Shifting Alliances
Thomas Dawson
July 18, 2005
The Countries of Asia are the natural beneficiaries of the new American trading system that is currently deified in the western world, namely the Globalization of trade. The outsourcing of any and all business in search of lower labor costs leads to Asia, and mostly to China and India.
China is now also the largest trading partner of most of the smaller Asian countries. American economic influence is waning fast in these smaller Asian countries. In the last few days, even though threatened by US sanctions, India has put her own interest first and has contracted with Iran for natural gas. Of course to placate Washington, she also contracted for more US weaponry.
Gaining a competitive advantage in trade, political influence, or military intimidation are the main causes of the increasing animosity and tension between countries. All three of these conditions are involved in our relations with China. Our military is posturing to intimidate China on every side. China, for its part is attempting to extend its economic sphere. She needs infrastructure and product to enlarge her middleclass. Although our international corporations see this as a profitable opportunity, many others in the US see this as Economic War; as they watch American dollars and jobs flee the country.
Then, there is the impending shortage of oil. The general point of view in Asia, and especially in China and Russia, is that the reason for the invasion of Iraq must have been either for the control of mid-east oil, or to capture a permanent military foothold into Central Asia, or both. In any case, America is seen as a dangerous loose cannon.
In 1996 the Shanghai Cooperation Organization (SCO) was formed. Its membership included China, Russia, Kazakhstan, Tajikistan, Uzbekistan, and Kyrgyzstan. It was a relatively innocuous, dormant association until 2001, when NATO began to actively expand its Eurasian frontier to the east. Since the Iraq war, the SCO has transformed itself to become an increasingly active association for mutual security, not unlike an immature NATO.
The SCO has recently engaged its members in joint military maneuvers. It has also developed an Anti-terror strike force to react in case of terrorist attacks on any of its members. In the past year, Iran has indicated interest in joining the organization.
When the Iraq war began, China quickly entered into extensive trading arrangements with Iran. Both China and Russia have since transferred considerable military equipment and technology into Iran. Her missiles can reach well out to sea, in addition to covering the entire Middle East land area. An invasion of Iran would not be another cakewalk.
The United States has military bases in Kyrgyzstan and Uzbekistan. The US is working hard to establish bases in Kazakhstan and Tajikistan. Meanwhile, China and Russia prefer to keep us off their doorstep and some others in the area are also becoming wary of US military designs.
A pipeline contract between Kazakhstan and China passes through Kyrgyzstan and has induced China to pledge considerable monetary assistance to this little country.
Recently, Kyrgyzstan has declined an attempt by the US to station AWACS on a previously established American base. Citing that the establishment of the base had been for humanitarian and peace keeping purposes with respect to the war in Afghanistan, she asserted that AWACS are not intended for that purpose. It was also made clear that the base we presently occupy will not become a permanent one.
The American military is encroaching ever closer to China, even into the Asian countries.
China, in what appears to be a kind of ‘tit for tat’ response has begun to expand her trade into Venezuela, Brazil and other South American countries. The reality may be that she just has to get rid of some of the American dollars she is swimming in, and is trying to put them to the best use possible. Of course Hugo Chavez was delighted to sign oil deals with Chinese oil companies to provide them with oil if for no other reason, than it will irritate Washington. Meanwhile Russia is in need of trade money (American dollars) and has recently offered to sell Chavez some Mig-29 jets, helicopters, and other weaponry.
As the geography of these alliances on both sides of the Pacific continue to change, tensions between the United States and China continue to mount.
Adding to these tensions, a Congressional commission created to be watchful of China, complains that Russia is supplying China with sophisticated weapons to attack Taiwan. They even suggest that China would use nuclear weapons against the Taiwanese and American forces in the event of a showdown.
Other complaints of this commission relate to our expanding deficit and charges that China is using economic warfare against us, that the Yuan is undervalued, complaints of China’s relationship with Iran, and that China is not following WTO rules. China is buying assets and paying cash with American dollars.
The ties that bind the United States and China together are economic. China needs employment and dollars, and our companies intend to profit from their low labor costs.
Amenable economic relations cannot continue indefinitely with each of us engaging in actions that the other perceives as intimidating or even menacing. This administration is determined to get its way on every issue. When it doesn’t get its way, it treats friend and foe alike. This adversarial posture knows nothing of cooperation. To be sure, China is a power to be reckoned with, but antagonizing each other at every opportunity will not lead to a peaceful world. A new “Cold War” is quickly developing!
China is now also the largest trading partner of most of the smaller Asian countries. American economic influence is waning fast in these smaller Asian countries. In the last few days, even though threatened by US sanctions, India has put her own interest first and has contracted with Iran for natural gas. Of course to placate Washington, she also contracted for more US weaponry.
Gaining a competitive advantage in trade, political influence, or military intimidation are the main causes of the increasing animosity and tension between countries. All three of these conditions are involved in our relations with China. Our military is posturing to intimidate China on every side. China, for its part is attempting to extend its economic sphere. She needs infrastructure and product to enlarge her middleclass. Although our international corporations see this as a profitable opportunity, many others in the US see this as Economic War; as they watch American dollars and jobs flee the country.
Then, there is the impending shortage of oil. The general point of view in Asia, and especially in China and Russia, is that the reason for the invasion of Iraq must have been either for the control of mid-east oil, or to capture a permanent military foothold into Central Asia, or both. In any case, America is seen as a dangerous loose cannon.
In 1996 the Shanghai Cooperation Organization (SCO) was formed. Its membership included China, Russia, Kazakhstan, Tajikistan, Uzbekistan, and Kyrgyzstan. It was a relatively innocuous, dormant association until 2001, when NATO began to actively expand its Eurasian frontier to the east. Since the Iraq war, the SCO has transformed itself to become an increasingly active association for mutual security, not unlike an immature NATO.
The SCO has recently engaged its members in joint military maneuvers. It has also developed an Anti-terror strike force to react in case of terrorist attacks on any of its members. In the past year, Iran has indicated interest in joining the organization.
When the Iraq war began, China quickly entered into extensive trading arrangements with Iran. Both China and Russia have since transferred considerable military equipment and technology into Iran. Her missiles can reach well out to sea, in addition to covering the entire Middle East land area. An invasion of Iran would not be another cakewalk.
The United States has military bases in Kyrgyzstan and Uzbekistan. The US is working hard to establish bases in Kazakhstan and Tajikistan. Meanwhile, China and Russia prefer to keep us off their doorstep and some others in the area are also becoming wary of US military designs.
A pipeline contract between Kazakhstan and China passes through Kyrgyzstan and has induced China to pledge considerable monetary assistance to this little country.
Recently, Kyrgyzstan has declined an attempt by the US to station AWACS on a previously established American base. Citing that the establishment of the base had been for humanitarian and peace keeping purposes with respect to the war in Afghanistan, she asserted that AWACS are not intended for that purpose. It was also made clear that the base we presently occupy will not become a permanent one.
The American military is encroaching ever closer to China, even into the Asian countries.
China, in what appears to be a kind of ‘tit for tat’ response has begun to expand her trade into Venezuela, Brazil and other South American countries. The reality may be that she just has to get rid of some of the American dollars she is swimming in, and is trying to put them to the best use possible. Of course Hugo Chavez was delighted to sign oil deals with Chinese oil companies to provide them with oil if for no other reason, than it will irritate Washington. Meanwhile Russia is in need of trade money (American dollars) and has recently offered to sell Chavez some Mig-29 jets, helicopters, and other weaponry.
As the geography of these alliances on both sides of the Pacific continue to change, tensions between the United States and China continue to mount.
Adding to these tensions, a Congressional commission created to be watchful of China, complains that Russia is supplying China with sophisticated weapons to attack Taiwan. They even suggest that China would use nuclear weapons against the Taiwanese and American forces in the event of a showdown.
Other complaints of this commission relate to our expanding deficit and charges that China is using economic warfare against us, that the Yuan is undervalued, complaints of China’s relationship with Iran, and that China is not following WTO rules. China is buying assets and paying cash with American dollars.
The ties that bind the United States and China together are economic. China needs employment and dollars, and our companies intend to profit from their low labor costs.
Amenable economic relations cannot continue indefinitely with each of us engaging in actions that the other perceives as intimidating or even menacing. This administration is determined to get its way on every issue. When it doesn’t get its way, it treats friend and foe alike. This adversarial posture knows nothing of cooperation. To be sure, China is a power to be reckoned with, but antagonizing each other at every opportunity will not lead to a peaceful world. A new “Cold War” is quickly developing!
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