteries, and wind turbines. The activity at BRICS is all so fascinating, it feels like a day at Silicon Valley.

The excitement wasn’t limited to BRICS. China also wiped-out a huge chunk of debt in a State visit to Cambodia. Cambodia borrowed more money. Who wouldn’t?

The week of tech and finance continued elsewhere in the Pacific. Taiwan is manufacturing military parts for the US, not only for the Wolf A1 Carbine, but also PAC-3 Patriot missiles.

But, tech week didn’t go so well for Northern Korea. Their Musudan missile test failed, at least according to the Pentagon. Bummer. Everything else was so exciting.

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Cadence of Conflict: Asia, September 26, 2016

Cadence of Conflict: Asia, September 26, 2016

The iPhone 7 is why Taiwan’s market jumped last week. The US presidential debate is why the Asian market dipped Monday. At least, that’s what the “experts” say.

The US and Philippine militaries will practice, especially since the Philippine president thinks he needs more US troops in his back yard pool. China flew no small number of jets past Japan in their own rehearsals—for something. China is also investigating North Korea’s banking connection to their nukes. South Korea won’t help with relief from the devastating Tumen river flood in North Korea for concern that Kim would take the credit and bolster his power. And, the headline news from Taiwan is typhoon Magi, the approaching storm.

Two things are for sure: There is more than one storm brewing in the Eastern Pacific and money is involved in all of them.

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Cadence of Conflict: Asia, September 12, 2016

Cadence of Conflict: Asia, September 12, 2016

North Korea launched “another” nuke test. The announcement made sure that the North Koreans knew that it didn’t harm the environment. The Philippines released photos proving that China was doing what it had already been found guilty of and yet didn’t care.

Obama and China pointed fingers at each other this week. Reportedly, yet unconfirmed, China had a few more fingers to point than Obama. And, none of this is news, yet it continues to get reported week after week.

Instead, the news has quite a different tone:

A young woman walked a young man like a dog in Fuzhou before he stood up and they entered a shopping center together. China has finished the world’s “tallest” bridge, yet we won’t be able to cross it for several months. Research shows that about 20% of Taipei has been built on unstable ground and the Taipei mayor cares about the report of the ground as much as China cares about the verdict at sea. And, the most interesting news of all is that, while democracy ideologies have not found their way into North Korea, Green Peace’s ideologies have.

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