The US is now fighting trade wars with not only China but almost all other world economies with significant scale.
It seems that the US is conducting lose-lose trade wars everywhere. The US is increasing tariffs to reduce others’ exports so that others will do the same to reduce US exports. In such trade wars, both sides will suffer. We certainly will be worse off but we shall not be sad because our sadness cannot change the sad world situation. Sadness, however, is bad for our health and makes us miserable.
I myself am able to remain happy as I always find something funny in the bad news and thus be entertained by the news. I hope my readers will also be happy to enjoy the funny sides of bad news.
For example, Reuters’ report yesterday “Xi says China must lead way in reform of global governance”. The title itself is very funny. China leads way in reform? Does Xi mean that China shall be world leader? Is China strong and rich enough to be world leader?
Certainly, China knows it is not strong or rich enough to have the influence to be world leader.
How do you know that? I know that from the word “must”. It means that China, though not strong and rich enough to be world leader, but as the US has given up world leadership and global governance is now in chaos due to the various confrontations initiated by the US, China “must” manage to take the leading role in the world. The word “must” tells us how sad world situation is.
China has to strive to lead the way in reform of global governance due to the sad situation. That was why Xi said that it is necessary for the protection of China’s sovereignty, security and development interests according to Reuters report.
Xi is wise to know China’s sovereignty, security and development interests will be harmed if the world is in chaos due to poor global governance. That is why he puts forth the idea of the community of common destiny. The poor global governance caused by US withdraw from world efforts to stop global warming alone will cause disasters on a global scale.
It is also funny that journalists and analysts in well-know world media fear that China has the ambition to enhance its influence in the world. They are so anxious to maintain US world hegemony.
What’s good in US world hegemony? To have trade wars all over the world?
What’s bad in China’s influence? Win-win cooperation to benefit both China and its partners?
Reuters tries to make readers believe Chinese company paid a lot for equity in Sri Lanka government controlled companies for Sri Lanka to repay its debts owed to China. It simply ignores the fact that Sri Lanka said the funds were received by its treasury.
China paid a lot for the operation of a port company that loses money now. Why? It has the vision that the port will make Sri Lanka prosper in the future so that Sri Lanka will be good market for Chinese goods. China will transfer its industries to Sri Lanka and other countries in Silk Road economic belt to export goods to itself and developed countries including the US as Xi foresee China cannot maintain its trade surplus with the developed countries forever.
To pay for the imports from those countries, China has to develop technology-intensive industries for exports to those countries. That is one of the major aims of China’s Made in China 2025 plan.
You may be upset by lots of reports and analyses that demonize China by distorting China’s investment in Belt and Road projects as efforts to control others by excessive loans. You shall not be upset. Instead, you shall be entertained by their blindness in failing to see the truth. Perhaps, it’s not blindness. They distort the facts knowingly to earn a living.
Comment by Chan Kai Yee on Reuters’ report, full text of which can be viewed at https://www.reuters.com/article/us-china-diplomacy/xi-says-china-must-lead-way-in-reform-of-global-governance-idUSKBN1JJ0GT.
On June 21, I reblogged Washington Free Beacon’s funny article accusing China of aggression in stealing US technology titled “China Industrial Policy Seeks to Steal ‘Crown Jewels’ of U.S. Tech”.
Some readers may find the article offensive and be upset by the article’s demonization of China but I find the article quite entertaining.
US believes that China will surpass the US in technology by 2015
Previously, I believe that it takes a long time for China to surpass the US but the article tells me that the US is in panic as China will surpass it by 2025 when it has successfully completed its plan of Made in China 2015,
China engages in large-scale open-source intelligence collection to gain access to American economic secrets according to the article.
What? Collection of secrets through open-source intelligence? You regard that as stealing of secrets?
Such sleep-talking can only be found in panicky nightmare.
Poor American politicians, you really need a war to stop China’s rise. Otherwise, you will never be able to overcome you panic.
But you cannot fight a real war as there is no chance to win. China challenged you to war first in the East China Sea crisis when CCTV carried rare footages about China’s strategic nuclear submarine for three days in a roll to warn the US that China has second-strike capabilities so that the US cannot retaliate with nuclear weapons if China had sunk a US aircraft carrier with China’s lots of DF-21D anti-ship ballistic missiles.
US refrained to fight saying that it would not fight for a few rocks (meaning the Diaoyu Islands (known as Senkaku in Japan)).
Second, Chinese navy chief warned the US China will fight pointing his fingers at US navy chief when saying that. At that time the US sent two aircraft carrier battle groups to force China to accept Hague arbitration reward but China was not scared. The US did not fight as China’s three airstrips had enabled China to have full control of the South China Sea.
So America’s only choice now is a trade war to stop China’s rise. Their ground for the trade war on China stealing US technology is ridiculous. Can such ridiculous ground deceive American people and make them support the war in spite of the difficulties the war may cause? Who knows?
Comment by Chan Kai Yee on Washington Free Beacon’s article, full text of which was reblogged by him on June 21.
Richard D Fisher Jr, Washington DC – IHS Jane’s Defence Weekly
19 June 2018
Video footage of Chinese President Xi Jinping’s inspection of a modified Type 093 (Shang-class) nuclear-powered attack submarine on 11 June shows what appears to be a canister for the submarine-launched version of China’s YJ-18 anti-ship cruise missile (ASCM).
The images, which were taken by state-owned broadcaster China Central Television (CCTV) at the People’s Liberation Army Navy (PLAN) North Sea Fleet base of Qingdao, show a pale blue missile canister in the weapons compartment of the submarine visited the president.
The canister bears a close resemblance to that referred to as a YJ-18 canister by retired PLAN Rear Admiral Zhao Dengping during a university lecture given in September 2017.
According to Jane’s Weapons: Naval, the YJ-18 has been specifically designed to engage targets of destroyer size and bears a close resemblance to the Russian-made three-stage submarine-launched 3M-54 (SS-N-27A ‘Sizzler’) missile. The canister seen on the CCTV footage also resembles that used by the Russian submarine-launched missile.
In its 2017 report titled ‘Military and Security Developments Involving the People’s Republic of China’, the US Department of Defense (DoD) states that the YJ-18 has a range of 290 n miles (537 km), and “will be fielded on Song-class (Type 039/039G), Yuan-class (Type 039A/B/C), and Shang-class (Type 093/093A/093B) submarines”.
The missile is also being fielded by the PLAN Luyang III (Type 052D) and Renhai (Type 055) classes of destroyer.
Source: Jane’s 360 “Images show possible YJ-18 ASCM in Chinese Shang-class submarine”
Note: This is Jane’s 360’s report I post here for readers’ information. It does not mean that I agree or disagree with the report’ views.
US President is putting pressures on almost all rich countries including all developed European countries, Canada, Japan and South Korea for reduction of US trade deficits with them. China is the first facing a trade war with the US but I pointed out in my post “Lucky! Thucydides Trap Leads to Trade instead of Military War” yesterday, Trump’s trade war aims first of all at stopping China’s rise so as to maintain US world hegemony. It is thus typically a war caused by Thucydides Trap.
The war may spread to other countries as China’s tariff increase on US goods may hurt other countries’ companies that produce goods for export to China from the US.
Reuters says in its report “German carmakers join American farmers on front line of U.S.-China trade war” yesterday, “Daimler on Wednesday cut its 2018 profit forecast while BMW, whose Spartanburg, South Carolina plant is the largest single exporter of vehicles in the United States, said it was looking at “strategic options” because of the threatened trade war.”
Chinese Communist Party (CCP) has three magic weapons, one of which is the United Front. US pressure on the above-mentioned countries provides China with the golden opportunity to form a united front in China’s trade war with the US.
The trick is to reduce the enemy and united with friends as much as possible so that China’s strength will be enhanced to the maximum while that of its enemy will be reduced to the minimum.
Chinese President Xi Jinping knows and can apply the trick well. While threatening the US with retaliation of tariff increase, he promises to carry on China’s reform to open wider to the outside world including reduction of tariffs on imports from countries other than the US.
Reuters says in its report “China’s Xi says has honored word on opening up economy” yesterday, “Chinese President Xi Jinping said on Thursday he had honored his word by taking action on steps to open up the country’s economy”.
If by so doing Xi is able to form a united front with the above-mentioned countries, the trade war will become a world war between the united front of China and those countries and the United State alone.
Comment by Chan Kai Yee on Reuters’ reports, full text of which can be respectively be viewed at https://www.reuters.com/article/us-usa-trade-china-xi/chinas-xi-says-has-honored-word-on-opening-up-economy-idUSKBN1JH1CD and https://www.reuters.com/article/us-usa-trade-china/german-carmakers-join-american-farmers-on-front-line-of-u-s-china-trade-war-idUSKBN1JH072.
Mil.huanqiu.com says in its report today that according to Hu Wenming, CSIC Chariman of the board of Directios, China’s first homegrown aircraft carrier has successfully passed all the tests in its first sea trial, which mainly focused on the reliability and stability of its dynamical system.
According to experts, the ship has been built ahead of schedule and is expected to be delivered to Chinese navy before yearend.
Source: mil.huanqiu.com “Fully completed first sea trial, homegrown aircraft carrier expected to be delivered to navy before yearend” (summary by Chan Kai Yee based on the report in Chinese” (summary by Chan Kai Yee based on the report in Chinese)
China Youth Daily says in its article today that as a forth-generation fighter jet, J-20 has super stealth, supersonic cruise, super maneuverability and super information capabilities in its report “Research and development of J-20 has attained four major goals: Some of its functions surpass F22” today.
From the point of view of the establishment of an air battle system, the development of J-20 has started China’s progress of upgrading the fighter jets of Chinese air force with a new generation, enhanced China’s integrated attack and defense capabilities, enabled China to break enemy’s air defense with its J-20s for other fighter jets to attack enemy’s ground and surface targets and established combined air and ground combat system.
The report says that compared with single-engine light stealth fighter jet such as F35A, China’s heavy double-engine J-20 is obviously superior in air combats as it can carry much heavier ammunition.
Previously I believe J-20 is merely developed for dominance of the air for China’s national defense, but the report says J-20 will play the role to break enemy’s air defense to enable other fighter jets to attack ground and surface targets.
J-20 is equipped with a powerful advanced multi-function active phase array radar with the capability of a medium-sized AEW&C aircraft. In a formation with J-10, J-11, J-16, Su-30 and other upgraded third-generation fighter jets, it may provide long-distance early warning, command and guidance.
For ground air defense, J-20 will help them develop the capabilities to fight stealth fighters.
As it is developed later than F22, the report says it has better aviation electronic, fire control and combat command systems than F22.
Therefore, according to its chief designer Yang Wei, China has achieved four major goals through the development of J-20: building a new generation of warplanes, leading technological development, establishing a creative research and development system and developing an excellent team of scientists and engineers.
Source: China Youth Daily “Research and development of J-20 has attained four major goals: Some of its functions surpass F22” (summary by Chan Kai Yee based on the report in Chinese)
On June 6, I had a post titled “US Deep in Thucydides Trap Makes War Very Likely” on how deep some Americans have fallen into Thucydides Trap. I got the impression from Washington Free Beacon’s article “The China Problem” that accuses China of causing the North Korean problem in spite of the fact that China has made great contributions in bringing North Korea to the negotiation table.
Previously, I misunderstood Trump’s motive as the reduction of US deficit in its trade with China. If so, trump must have been satisfied with China’s offer of $70 billion reduction as he wants $100 billion reduction. There should have been such room of bargaining as it is quite usual in such deals.
Now, White House economic adviser Peter Navarrow’s words have made me understand that reduction of trade deficit is not Trump’s major target. The major target is to disrupt China’s Made in China 2015 plan.
Navarro’s words show that the US is in panic that China will surpass the US with that plan. Washington Free Beacon’s article “White House exposes Chinese economic aggression” on June 19 says:
Trump, Navarro said, is attempting to prevent China from controlling a list of technologies outlined in a Chinese government report called Made in China 2025.
“What are these? Advanced rail and shipping, aerospace, agricultural machinery, artificial intelligence, augmented and virtual reality, biotechnology, blockchain development, business application software, electronics, new-generation I.T., new materials, new energy vehicle, precision farming, robotics, and satellite communications,” he said.
“These are the future of the world and of America, and China cannot have 70 percent of production of these industries by 2025.”
Trump’s tariff increase, in fact, has nothing to do with China’s development of the above-mentioned high technologies but may make US consumer suffer. However, SCMP’ report “China has ‘much more to lose’, says White House economic adviser Peter Navarro” yesterday quoted Navarro as telling reporters, “It’s clear that China does have much more to lose,” noting that China exported more than US$500 billion to the US last year, far more than the US$130 billion it imported from the United States.
That is typically the mentality when one launches a war. He does not care that he himself will suffer as long as his enemy will suffer greater than him!
The trade war is caused by Americans deep in Thucydides Trap. I do feel lucky that the trap does not lead to a military war between the US and China that may involve at least Russia and some of US allies and thus grow into a world war.
Under such circumstances, China cannot avoid the war but has to fight back firmly.
True China will suffer quite seriously but Chinese people have experienced much more serious hardship in the past especially during the 8-year war of resistance against Japan. It was their patriotism that enabled them to grow stronger in spite of the hardship. Such patriotism, I am afraid, may make US products including those produced in China unpopular for a long time to come. The US is taking the risk of losing China’s vast market forever.
If US products produced in China are taken into account, the US sells much more goods in China than China does in the US.
Comment by Chan Kai Yee on Washington Free Beacon’s article and Reuters’ report, full text of which can respectively be viewed at http://freebeacon.com/national-security/china-industrial-policy-seeks-steal-crown-jewels-u-s-tech/?utm_source=Freedom+Mail&utm_campaign=37d55397f0-EMAIL_CAMPAIGN_2018_06_19_10_00_COPY_63&utm_medium=email&utm_term=0_b5e6e0e9ea-37d55397f0-46069085 and