Chinese maneuvers challenging Washington sphere of influence
March 14th, 2009
Even UK prime minister in his latest visit to White house did not get to spend two hours with highest echelon of executive branch what Chinese foreign minister just did on Friday. It is highly unlikely that any “normal” or “schedule” visit of a non head of state would warrant two hours of time while US administration working through economic war like situation. There have been some hints from recent turn of events that some tense situation between US and China are escalating but most of it lost in news of economic worries in US and everywhere.
On March 9th, US and Chinese navy standoff occurred 75 miles south of Hainan island, home of China’s latest sub fleet. According to some report, USN ship Impeccable tried to collect data on Chinese Shang-class nuclear sub within Chinese EEZ and several Chinese ships harassed US ship.
Some may conclude that was starting point which led to Chinese foreign minister spending two hours in white house. But source of contention may be elsewhere and naval standoff was just a symptom not the cause. That is not to say by any means that US and China does not have contentious military and strategic issues.
From early on this economic crisis in US, Chinese had overtly and covertly made clear that they no longer interested in footing bills for reckless US borrowing and buy more US Treasury bond. China being the largest foreign currency reserve holder (2 trillion) and largest lender to US, news could not be any worse, specially when US economy is teetering on verge of collapse.
Have that been just departed Bush administration there would have been different strategy and tactics to force Chinese lending hand. Perhaps, more arms sale to Taiwan and further escalation in Taiwan straight. Democrats with Obama at helm have more traditional American carrot and stick approach. Make no mistake ultimate goal of US remains same – preserve US hegemony in world economy, seven sea and rest of it. And Chinese unlike many did not loose site of that. When Hillary Clinton new US foreign secretary made overt comments that economic issues took precedence over US concerns about human rights, carrot gesture was all out in display.
Economic woes trump rights as Clinton visits China | International | Reuters
But China did not quite bite on that carrot. Hence, the US stick approach of aggressive naval posturing and pursuing Chinese sub in its own EEZ. And on March 10th Dali Lama after long silence spewed “"hell on earth" line against China. Dalai Lama slams China over Tibet suffering | International | Reuters
There are concerted Chinese efforts underway in SE Asia and in pacific to minimize western economic influence and influence of dollar as currency. In February China strengthened its trade and investment framework in South America further laying the ground work for Chinese influence in US back yard. If it was not for increasing Chinese economic clout and bankrupt US economy we would not have seen further assertive move from China. Today in 2009, China has more cards to play with and did so on March 12th (day before Chinese FM visit to White House) by publicly announcing concern on safety of US Treasury bond. Treasury bond; the last and ultimate instrument for economic survival of US. In collapsing confidence on US financial ability and assets values, both US and China know US can not do anything more at this stage to shore up confidence. In critical analysis no one can expect China was looking for mere reassurance on Treasury asset value from US administration. It had to be something more and substantial than that.
While any sweet talk from Washington can not satisfy Chinese concern on last instrument of US economic survival, what else US could offer to clam Chinese concern?
Well there may lie answer to more than two hours long meeting in White house with Chinese FM. Outside economic realm only attractive capital US could offer at the moment is geo political and strategic in nature. Outcome of such parley would not be visible for moths perhaps year to come. But as citizen of a country where we sit in the crossroad of geo strategic fault line stake could not be higher for our economic, political and strategic reality.
By idune
March 14th, 2009
Even UK prime minister in his latest visit to White house did not get to spend two hours with highest echelon of executive branch what Chinese foreign minister just did on Friday. It is highly unlikely that any “normal” or “schedule” visit of a non head of state would warrant two hours of time while US administration working through economic war like situation. There have been some hints from recent turn of events that some tense situation between US and China are escalating but most of it lost in news of economic worries in US and everywhere.
On March 9th, US and Chinese navy standoff occurred 75 miles south of Hainan island, home of China’s latest sub fleet. According to some report, USN ship Impeccable tried to collect data on Chinese Shang-class nuclear sub within Chinese EEZ and several Chinese ships harassed US ship.
Some may conclude that was starting point which led to Chinese foreign minister spending two hours in white house. But source of contention may be elsewhere and naval standoff was just a symptom not the cause. That is not to say by any means that US and China does not have contentious military and strategic issues.
From early on this economic crisis in US, Chinese had overtly and covertly made clear that they no longer interested in footing bills for reckless US borrowing and buy more US Treasury bond. China being the largest foreign currency reserve holder (2 trillion) and largest lender to US, news could not be any worse, specially when US economy is teetering on verge of collapse.
Have that been just departed Bush administration there would have been different strategy and tactics to force Chinese lending hand. Perhaps, more arms sale to Taiwan and further escalation in Taiwan straight. Democrats with Obama at helm have more traditional American carrot and stick approach. Make no mistake ultimate goal of US remains same – preserve US hegemony in world economy, seven sea and rest of it. And Chinese unlike many did not loose site of that. When Hillary Clinton new US foreign secretary made overt comments that economic issues took precedence over US concerns about human rights, carrot gesture was all out in display.
Economic woes trump rights as Clinton visits China | International | Reuters
But China did not quite bite on that carrot. Hence, the US stick approach of aggressive naval posturing and pursuing Chinese sub in its own EEZ. And on March 10th Dali Lama after long silence spewed “"hell on earth" line against China. Dalai Lama slams China over Tibet suffering | International | Reuters
There are concerted Chinese efforts underway in SE Asia and in pacific to minimize western economic influence and influence of dollar as currency. In February China strengthened its trade and investment framework in South America further laying the ground work for Chinese influence in US back yard. If it was not for increasing Chinese economic clout and bankrupt US economy we would not have seen further assertive move from China. Today in 2009, China has more cards to play with and did so on March 12th (day before Chinese FM visit to White House) by publicly announcing concern on safety of US Treasury bond. Treasury bond; the last and ultimate instrument for economic survival of US. In collapsing confidence on US financial ability and assets values, both US and China know US can not do anything more at this stage to shore up confidence. In critical analysis no one can expect China was looking for mere reassurance on Treasury asset value from US administration. It had to be something more and substantial than that.
While any sweet talk from Washington can not satisfy Chinese concern on last instrument of US economic survival, what else US could offer to clam Chinese concern?
Well there may lie answer to more than two hours long meeting in White house with Chinese FM. Outside economic realm only attractive capital US could offer at the moment is geo political and strategic in nature. Outcome of such parley would not be visible for moths perhaps year to come. But as citizen of a country where we sit in the crossroad of geo strategic fault line stake could not be higher for our economic, political and strategic reality.
By idune
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