Allen West Old School Patriot Chinese ship

Don’t Celebrate Over China Quite Yet

In Economics, Foreign Policy, Front Page, World News by Allen West

Yesterday the NYSE had a big rally, and, if you listened to all the market analysts, it was all about not having a trade war with China. Everyone seems relieved — pleased — that China appears to agree to buying up some $200B more commodities, primary agricultural goods, from the United States.

However, we still know little about what’s happening with China’s theft of our intellectual property, their currency manipulation practices, along with their quite incessant cyber attacks against the United States, and our businesses. There are those who also claim that this whole episode has been averted because we need China’s support in leverage against North Korea, as the June 12th summit looms near. I think it a dangerous endeavor to make the Chinese believe that we need them to aid us with Kim Jong Un.

My assessment in the immediate: China knows that we, the United States, do not have the stomach to endure. We are being led about by the nose by market reactions. China knows that they have a vision based upon a dynastic cycle. America, on the other hand, has the visionary concept that perhaps lasts an election cycle. Personally, our vision resembles a McDonald’s fast food drive-through line. Back in the day, during my service in the Army, we would define this difference in a term called, “sticktoitiveness.”

I would recommend we don’t get too happy with China. I also recommend you read about China’s “One Belt, One Road” global economic vision. Oh, did I remind y’all that China is still a Communist country? It’s current President, Xi Jinping, has basically established himself as a dictator for life.

China learned a very important lesson in watching the collapse of the Soviet Union. China witnessed that what caused the collapse of the Soviet Union was not a military defeat, rather it was an economic defeat. China saw that a true Marxist/socialist economic model will not outlast free market/free enterprise capitalism. Therefore, China, a communist country, embraced free market capitalism as a means to their very specific ends: economic domination, and global expansion. It all began with China’s assumption of Hong Kong, along with their entry into the World Trade Organization (WTO). All the while, China has acted with utter and complete belligerence to the rule of law, as they got the world addicted to their cheap goods. Along the way, China also saw the insatiable spending appetite of our government, and bought up our growing debt. Not that China would profit from causing an economic collapse of America, but having that specific leverage is another means to their end.

Along the way, China also saw the insatiable spending appetite of our government, and bought up our growing debt. Click To Tweet

Now, aside from all the economic chicanery of the Chinese, let us not forget their militant, military expansionism. We know that China has intruded into the Senkaku Islands, threatening Japan. China has intruded into the Scarborough Shoal, threatening the Phillipines. China has expanded — illegally — into the South China Sea, built man-made islands, and fortified them with military preparations, including ship-to-surface missiles. Just last week, China launched its first domestically built aircraft carrier for open sea testing, but it has some interesting component parts resembling our Naval capability. China has taken its economic growth, and invested it in building a massive Naval force . . . the means by which a nation extends its power.

Now, of course you can say, “ahh, it doesn’t matter, who cares,” or perhaps you do not believe me. Well, check out this 2 minute news report from Australia as to what just happened in the South China Sea. It appears that China doesn’t believe in freedom of navigation (FON), and that’s a violation of rules-based international order.

But, it’s not just that: China is seeking to build a military naval port facility in Pakistan. I can tell you that China is building port facilities in the Bahamas and Jamaica. China’s contractors have been the ones operating the Panama Canal — you remember who built the Panama Canal, right, and why? That’s another shout out to Jimmy Carter.

As we watch this immense maritime force buildup by the Chinese, recall the last time an Asian nation built up its Naval force. We have been busy in the United States with decimating ours. Remember what I said about the Chinese mentality as opposed to ours, dynastic versus McDonalds?

Are you aware that we have our military forces deployed in the East African country of Djibouti? Well, the Chinese also have their military deployed in the same region. Just recently, the Chinese fired a laser light into the cockpit of an US C-130 cargo plane.

The markets may be happy about an averted trade war, but there is something very sinister happening with China.

Steven Mnuchin, Wilber Ross, and Larry Kudlow are extremely astute men, perhaps they are also great dancers. But, this is my analysis: they aren’t the steely eyed tough guys to sit across the table from the Chinese. No, I don’t trust the leadership of China. They, like Iran, have truly given me, as well as you, no reason to offer that trust. I just pray we get to a point where the folks in the markets are not dictating our foreign, and economic, policy. The markets operate from day-to-day; the Chinese are operating in fifty-year increments.

Let me close by reminding you of this simple commercial advertisement by Citizens Against Government Waste that ran back in 2010. The message should make every single American aware that the Chinese are playing long ball, while we are playing marbles.