Middle Kingdom

Why China is not bothered at the world screaming in its ears?

(This is a reprint from NewsBred).

There is a reason why China doesn’t give a damn to retaliatory measures by the United States, Europe, India or anyone else for that matter.

Individuals or nations don’t turn their back on overflowing coffers and even if they make noise, there is little by way of action on the ground—or ocean if you have South China Sea in mind.

The world today is a buyers’ market and China is stuffing yuan in mouths which open up with the honest intention of registering their protests against the Beijing.

The latest trade figures of China in June are breathtaking. When the world is said to be angry at Coronavirus pandemic and neighbours are traumatized by the Middle Kingdom’s bullying, China’s exports have picked up. The biggest shock though is that its imports have risen by 2.7 per cent too, implying that more money is reaching the pockets of distressed economies of the world.

This is not Cold War II—as analysts are fond of saying these days.  Soviet Union was an empire cut off by the liberal or western world. China, in contrast, doesn’t have an empire. It just has found a way to every central bank and command structure of the nations.

This is more than geopolitics. This is geo-economics.

We all had thought that it’s payback time for a boorish China, induced by the pandemic. Well, it imported $167.15 billion worth of goods in June 2020 and made a nonsense of the Bloomberg prediction of a 10 per cent slump. China meanwhile exported $213.6 billion which is a hike of 0.5 per cent.

If China could import as much as it exports—presently some $46.2 billion adrift—it could scoff at punitive actions by the rest of the world as not just economies but the global industrial chain and trade won’t move without its consent.

China’s imports have taken off since their domestic market today is worth 41.2 trillion yuan. It has grown at a breakneck speed in last six years, contributing 57.8 percent to GDP growth during this spell.

Interestingly, its trade surplus hasn’t dropped by much against the United States. In June, it was $29.41 billion compared to $29.91 a year ago at the same stage.

China’s imports of copper concentrate from the United States is its highest in nearly two years. It’s purchase of iron ore has jumped to 35.3 per cent since October 2017. The arrival of soybeans has climbed by 71 per cent. It has imported record meat, including offal, which is nearly 74 per cent up to the same period a year ago.

And this is cutting across all ideologies, without distinction between friends and rivals. For instance, China is about to open its money reserves for beleaguered Iran. Yet, the arch rivals of the Islamic Republic—Saudi Arabia—is the biggest exporter of oil to Beijing. China’s crude oil imports from the Saudi kingdom has risen by 15% in June. This record import is in the shadow of price war between Saudi Arabia and Russia, the world’s top oil exporters. This is when Moscow, as we know, is said to be the blood-brother of Beijing these days. On top of it, China has also boosted its inflows from Brazil, Norway and Angola.

India of course is a very minor trading partner for China since it imports a mere 3% of China’s overall exports. New Delhi could hurt mega business houses of China, especially the digital kind, but it’s not to say it is bringing beads of sweat on Beijing’s forehead.

India could feel that it has favourable neighbouring relations with the governments in Afghanistan and Bangladesh but China, against it, has brought Sri Lanka, Pakistan and Nepal in its fold. It’s planning to invest $50 billion in Bangladesh over the next couple of years.

China, further, has deployed its military infrastructure around Indian Ocean. It already has eight naval ships in these waters. It has sold 10 submarines to India’s neighbours—8 to Pakistan and 2 to Bangladesh. It has a naval base in Djibouti and a military surveillance capability on Myanmar’s Coco island. It’s offering land exchange to Myanmar.

So even though one keeps hearing the angst of world against China, in effect little is changing on the ground. It would take more than mere rhetoric to keep China honest. So far there is little to suggest that the world is walking the talk.

 

A muscular India gives its army a “free hand” to knock sense in China

(This is a reprint from NewsBred).

It would be a grave misjudgement to believe that China has walked over India in a physical showdown in Galwan Valley in eastern Ladakh on Monday.

If nothing, ask the Chinese who made moves in lockstep over the last few weeks to test India’s nerves and found a nation mature in diplomacy and dare in equal measure.

India has used velvet gloves against a petulant Nepal which thumbed its nose on borders but didn’t elicit a raging anger from New Delhi that would’ve played into the hands of its puppeteer, China. India knows, as does Nepal, that the latter can’t survive without India’s open borders. Simply, the land-locked nation would run out of essential supplies. A manufactured border dispute has no future but for headlines and talk shows.

China meanwhile had crossed the Line of Actual Control (LAC) at four different points in Ladakh, agreed for de-escalation but then stayed put when the two armies were to pull themselves back by a few kilometres. India would have none of an enemy’s forward-post left standing inside the Galwan Valley which belongs to India. It didn’t backdown from a physical combat either since arms and ammunitions are avoided by the two neighbours in sensitive stretches of border running into thousands of kilometres.

Now has come the news that Indian Army has been empowered to act as per the ground situation without looking for directions from New Delhi. In other words, the Indian Army has been freed from political constraints. It’s an unambiguous message to Beijing that they are now in the wilds. That your superior nuclear stockpiles, defence spending or armaments wouldn’t be of much aid if it’s bare knuckle fight. So, if it’s to fists, stones and clubs now, may the best man win. There is no referee.

Indian Express has quoted an army source thus: “Army has been given emergency powers for deployment there as per needs and new situations without looking towards Delhi…We have to demonstrate our strength on the ground…there is no need to show aggression, only our strength.”

This would put China in a spot. Either they shove the conventions and turn it into an armed combat. Or they pull themselves back as they did in Doklam in 2017. Or they escalate which wouldn’t go unnoticed to a concerned world. It’s a massive show of intent from Modi’s India which is largely consistent in its zero-tolerance approach on nation’s sovereignty and integrity.

It’s not like South China Sea where the Middle Kingdom has usurped islands, sea tolls, reefs and banks overriding neighbours protests. China could not only carry through the bluff but were assured of its efficacy by the mumbled response of the affected. India seems determined to call out the bully. It’s not the semi-autonomous Hong Kong, a cowering Taiwan or a Vietnamese fishing boat you could sink to the floor of the South China Sea.

China clearly is upset at India’s assertions in recent months. India has signed a pact with Australia in the middle of the pandemic which would give teeth to QUAD (Quadrilateral Security Dialogue) between four democracies of Indo-Pacific: the United States, Japan, Australia and India itself. It has openly given a call to multinationals to shift their operations to India, a blow to China where it hurts the most. It has decided to screen the foreign investments beyond the FDI regulations. It now heads World Health Organization (WHO) which is to take call if China was complicit in hiding the truth on Corona Virus pandemic. It hasn’t helped the matter that Taiwan, which Beijing is paranoid about, could have “observer” status at WHO on pandemic deliberations. Then we have an expanded G-7 group of nations where India is to be included but no invitation has gone out to China

India has an uncontested control of Galwan Valley, between Ladakh and Chinese-occupied Aksai Chin, since 1962. It suffers from poor infrastructure in a hilly terrain unlike China which makes use of the flat Tibetan plateau to carry its road and highway network unhindered. India in contrast has to cross several mountains to access the LAC. It’s only natural that India wants to secure its borders. China would either have to give up the encroachments or face consequences, no less economic. There is a groundswell of consensus to boycott Chinese goods. The little matter of Huawei 5G also hangs in the balance.

There is little doubt China faces uncommon heat across continents. Pushback against its over-arching reach has already begun in Africa and Southeast Asia. Unemployment is unprecedented. Economic woes are spiralling. The world is a hostile theatre after China’s machinations on pandemic which has set the world back by a generation in economic terms. Its present misadventure in Ladakh is an undisguised diversionary tactics.

There is little doubt Indo-China relations would freeze in near future. It would bring Pakistan in closer ambit of China. India, on its part, would have the United States in its drawing room. Distrust between the two main powers of Asia would now run deep. Russia is a common friend which could find its loyalty divided.

US riots: Modi should watch out for a repeat post Covid-19

(This is a reprint from NewsBred).

The riots in United States have spread across the nation. From Minneapolis to Dallas, Los Angeles to Atlanta, New York to Portland, 40 cities are under curfew. National Guard have been called out in Washington DC and 15 other states. Today is just one week since Floyd George was murdered.

Innocents are confused at the clockwork precision of multiple riots. All four concerned police officers were fired the next day. The offending police officer with his knee on George’s throat has been charged with third-degree murder and second-degree manslaughter. The Federal Bureau of Investigation (FBI) is holding its own investigations. Yet the violence has bubbled over.

The United States suffers from racial discrimination. That’s a truth. Blacks might be up to 40% of the entire population but they carry little weight. That’s a truth. Most jailed in the US prisons are blacks. That’s a truth. But could we call it spontaneous riots when pallets of bricks, of same size and standard, shape and colour, are spotted across the rioting cities?

Donald Trump’s government has gone public in naming the alleged conspirator. Trump has blamed the riots on “Antifa and the Radical Left”. Attorney General William Barr, in a statement, has claimed that the “violence (is) instigated and carried out by Antifa and other similar groups.” National Security Adviser Robert O’ Brien has told CNN that the violence “is being driven by Antifa.” Anti-Fascists in short is Antifa.

The principal funding of Antifa, and Black Lives Matter groups, is by George Soros and his Open Society Foundations in which he has stuffed $38 billion for operations in 120 countries. He has been funding terror activities and disruption of government around the world for decades. He pledged one billion dollars last year against “resurgent nationalism” and openly named India’s Narendra Modi as the man on his radar. This was in the wake of the Citizenship Amendment Act (CAA).

Everything you want to know about George Soros you could find in this article of mine I penned early this year. His alleged role in overthrowing elected governments; the prime ministers and presidents who have openly accused him of coup d’etats; and his control on media as revealed in Wikileaks, among others. This man, in essence, is part of global cabal which through bankers control the world governments and sees existential threat in “nationalism” which runs counter to their “profits and profits only” agenda of free trade. They fear the likes of Modi and Trump, like darkness would to light.

Invariably they succeed. They succeeded in Libya and Iraq; Ukraine and Egypt; those Arab Spring revolutions; countless Latin American and African countries; and nearly succeeded in Syria. The “pro-democracy” movement in Hong Kong is one such manifestation. The “anti-CAA protests” in India, before it was halted by Covid-19, is another.

The standard method is to bring people on streets, make police duck, splash it in media they control and bring the elected government on its knees. This is what’s being attempted against Trump now. This is what surely would be resumed on Modi after Covid-19. They work on a country’s faultlines  which exist in every country of this world. In US, its’ Whites vs Blacks. In India, it’s Hindus vs Muslims. Before long the country is torn asunder.

Trump has moved swiftly. He has announced his intention to declare Antifa as a domestic terrorist organization. Barr has announced a similar resolve. Once done, Antifa and Open Society Foundations would be prosecuted and the assets of their backers seized. The international banking system could be cut off to Soros and his octopus of affiliated groups.

More importantly, the alleged tie-ups between Antifa and the Democrat party could be laid bare in public. It’s apt to remember that Minneapolis is run by the Democrats. And that Democrat-candidate Joe Biden and his campaign staff have made donations to the Minnesota Freedom Fund. The group donates to pay bail fees for those who are arrested in Minneapolis, a city of Minnesota. President Trump’s campaign finds it “disturbing” that Biden’s team “would financially support the mayhem.” He has called upon Biden to condemn the riots. Biden incidentally is for free-trade or is pro-China compared to hawkish Trump who openly berates the Middle Kingdom

The US presidential elections are slated for November 3. Minnesota is critical. In the 2016 elections, Hillary Clinton had won narrowly by a 1.5 per cent margin. Trump had struggled to attract African-American voters. Only 8% of this group had voted for him in 2016.

Knowing how Trump is raising trade barriers against China; and how it could win him another presidential term this year; and how Modi could follow his best friend in raising the stakes against China; which is important for these pirates of “open trade” there is little wonder that US cities are burning.

Or that similar would be the fate in India after Corona Virus.