China Keeps on Milling

China has reported that through the first three quarters of the year its steel industry has continued its rapid growth with a total production of 255.286 million tons of crude steel, up 27.39 percent year-on-year.

This growth numbers for iron and rolled steel show that the production of iron was 239.213 million tons, up 30.98 percent and rolled steel was 268.819 million tons or an increase of 25.82 percent.

This has transformed into significant profit for 68 major Chinese steel companies totaling 903.09 billion yuan, up 25.63 percent and the profits were 65.35 billion yuan, up 11.73 percent year-on-year.

The numbers just keep on showing that the PRC has reached the status of industrial power, and the industries that China keeps concentrating on growing are all vital to militaristic expansion. With steel production comes the ability to maintain a major military force required to accomplish China's ambitious world domination goals.

You don’t see the same kind of growth numbers in Chinas health or education sectors, mostly due to their perceived irrelevance in helping the Peoples Liberation Army.

Western Companies Walk the Plank

Piracy of products and trademark rip-offs have found a home in China that has caused US companies an estimated $2.5 billion to $3.8 billion in lost revenue. Piracy of products has become so prevalent that China is now one of the worlds leading exporters of pirated and trademark infringed goods, ranging from Hollywood DVDs' to car auto parts.

The PLA has stated that it has been unable to combat this piracy due to lack of resources and manpower. However, now we see that when it comes to the Olympics and the communist party loosing profit due to piracy, all of a sudden they have found the manpower and money to very effectively combat illegal activity related to piracy of Olympic Game goods.

Once again this shows that the PRC does everything in its power to improve Chinese industry at the cost of Western companies. It is their ultimate goal to have all major Western companies be replaced by Chinese owned ones, and in this way insure economic dominance required for later world domination.

A History of Chinese Aggression

While many might buy into the lie that China has never been a country to invade another nation, if you look through out history you will see that it is full of Chinese aggression.

We can start in the past when after the different principalities were united under the Qin dynasty to form the first centralized Chinese state. Then the Han dynasty took over and they peaked after conquering the Xiongnu nomads of the western part of China. The next period of aggression came when the Mongols set up the Yuan Dynasty and conquered most of what is today modern China. This was when the Chinese tried twice to conquer Japan both times being foiled by Typhoons (called kamikaze in Japanese) that destroyed the Chinese armadas.

However, we do not need to go back in history to find periods of Chinese aggression. Ever since China has come under communist rule in 1949, its history has been filled with very bloody, aggressive proxy wars.

• We can start with the Korean War where against a UN mandated military action China sent in one million troops to defend North Korea against UN coalition forces.
• The Chinese conquest of an independent Tibetan kingdom.
• Then there was the Sino-India conflict, in which china invaded and tried to get control of Indian held territory. This ended in a Chinese defeat.
  After the failure with India there was a failed invasion attempt across the Soviet border in 1969 in the Damanskiy Island area.
• That was followed by a war of aggression against Vietnam in 1979.

This is just to show that you should not buy into Chinese propaganda that they are a peaceful nation that has no history of aggression. Just like any other major country they have always been the bully in the area, but unlike other powers they manage to always portray themselves as a victim.

China's Master Plan for America's Distruction

Here is the link to "Unrestricted Warfare" written by Qiao Liang and Wang Xiangsui, both senior colonels in the PLA and the new generation of Chinese leaders.

Regrettably this is only excerpts from the book, I am sorry but I lost the link to the entire copy of the book. However, Amazon has started to sell it, I think.

This is the book that woke me up to the Chinese threat and a book that is used by the entire Chinese officer corps as a manual to how better combat America, and in the future take it over.

You have to remember that this book was published in 1999 and if you read even the excerpts I am linking to, you will see that many things have already happened. I will try to give some in-depth analysis in future posts, just because I think this is the most important book that no one is talking about.

For those not able to open the HTML version here is a PDF copy.

The US Cultural Empire Strikes Back

For all the recent success China has experienced in the economic, political, and military sectors it still lacks in the export of its culture abroad. Even worse for the communist leadership of the PRC, its people love western culture to a point where if you want to be seen as successful you have to become westernized.

This has led to a boom in people wanting to learn English, while (regrettably) at the same time mandarin Chinese is not one of the top studied languages in America.

Culture should be the only thing that gives hope to us in America, and that through culture maybe the people of China will wake up and realize that a “socialist political democracy” is not in their best interest. Hopefully, they will see that their communist leadership does not want to better them but instead is looking to gain further control over China's population and in the end the population of the entire world.

China's Sputnik Surprise

In a great report by Charles P. Vick a Senior Fellow, Space Defense policy, for globalsecurity.org we can see the beginnings of what could amount to a modern day Sputnik surprise for America.

Mr. Vick takes great care to analyze open source information to draw a conclusion that by 2015 China could beat the US in a space race. Even today we can see, the Chinese are already quickly progressing through all the initial stages of manned space flight in an effort to catch-up to America in Space technology.

It is only of matter of time before the quickly expanding Chinese space program outpaces the stagnant US program. In a different era this would not have been a tragic problem for us, but instead would have acted as a catalyst for progress and advancement. However, with the state of the US economy and industry we will not be able to recover from this surprise, and in the end be forced to surrender our technological advantage. As Mr. Vick says,

"In the final analysis China ’s efforts in space can only help, because it will force whoever occupies the Oval Office to address issues that have been largely ignored since the early 1970's. The US however, may not even be able to address these issues because of problems with the economy, huge national debt, and a possible devaluation of the dollar. The US is simply not the economic powerhouse it once was because of poor internal industrial management decisions, to the delight of many opponents of our social system world wide. If we do not watch it we can bankrupt the US economy as the former Soviet Union did to its self creating a huge vacuum for chaos to break loose far worse than the current situation."

This advantage in space will quickly lead to the military supremacy of the PLA over any opposition force including the US military. With the military advantage the PRC will be able to carry out its political ambition of world dominance. For as the report says, "The Military is the State and the State is the Military under this Chinese authoritarian regime."

China Expands Nuclear Strike Ability

According to Secretary of Defense Donald Rumsfeld China has been expanding its nuclear strike capability. This came as he continues his visit to China, in attempts to force the Chinese military to be more transparent in their recent military buildup.

Some of the data shows:

• China's military spending could grow to $US90billion this year; more than triple the published figure of $US29billion.
  
• China was adding about 100 missiles a year to its arsenal of up to 730 short-range missiles pointed at Taiwan, and now had missile coverage of most of the US as well as Australia, Russia and India.

In addition, China is quickly building a naval fleet, anchored by modern submarines, which could prevent any American intervention in a conflict over Taiwan.

However, as we can see no one really cares about this and we keep free trade with China, we let them continue human rights abuses, and we ignore their sponsorship of terror mostly through their covert support of Iran.

China's White Paper on Communism

China's state council has finished a white paper, which is the first time non-red paper has been used in China, on communist rule of the Chinese people. To the great surprise of everyone, the paper drew the conclusion that the Communist party of China should maintain its stronghold on leadership in order to achieve "development, stability and great national rejuvenation".

The new buzz word to come out of this paper is the "socialist political democracy" under which apparently China today is ruled. Back in the day (the 1920's to about 1970's) this was called fascism, but thanks to the market system and its synergy a socialist political democracy sounds better.

The white paper also stated, “Experience has shown that, in China, it is the CPC that unites the Chinese people, gives full play to their enthusiasm, initiative and creativity, and has them engage, heart and soul, in the common struggle for their common interests, common cause, common ideal and a better future for China.”

Thank Allah, that China was blessed by such a great system; otherwise the people of China might actually be free to speak their mind, or worse actually take part in national decisions. And we all know by looking at the West how horrible that would be for society, just think of all the unnecessary rights people would get.

No, a socialist political democracy is the government of the future, and with the PRC's help soon the entire world will be enlightened to its great wanders.

China and Japan Have Trouble Mending Ties

The Chinese and the Japanese were scheduled to have a fence mending meeting of their Foreign ministers this week. However, the Chinese have said that they will not be able to see Japan's Foreign Minister Nobutaka Machimura because as the Chinese Foreign Ministry spokesman Kong Quan said, "given the current situation, it is not the proper time for such a visit and it is not convenient for China to receive him."

The current situation is due to the Japanese Prime Minister Junichiro Koizumi's visit to the Yasukuni shrine, a symbol of Japanese militarism and their unbeaten record against Chinese forces. This shrine honors all of Japans war dead through out their countries history. Some of the war dead are also recognized as A level war criminals, most received this qualification for their actions in Korea and China.

The Japanese Prime Minister has visited the shrine every year since he came to power, and this has greatly infuriated the PRC. Used to getting their own way in world affairs they pushed Japan to halt honoring the war dead at the shrine but Prime Minister Koizumi has refused to back down.

This refusal has led to China agitating its citizens against Japan and Japanese interests, which was the cause of the violent protests that happened less then a year ago in China.

I just have to give a lot of respect and praise to Prime Minister Koizumi for his determination not to back down to China. It is about time that a world leader stood up to Chinese aggressive demands, and showed that the PRC is currently not the world ruler and should respect the decisions and traditions of other nations.

Rumsfeld to China

This week Secretary of Defense Donald Rumsfeld is traveling to China for a diplomatic visit. It is the hopes of Washington that the visit will encourage the Chinese military to become more "transparent and reciprocal."

Obviously that is not going to happen, and we should keep planning on having to engage in conflict with the PLA, at least over Taiwan. While a military clash with China should be avoided at all cost, mostly because we will have a hard time winning, it looks like it is inevitable.

Mostly because China is continuing with a massive and extraordinarily rapid buildup of its armed forces. We should remember that no country in history of the world has built a massive military on the scale of Chinas and never used it. They are building it with express belief that sometime soon, probably sooner then most believe, they will use it to establish their claim as a world superpower.

What Does the Peg Mean for the US?

For those wandering what the recent discussions of the Yuan pegged to the dollar have to do with the US economy, the Wall Street Journal has a very good Q&A that helps explain a lot of the reasons why pushing China to stop pegging the Yuan against the dollar will be good for the US economy.

Today the PRC uses a secret basket of currency to determine the value of the Yuan, but in reality it is still pegging against the dollar at a little more then 8 Yuan for every dollar. This means that the Chinese keep their currency artificially weak against the dollar.

A weak currency decreases your purchasing power while increasing your selling ability. This is the reason why when the dollar lost a lot of value earlier in the year, it was a lot more expensive to be an American tourist, while at the same time the manufacturing sector boomed do to the decrease in the value of their goods when compared to other currency.

Again this is why the EU was so scared when the euro became so strong, and caused their manufacturing sector to go into a sharp decline.

China avoids this hassle by keeping their currency locked in to the dollar at an artificial rate, thus ensuring a weak currency and cheap products for export.

US to Help China Help US

Since he began his visit to China, Treasury Secretary John W. Snow has been pushing a set of reforms that the US believes China should enact to allow for more open markets. As can be expected the Chinese are not taking to well to this, since they see it as an American intrusion into their personal issues.

Snow's main issue is trying to get China to let market forces control the value of China's currency, the Yuan. By keeping the currency artificially pegged against the dollar China is able to ensure it continues to have the cheapest products in the market place to export.

While Snow is right in pushing for free market reform from the Chinese, who say they are a so called free market economy. We should not fool ourselves that they will do anything to change their current policy.

Why would they? They currently have the strongest and fastest growing economy in the world, and the rest of the world is so scared of the Chinese economic Dragon that they will concede any issue just to keep good trade terms with the PRC.

Should China Bail

Lau Nai-keung of the China Daily has written a very good article on whether China should bail out of its US assets and investments. He predicts that US will cause a major world recession, which will bring China down with it.

Overall he makes mention of our major problems that in my opinion China has helped to cultivate. Here is a short list:

• The tab for the long-term promises the US Government has made to creditors, retirees, veterans and the poor amounts to US$43,000 billion, US$145,000 per US citizen, or US$350,000 for every full-time worker.
• In 2000, household debt broke 18 per cent of disposable income for the first time in 20 years. Credit card debt alone averages US$7,200 per household.
• The US now runs a trade deficit roughly 6.5 per cent of its GDP and the gap is widened every day.
• The US Government in turn uses this foreign borrowed money to finance as much as 90 per cent of the federal deficit which stood at US$412 billion last year.
• The federal deficit is expected to be running at about US$2 billion a day at the moment.
  

While most of these problems are self made, China by pegging its currency against the dollar at a rate determined by the government, has helped to create the large US deficit. In this respect, if China actually became a free market economy instead of artificially adjusting its economy to grow at an impossible rate, we might actually be able to avoid a crash of the American economy.

More importantly Mr. Lau brings to the forefront an issue of how easily China could bring America to a screeching halt. If the PRC was at some point to stop financing our debt we would be up the proverbial creek without a paddle.

On a more personal not with respects to him blaming America for all upcoming world problems I think that I have found my opposite.

Laughing at China not With it

Burt Prelutsky, a former humor columnist for the Los Angeles Times, has written a hilarious column about the quirky manners of the Red Chinese.

It is an insightfully funny look at the “great weakness” of the China giant. In addition, this shows that even the world strongest economy cannot correct the evils of socialism from a society’s culture.

As Burt says, "Well, I, for one, wish China well. Even if they are a bunch of rotten Commies, it can’t hurt to have them at least become polite rotten Commies."

The Chinese Economic Miracle

Despite all attempts by the Chinese government to curb growth, China's economy continues to grow at an astonishing level. China's planning agency reported Tuesday that gross domestic product increased by 9.4 % in the first nine months of the year, and is forecast to grow by 9.2 % for the rest of the year. Although fourth quarter growth will probably be larger because the planning agency has a history of understating its predictions for the economy.

In the first half of the year China's economy has already grown by 9.5%, and if it continues this will be the third year in a row that it is growing at above a 9% rate. This is three times the growth rate of US and six times that of Europe.

The Chinese have been working hard at curbing growth, not because they are trying to ensure they don't destroy other economies (which they hope will happen over time), but for more internal reasons. Its biggest motive is that this economic boom is overtaxing Chinas already over-extended energy base. Plus China worries that if it grows too quickly it will end in a major crash.

To slow its economic growth China has raised interest rate, cut investment both from domestic sources and foreign ones, and has tried to prevent growth in certain industries by creating laws that restrict expansion. None of this has worked.

Now all that the rest of the world can do is watch the rise of maybe the next great economic and soon to be military power. Regretfully they are also a dictatorial and repressive regime with plans for world domination.

A Potato Returns to Space

Nearly half a century after Mao Zedong said that China couldn't even put a potato in space, the PRC is preparing to launch its second manned mission in two years. The first manned flight took place in October 2003.

This time China is sending up two astronauts (or cosmonauts for the ex-Soviets amongst us). They are set for takeoff on Wednesday, and will stay in orbit for a few days to conduct some scientific experiments.

What concerns me is that they said that the experiments will not be on seeds, which has been the area of specialization for China. Quoting Mr. Wang Yongzhi, chief designer of China's manned spaceflight program, he said that China would carry out: "scientific experiments with human participation in its real sense".

Now that scares me! I think we should have UN inspectors check for political prisoners tied up in the trunk of the space rocket.

Seriously though, this shows how more rapidly the Chinese space program is growing in comparison to the US. In the same time that China is sending its second manned flight, we have managed to send up one shuttle mission that has resulted in the grounding of our entire shuttle fleet. That is very sad, and foreboding of things to come in relationship to American power when compared to China.

EU to Lose the Research Race

Today, the Brussels based European Union commission on research, has announced that in five years China will be spending a higher portion of their gross domestic product on R&D then will the EU.

Currently China's spending is expected to rise by double digit figures from their 1.3% spending in 2003. While at the same time the EU expects their spending to rise to 2.2 percent of their GDP by 2010, from 1.93% in 2003.

The very small increase in Europe’s spending is attributed to the large bureaucracy and high taxes on companies that want to spend on research. This has led to many companies moving their research to China, where research and development is supported and encouraged.

Not only that, but the Chinese authorities force companies that want to do business in China to either build research labs, or spend money on research and development inside China.

Once again, this is an example of how China is not a threat to only America's place in the world, but how the entire world should fear the Chinese rise. Technological superiority will lead to dominance in other areas, which will allow the PRC to accomplish their goal of world supremacy.

Trade Leader

China has predicted that its trade surplus will grow to 90 - 100 billion dollars. This is a three fold increase from last year when it had a $32 billion surplus.

This growth is happening despite China strengthening the Yuan against the dollar by 2 percent, and letting it trade in a basket of currency. Of course China still does not want to give up control of the Yuan to the market, thus insuring that it will have an advantage in the price of their goods.

The international community should force the PRC to stop pegging the Yuan against the dollar. If China wants to trade in the free market system it should have a currency that is controlled by that same free market.

However, I doubt anyone in the world has the testicular fortitude to stand up to the great economic power, for fear of the economic restrictions China will impose on their companies.

At this rate it is only a matter of time before China becomes the number one trading power in the world. Currently it is number three with 1.4 trillion dollars in total trade.

Made to Import From China

Andrew Stephen has published a great article on the way that Americans have helped to create, what Representative Dana Rohrabacher of California calls the "Frankenstein monster", or as it is more widely known: the Peoples Republic of China.

Here are some staggering numbers you should know with respect to China's relationship with the US (Warning! Do not read before going to bed):

• Eighty-five per cent of all bikes sold in America are now made in China.
• Chinese imports to the US have grown 1,600 per cent in the past 15 years; and in the first quarter of 2005 alone, imports of Chinese cotton trousers and cotton-knit tops soared by 1,500 and 1,250 per cent, respectively.
• The US currently pays out six dollars to China for every one it gets back and, so far this year, its deficit with China is running 29 per cent above last year's $162bn.
• Wal-Mart alone - America's biggest company, with annual sales of $288bn - buys more than $18bn worth of Chinese-made goods each year.
• If it was a nation, Wal-Mart would be China's eighth-largest trading partner, ahead of Australia, Russia and Canada.

These numbers are just the tip of the iceberg. I could give even more statistics that are worse then these, but then all of us would really get depressed.

All I can say is that we have really gotten ourselves into a mess, and that unless we act quickly will not be able to get out of.

Hu's China

On Saturday the Chinese President will have officially consolidated his power over the Chinese communist party and over the nation as a whole. President Hu Jintao who since 2002 has been China's leader has never really been in complete charge of the communist party, but over the last few years he has completed replacing many members of the party with his own cronies.

Many analysts believed that Hu would be a liberal, reformist President that would push China towards more democratic reforms. However, after three years in power it has been seen that he is a party loyalist that wishes to bring back many of the socialist ideals that have been lost over the last two decades of economic reform.

Hu has also shown that he is a man that believes in the ultimate goal of China becoming the dominant superpower of the world. This has led to a much more nationalistic feeling in China that currently threatens world stability.

Google Maps Taiwan as Province

Taiwan has logged a protest with Google for marking it as a province of China in the Google map section. Taiwan's foreign ministry spokesman Michel Lu was confident that Google will change the error, but I do not share in his confidence.

As I have reported before the last time Taiwan complained about being called a province of China they were forced to march under a Taipei flag at the 2004 Olympics.

Once again, this is an example of a company or country cowering to Chinese demands. At this rate the PRC will not have to conquer anything, but instead will force everyone to surrender to it or loose access to its "market".

Hear No Evil, Post No Evil

In the last week there has been a surge in reports of the Chinese government attempts to censor what the people of China can read on the internet. Most of this news coverage is thanks to Matt Drudge, who understandably fears any censorship of the internet in China could be a model for censorship in the US.

However, while I think that the internet will never be censored in the US, I am disturbed by the fact that American companies are helping the PRC with restricting internet sites that mainland Chinese can surf.

I can say that I have not yet been blocked from China’s leading search engine Baidu.com, that’s right Google is not the leading engine in at least one country. I cannot however say the same thing for Yahoo China, which does not allow access to this page.

Now for all those that say that the economic prosperity will lead to increased freedom, as you can see apparently this freedom does not apply to the internet. All that the economic prosperity, which is fueled at the expense of the US, brings is revenue for China to continue its military buildup.

TRex of Politcs-Religion-Crypto is beginning to gather information about products made in the US. This is a great idea, because until we the people show the government that we are willing to stand up to China, the government never will. I encourage you to go to his site and help him out, so that we can have an option that will not assist a despotic regime in suppressing its’ people.

China Holds Japan Over a Barrel

This weekend the Japanese and the Chinese were holding talks to try to solve a dispute over oil exploration in an area of the East China Sea where both nations claim exclusive economic zones. To no ones surprise the Chinese were less then cooperative, and the only thing that came out was an agreement to further discuss the issue next month.

However, while the PRC is stalling in their negotiations they continue to drill wells that Japan claims take oil out of their reserves. In an even more provocative move the Chinese have moved their warships to the area, and have even pointed the guns of the ships at patrolling Japanese aircraft.

In response to Japanese complaints about the drilling and the threatening actions by the Chinese military, a Chinese representative only stated that the drilling was within their rights.

This again shows the desperation with which China is scrambling to secure any and all oil reserves they can. It also shows the clear reason for the military buildup that is currently happening in China. The Peoples army is not being buildup for the protection of the people, but for the gradual expansion of the People Republic of China.

Happy Birthday

Today marks year 56 of communist rule in China. It also marks the 50th anniversary of the establishment of Xinjiang, the predominantly Muslim western region, as an autonomous state.

If we review the history of those 56 years we will see that the classical communism of Mao Zedong has been replace by the fascism of the new generation of Chinese leaders. It is a communist nation only in name, and it is now a well controlled market economy of the time of Nazi Germany.

However, for all it’s changes China has still kept that repressive, murderous one party system that has ruled for the past 56 years. But it has added an ambition to rule the world that was not possible in the disorder following the communist victory in the Chinese Civil War.

So I raise a toast to the PRC, may the rest of the world wakeup to your danger before it is too late.