Why China Is A Danger To Us. . .

I wrote an article some time ago in which I pointed out that the obsession with China surpassing us economically was all a bunch of paranoid garbage. . . and it is. But that doesn’t mean that we should not be worried about China. Here’s what should concern you. . .

China: The Military Threat

About ten years ago, China came to an interesting realization. It knew it could not compete with the United States military as a world power. But what if it didn’t have to? After much rethinking, China concluded that it didn’t need to compete with the United States militarily as a world power, it only needed a strong enough military to outclass whatever the United States could bring to the region in the event of conflict. In other words, it didn’t need to prepare to fight the United States around the world, it only needed to be strong enough to intimidate the United States into staying out of whatever regional conflicts it chose to start, e.g. Taiwan.

Putting that plan into motion, China began modernizing its military with EU and Russian weapons. In 2002, when I first started paying attention to this issue, China began buying old Russian Kilo-class submarines. Those subs are equipped with long-range, anti-ship missile systems. The Chinese also bought destroyers, anti-aircraft missiles and fighter-bombers from the Russian at the same time. They also began building large numbers of missiles that could reach other countries within the region, and they began doing war games that involved simulating attacks on Taiwan.

According to experts at the National War College, those submarines would “very significantly enhance the Chinese navy's ability to influence events in the East China Sea. First, by enforcing a blockade against Taiwan, if Beijing adopts that course of action, and also by posing a serious problem for opposing naval forces attempting to operate in the area.”

Now Defense Secretary Robert Gates has acknowledged this threat. Said Gates on Wednesday:

“When considering the military-modernization programs of countries like China, we should be concerned less with their potential ability to challenge the US symmetrically -- fighter to fighter or ship to ship -- and more with their ability to disrupt our freedom of movement and narrow our strategic options. Investments in cyber and anti-satellite warfare, anti-air and anti-ship weaponry, and ballistic missiles could threaten America's primary way to project power and help allies in the Pacific -- in particular our forward air bases and carrier strike groups.”

Short of starting an arms race in the region, combating this threat will be extremely difficult, especially with an administration that pays no attention to world affairs. Perhaps discouraging further arms sales and allowing Taiwan to buy more modern American military hardware would be a good start? Of course, that could cause China to stop buying the bonds Obama needs to sell so that he can keep up his deficit spending.

China: The Foreign Policy Threat

At the same time, China has undertaken a much more aggressive approach to foreign policy throughout the rest of the world. Meet the “Bamboo Republic”:

Do you remember the banana republic? “Banana republic” was the term for countries that were essentially ruled by fruit companies. British or American companies would head to places like South America and set up banana and rubber plantations. They would then use their considerable wealth and power to shape/control the local governments to ensure that their investment was protected. The banana republics came to end as result of various means, most often revolution.

Now they are back, and China is the biggest purveyor. At a time when most governments in the world are content to step back and let NGOs -- non-governmental organizations -- address the problems of the Third World, China has stepped into the vacuum. Using hard currency, they have bought up massive amounts of resources in these countries, everything from oil, to minerals, to huge tracks of land. They also bought up the companies that were doing the extracting and they have created companies to manage the land. In this way, they are securing the oil, the copper, the iron ore, and the wheat that they need.

The question that remains unanswered is how this will affect the governments in those countries. Will this predispose them toward a favorable view of China? Will they feel held hostage to China’s demands? Will they become Bamboo Republics? And is this good for these countries, or have they simply traded white colonial masters for Chinese colonial masters? Moreover, how will this affect countries like the United States, as, for example, copper mine after copper mine comes under the influence of the Chinese government?

Like it or not, resources are limited and it’s time to consider the wisdom of letting a government like China monopolize the things upon which modern economies depend.

China And The Coming Oil Shortage Threat

Similar to the Bamboo Republic threat comes a threat of massive disruption to our oil supply. Everyone knows that oil is a commodity, and, thus, it doesn’t matter where you get it, right? Well, no.

In fact, there are different types of oil. Indeed, one of the reasons that Iran is seeking nuclear power even though it is “sitting” on a ton of oil, is that its oil is “sour crude”, meaning it contains a great many impurities -- particularly sulfur. Those impurities need to be removed before the oil can be processed. This makes the oil expensive to use and not well suited to being turned into gasoline (it tends to be used for heating oil or diesel).

A second, more important fact is that oil is not dumped into a market where it can be picked up by anyone like bread from a bin at a grocery store. Oil comes from certain countries and is often designated for specific countries. Indeed, the United States gets most of its oil from Canada, Mexico and Saudi Arabia. But coming in a strong fourth, and providing around 1/6th of the oil supplied to the United States, is Venezuela.

And this rubs Hugo Chavez wrong. Thus, he has stated several times that if he could find other buyers, he would stop selling oil to the United States entirely -- thereby cutting off 1/6 of the oil supply to the United States. The reason he hasn’t been able to find too many buyers is that Venezuela also sits on sour crude, which not everyone can refine. Last week, China signed a deal with Venezuela to start developing oil fields in Venezuela.

This remains speculation at this point, but it will not likely take long after China develops the infrastructure needed to process and transport oil from Venezuela to China, before Chavez starts selling all of his oil to China instead of the United States. Where will the United States suddenly find enough oil to replace 1/6 of its requirement?

Conclusion

The Chinese are not fools, nor are they content with being second class. They have made it clear that they view the world now as bi-polar, with the United States on one end and China on the other, and everyone else nothing more than pawns. We need to make sure that we are not dependent on China in any way, and that China does not find a way to hold us over a barrel. We also need to think about balancing China’s power within its own region by fully supporting our friends, before they stop being our friends and instead fall under the influence of a new Chinese Empire.