Cadence of Conflict: Asia, December 16, 2019

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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Cadence of Conflict: Asia, April 16, 2018

The war with China is becoming the war with Russia and China, it’s economic, it’s culminating, and Britain is double-involved.

Since the strike on Syria, Russia is angry and thumping the drums. They promised retaliation before. After, they really promised really retaliation next time. It almost seems that Trump is testing Russian and Chinese leadership—and North Korea and Republican and Democrat—and has called their bluff. That’s coming at the US via Europe. But, Germany is also taking rhetorical shots at China, bringing Europe back into the Pacific conflict.

Britain is in contemplating trade talks with Taiwan. The UK is already involved in the Pacific conflict with Hong Kong’s exit status—that China will have no involvement in Hong Kong matters for fifty years as a condition of Hong Kong not being British. With Britain “friending” up to Taiwan, we see more involvement from the Crown.

But, the main fuel in the Pacific conflict is economics. US sanctions are successfully driving Kim to the table; China is eager to work with Japan before a Kim-Trump talk disarms the North. So, the US sanctions are also driving China and Japan to do at least something.

Then, there’s China’s own economics. Germany is angry about Chinese investments in Europe. More news stories this week talk of Chinese using money as a hostile takeover tool in Sri Lanka and Pakistan. China’s ability to stand against a US trade war goes back to US Treasury bonds and the direct devaluing of China’s own currency. While different “experts” have differing opinions, money is the talk—everywhere.

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Cadence of Conflict: Asia, January 15, 2018

Jeffery Lewis at the Daily Beast has finally found a solution to the problem with North Korea: Kim Jong Un’s port-a-potty. By bombing the dynastic successor’s port-a-potty, the US would demonstrate both precision and presence. This would be the proverbial “arrow” from Robin Hood, conveniently shooting its way into the Sheriff’s chamber.

Though the “papers” have not been “supplied” to top “brass” at press time, the premise has merit: showing that the US means business by “denying entry” for Kim to do his. While the “move” would surely cause an “emergency”, their could be new security concerns about “individual privacy”. The strategic proposal does not clarify whether or not to strike the “facility” while it is “occupied” by Kim “forces”.

As for other port-a-potties in the region, China and Taiwan are deep in their own “potty” match. China is unilaterally opening new flight routs, reportedly in violation of agreements under the International Civil Aviation Organization. New flight routs are “required” to be coordinated first, but these were not. China simply “activated” them. The routs are very close to Taiwan airspace and Taiwan has made quite the buzz about it.

The US further complicated matters with a unanimously-passed bill from the House: the Taiwan Travel Act, which allows for high-level diplomatic visits between the US and Taiwan “under respectful conditions”. The bill serves to support a shared “commitment to democracy”. The House also passed HR 3320, which directs the Secretary of State to strategize for Taiwan to regain “observer status” at the World Health Assembly, which Taiwan failed to obtain in years past.

China made its own moves, particularly with doubts on the continued purchase of US Treasury bonds. That sent tremors through the markets in multiple directions.

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