Author Topic: US-China (& Japan, South China Sea-- Taiwan, Vietnam, Philippines, etc)  (Read 398092 times)



Crafty_Dog

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Re: US-China (& Japan, South China Sea-- Taiwan, Vietnam, Philippines, etc)
« Reply #1602 on: June 08, 2023, 05:38:11 AM »
Coast guard exercise. U.S., Japanese and Philippine coast guard vessels participated in a joint drill off the Bataan Peninsula west of Manila. A Philippine coast guard official stressed the importance of cooperation with the other two countries to counter foreign intrusions into territorial waters, a reference to Chinese actions in and around the South China Sea.

Crafty_Dog

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Xi prepares China for exteme scenarios
« Reply #1603 on: June 13, 2023, 02:13:08 AM »
Xi Prepares China for ‘Extreme’ Scenarios, Including Conflict with the West
Beijing plays up possibility of worsening ties as the U.S. and China set plans for Blinken visit

Chinese leader Xi Jinping has focused on ringfencing the economy and the country against prolonged tensions with the West. MARK CRISTINO/PRESS POOL
By Lingling WeiFollow
Updated June 12, 2023 12:07 pm ET





As Beijing and Washington move gingerly toward restoring high-level exchanges, Xi Jinping is stepping up his effort to gird China for conflict.

Since late last month, the Chinese leader has twice urged the nation to prepare for what he described as extreme scenarios or conditions—trotting out a phraseology implying the possibilities of escalating tensions as the competition between the U.S. and China intensifies.

At a top-level meeting focused on national security on May 30, the Chinese leader said, “We must be prepared for worst-case and extreme scenarios, and be ready to withstand the major test of high winds, choppy waters and even dangerous storms.”

A week later, Xi extended that concept to the economic arena. While inspecting an industrial park in Inner Mongolia, Xi said efforts to build up the domestic market are aimed at “ensuring normal operation of the national economy under extreme circumstances.”


The comments come as Secretary of State Antony Blinken is planning to travel to China this month as part of the efforts by both governments to rebuild lines of communication derailed by a suspected Chinese spy balloon flying over the American heartland early this year.


Secretary of State Antony Blinken is expected to visit Beijing this month. PHOTO: AHMED YOSRI/PRESS POOL
The warnings about extreme conditions running parallel with the effort to mend ties with Washington suggest Xi isn’t letting up on efforts to ringfence the economy and the country against prolonged tensions with the West.

Liu Pengyu, spokesman at the Chinese Embassy in Washington, said Xi has made it clear the two sides should work together to ensure that the bilateral relations “move forward on the right course without losing direction or speed, still less having a collision.”

The Biden administration wants to establish guardrails around the bilateral relationship to prevent it from evolving into outright conflict. Beijing, on the other hand, appears less interested in the specifics than in the general principles underpinning the relations. In particular, China wants to make sure the U.S. doesn’t cross red lines on matters China considers off limits, such as Taiwan.

Xi, whose political status rivals that of Mao Zedong, shares Mao’s penchant for terms or statements that dramatize perceived foreign threats as a way to secure power. He has mentioned external risks before but the recurring reference to extreme conditions, which came after Xi lashed out at the U.S. for seeking to suppress China’s rise at the legislative session in March, raised new alarms.

Jin Canrong, an influential foreign-policy scholar, didn’t mince words about his interpretation, telling the Global Times, a nationalist newspaper under the Communist Party, that the extreme scenarios Xi referred to mean “the danger of war.”

Bill Bishop, author of the China-focused newsletter Sinocism, noted that Xi’s use of language represents “a significant upgrading of the sense of risk, peril and the need to prepare.”


China has slowly claimed and militarized disputed territory across the South China Sea, often at the expense of its neighbors. WSJ explains the economic repercussions for the U.S. and countries across the Indo-Pacific, and what the U.S. is doing about it.

Having secured an unprecedented third term in power in October, Xi has time and again signaled that China’s relations with the West—the U.S. in particular—could become much choppier, indicating that a main development goal for the next five years is to build a geopolitically resilient economy that is much less dependent on foreign markets and technology.

The recent references to extreme scenarios are at least partly meant to prod policy makers and local leaders to double down on that effort, said policy advisers who consult with authorities in Beijing. Doing so hasn’t been easy for an economy that both counts exports as a traditional driver of growth and relies on Western high-tech.

Senior aides to Xi, including his longtime economic adviser, former Vice Premier Liu He, and Liu’s successor, He Lifeng, have been entrusted with mapping out plans to keep the economy going in the case of much stepped-up U.S. and other Western sanctions—possible scenarios in the event of conflict, the policy advisers said.


The “extreme” wording is emerging as a kind of new catchphrase that is also popping up at local levels of government. Local leaders from the coastal metropolis of Shanghai to the landlocked province of Hunan have also vowed to ready their systems for extreme circumstances, according to official releases, which didn’t elaborate.

“Xi’s overriding mission of his coming term is to harden China from external vulnerabilities,” said Ryan Hass, a senior fellow at the Brookings Institution and a former presidential adviser on China and Asia. “Seen through that lens, it would make sense for Xi to seek to heighten a sense of urgency and importance around strengthening China’s ability to withstand ‘extreme’ conditions.”

Looming over the new Xi-speak is what Beijing sees as increased challenges from Washington over a mission it views as sacred—the eventual reunification with Taiwan.


Chinese leader Xi Jinping shares Mao Zedong’s penchant for statements that dramatize perceived foreign threats as a way to secure power. PHOTO: MARK CRISTINO/PRESS POOL
The U.S. is committed to bolstering Taiwan’s ability to resist coercive tactics from China under pledges including the 1979 Taiwan Relations Act, and the Biden team trumpets its plans to strengthen economic and political links to Taipei. Xi has made reunification with Taiwan, which Beijing regards as a breakaway province, a big part of his “China Dream” of national revival.

There is little sign of imminent Chinese action to take back the island, though there have been plenty of symbolic gestures.

For instance, Chinese airplanes over the past year have significantly ramped up incursions into Taiwan’s air-defense zone. Earlier this month, the U.S. accused a Chinese warship of cutting in front of an American vessel that was taking part in a joint exercise with the Canadian navy in the Taiwan Strait, while Chinese officials essentially blamed the U.S. vessel for encroaching on China’s sovereignty.

In recent meetings with Western diplomats and business executives, Chinese officials appeared to be trying to make a case that the U.S. will seek to goad China into war over Taiwan. The rhetoric is similar to how China has described Russia’s war in Ukraine. Beijing hasn’t denounced the invasion and has instead blamed Washington and its European allies for provoking Moscow into action.


A Chinese warship crossed the path of a U.S. Navy vessel as it was transiting the Taiwan Strait earlier this month. PHOTO: GLOBAL NEWS/REUTERS
Meanwhile, amid deepening economic woes, Beijing is working on wooing foreign businesses, highlighting the contradictions in Chinese policy.

The same day that Xi spoke of “extreme scenarios” at the national-security meeting, Elon Musk was getting a red-carpet treatment in Beijing, with senior officials seeking to use the visits by the Tesla chief executive and other global business leaders to hit back at the Biden administration’s restrictions on doing business in China.

Beijing’s own attempts recently to bring foreign businesses to heel—involving raids, detentions and investigations targeting U.S. consulting and other firms—have made many global companies already worried about geopolitical tensions even more wary of expanding in the country.

The two-prong approach of preparing for worsened tensions while trying to mend fences with the foreign business community and Washington suggests Xi is taking no chances. While inspecting troops when he toured Inner Mongolia last week, the Chinese leader, in military green, called on the army to “forge the Great Wall of Steel to defend the country and defend the border.”

Crafty_Dog

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WSJ: Zombie Engagement- stupidity is how quickly we forget a lesson
« Reply #1604 on: June 15, 2023, 02:38:14 PM »
Zombie Engagement With Beijing
The Biden administration seems determined to revive an approach to China that has failed for 30 years.
By Mike Gallagher
June 14, 2023 1:26 pm ET

President Biden foresees a “thaw” in relations with Beijing. The State Department wants to “move beyond” what Mr. Biden now calls the “silly balloon” and get “back to Bali,” where in late 2022 the president apparently enjoyed a brief honeymoon with General Secretary Xi Jinping. Treasury Secretary Janet Yellen suggests that we needn’t fret about our economic dependence on China, as the costs of decoupling would prove “disastrous.”

If this script sounds familiar, it’s because we’ve seen this movie before. For more than 30 years, Washington has pursued economic engagement with communist China on the theory that economic growth would lead to political liberalization. We now know that prosperity has served only to embolden Mr. Xi’s worst authoritarian instincts.

The scene isn’t confined to economics. Nearly a decade ago, President Obama engaged with Mr. Xi in the hope that he wouldn’t militarize newly constructed islands in the South China Sea. The president in 2015 also announced a cyber agreement with Beijing, believing that it might slow the party’s cyberwar against American companies. Each gambit failed.

By the time the party’s Covid coverup came to light in 2020, it appeared as if the era of wishful thinking had ended. Yet like a zombie in a horror movie, the strategy of unfettered engagement has come back from the dead.


Why is the White House following a path that has proved so fruitless? The charitable interpretation is that Mr. Biden wants to turn down the temperature after pursuing such worthy objectives as semiconductor export controls and basing agreements in the Pacific. There is no harm in talking, proponents of zombie engagement argue, and a failure to communicate could lead to unintentional war.

While crisis communication is important, Beijing is refusing to pick up the phone, and Washington’s pursuit of diplomatic engagement ignores three geopolitical realities.

The first is that the siren song of engagement invariably leads to appeasement in the face of foreign aggression. In keeping with its strategy of cooperation, Washington won’t pursue defensive measures because it fears such moves might provoke Beijing and endanger détente. Our leaders are shelving vital policy actions—such as ending export licenses to Huawei, applying sanctions against party officials responsible for the Uyghur genocide, and releasing details on the downed spy balloon—because they’re concerned with how the party might react. Each day that goes by without these measures, we grow weaker and communist China grows stronger.

The second geopolitical reality is the provocation paradox. The more we wring our hands over whether we’re provoking a Marxist-Leninist regime that has no respect for international rules, the more we create incentives for that regime to act “provoked” at the most insignificant slight.

The third is that the approach simply doesn’t work. Early returns for the latest round of zombie engagement, which the administration euphemistically refers to as “building a floor under the relationship,” aren’t encouraging. As the administration has stepped up its diplomatic courtship of Beijing, we’ve seen the party raid American corporate offices, target American firms through economic coercion, and extend its repression to American soil through secret police stations and spy balloons. Last month, the administration floated the idea of lifting sanctions on Defense Minister Li Shangfu to restore high-level military-to-military conversation. The party’s response? A resounding no thank you.

Instead of reciprocal engagement, we get the recent reports that China is bent on enhancing a spy base in Cuba aimed directly at eavesdropping on Americans. While Washington worries about upsetting Beijing, the Communist Party ruthlessly focuses on achieving its objectives—from taking Taiwan and dominating global technology sectors to stealing intellectual property, from economically supporting North Korea to militarizing islands in the South China Sea and attempting to box the U.S. out of the Pacific. Perhaps party officials don’t feel compelled to talk to our diplomats because they increasingly have more-sinister means of listening to us.

This is the trap of zombie engagement. It almost always places the burden of “improving” relations on the U.S. rather than demanding that Beijing adjust its malign behavior. We give up the farm simply to get to the negotiating table. Once we’re there, we’re beholden to an entirely new process of concessions because of the pressure to present “deliverables.” While we build guardrails for ourselves, the Communist Party builds fast lanes to achieve its long-term objectives.

The alternative strategy isn’t war. We needn’t capitulate to avoid catastrophe. Instead, we must defend ourselves with all the courage and conviction we can muster across the free world. Acquiescence today only makes military conflict more likely tomorrow.

Together, we must move heaven and earth to put hard power in Mr. Xi’s path when it comes to Taiwan. We must hold the Communist Party accountable for its failure to meet trade commitments; expand export controls on critical technologies; impose sanctions on Chinese firms and officials that enable the party’s human-rights abuses, and restrict capital from flowing into China’s emerging tech industry and military-industrial complex.

The Soviet dissident Alexander Solzhenitsyn perhaps best articulated the problem with zombie engagement when he observed: “The very ideology of communism, all Lenin’s teachings are that . . . if you can take it, do so. If you can attack, strike. But if there’s a wall, then retreat. The Communist leaders respect only firmness and have contempt for persons who continually give in to them.”

Instead of zombie engagers, we need to be like Solzhenitsyn’s wall: firm, self-assured and resolute in the face of communist China’s growing threat.

Mr. Gallagher, a Republican, represents Wisconsin’s Eighth Congressional District and is chairman of the House Select Committee on Strategic Competition between the U.S. and the Chinese Communist Party.

Crafty_Dog

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US-China and the Panama Canal
« Reply #1605 on: June 16, 2023, 06:00:50 AM »
General Keane mentioned last night that China now has facilities at both ends of the Panama Canal.

G M

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Re: WSJ: Zombie Engagement- stupidity is how quickly we forget a lesson
« Reply #1606 on: June 16, 2023, 06:30:32 AM »
Good thing the PRC doesn't have blackmail material on the Biden Crime Family!


Zombie Engagement With Beijing
The Biden administration seems determined to revive an approach to China that has failed for 30 years.
By Mike Gallagher
June 14, 2023 1:26 pm ET

President Biden foresees a “thaw” in relations with Beijing. The State Department wants to “move beyond” what Mr. Biden now calls the “silly balloon” and get “back to Bali,” where in late 2022 the president apparently enjoyed a brief honeymoon with General Secretary Xi Jinping. Treasury Secretary Janet Yellen suggests that we needn’t fret about our economic dependence on China, as the costs of decoupling would prove “disastrous.”

If this script sounds familiar, it’s because we’ve seen this movie before. For more than 30 years, Washington has pursued economic engagement with communist China on the theory that economic growth would lead to political liberalization. We now know that prosperity has served only to embolden Mr. Xi’s worst authoritarian instincts.

The scene isn’t confined to economics. Nearly a decade ago, President Obama engaged with Mr. Xi in the hope that he wouldn’t militarize newly constructed islands in the South China Sea. The president in 2015 also announced a cyber agreement with Beijing, believing that it might slow the party’s cyberwar against American companies. Each gambit failed.

By the time the party’s Covid coverup came to light in 2020, it appeared as if the era of wishful thinking had ended. Yet like a zombie in a horror movie, the strategy of unfettered engagement has come back from the dead.


Why is the White House following a path that has proved so fruitless? The charitable interpretation is that Mr. Biden wants to turn down the temperature after pursuing such worthy objectives as semiconductor export controls and basing agreements in the Pacific. There is no harm in talking, proponents of zombie engagement argue, and a failure to communicate could lead to unintentional war.

While crisis communication is important, Beijing is refusing to pick up the phone, and Washington’s pursuit of diplomatic engagement ignores three geopolitical realities.

The first is that the siren song of engagement invariably leads to appeasement in the face of foreign aggression. In keeping with its strategy of cooperation, Washington won’t pursue defensive measures because it fears such moves might provoke Beijing and endanger détente. Our leaders are shelving vital policy actions—such as ending export licenses to Huawei, applying sanctions against party officials responsible for the Uyghur genocide, and releasing details on the downed spy balloon—because they’re concerned with how the party might react. Each day that goes by without these measures, we grow weaker and communist China grows stronger.

The second geopolitical reality is the provocation paradox. The more we wring our hands over whether we’re provoking a Marxist-Leninist regime that has no respect for international rules, the more we create incentives for that regime to act “provoked” at the most insignificant slight.

The third is that the approach simply doesn’t work. Early returns for the latest round of zombie engagement, which the administration euphemistically refers to as “building a floor under the relationship,” aren’t encouraging. As the administration has stepped up its diplomatic courtship of Beijing, we’ve seen the party raid American corporate offices, target American firms through economic coercion, and extend its repression to American soil through secret police stations and spy balloons. Last month, the administration floated the idea of lifting sanctions on Defense Minister Li Shangfu to restore high-level military-to-military conversation. The party’s response? A resounding no thank you.

Instead of reciprocal engagement, we get the recent reports that China is bent on enhancing a spy base in Cuba aimed directly at eavesdropping on Americans. While Washington worries about upsetting Beijing, the Communist Party ruthlessly focuses on achieving its objectives—from taking Taiwan and dominating global technology sectors to stealing intellectual property, from economically supporting North Korea to militarizing islands in the South China Sea and attempting to box the U.S. out of the Pacific. Perhaps party officials don’t feel compelled to talk to our diplomats because they increasingly have more-sinister means of listening to us.

This is the trap of zombie engagement. It almost always places the burden of “improving” relations on the U.S. rather than demanding that Beijing adjust its malign behavior. We give up the farm simply to get to the negotiating table. Once we’re there, we’re beholden to an entirely new process of concessions because of the pressure to present “deliverables.” While we build guardrails for ourselves, the Communist Party builds fast lanes to achieve its long-term objectives.

The alternative strategy isn’t war. We needn’t capitulate to avoid catastrophe. Instead, we must defend ourselves with all the courage and conviction we can muster across the free world. Acquiescence today only makes military conflict more likely tomorrow.

Together, we must move heaven and earth to put hard power in Mr. Xi’s path when it comes to Taiwan. We must hold the Communist Party accountable for its failure to meet trade commitments; expand export controls on critical technologies; impose sanctions on Chinese firms and officials that enable the party’s human-rights abuses, and restrict capital from flowing into China’s emerging tech industry and military-industrial complex.

The Soviet dissident Alexander Solzhenitsyn perhaps best articulated the problem with zombie engagement when he observed: “The very ideology of communism, all Lenin’s teachings are that . . . if you can take it, do so. If you can attack, strike. But if there’s a wall, then retreat. The Communist leaders respect only firmness and have contempt for persons who continually give in to them.”

Instead of zombie engagers, we need to be like Solzhenitsyn’s wall: firm, self-assured and resolute in the face of communist China’s growing threat.

Mr. Gallagher, a Republican, represents Wisconsin’s Eighth Congressional District and is chairman of the House Select Committee on Strategic Competition between the U.S. and the Chinese Communist Party.


ccp

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« Last Edit: June 22, 2023, 07:11:34 AM by Crafty_Dog »

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Re: US-China (& Japan, South China Sea-- Taiwan, Vietnam, Philippines, etc)
« Reply #1610 on: June 22, 2023, 07:14:12 AM »
There is a tenor to that piece that does not read well to me, e.g. the description of Blinken at the Alaska meeting.


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George Friedman: How to read a nation's intentions
« Reply #1612 on: June 24, 2023, 06:02:35 PM »
I disagree with the general tenor of this piece regarding China but find it intelligent.



June 23, 2023
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How to Read a Nation’s Intentions
By: George Friedman

Last week, several readers challenged my assertion that China was acting out of fear of the United States. They said the U.S. had in no way threatened China and had never claimed any intention of going to war with China, and that, in fact, Beijing had frequently threatened fundamental U.S. interests, including those in Taiwan. China, then, has no reason to fear the U.S. and could not, therefore, be acting out of fear. These are fair responses, but because they illustrate a critical element of forecasting – determining what matters and what doesn’t – I’d like to articulate my reasons more thoroughly.

Nations don’t evaluate other nations’ intentions by what they say. They evaluate them by understanding a nation’s imperatives and fears, and, as important, the ways in which another nation can hurt them, particularly militarily. Intent and ability mean everything. If a nation concludes it is in another nation’s interest to act against it, then it must assume it is under threat. This rarely has anything to do with what is said publicly. The Japanese never threatened to attack Pearl Harbor; in fact, talks between the U.S. and Japan were underway in Washington when Japan attacked. The absence of words can mean anything.

If I were China, I would note the following about the United States. First, the U.S. regards China as a long-term threat, one that could someday expand its influence into the Pacific Ocean and thus threaten not just a buffer zone but the foundation of American security. Second, the U.S. maintains a large naval and air force presence near China. Third, China does not have a non-nuclear way to counter the U.S. by attacking the U.S. mainland. Fourth, as China expands its military force to contain the U.S., Washington’s anxiety will only increase the threat. Last, the U.S. has indeed acted against what it sees as a threat from China’s economic growth – potentially raising the odds of an eventual military threat.

From a strategic point of view, China’s most vital and vulnerable assets are its ports on its east coast. The trade China’s economy depends on must come through these ports. U.S. forces, then, could strangle Chinese trade by blockading these ports. This fear was compounded by the recent deal to allow more U.S. bases in the Philippines, and then by a similar agreement with Papua New Guinea. This creates a cordon that essentially stretches from the Aleutians to Australia. The U.S. has gone to great lengths to draw this line. The ability of the U.S. to block those ports frightens China far more than a hostile statement. In the real world, unspoken threats like these are the ones that really matter.

So even if Washington never explicitly threatens China with war, China nonetheless feels threatened by what the U.S. has done, not by what it has said. With little ability to respond militarily or diplomatically, China must for now accept the reality the U.S. has imposed on it and seek accommodation until the balance of power changes. The U.S. is content with the arrangement so long as China doesn’t threaten U.S. interests in the Pacific.

Both act on the potential threat, not on verbal abuse and charges. That China placed a listening post in Cuba is minimally threatening. If it installed nuclear weapons on the island, that would be another matter. It is the significance of the threat that generates fear, and the U.S. has generated fear. As I formulate a forecast, I will watch how China responds. Will it break the American threat or impose a threat of its own? Until then, the Chinese fear of the United States will be real and rational, which is why now is the best time to negotiate with China – and this is precisely what Secretary of State Antony Blinken is doing.

China is concerned about U.S. intentions because of U.S. capabilities and its past actions. Or, put differently, China fears the U.S. The U.S. fears China too. The fact that the U.S. hasn’t attacked China with words means nothing to a Chinese policymaker – that's certainly not something to bet a country on.
« Last Edit: June 24, 2023, 06:12:08 PM by Crafty_Dog »

ya

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Re: US-China (& Japan, South China Sea-- Taiwan, Vietnam, Philippines, etc)
« Reply #1613 on: July 01, 2023, 04:40:54 AM »
India typically avoids taking anti-China positions, so as not to pi$$ them off...but things are changing.
https://thewire.in/diplomacy/for-the-first-time-india-calls-for-abiding-by-the-2016-arbitral-award-on-south-china-sea

Crafty_Dog

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Re: US-China (& Japan, South China Sea-- Taiwan, Vietnam, Philippines, etc)
« Reply #1614 on: July 01, 2023, 07:42:39 AM »
I referenced the arbitral award here several times in years gone by.  Seems to me a strong political argument to make and very glad to see India asserting the point.  Beijing Joe may not notice though.


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Re: US-China (& Japan, South China Sea-- Taiwan, Vietnam, Philippines, etc)
« Reply #1617 on: July 06, 2023, 07:35:37 AM »
This matter of the Green Leap Forward putting our neck under the Chinese boot needs to be spoken of LOUDLY.

DougMacG

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US-China, our deficit, debt issues compete with our geopolitical interests
« Reply #1618 on: July 11, 2023, 06:15:24 AM »
Yellen goes to China, wants them to buy our debt.  Looks desperate. Opposite of the stature we want to negotiate larger issues from.

https://asiatimes.com/2023/07/china-raises-five-demands-during-yellens-visit/

Deficits in the trillions and debt in the tens of trillions are choices we make. Stupid political choices. Stupid economic choices. Stupid geopolitical choices.

Where are the adults in the room? Yellen is the Treasury Secretary. She was the Chairman of the Federal Reserve. She didn't criticize deficit spending then. She doesn't criticize it now. So she goes to China and looks desperate right when we need to look strong.

China is a seller of our debt, not a buyer of our debt. They have their own financial issues. 

One message to China is, we don't need you. The civilized world is moving on if you can't get your humanitarian and otherwise act together. But her message is, we need you to buy our debt, and their answer back is we have many demands of the United States.

Meanwhile, we release the richest among us from their consensual, contractual debt obligations to us.
« Last Edit: July 11, 2023, 06:39:25 AM by DougMacG »

Crafty_Dog

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Re: US-China (& Japan, South China Sea-- Taiwan, Vietnam, Philippines, etc)
« Reply #1619 on: July 11, 2023, 09:41:00 AM »
Then there is the matter of her apparently thinking that because they have similar eyes, Chinese are into bowing like the Japanese are and her then literally bowing/kowtowing to the Chinese official greeting her.

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Could be, but beware three card monte
« Reply #1621 on: August 03, 2023, 01:39:17 PM »
The following analysis could be correct, but for me I have concern the personel changes it discusses are easily reversed eyewash-- with Xi being Lucy and the football, and Blinken being Charley Brown.


August 3, 2023
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China’s Slowdown Triggers Changes
Recent policy shifts indicate an acknowledgement of disappointing economic figures.
By: Victoria Herczegh

New data released by China’s National Bureau of Statistics in July show where the country’s long-awaited economic rebound stands today. The figures clearly indicate that economic growth over the past several months has fallen short of market expectations. In the second quarter, gross domestic product grew by only 0.8 percent, down from 2.2 percent in the first quarter. Unemployment among people aged 16 to 24 grew to a record 21.3 percent – the sixth consecutive monthly increase. Trade was also disappointing, falling by about 6 percent in June, with exports declining by 8.3 percent.

While most nations around the world are battling inflation, the big concern for China is deflation. In June and July, consumer prices remained flat while factory-gate pricing (the cost of goods quoted by manufacturers) declined. Due to the struggling real estate sector and generally low market confidence, China’s consumer price index recorded its lowest reading since February 2021, while its producer price index fell by 5.4 percent in June compared to the previous year – the steepest fall since 2015. Chinese financial firms, hospitals, schools and even some private businesses have introduced deep cuts to worker salaries, adding to the risk of deflation.

After the data was released, President Xi Jinping chaired a meeting of the Politburo in Beijing, where members discussed the Chinese economy’s heightened risks, thus openly admitting that the country was experiencing economic challenges – a rare admission for the Chinese leadership. Politburo members introduced a targeted action plan aimed at shoring up ailing sectors and boosting confidence. However, the central government introduced a similar package of measures four years ago, and as the new data demonstrates, it was not nearly enough to address the key issues. The challenges facing the Chinese economy today, including wage pressures and the risk of deflation, are potentially even more disruptive than those of four years ago and could threaten one of the key pillars of Chinese stability: social welfare.

The Chinese leadership seems increasingly concerned, leading it to make notable changes in recent months. The government in Beijing has been preoccupied by the security situation in Hong Kong and Macau, taking more direct control of these regions. And in July, it launched its latest “strike hard” campaign in the western region of Xinjiang, cracking down on any gatherings of more than 30 people in an area that’s home to many minority ethnic groups, including Muslim Uyghurs. These three locations are of particular concern for the government: Hong Kong saw massive pro-democracy protests in 2019, and Xinjiang’s repressed minority groups could be a source of unrest in the future. The government has also increased monitoring of online and offline activities of university students, especially in China’s tier-one cities. Considering that unemployment is highest among new graduates, universities are a natural place of potential protest.

One strategy China has used for years to try to boost economic growth is to increase overseas use of its national currency, the yuan. Russia, Saudi Arabia, Brazil and Argentina are among the countries that have accepted use of the yuan in trade. But the U.S. dollar still dominates the world, accounting for 90 percent of foreign trade, meaning that access to dollars and U.S. trade will be critical to China’s efforts to rebound – especially since the country relies on exports for economic growth. The latest trade figures indicate Chinese business could be struggling in this regard. European and Southeast Asian countries are some of China’s biggest trade partners, but the only single market that could give China a substantial boost is the United States, which has been pressing for a decoupling from the Chinese economy. Top officials from both nations have held talks to try to resolve their differences, but no meaningful agreement has been reached.

Among the officials typically involved in such talks is the foreign minister, a post that has been the source of much speculation in China lately. Last week, Foreign Minister Qin Gang, a career politician and Xi’s right-hand man, was replaced by his predecessor, Wang Yi. Qin had not been seen in public for weeks and was noticeably absent from a string of scheduled summits and bilateral talks. The Foreign Ministry said Qin’s absence was due to health issues. But it gave no explanation for his removal and deleted all official records of his activities as foreign minister after his removal.

Qin was widely known as one of the closest Chinese officials to Xi. The president supported his rise through government ranks and openly praised him for his hard work and dedication several times in recent years. In March, when Xi was awarded a third term in office, he surrounded himself with loyalists who fully embraced his leadership and removed some members of the Politburo who had in some way criticized his agenda. Qin retained his post through that period, making his removal now even more dubious.

Notably, however, Qin had a radically anti-U.S. stance throughout his time as foreign minister. He repeatedly made hostile statements about the United States, accusing Washington of being driven by “hysterical neo-McCarthyism” and of pursuing policies that could push the two countries toward conflict and confrontation. His rhetoric was similar to the way Xi used to characterize relations with the United States – though he softened his tone when the economy slowed after the pandemic. In April, Qin visited the Philippines – a strategically important country situated along major trade routes in the region – in an attempt to improve ties and discourage President Ferdinand Marcos Jr. from expanding Washington's military presence there. His efforts were predictably unsuccessful, given Qin’s criticism of the U.S. and Manila’s long-standing close ties to Washington. Qin was also supposed to meet with U.S. Treasury Secretary Janet Yellen when she visited Beijing in mid-July, but he failed to attend the talks.

It's not implausible that Xi removed his foreign minister to make amends with the U.S., believing that this could help put trade relations between the two countries back on track. Qin’s successor is known to display a milder, more constructive tone and has already held a number of candid talks with U.S. Secretary of State Antony Blinken, who recently said he knows Wang well and likes him a lot.

Recent events thus suggest that China is now on a less radical path. The central government has realized it needs a more targeted set of reforms to improve economic conditions in the country. The Housing Ministry is planning to finally introduce measures to reduce speculation in the property market. It’s also promised to help individual home owners by easing restrictions on buying a second house and reducing down payment ratios for first-time homebuyers. These are drastic changes that until now were seen by the leadership as unnecessary. The government has also paused its 32-month-long crackdown on big tech and is encouraging tech firms to expand and hire more employees. Politically, Xi appears to be sacrificing his closest allies to pursue more fruitful diplomacy, especially with the United States. For Beijing, improving relations with the U.S. to secure dollar-based trade and investment is more critical than internal economic reforms. More changes to Xi’s Cabinet can be expected. What we’re seeing is the beginning of a shift in China’s political and economic orientation, which will have implications for its foreign affairs as well. Considering its current circumstances, China needs a change now more than ever.

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D1: China-Philippines clash, Sec Def Austin
« Reply #1622 on: August 09, 2023, 11:01:52 AM »


The China-Philippines standoff in the South China Sea drew the U.S. military's attention on Tuesday, as Pentagon chief Lloyd Austin rang up his Philippine counterpart Gilberto Teodoro Jr. to discuss the Chinese "efforts to obstruct the Philippine resupply mission to Second Thomas Shoal on August 5," the Defense Department said afterward. In the call, Austin reaffirmed the U.S.-Philippine defense alliance, and he "condemned the China Coast Guard's use of water cannons and other dangerous maneuvers, which put the safety of Philippine vessels and crew at risk," according to the Pentagon.

Notably, Austin told Teodoro that the two nations' Mutual Defense Treaty "extends to Philippine public vessels, aircraft, and armed forces—to include those of its Coast Guard—in the Pacific, including in the South China Sea."

Review a lengthy and "laughable" Tuesday statement from China's embassy in Manila regarding the water cannon episode on Saturday. Regional security analyst Collin Koh broke down the statement on social media Tuesday, and isolated several instances of apparent hypocrisy and cognitive dissonance from the Chinese. Find that analysis, here.
===================

https://www.reuters.com/world/asia-pacific/china-repeats-call-philippines-remove-grounded-warship-2023-08-08/

====================

https://twitter.com/CollinSLKoh/status/1689057855624945664

Crafty_Dog

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D1: US may build a civilian port in the Philippines near Taiwan
« Reply #1623 on: August 31, 2023, 08:10:32 AM »
The U.S military may soon build a civilian port for the Philippines that's pretty close to Taiwan, Reuters reported Wednesday from Manila. It would be located in the Batanes islands, which sit about 125 miles from Taiwan and are home to about 18,000 people. (Map, here.) Discussions are underway.

Why it matters: "The Bashi Channel between those islands and Taiwan is considered a choke point for vessels moving between the western Pacific and the contested South China Sea and a key waterway in the case of a Chinese invasion of Taiwan," Reuters writes.

Its civilian purpose would ostensibly be "to assist the unloading of cargo from the capital, Manila, during rough seas in the monsoon season," according to the provincial governor, Marilou Cayco. A decision on the new port could come as soon as October, Cayco said. Read more, here.

Related reading:

"China's new national map has angered its neighbors," CNN reported Thursday;
"Philippines, Taiwan, Malaysia reject China's latest South China Sea map," Reuters reported Thursday as well;
And "US given OK to enforce maritime law around Palau as Washington vies with China for Pacific influence," the Associated Press reported Tuesday.



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Re: US-China (& Japan, South China Sea-- Taiwan, Vietnam, Philippines, etc)
« Reply #1626 on: September 09, 2023, 08:02:16 AM »
China is slowly being strangled, will take a decade.


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Re: US-China (& Japan, South China Sea-- Taiwan, Vietnam, Philippines, etc)
« Reply #1627 on: September 09, 2023, 08:03:43 AM »
Yay!  Please post in the Decoupling thread as well.


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WSJ: China getting froggy
« Reply #1629 on: October 25, 2023, 12:20:30 PM »
Meanwhile, China Trouble in the Pacific
A China-Philippines wreck shows Beijing’s increasingly risky military moves.
By
The Editorial Board
Follow
Updated Oct. 25, 2023 10:41 am ET

A Chinese coast guard ship, left, with a Chinese militia vessel, right, blocks Philippine coast guard ship, BRP Sindangan as it tried to head towards Second Thomas Shoal at the disputed South China Sea during rotation and resupply mission on Oct. 4 PHOTO: ASSOCIATED PRESS

The U.S. is putting military assets into the Middle East to deter a larger war, but other parts of the world aren’t receding into calm. The latest sparks in the Pacific demand a real bipartisan effort to pour U.S. hard power west of the international dateline to deter a provocation from China.


Over the weekend in the South China Sea, a Chinese coast guard vessel collided with a Philippine boat that was attempting to resupply military personnel on the Second Thomas Shoal in the Spratly Islands. Beijing regularly harasses Philippine vessels as it tries to exert control over the islands.

China has assets that include coast guard vessels, civilian boats and an increasingly large and sophisticated navy. The Pentagon says in a new report that the People’s Liberation Army Navy runs 370 ships deep, up from an estimate of 340 ships a year ago.

Americans are aware that Beijing may try to swallow Taiwan, but the Philippines incident is a reminder that China’s ambitions are bigger than Taipei and include dominating the region and dictating rules to the world. Beijing could provoke a conflict with the Philippines or Japan, and the U.S. is bound by treaty to defend both.

Beijing is taking more military risks. The Pentagon this month released details about China’s “sharp increase in coercive” behavior in the East and South China Seas. The Pentagon cited 180 dangerous incidents since autumn 2021—“more in the past two years than in the decade before that.” One PLA jet fighter harassed an American aircraft, “clearly armed and closing to just 30 feet away,” and lingering for more than 15 minutes.

The Biden Administration deserves credit for telling Americans about the growing risks, but it has followed up with a supplemental budget request that treats the Pacific as an afterthought. Last week’s request to Congress includes such worthy priorities as $3.4 billion for building more U.S. submarines but only $2 billion in security assistance for regional partners.

There is no shortage of projects worth funding—stockpiling more weapons in Taiwan; speeding up the island’s deliveries of Harpoon antiship missiles; and large new orders of long-range antiship missiles for U.S. forces.

Yet two regional wars so far haven’t startled Washington into taking real steps to deter China. Former U.S. Indo-Pacific commander Harry Harris was right last week when he said at an American Enterprise Institute event that the U.S. is building military force for the 2030s when the acute challenge is in the 2020s.

Some Republicans argue that the U.S. should pull back from Ukraine and Israel to focus military resources on Asia. But abandoning either one would signal to U.S. allies in the Pacific—and to China—that Washington can’t be counted on in a crisis. That is courting trouble on a third global front.

Many foreign-policy sages said Vladimir Putin wouldn’t really roll into Ukraine or thought that Israel had subdued the threat from Hamas. They were wrong, and war now rages in Europe and the Middle East. War still may be preventable in the Pacific—if President Biden and Congress start to change course.

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GPF: Coast Guard unit for Western Pacific
« Reply #1630 on: October 25, 2023, 06:52:54 PM »
second

Pacific watch. The U.S. Coast Guard launched a new unit dedicated to combatting illegal and unregulated fishing in the Western Pacific. The unit, based on Ford Island in Hawaii, will work with U.S. allies in the Pacific to monitor illegal activity and support responses to incidents in their territorial waters.

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GPF: Philippines
« Reply #1632 on: November 06, 2023, 02:30:49 PM »
Philippine foreign relations. India has offered the Philippines at least seven helicopters for use by its coast guard during rescue and humanitarian operations, Philippine President Ferdinand Marcos Jr. said in a statement on Sunday. The offer comes amid Manila’s deteriorating ties with Beijing in the South China Sea. Meanwhile, Marcos and the prime minister of Japan agreed on Nov. 3 to start talks on a defense pact meant to facilitate the presence of visiting forces and conduct joint military training activities.

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Taiwan,
« Reply #1633 on: November 06, 2023, 02:51:04 PM »
Chinese threat. Taiwan’s intelligence agencies are monitoring for any signs of potential Chinese aggression, the director of Taiwan’s National Security Bureau said during a budget meeting. He emphasized that Beijing has increased its military presence not only in the Taiwan Strait but also in the East China Sea, South China Sea and Western Pacific, and hopes to have the capability to seize Taiwan by 2027.

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Re: Taiwan,
« Reply #1634 on: November 07, 2023, 06:07:55 AM »
Chinese threat. Taiwan’s intelligence agencies are monitoring for any signs of potential Chinese aggression, the director of Taiwan’s National Security Bureau said during a budget meeting. He emphasized that Beijing has increased its military presence not only in the Taiwan Strait but also in the East China Sea, South China Sea and Western Pacific, and hopes to have the capability to seize Taiwan by 2027.


Both the tactics and the time line seem about right if we stay on the same course.

Four more years of tiresome news for Taiwan that China has moved more and more and more military assets into threatening positions, and then one day, one day before Barack, Joe and Kamala complete their 16th lazy year of not defending freedom, China will strike.

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Re: US-China (& Japan, South China Sea-- Taiwan, Vietnam, Philippines, etc)
« Reply #1635 on: November 07, 2023, 06:17:26 AM »
A little bit delusional, but I have a dream.

I have a dream that one day Taiwan's political system takes over mainland China and that Chinese people have to go to the polls every 2 or 4 years and pick their own lousy leaders - like we do.

I get it that since Tiananmen Square 1989 we have only moved further and further from that ideal but I don't get why we give up on it.

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Re: US-China (& Japan, South China Sea-- Taiwan, Vietnam, Philippines, etc)
« Reply #1636 on: November 07, 2023, 09:02:36 AM »
Love it!

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Re: US-China (& Japan, South China Sea-- Taiwan, Vietnam, Philippines, etc)
« Reply #1637 on: November 07, 2023, 11:10:55 AM »
Moscow's partners. Russia and Myanmar began their first-ever joint naval exercises on Tuesday. The drills are taking place in the Andaman Sea and will run until Nov. 9. Meanwhile, Russia's military prosecutor’s office and China’s Ministry of Defense signed a cooperation agreement in Xian.

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GPF: Chinese building base in Cambodia
« Reply #1638 on: November 14, 2023, 02:13:55 PM »
Cambodian base. A new Chinese-built military base in Cambodia will be larger than many had anticipated. There’s reportedly new indication that the project is progressing rapidly and includes construction of a dry dock. Cambodia insists that the base will be used by its own navy, but many analysts are skeptical, believing the Chinese navy will use the base to expand its overseas presence.

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Today's episode in where appeasement gets us
« Reply #1639 on: November 16, 2023, 05:58:06 AM »

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Re: US-China (& Japan, South China Sea-- Taiwan, Vietnam, Philippines, etc)
« Reply #1640 on: November 16, 2023, 06:19:58 AM »
The one thing McCain was right about:   Blinks.

Blinks is thinking Nobel Prize:    :wink:


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Xi Biden Summit, China to send more pandas to US zoos
« Reply #1641 on: November 16, 2023, 07:05:05 AM »
https://www.bbc.com/news/world-us-canada-67433961

We cleaned up San Fran for that?

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US-China, energy cost advantage,
« Reply #1642 on: November 17, 2023, 07:40:36 AM »
From a post on Energy thread:

US is spending $2 trillion in the mis-named Inflation Reduction Act to reduce CO2 emissions by 1 Gigaton/yr.

During that time, China will INCREASE its CO2 emissions with new coal plants by 2 Gigatons/yr.

Net save-the-climate gain:  far worse than zero.

Meanwhile, China will have a huge cost advantage on the production of everything else because of much cheaper energy.

China produces over 60% of the world’s aluminum, refines over half of the world’s copper—the element that is the keystone of 90% of all things electrical—and 90% of the world’s refined rare earth elements vital for many electric motors or generators, and irreplaceable in many high-tech applications including solar cells and wind generators, 90% of the globes refined gallium, the element that makes possible the magical semiconductor gallium-arsenide used to make many tech things, not least lasers and LEDs; and 60% of the world’s refined lithium, 80% of the world’s refined graphite that is used in all lithium batteries, and 50% to 90% of many key chemical formulations and polymer parts needed to fabricate lithium batteries.
« Last Edit: November 17, 2023, 08:22:39 AM by Admin »

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Re: US-China, APEC
« Reply #1643 on: November 19, 2023, 07:05:55 AM »
Xi’s 10 years as president are marked by a genocide against China’s Muslim minority, attempts to wipe out Tibetan culture, and persecution of Christians and followers of Falun Gong – not to mention a crackdown on democracy, religious freedom, and civil rights in Hong Kong.

Yet, during official and unofficial meetings this week, there was no mention of the long list of atrocities. Instead, Xi received an unusually warm reception. 
    By Susan Crabtree - RCP

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GPF: Manila bypassing Beijing?
« Reply #1644 on: November 20, 2023, 03:56:25 PM »
Manila is bypassing Beijing with its South China Sea plans.
By: Geopolitical Futures

Code of conduct. The Philippines is seeking to develop a code of conduct for the South China Sea with other countries in the region like Malaysia and Vietnam, Philippine President Ferdinand Marcos Jr said. It would be a separate agreement from the one being negotiated between China and the Association of Southeast Asian Nations, the progress on which has been slow. Marcos said China’s increasing assertiveness in the region has made the situation “more dire.”





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WSJ: America's chance to blunt China's encroachment
« Reply #1649 on: December 05, 2023, 03:21:10 AM »
America’s Chance to Blunt China’s Encroachment
Offering better investment terms to developing countries is essential to prevent Beijing from controlling the supply of important natural resources.
By Daniel Silverberg and Elena McGovern
Dec. 4, 2023 6:38 pm ET


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While the U.S. rightfully focuses on bringing its hostages home from Gaza and alleviating broader tensions in the Middle East, the U.S.-China competition continues unabated. The supplemental funding package for Israel that President Biden proposed in October contains a $1.25 billion funding request for the International Bank for Reconstruction and Development—a part of the World Bank—to help developing nations such as Kenya, Morocco and Nigeria get loans from Western organizations instead of from China. Congress should endorse this package and enact additional measures to weaken Chinese economic influence in the developing world.

For a decade, China has pushed its Belt and Road Initiative—an ambitious project aimed at linking countries around the world through railways, pipelines and other infrastructure financed by Chinese state-owned banks. The U.S. can offer better partnerships to secure countries’ futures while making the U.S. economy more resilient.

Over the past decade, China, through its Asian Infrastructure Investment Bank, has sought to expand its influence by providing cut-rate loans to developing countries. Even though Chinese workers have built substandard infrastructure, such as a cracking dam in Ecuador and faltering railroads in Ethiopia and Djibouti, impoverished countries continue to seek these loans, particularly to fund their green-energy transitions, indebting themselves to China for decades. China is using its banking power to dominate critical supply chains and spread the Communist Party’s soft power. The U.S. and its allies must act quickly and decisively to blunt its influence.

The Biden administration has been pushing for months to ensure that the U.S. and its allies, not China, control the supply chains critical to the green-energy transition. Mr. Biden and Group of 20 partners threw down an economic gauntlet against China in September with a revolutionary rail-to-port project connecting India with Europe. The India-Middle East-Europe Economic Corridor, or IMEC, will allow India and the United Arab Emirates to pump clean hydrogen into Europe, along with strengthening the power and digital infrastructure of participating countries.

The Biden administration believes that breaking America’s and its allies’ dependence on Chinese supply chains requires not only securing the raw materials for products like electric vehicles, but also safeguarding supply-chain infrastructure like railroads and seaports.

The $1.25 billion proposed by the administration would be a critical first step. It would allow the World Bank to provide financing to developing countries to build ports, railroads and mines that would be helpful to the U.S. Besides this funding, Congress should undertake four other reforms to help the U.S. fight the resource battle against China.

First, fix how the U.S. International Development Corp.’s equity investments are scored so that early-stage companies in emerging and frontier markets like the Democratic Republic of the Congo can attract investment. At present, the agency is required to treat equity investments as a total loss, akin to a grant, instead of allowing for expected return on investment. Changing these requirements would allow the agency to work with transparent global companies that are environmentally responsible and invest in local workers.

Second, double down on America’s commitment to the Group of Seven’s Partnership for Global Infrastructure and Investment, the vehicle by which Mr. Biden launched the India-Middle East-Europe Economic Corridor. The initiative involves corralling U.S., foreign and private capital to outbid Chinese interests in sectors vital to the West.

Third, seek to expand the World Bank’s risk threshold to allow greater investment in the infrastructure projects necessary to secure mineral supply chains. The World Bank currently takes a highly conservative approach toward investing in projects that China would be happy to fund. Congress can help by pushing the bank and its new leader, Ajay Banga, to raise the overall risk profile of World Bank loans.

Fourth, encourage the International Monetary Fund to create financing programs for countries of strategic importance, similar to the fund established for Ukraine in March. The IMF has restrictions on lending to countries in arrears, but the U.S. needs countries with critical mineral deposits, such as Zambia and Ghana, to escape their extensive Chinese debt obligations, and the IMF can provide them the means of doing so.

If the U.S. spreads its efforts too thin or focuses primarily on military power at the expense of economic diplomacy, it will lose this competition. But if it musters its finances and those of allied partners to address this most dire of Chinese economic threats, it will have a fighting chance.

Mr. Silverberg is a managing director at Capstone LLC, an adjunct senior fellow at the Center for a New American Security and a former national security adviser to Rep. Steny Hoyer of Maryland. Ms. McGovern is a co-leader of Capstone’s national-security practice.