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NY Analysis

China’s real, immediate, and significant threat

While the eyes of the world remain fixed on the depredations of ISIS and Russia’s incursions into Turkish air space, what may be the most significant long-term threat to the future of the United States receives relatively little attention. The New York Analysis of Policy & Government has outlined recommendations to deal with the crisis—and yes, it is an immediate crisis.

Increasingly, military and global affairs analysts are realizing that it is China which possesses the means and the will to severely harm the United States.  Its recent actions indicate that it is, indeed, positioning itself with speed and determination to do exactly that.  Gordon Chang, who has briefed the National Security Council, the CIA, the State Department and the Pentagon on the subject, succinctly states his concern:

“With each passing day, an increasingly emboldened China is using its new found economic power and military might to grab territory, violate trade rules, proliferate nuclear weapons technology, support rogue regimes, cyberattack free societies, flout norms, and undermine international institutions…as China has continued to lash out, it has set itself against its neighbors, the United States, and the international community…Regrettably, the United States…has not risen to meet this unprecedented challenge.  From the Oval Office to the halls of Congress and across the suites of Corporate America, our political and corporate leaders have not wanted to confront the fact that China, despite our efforts, does not want to enmesh itself in the community of nations…what we thought was our diplomatic subtlety and carefulness, the Chinese have perceived as weakness and irresolution.  As a result, our policy has failed…with their new partnership with Russia and assistance to client and rogue states like North Korea and Iran, the Chinese have taken on not just their neighbors but the world as well. It is an existential challenge that inexplicably the international community has largely ignored…”

Chang penned his concerns in a forward to one of the latest studies outlining the worrisome development of what is soon to become the world’s most fearsome military, Peter Navarro’s “Crouching Tiger: What China’s Militarism means for the World.”

Navarro dispels a number of illusions that far too many who fail to comprehend the true extent of the danger adhere to. Foremost among those myths is the oft-stated alleged disparity between Beijing’s military budget and Washington’s. Navarro notes that the comparison doesn’t survive a closer inspection, for a host of reasons.

First, of course, is the fact that China’s military can purchase its weapons at a fraction of the cost the Pentagon must pay. Second is that personnel expenses and benefits for its armed forces are significantly less than those in the U.S. Third, and perhaps most infuriatingly, is the fact that China doesn’t have to worry about the exceptionally high expenses incurred in the research and technology to develop the most advanced weapons systems; they simply steal R&D from other nations, especially America.  In essence, China’s military spending can be significantly lower than the Pentagon’s because the U.S. taxpayer essentially foots the bill!  In addition to stealing R&D results, Beijing also saves vast sums by purchasing or otherwise acquiring one or several items, then engages in “reverse engineering” to save the expenses of the onerous trial and error it would have to endure if it developed its own technology.

Beyond those illicit cost-saving measures is another key factor.  While western military budgets  are the subject of open debate and disclosure, a significant portion of China’s military spending is hidden.  The People’s Liberation Army has means to channel funds into its budget that are never listed as government expenditures.

Beijing’s military doctrine is no longer just quantity to dispel the quality of opponents’ armaments.  With its powerful economy and wildly successful espionage efforts, it has weapons every bit as advanced as America’s, and in some cases even more so. A great deal of this occurred during the Clinton Administration, and some of it was freely given, particularly the President’s inexplicable authorization of the sale of a Cray supercomputer to China.

China now possesses what may well be a decisive advantage. Modern warfare has a dimension even beyond the courage of the personnel involved and the quantity and quality of weapons. It is the ability to replace losses in manpower and ships, planes, tanks and other material at a rapid pace.  This was decisive in America’s victories in both World Wars one and two.  Far too many of America’s factories have been dismantled, due to cheaper costs in China.  It is China that now has the industrial might that was America’s advantage throughout the past century.
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On land, sea, air and space, China’s threat, and its aggressive intent are real, and much of it is already apparent. There are several steps the United States must take in response.

The first and most obvious is to cease the suicidal reductions to the U.S. defense budget. Now accounting for only 14% of the federal budget, and at lesser total dollars than at the start of the Obama Administration, it is based on both an unrealistic view of the threats facing the nation, and on the politically expedient policy of diverting federal funds from defense and other crucial needs to vote-buying social welfare programs.

The second is to enhance protection from cyberattacks, conventional espionage, and other means of technology transfer.  To be blunt, Beijing’s citizens, whether as students or any other exchange programs (civilian or military) should not be involved in any U.S. area of high technology, whether civilian, military or academic.  Government computers, both civilian and military, must receive far greater security.

Third, the U.S. must work with other developed nations to prevent the transfer of high technology to Beijing that has any potential for military applications. The point must be made that this activity is ultimately self-defeating due to China’s reverse engineering practices and its rampant theft of intellectual property.

Fourth, moving factory activities to China continuously increases that nation’s military potential and decreases America’s. It’s time that American tax policies, which provide the highest corporate tax rates of any of developed nation, along with onerous and excessive regulations, were reduced in order to incentivize companies to keep production facilities at home. U.S. and other international commercial firms should be encouraged, if they must produce their goods offshore or import finished products from abroad, to establish relations with nations other than China. There are significant dangers in importing goods from China.

Fifth, the United States should enter into NATO-type agreements with nations neighboring China, and America must adhere to its commitments. The Obama Administration’s shameful failure to even diplomatically support the Philippines when China incurred onto Manila’s offshore and internationally recognized Exclusive Economic Zone was a low point in U.S. diplomatic history.

Sixth:  The United States Government owes over $1.2 trillion to China. However, as noted previously, Beijing has prodigiously stolen intellectual property from both the U.S. government (military and civilian) and private corporations as well. The value of the stolen technology should be deducted from the amounts owed to China.  Since Beijing shows no sign of relenting on its illegal espionage assaults on the U.S., there must be a price placed on that activity.

Finally, while defense spending must rise, Washington must cease its profligate spending practices and stop borrowing funds from the very nation that seeks to defeat it.