4/27/2024

China is not stupid but diplomatic

 If the Chinese leaders are stupid, China would have been like the EU, Japan, South Korea and The Philippines, securely under the thumb of the USA. The Chinese would have ended up like the Native American Indians, living in reservations. Didn't the Chinese chase the Anglo-Saxon Imperialist out of China? They did, did they not?

China is just being diplomatic and not resorting to gangsterism and using Mafia tactics of shooting the messenger before he enters the house. China follows International Law and what it does is nothing more than diplomatic behavior. China did not invite Olaf Scholz or Blinky to visit, nor bribe them to, but just following the norm.

China is fighting back against the USA in areas it deems necessary. As a 'peer competitor' there are so many areas that China has to face the USA. Who else fought back against the USA under suppression? Did the Japs fought back when US troops were stationed in Japan or Toshiba was taken to the cleaners? Did the French fought back when the USA was caught spying on Macron and Alstom was skinned alive? Did the Germans fought back when the USA was caught red handed spying on Angela Merkel or was forced by the USA to stop the Nord Stream pipeline project? They are the real fools. Now the Germans are paying the ultimate price for allowing the USA to dictate policies to their disadvantage and benefiting from it. Now Japan is in deep shit too and trying to fight back wanting the USA to cut interest rates. The USA will never do that as its is against their interest to do so. It is too late for Japan to regret.

Aside from military action to confront the USA head on, China is not lying down in other areas. It is still fighting against the Chips Alliance. TikTok is still fighting against the Biden Administration out to destroy it. China is still not pulling back on industrial overcapacity. On the contrary, China is moving to move further ahead in that position of strength. China will still trade with Russia, whatever the USA demanded.

China knows decoupling is accelerating and unavoidable and is taking measures to increase domestic consumption in the face of USA and EU's clampdown on EVs and other clean energy production sector like solar panels. China is trotting out domestic demand stimulation with the Government using monetary incentives to lure locals to buy EVs and discard their ICE vehicles. This is playing hardball with USA and other ICE vehicle manufacturers trying to ban Chinese EVs. Domestic demand stimulation is China's strategy going forward and is centered and calibrated to support China's clean energy manufacturing sector in the face of Western ban on them.

A country that rose from third world to what it is today, lifting more than 800 million out of poverty cannot have been ruled by fools. It is the West that is stupid and continues to make stupid mistakes. 

Anonymous

3 comments:

  1. No other country has ever threatened the USA with the warning - either adopt 'co-operation' or face 'confrontation'. China is not continuing with its diplomatic demeanor or listening ear anymore. China cannot continue in this way, dealing with gangsters and Mafia elements.

    China is telling the USA to stop repeating the same old nonsense each time some USA leaders visit China uninvited. China is sick and tired of the USA using the same old bullying tactic in its playbook of trying to extract a good bargain by posturing its 'position of strength' tactic, by first demonizing China and then visiting, hoping the Chinese leaders are rattled by its rhetoric and posturing.

    The message that is given to Biden via Blinky upon his return to Washinton is loud and clear. Decoupling or derisking is no longer a fear that China is succumbing to. Rather it is an issue that China is well prepared for.

    Yellen had earlier threatened China with financial sanctions on Chinese banks. That tactic already failed with Russian banks and is going to fail even more miserably with Chinese banks. It is going to make the Yuan even more widely adopted and used and accelerate the de-dollarization moves.

    The Russian roble that came under sanction by the US and the West was not as widely used as the Yuan today, and China had put in place Yuan swaps with countries in the Middle East, South America and even among ASEAN countries. These are essential measures that China have undertaken, knowing that financial sanctions are a matter that China cannot avoid. As sure as the sun rising, it is coming.

    China can always foresee issues very well in advance, just as it did so well in cornering raw materials and commodities that it needs decades down the road. China even set up all the processing logistics that others do not foresee as necessary. Hence China's supply chain is so well oiled that the West will not be able to replicate even if they tried to. China's overcapacity will do them in even if they tried to. Hence the fear of overcapacity expressed by Yellen is not without basis, but it remains China's right to continue to do so.

    Weaponization is not the monopoly of the USA alone using the US$. Weaponization can be extended to many areas that have not been thought possible. And that is not lost on Russia and China. And for that, having the capacity to do it is important.

    ReplyDelete
  2. The dynamic duo of China and Russia can weaponise food, minerals and energy and the US and EU will starve or freeze to death. But they are kind and have a conscience so they're not doing it. What good is their main weapon, USD, if there's nothing for them to buy?

    ReplyDelete
  3. As the world moves beyond the usual raw materials like silicon for semiconductors, another raw material that is once again catching the world's attention is 'Bismuth', which is essential for chip manufacturing below the one nanometer threshold.

    And guess what, China produces 80% of the world's bismuth, which is a by-product of processing other minerals like lead, copper and tin among other less common minerals.

    What else does the world need that is now not controlled by China? These are just examples of the ability of China to weaponize such raw materials that the world needs, but not many have taken the trouble to look further down the road.

    Trying desperately to build a toilet when the urge to poo is intense is not the way to do it.

    ReplyDelete