Any American crony country is not to be trusted

The narrative about China immediately buying less Russian oil is nothing more than throwing spanners into the works in the hope that it will sour relations and split the alliance of the two countries. It is not going to work. We have seen attempts made in the past, hyping up differences between Moscow and Beijing as a sign of trouble between the two countries. No two countries can have no differences on issues and that goes for Russia and China as well.

China and Russia are going ahead with the gas pipeline, the Power of Siberia 2. It is a win-win project for China and Russia. But the risk of the project going through Mongolia is not to be underestimated. Mongolia is playing musical chairs with China, Russia and USA, just like India. Russia and particularly China, must look at the risk involved in investing in projects in or passing through Mongolia and not get its fingers burnt, knowing that the USA is also having its influence over Mongolia over such moves.

Any country with good relations with USA is not to be trusted at face value and needs to be evaluated using very close scrutiny. Just look at the Netherlands. What it has done to China in the lithography machine sector under USA's prodding needs no further repeating.

And yet, the Netherlands had the audacity to seize Nexperia, a company owned and saved from collapse earlier by Wing tech of China and nursed back into profitability. It was a classic case of Dutch piracy, seizing the property of another country using fabricated evidence harping on security issues that have yet to emerge. Now, the irony is that what the Dutch Government thought it seized a gem turns out basically to be just a shell, a nameplate and some call it a mailbox, while China still holds the property ownership. The real asset value of Nexperia is still inside China, the factory making all the chips, which has now been stopped from being exported to Europe. European car manufacturers are facing an existential dilemma, and the situation is unraveling.

Volkswagen of Germany is trying to put on a brave front by claiming that it relies on supply chains inside Germany, forgetting that even its tier one supply chain providers have to rely on those chips to make products for their cars These supply chain vendors across the whole of Europe are the ones going to suffer the secondary collateral damage, not just in Germany alone, started off innocently and illegally by the seizure of a foreign owned company in the Netherlands.

The bigger damage that this has been done to Europe comes from the perception that if a Chinese company can just be seized using untenable and fallacious arguments, who else is next. Investors will be asking that question before putting their money into projects in Europe. A small misstep by the Dutch Government that is to be of gigantic economic consequences for Europe.

And the irony is that it is going to benefit China and countries across Asia, South-East Asia, Africa and South America, emphasizing to investors that their bets will be safer in the long run if they just avoid going to Europe.


Anonymous