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Strategies & Market Trends : World Outlook

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From: Les H4/4/2021 12:55:55 PM
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Arran Yuan
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SK: What is the root cause of the United States’ desire to confront China?

CF: I think the rudimentary driver of the United States’ confrontation with China is psychology, not strategy. We became the world’s largest economy sometime in the 1870s. That’s 150 years ago. Now we’ve either already been eclipsed, or we’re about to be eclipsed, by China. So we’re afraid of not being number one and we’ve decided that we will hamstring the rise of China. No one on the American side has described where this confrontation is supposed to take us—it’s just an end in itself. Also, we have exercised military primacy in the Asia-Pacific region since 1945. Now, we confront the return of China to wealth and power in the region. And our position in the Asia-Pacific is precarious. What does that mean? It means that we object to things like China’s anti-access and area denial weapon system (A2/AD), otherwise known as defense. The Chinese now can stop us from running through their defenses. So this is a threat: we’re not all-powerful anymore. We are in danger of losing primacy.

But there’s not much evidence of China wanting to replace us. They are displacing us in some spheres because they’re big and growing and successful. Do they want to take on our global dominion and hegemony role? No, but we assert that they do. We posit that China thinks and behaves like us: “We had Manifest Destiny and it took us across the Pacific to the Philippines. Therefore, China must have a Monroe Doctrine and Manifest Destiny in mind.” This is wrong. Things don’t work like that. So I would argue that we have inhaled our own propaganda, and we are living in the appropriately stoned state that that produces. If we have sound policies, we can out-compete anyone. But we’re not looking at sound policies; we’re looking at pulling down our competitor.

SK: Isn’t the Belt and Road Initiative (BRI) indicative of China’s desire to expand its influence, if not “replace” our hegemonic role on the global stage?

CF: The initial impulse of the Belt and Road Initiative was that China had a surplus capacity in steel, cement, aluminum, and construction capability—and it extended these resources abroad. Then China looked at what it was doing and said, “Actually, it would be really good if Lisbon was connected to Vladivostok efficiently, and Arkhangelsk was connected to Colombo. Maybe we could throw in Mombasa, too. This would create a huge interconnected area in which trade and investment could flow smoothly.” So, actually, a major part of the BRI is an agreement on tariffs, customs barrier treatment, transit, and bonded storage. It is the construction of roads, railroads, airports, ports, industrial parks, fiber optic cables, et cetera, over this huge area.

And the Chinese assumption—not aspiration, but assumption—is that as the largest and most dynamic society in that area, they will be the preeminent force in it. But this is an economic strategy, it’s not a military one. So the problem we have conceptually is that the only way we, the United States, know how to think about international affairs is in military terms. Our foreign policy is very militarized and is driven by military considerations.

...

SK: With that in mind, do you think that we are heading toward a military confrontation with China in the Taiwan Strait?

CF: There is no framework for keeping the peace in the Taiwan area anymore. And I think it’s pretty clear that we’re heading into a war. We seem to be heading toward a bloody rendezvous with Chinese nationalism—and I don’t think that’s too smart. We’re talking about contesting the territory of a nuclear power. Does anybody think about that? There is an underlying assumption, probably born from the thirty years since the end of the Cold War, that we’re invulnerable and omnipotent. I don’t have any problem with the use of force. But I do have a problem with the foolish use of force by picking fights you’re going to lose. Let’s pick a fight, but let’s make sure it’s one that we can win. So I think that instead of trying to bring China down, which we won’t be able to do, we should be trying to leverage its growing prosperity to increase our own prosperity.

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