Increasing Tensions Between The United States And China Create Unstable World
By Michael Snyder - End of The America Dream Blog May 30, 2016 Share this article:
What happens when the two largest economies on the planet start
fighting a trade war with one another? Well, we are about to find out.
As you will see below, the U.S. has gone "nuclear" on China in a trade
dispute over steel, and the Chinese response is likely to be at least as
strong.
Meanwhile, events in the South China Sea have brought
tensions between the Chinese government and the Obama administration to a
boiling point. The Obama administration strongly insists that China
does not have a legal right to those islands, and in China there is now
talk that it may ultimately be necessary to confront the United States
militarily in order keep control of them.
Most
Americans may not realize this, but the relationship between the United
States and China is officially going down the tubes, and this is likely
to have very significant consequences during the years to come.
Let's
start with the trade war that has erupted. About a week ago, we
learned that the Obama administration had decided to "go nuclear" on
China by imposing a 522 percent duty on cold-rolled steel from China
that is used in certain kinds of manufacturing...
In
some regard, China has reason to be angry: the US unleashed what is
nothing short of a nuclear bomb in its rapidly escalating trade war with
China, and recently imposed duties of 522% on cold-rolled steel used in
automobiles and other manufacturing, In doing so it has rendered
Chinese exports to the US unsustainable and will force even more excess
Chinese production to remain landlocked within China's borders, making
the domestic glut, and price collapse, that much worse.
Subsequently, it was announced that a 450 percent duty will be imposed on corrosion-resistant steel from China...
Corrosion-resistant
steel from China will face final U.S. anti-dumping and anti-subsidy
duties of up to 450 percent under the U.S. Commerce Department's latest
clampdown on a glut of steel imports, the agency said on Wednesday.
Needless
to say, the Chinese are less than amused, because these "shock and awe"
trade duties were clearly designed to punish China.
And
of course the truth is that China has been abusing us for years, so
there is definitely a case to be made that they deserve even harsher
treatment. However, we need to keep in mind that the Chinese will
retaliate for this. And when they retaliate, it will likely be quite
painful for us. But for the moment, they are just issuing vague
threats...
China's Commerce Ministry said it
was extremely dissatisfied at what it called the "irrational" move by
the United States, which it said would harm cooperation between the two
countries.
"China will take all necessary steps
to strive for fair treatment and to protect the companies' rights," it
said, without elaborating.
Meanwhile, events in
the South China Sea continue to push the United States and China toward
conflict. Let me summarize a few of the most important things that we
have seen over the past month...
-In early May,
Chinese authorities refused to give permission to the U.S.S. John C.
Stennis battle group to make a routine port call at Hong Kong. The
Chinese had not turned away a U.S. aircraft carrier in almost a decade,
and many believe that this was in direct response to comments that U.S.
Defense Secretary Ashton Carter had made regarding China's territorial
claims in the South China Sea.
-Subsequently,
the Obama administration sent the U.S.S. William P. Lawrence sailing
within 12 nautical miles of the disputed islands in the South China Sea.
This was the third time that Obama has sent naval vessels cruising by
those islands, and it provoked an extremely angry response from China.
-Just
last week, two Chinese fighters and a U.S. spy plane nearly collided in
mid-air approximately 50 miles away from Hainan island. This incident
made headlines all over the planet.
Most Americans seem to believe that the Chinese are our "friends", but in China the perspective is completely different.
The
Chinese consider the United States to be their number one long-term
strategic adversary, and they have been working feverishly to prepare
for a future conflict with us.
For example,
China just conducted a successful test of a new hypersonic glide vehicle
that we do not have any defense against. The following comes from the
Washington Free Beacon...
China successfully
flight tested its new high-speed maneuvering warhead last week, days
after Russia carried out its own hypersonic glider test, according to
Pentagon officials.
The test of the
developmental DF-ZF hypersonic glide vehicle was monitored after launch
Friday atop a ballistic missile fired from the Wuzhai missile launch
center in central China, said officials familiar with reports of the
test.
The maneuvering glider, traveling at
several thousand miles per hour, was tracked by satellites as it flew
west along the edge of the atmosphere to an impact area in the western
part of the country.
In addition, just today there were global headlines
announcing that China is poised to send subs carrying nuclear missiles
into the Pacific for the first time ever...
The
Chinese military is poised to send submarines armed with nuclear
missiles into the Pacific Ocean for the first time, arguing that new US
weapons systems have so undermined Beijing's existing deterrent force
that it has been left with no alternative.
Chinese military officials are not commenting on the timing of a maiden patrol, but insist the move is inevitable.
They
point to plans unveiled in March to station the US Thaad anti-ballistic
system in South Korea, and the development of hypersonic glide missiles
potentially capable of hitting China less than an hour after launch, as
huge threats to the effectiveness of its land-based deterrent force.
Let
us hope that a full-blown shooting war with China does not erupt any
time soon, but the reality is that we are already locked in a conflict
with the Chinese on a number of different levels.
In a recent piece, XKeyscore summarized some of the ways in which China is already seeking to gain the upper hand...
Economic
warfare: purchase and/or sale of U.S. treasury bills, Yuan
manipulation, government subsidized output (consumer goods), and
trade/tariff manipulation.
Cyber-warfare: Engaging in data theft, backdoors, viruses, hacking
Cyber-kinetic
warfare: The creation and deployment of Stuxnet-type viruses, and
hacking which lead to physical damage of infrastructure such as power
grids, nuclear facilities, hydroelectric and telecommunications systems.
Socio-political
warfare: establishment of "Confucian Centers" in the US and around the
globe, and the funding of US universities in exchange for roles in
university policy-making processes, which often in turn promote
communist ideology.
Territorial: China runs
port operations in many of the worlds largest and most strategically
valuable ports and SLOCs (Sea Lines of Communication). The best example
is the Panama canal. Both ends of the canal are controlled by China.
To
most Americans, our rapidly deteriorating relationship with China is
not much of an issue right now, and very few of our politicians are even
talking about it.
However, I am fully
convinced that this is an extremely ominous development, and that it
will have very, very serious implications for our country during the
years to come.
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