In this world of ever-advancing technology, warfare in the global power structure must adapt to present and future means; an enemy has many options to employ strategic and tactical scenarios.
This part of a multi-part story will point out the economic warfare China employs.
In 2009, the BRIC (Brazil -Russia – India – China), was created as an economic partnership to help underdeveloped member countries; combined contributions are made available for Economic Development Projects.
The BRIC acronym added an S making up the BRICS in 2010 when China invited South Africa to the group.
China’s investments in the nations indebted to the Chinese have been bringing light to the long-term plans to establish their footprints around the globe.
In the western hemisphere, the Chinese influence and control are ongoing.
The investments China has made with the countries associated with Chinese monetary aid represent only a portion of power that the Chinese wield in the economic realm. China also spread its ownership of different parts of other nations, including the U.S.A.
At the end of 2018, China owns $1.123 trillion of US debt, a high percentage of which uses US properties and US Treasury bonds as collateral. If the US was to default on the debt payment, China could foreclose on many properties giving the Central Bank of China control of a large amount of the property that the Chinese may use for any legal purpose.
Taking advantage of the housing bubble of December 30, 2008, the Case–Shiller home price index reported the most significant price drop in its history. The credit crisis resulting from the bursting of the housing bubble is an essential cause of the 2007–2009 recession in the United States. (Wiki)
In 2007 China’s GDP (Gross Domestic Product) in regards to PPP (Purchasing Parity Power) was $7.099 trillion and $8,306 trillion in 2009, while 2007, the U.S. GDP in regards to PPP was $47,954 trillion with $46,909 trillion.
How on earth was China not performing as well as the U.S. in their respective GDP, yet the Chinese were buying real estate in the U.S.?
The Chinese have always followed multi-year plans to initiate China to take advantage of the U.S. and other countries having an economic downturn, involving infrastructure projects within the indebted nations by both financial aide and backing of loans from BRICS and the debtor country’s national bank or private financing.
The terms of the financial aid between the member countries allow the projects the backing but use those projects as collateral.
All Chinese involved in China’s projects of other countries will be beholding to China over many years.
The above is using strategic economic warfare.
Seemingly, most nations are deceived, borrowing money they don’t have.
In January 2017, Donald J. Trump was inaugurated as the 45th President of the United States of America. Now President Trump has turned the tables on China by using a different type of economic warfare, one that didn’t need a magic wand. He has a backbone and knows how to use it.
In many ways, the Chinese were caught off guard as the U.S. economy was improving on the world stage under the new American leader.
Trump has only gone into battles he knows he will win. After years of experience dealing with China and many other countries, Trump understands the rules and tricks of economic warfare. The president has the uncanny ability to find the exact weapon to wield in the China/U.S. trade war (so-called) — tariffs on products coming into the U.S. from China.
China retaliated, imposing higher tariffs on imports from the U.S.
Hot economic warfare has started.
This battle is still ongoing and has made many advances toward the U.S. goal of a reciprocal trade agreement with China.
Handling the higher cost of products in China has forced the Chinese Central Bank to devalue its currency. Consequently, the higher price of products with tariffs places China into capitulation on several items in a new U.S.-China trade agreement.
President Trump, using this type of tactical interaction, has helped the U.S. strategic economic position in the world to rise, the coffers of the United States Treasury are being filled, and the Federal Reserve struggles to keep themselves relevant.
The battle is ongoing, but the victory of the economic war is within grasp, and its costs appear to have little or no effect on the economy of the U.S.
~ This article is part one of a multipage series; watch for more parts to this story. ~