Why China Doesn’t Care About Bad Economy Leads To Color Revolution!

Some China watchers suggest that when China’s economy is going south to the sour, Chinese government would flame the nationalism to shift the blame outward.  Personally, I think it’s wrong to think like that!  I think China is a one-party system government with a lot of policies that are in place to prevent color revolution or any sort of revolution from happening, and so China doesn’t need to point outward to shift the blame of bad economy at home.

Furthermore, China had been there when the former revolutionary leader Mao Zedong, founder of today’s China and the Chinese Communist Party, prescribed the wrong policy “Great Leap Forward” in which famine raped the country to the point of almost no return.  Yet Chinese didn’t demand the Communist party to step down.  Of course, there was the Tiananmen Square revolution, but that didn’t really destroy the Communist Party even though at the time China was still super poor.

Today, China is prosperous and strong, and so I doubt there would be a revolution even if the Chinese economy takes a huge hit to the chin.  I think the Chinese government knows this, and so they probably would not take any action to flame the nationalism unnecessarily as such a flame would be easy to stoke but very hard to put down.

Nonetheless, I think the Chinese government may want to economically restrain potential rivals and enemies from conducting businesses inside China, thus the bad foreigner’s case could come up from time to time to create difficulties for the non-Chinese companies.  I think that is as much as the Chinese government may want to stoke the flame of nationalism.

So, when the outsiders think of utilizing strategies that depend on the outlook of how China would behave nationalistic when the economy goes south could produce little to no effect.  Perhaps, this may irritate the Chinese government enough in which the Chinese government may put up countermeasures that may have undesirable effects in diplomatic and economic relations.  For an example, China may want to make it a lot harder for non-governmental organizations that support or belong to a foreign entity from operating within China.

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Inescapable World – Ticking Time Bomb Of Uncertanties

In chess, there are circumstances that you could force your enemy into a position of no escape, and of course, if the enemy seizes the opportunity first then you would be the one who could not escape the trap.  It could be your king which is the most important piece on the board to be forced into a position of retreating into a trap and cannot escape.  I think it’s the same for bigger picture as in a national circumstance.

When a country got too many friends to please, too many problems to be solved, too many places to keep the peace, then it’s a lot harder for such a country to be able to be nimble and flexible.  Without nimbleness and flexibility, stiffness could creep in and force a country into many weird positions that are unfavorable.  Too many unfavorable positions could push such a country into a subtle death trap which eventually envelopes into the inescapable trap!

Then again we could also argue that when a nation is a hermit, it’s easier for others to gang up on such a nation.  In today world, when there are so many powers that aspire to be more than what they’re yesterday, I think it’s a ticking timebomb of uncertainties.  Like if you do you’re damned and if you don’t you’re damned still.

For an example, let’s say a fictitious country named Carol is making a lot of friends, and she knows that she hates Bob, the hermit, a lot.  Bob though, he would love to inflict real damage on Carol, but he doesn’t have any friend to help him out in doing such a thing against Carol.  Friends of Carol got a friend who is the only reluctant, casual friend of Bob, and they know this friend, for some strange reasons, doesn’t want Carol and Bob to have any confrontation.  Let’s say Bob tried to tickle Carol in the most grotesque way, and Carol went on a rampage against Bob.  Friends of Carol suddenly didn’t want to have anything to do with the whole madness, because Bob got a friend that prevented others from involving with Carol and Bob.  But then this Bob’s mysterious friend suddenly teamed up with Bob to take Carol down.  Now, Carol’s friends got a problem, because they don’t know if they should side with Carol or Bob’s mysterious friend!

Let’s say Carol and Bob both thought that they would be able to outsmart the other, but perhaps one of them didn’t know that a string of scenarios that came before and after their ugly feud could turn one of them into a mouse that got trapped in a rat trap.  The inescapable trap is definitely easier to imagine for today’s geopolitical matter I think!  Why?  Too many countries got their own ambitions to worry about, and so they are making friends and enemies left and right all the time.  Just take a look at Syria and various parts of the Middle East and we could see that sometimes we couldn’t know who is a friend and who is an enemy anymore — of course, it’s also depending on which side you’re on too!

Sometimes though, I think sitting pretty and only making move when it’s prudent and safe would keep a nation safe for a long time to come in a world like ours today!  Why?  The one who sits out the longest would be the victorious one in the end!  I think it’s smart to save up energy and resources — while making gains in both energy and resources when you’re in a favorable position — for the right time!  Of course, if you’re being forced into an unfavorable position, then sitting out may not be possible in the end.  That would be unfortunate for sure.

The United Nations’ Votes Against Jerusalem As Isreal’s Capital Got Nothing To Do With Palestine, It’s All About China!

I’m not trying to be controversial, but it’s my opinion that the United Nations’ Trump condemnation votes in regarding Jerusalem as the capital of Isreal had a deeper intention on a grand geopolitical scale.  What do I mean by this?  I think the countries that voted against the United States in recognizing Jerusalem as the capital for Isreal don’t really care much about the Palestinian claim for the Jerusalem, but these countries fear that if Trump is successful in claiming Jerusalem for Isreal could allow Trump to go on for an even bolder declaration.

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What declaration?  What if Trump gets so much confidence to eventually declare Taiwan as an independent country?  I think this is why the United Nations decided to vote no against Trump because they didn’t want to see Trump crosses China’s Taiwan redline.  Afterall, I don’t think China would leave Taiwan alone without doing something serious if Taiwan gets embolden enough to declare itself as an independent country.  If this to happen, the whole Asia region could get roil up in events that could lead to a much grander geopolitical fallout.

What a grander geopolitical fallout in Asia?  Well, imagine if China decides to invade Taiwan when Taiwan declares a separation from the motherland, the United States has to defend Taiwan.  Although the United States may not aid Taiwan through military immediately, the United States will eventually have to.  As the escalation gets only even more escalated, the genie would be out of the bottle and nobody at such a time would know how to bottle up the genie again.

It’s cliche to say that if China invades Taiwan we will have WWIII.  I think it’s a possibility this could be the case.  Though there are other options available such as the talk will begin to have Taiwan assimilates into China similarly to how Hong Kong and Macau have been.  Nonetheless, you can never rule out president Trump’s unpredictability.  Thus, the United Nations does not want to predict what president Trump will do.  Instead of predicting president Trump’s future movements, my guess is that the United Nations decided to vote against Trump on Jerusalem decision to prevent president Trump from getting too embolden in the near future.

 

Is China Preparing To Go To War Against The United States?

If the United States sanctions North Korea and China won’t go along, I think it’s normal.  If the United States sanctions North Korea and China pretends to go along, I also think it’s normal.  If the United States sanctions North Korea and China is going along with the plan, I don’t think it’s normal!  In fact, I think something big is about to happen.  

We all know China doesn’t want North Korea to be united with South Korea in fear of a South Korea’s victory, allowing the United States to be ever closer to China’s border.  Plus, North Korea got nuclear weapons and China is nervous about the aftermath of such weapons.  For an example, such weapons could be launched from North Korea into China by a force that is no longer friendly to China.  A collapse of North Korean regime could create chaos which allows an opportunity for whoever to launch nuclear warheads into China and avoid the blame at the same time.  Basically, in chaos, you can avoid taking the blame for launching nuclear warheads because you can just argue that wasn’t you and it was somebody else that went crazy during the chaos (i.e., inside North Korea).  China definitely doesn’t want this to happen, ever!

There are many other reasons why China rather has North Korea stays poor, weak, and friendly.  Isn’t it obvious?  Remember the Korean war in the 1950s?  China didn’t have to help North Korea out but they did waste roughly a quarter of a million men in the Korean War to make sure North Korea stayed North Korean.  Why did the Chinese spill so much blood for another country?  I think it was all about strategic calculation on the Chinese part.  Nowadays, even though China is a global superpower and no longer dirt poor, Chinese still thinks North Korea got some values as a weak, friendly state to China.  For obvious reasons I mentioned plus much more.

So, when the Chinese begin to go along with the American sanction scheme to try to collapse the North Korean regime economically, I think it’s something big that is about to be happening.  Let me guess.  I think if China is willing to help the Americans sanction North Korea, this means China is ready to go to war against the United States!  Why?

I think China wants to look good by going along with the United States’ sanction scheme on North Koreans and to win more friends in near term.  Secretly though, I think China is preparing for the day in which China has to attack the United States in North Korea.  For all the reasons I mentioned and if I’m not wrong, China is willing to go to war against the United States, thus China didn’t care to gain some favorable points with the world before North Korean chaos breaks out.

Since China is North Koreans’ main economic lifeline, it’s obvious that Korean regime may collapse if China is really going to sanction North Koreans, for real this time.  If North Korea is about to collapse, North Korea could try to launch an attack on South Korea.  If South Korea gets attacked, the United States would help South Korea defends against the North.  If the North is losing, Chinese will come in again to push the South and the United States back.  This time though, things could get way more catastrophic.  In short, I think that the Chinese think it’s imperative for them to come to the North Koreans’ aid to keep the United States and South Korea away from the Chinese border.

My suspicion is that China is ready to go to war against the United States, and so China doesn’t mind about following the United States’ lead on sanctioning North Korea for real this time — to gain points with the world and to surprise the United States.  After all the United States would have thought that China would only do a weak sanction on North Korea.  Nonetheless, the news has that China orders Chinese businesses to stop dealing with North Koreans and so forth.  Other hard Chinese sanctions are about to or already put in place against the North Koreans. 

I think when North Korea’s economy is completely destroyed, North Korea will attack South Korea.  I think North Korea only got an economy anyway because of China.  So, when North Korea attacks South Korea, the aftermath would be pure chaos.  Of course, there is also a possibility that China invades North Korea to secure nuclear weapons and control North Korea.  This way, the North Koreans still could be a buffer between China and South Korea/United States.

If China invades North Korea, China wouldn’t want the United States to be anywhere near North Korea’s 38th parallel border because China wants to take control of North Korea.  So, if in such chaos and the United States pushes for North Korea control, the United States may as well attack China.  I think this scenario would start a WWIII.

https://www.yahoo.com/news/north-korean-firms-china-ordered-close-january-114245591.html

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United States’ Allies Think Getting Closer To China

With not a single thread of evidence to back up my logic, but I have a feeling that United States’ allies such as Japan are thinking about getting closer to China.  At first, for an example, Japan would probably pretend to be against China, and Japan wants to use China as a ploy to break free from the United States.  Thus Japan probably wants to boost its own military programs and break free from pacifying position.  Once Japan completes this step, it would want to befriend China, and United States would probably be too hesitant to aggravate a stronger Japan.

I think as China grows stronger and more influential, United States’ allies would use Beijing as a hedge against the United States in trades, deals, bargains, and etc…

What can the United States do?  Unless the United States wants to start a trade war and hot war with China, there isn’t much the United States can do to change allied countries’ trajectories.  I fear such trajectories are all about getting closer to China.  After all, China got the largest middle-class market in the world.  With hefty foreign exchange reserves in trillions of dollars and a growing military power to back China’s overall growing strength, China isn’t going to be bullied by the United States.  United States’ allies know this too, and so they would try to be nice to China just in case they are on the wrong side of the United States.

In conclusion, I don’t think the United States can be too nice to allied countries because these countries are still going to use China as a hedge.  Being too mean to allies, the United States would lose such allies.  Be too tough on China, the United States would force allied countries to choose a side, and they may choose China over the United States.  As long China is humming along in growing strength, I don’t see how easily the United States could contain China.  Of course, nothing would go as plan, and so China may face a difficult future, and that is when the United States could try to contain China.  The question is, how far the United States would want to contain China, because doing it wrong may as well starting a WWIII.

After WWIII, long live sticks and stones!

Maybe, here is a preview of how Japan is getting closer to China.  https://www.yahoo.com/news/m/c53528a3-d7ae-3e05-9851-6dc8daefac8c/ss_pm-abe-celebrates-anniversary.html

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Weaker Dollar, Stronger Yuan May Hurt The United States And Help China In The Long Run!

I’m no expert in economic matters, but I just want to use my own personal logic to make sense of a few things that are currently happening.  People are seeing that the Dollar is weakening as we speak, and the Yuan is growing stronger as we speak.  Some people say weaker Dollar is a good thing because export will become more profitable.  Furthermore, when export becomes profitable, it also drives up the manufacturing sector at home.  That’s the theory for some people, but I feel that it’s way more complicated than this.

Since the United States isn’t a world manufacture hub — China is holding this title — the United States’ exports won’t matter as much unless the United States becomes the world manufacture hub.  Sure, with weaker Dollar, the United States’ exports will become more competitive than before.  The question is, will a little gain in competitiveness in exports spur the manufacturing sector at home?  Meanwhile, weaker Dollar will make the United States’ imports a lot more expensive.

I think the United States currently imports a lot more than exports.  The United States’ import is at $2.25 trillion and the export is at $1.45 trillion for the year of 2016, according to Wikipedia.  If the United States’ exports continue to slack even with the weak Dollar and the imports continue to grow, the United States could face an even stronger trade deficit.  For an example, manufacturer companies in the United States may have to import more expensive materials from the outside to manufacture products at home for selling across the world and at home.  This may not make the products at home cheaper for homegrown consumers.  Furthermore, this will increase the trade deficit in manufacturing sector if not enough products within the United States get to export to balance out the import costs.

Weak Dollar will increase less buying power for the Americans who go abroad for vacation, business, and so forth.  Weak Dollar can make purchases of products from foreign companies through online websites or offline imports more expensive for the American consumers.  For an example, I could be buying a music plugin from an online website which belongs to a French company, and with a weak Dollar, I could be paying more for this software.

I guess good things and bad things do exist even when the Dollar is weak or strong.  Nonetheless, the most interesting question is can the United States fare better when the Dollar is weaker or stronger.  In my opinion, weaker Dollar can help spur export a bit, but if the United States’ exports don’t carry the whole United States’ overall, long-term economy, then the weaker Dollar will be a very bad thing!

What about China?  If the United States enters a trade war against China, China can increase import tariff costs for the products from the United States.  This could hurt the United States’ export market because weaker Dollar would be neutralized by this move from China.  Furthermore, China can also buy up weak Dollar on the cheap to make Yuan stronger if this would serve China’s agenda.  Of course, stronger Yuan for China could make China’s exports look expensive.  Still, from what I’ve heard, China is trying to spur demands at home to create a bigger home consumer market so China won’t be relying on too much from the export market.  If this is the case, then cheap Dollar would be beneficial for China in a big way!

Stronger Yuan would allow Chinese who are going abroad to get more bang for the buck.  Meanwhile, Chinese imports would become cheaper, and so China won’t have to spend so much money to import stuff.  As China’s export market isn’t doing so bad and the imports get cheaper, stronger Yuan allows China to continue to reform her consumption market.  Foreign companies would love to enter China’s bigger homegrown consumption market because China has 1.4 billion headcounts and growing.  As China becomes an ever more important factor for foreign companies due to the size of Chinese population and market, China can begin to dictate tastes, styles, fashions, and so forth worldwide.  Chinese culture will become ever more influential if Chinese market becomes the most important market in the world.

With a weaker Dollar and stronger Yuan, entering a trade war against China might be very bad for the United States!  China can sanction the United States’ companies, entities, and so much more to crash the United States economy.  Of course, a trade war would be bad for China too, because the United States’ imports from China do matter to China a lot.  Nonetheless, as China doesn’t rely on the export market so much, a trade war between the United States and China won’t deter Chinese economic reform plan.  After all, China wants to grow the homegrown consumption market!  While growing a homegrown consumption market to rely less on the export market, China relies on the cheaper import market to balance out the reduction of Chinese exports.  Weaker Dollar and stronger Yuan will allow China to transit from the export market to a service market, also to move to a higher value-added export market — all in all – making this transition in a smoother fashion.

In conclusion, I think China can make the best out of either weaker or stronger Dollar, and the United States — as long as the country stays less competitive — won’t be able to have the upper hand if a trade war occurs between China and the United States.  Meanwhile, China can use stronger Yuan to buy cheap debts from United States’ weak Dollar to prop up China Yuan’s strength.  This, in turn, will actually help China transits from a manufacturing to a service economy.  As the low value-added market goes away in China, China has to accelerate the reform of the manufacturing sector at home so Chinese future export market will be more about high value-added products.  Anyhow, if the United States isn’t going to be able to use the opportunity of a weaker Dollar to reform her economy somehow to make the United States’ economy more competitive against rivals such as China, in the long run other rivals will use the weaker Dollar as the opportunity to make their own economies a lot stronger.