Category Archives: Trade War

Defeating China: Five Strategies

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Journal of Political Risk, Vol. 8, No. 4, April 2020

Fighter jets of the U.S. Navy Blue Angels demonstration squadron fly over the Lincoln Memorial during the Fourth of July Celebration ‘Salute to America’ event in Washington, D.C., U.S., on Thursday, July 4, 2019. Source: Official White House Photo by Joyce N. Boghosian.

By Anders Corr, Ph.D.
Publisher of the Journal of Political Risk

Since 1989, when China massacred thousands of its own people in Tiananmen Square to stop a pro-democracy protest, the country has arguably grown into the world’s most powerful and centralized state. China’s GDP by purchasing power parity (PPP) is approximately $25.4 trillion, while the U.S. GDP PPP is only about $20.5 trillion.[1] One man, Chinese President Xi Jinping, has almost total control of China’s economy and a leadership position for life. China’s authoritarian system, most recently, allowed the COVID-19 virus to become a pandemic. By the time it is controlled, it may have killed up to millions of people.

Compared to Xi Jinping, political leaders in democracies have comparatively little economic power. U.S. President Donald Trump, for example, has only partial control of the smaller (by purchasing power parity when compared to China) U.S. economy, and must be reelected in 2020 to continue his tenure for a maximum of an additional four years.

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War In The Taiwan Strait Is Not Unthinkable: Some Will Lose More Than Others

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Journal of Political Risk, Vol. 7, No. 11, November 2019

Screen capture of Chinese state media video of People’s Liberation Army (PLA) troops training for an assault on Taiwan’s presidential office. Pictured is a mock building at the Zhurihe military base in China, that mimics the actual building in Taipei. The video aired July 5, 2015. CCTV via Apple Daily.

Grant Newsham
US Marine Officer (Ret)

Whether anyone actually ‘wins’ a war is a philosophical debate.  The Germans and Japanese in 1945 might have thought wars do indeed have winners.  But perhaps it’s better said that in most conflicts some parties ‘lose more than others.’

Such would be the case if Beijing attempted to militarily subjugate Taiwan.  And Xi Jinping just might do so.  He declared in a January 2019 speech that “we (China) do not promise to renounce the use of force and reserve the option to use all necessary measures (to take Taiwan.)”[1]

The Battle for Taiwan would have truly global consequences, akin to the invasion of Poland by the Soviets and Germans in 1939.

However, much of the debate over a Taiwan Strait conflict focuses on preparation for and conduct of the PRC’s attack: whether Beijing will or won’t attack, what an attack might look like and Taiwan’s ability to defend itself, whether the US will or should get involved and whether it ought to sell Taiwan ‘this or that’ weapon.  Such discussion is useful, but the actual consequences and longer-term ripple effects of a fight over Taiwan deserve much more attention.[2]

This paper examines key aspects of what happens once the shooting starts, and the follow-on global economic and political effects.  The envisioned scenario is a full-scale PLA assault against Taiwan, but it’s worth noting that even a ‘limited’ assault–such as against one of Taiwan’s offshore islands–may not stay limited for very long: given Beijing’s oft-stated determination to take all of Taiwan, an off-shore island assault would only constitute a tactical objective in the march on Taipei, and would also have serious and wide-ranging political and economic consequences.

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China and the War of Shipyards and Factories

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Journal of Political Risk, Vol. 7, No. 10, October 2019

Chinese aircraft carrier group, including J-15 fighters and helicopters, trains in the South China Sea in late December, 2016. NARA & DVIDS Public Domain Archives.

William R. Hawkins
Former U.S. House Foreign Affairs Committee member

Satellite images show that China is making rapid progress in building its new Type 02 aircraft carrier at the Jiangnan Shipyard in Shanghai. The Type 02 is a larger design than Beijing’s first two carriers which were based on Soviet-era light carriers of about 67,000 tons and which lacked catapults for launching first-rate fighters. They used “ski jumps” to put planes into the air, limiting them to the small, short-range J-15 “Flying Shark” fighter-bombers. The Russian-built/China modified Type 01 can only carry 24 of these warbirds, though the China-built 01A, which is about to deploy, may be able to carry a few more. The Type 02 is a much larger design more in line with American carriers. At an estimated 80,000+ tons, it will be able to carry 40+ fighters as well as supporting aircraft such as early warning and control planes. In comparison, the typical U.S. Navy carrier has 60+ fighters along with other support aircraft. They are also nuclear-powered which the Chinese carriers are not. This does not mean, however, that American naval-air superiority is assured. Continue reading →

Greenpeace Working to Close Rare Earth Processing Facility in Malaysia: the World’s Only Major REE Processing Facility in Competition with China

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Journal of Political Risk, Vol. 7, No. 10, October 2019

Partial screenshot from the Greenpeace website, taken on 10/3/2019, detailing Greenpeace’s leading role in the ‘Stop Lynas’ campaign. Source: Greenpeace.

Michael K. Cohen
Journalist

Rare earth – the colorful metals derived from 17 extraordinarily hard-to-mine chemical elements – are a little-known part of all of our lives. They are crucial elements of mobile phones, flat screen televisions and more than 200 other consumer electronic devices that we use every day.

But these exotic elements are needed for more than just phones and televisions. Their lightweight properties, and unique magnetic attributes, are indispensable to military assets that use sonar, radar or guidance systems, lasers, electronic displays, and myriad other mechanisms.

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Xi Killed Convergence: the American China Consensus is Gone

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Journal of Political Risk, Vol. 7, No. 7, July 2019

Caricature of President Xi Jinping, 2013. Source: Wikimedia commons.

Paul S. Giarra
President of Global Strategies & Transformation

Two open letters to the President on China strategy have appeared recently. The first, “China is not an enemy”,[1] was published in the Washington Post on July 3rd. The second, “Stay the Course on China: An Open Letter to President Trump”, appeared in these pages on July 18th.[2] The former argued that considering China as an enemy would be a self-fulfilling prophecy. The second posited that we had already turned that corner with China, and that the president should continue with his hard line policies toward Beijing (Full disclosure: the author signed the latter open letter).

There’s more to these letters, but they do not represent an argument; rather, they are a transition from an old conventional wisdom to a new reality. As Nikki Haley wrote in Foreign Affairs last week [3], the theory of convergence with China expressed in the Washington Post letter and practiced in the United States for 30 years has been fully discredited. “Let’s face it: Xi has killed the notion of convergence.”

Why it has taken so long to get to this point will have to be left to the social historians, but the China policy transition now underway has been reverberating throughout the Washington policy community for some time. Continue reading →