How China is about to own your ass (if it doesn’t already)

Hats off to SPIEGEL ONLINE for once again telling like it is as successive governments cower in denial or buckle under the threat of economic reprisals from Beijing:
It is, however, true that the Chinese are in the process of conquering the world. They are doing this very successfully by pursuing an aggressive trade policy toward the West, granting low-interest loans to African and Latin American countries, applying diplomatic pressure to their partners, pursuing a campaign bordering on cultural imperialism to oppose the human rights we perceive to be universal, and providing the largest contingent of soldiers for United Nations peacekeeping missions of all Security Council members. In other words, they are doing it with soft power instead of hard power.
And, as I’ve been arguing for some time, when Beijing doesn’t get its way we’re treated to adolescent tantrum, petulent retribution, and a total disregard for the international guidelines, organisations, or protocols that stand in its way:
Beijing is indeed waging a war on all continents, but not in the classical sense. Whether the methods it uses consistently qualify as “peaceful” is another matter. For example, the Chinese apply international agreements as they see fit, and when the rules get in their way, they “creatively” circumvent them or rewrite them with the help of compliant allies.
Further, as noted at the start, the level of kowtowing to Beijing’s aggressive exploits around the globe is cringeworthy:
But why are politicians in Washington, Paris and London taking all of this lying down, kowtowing to the Chinese instead of criticizing them? Does capturing — admittedly lucrative — markets in East Asia and trying to impress the Chinese really help their cause?
The Communist Party leaders manipulate their currency to keep the prices of their exports artificially low. The fact that they recently allowed their currency, the renminbi, to appreciate slightly is evidence more of their knack for public relations than of a real change of heart. They are known for using every trick in the book when buying commodities or signing pipeline deals, with participants talking of aggressive and pushy tactics. Meanwhile, these free-market privateers unscrupulously restrict access to their own natural resources. They denounce protectionism, and yet they are more protectionist than most fellow players in the great game of globalization.
Want more? Try this dose of China reality:
Beijing recently imposed strict export quotas on rare earths, resources that are indispensable in high technology, where they are essential to the operation of hybrid vehicles, high-performance magnets and computer hard drives. Some 95 percent of metals such as lanthanum, neodymium and promethium are mined in the People’s Republic, giving Beijing a virtual monopoly on these resources. It clearly has no intention of exporting these metals without demanding substantially higher export tariffs. In fact, China apparently wants to prohibit exports of some rare earths completely, starting in 2015. Concerned observers in Japan have described the valuable resources are a “21st-century economic weapon.” The Chinese have dismissed protests from Washington and Brussels with the audacious claim that World Trade Organization (WTO) rules allow a country to protect its own natural resources.
And if that’s not enough to wake you up:
China, a WTO member itself, is now playing a cat-and-mouse game with the organization. Despite several warnings, Beijing still has not signed the Agreement on Government Procurement, and it continues to strongly favor domestic suppliers over their foreign competitors in government purchasing. To secure a government contract in China, an international company has to reveal sensitive data as part of impenetrable licensing procedures and even agree to transfer its technology to the Chinese — often relinquishing its patent rights in the process.
China, for its part, is waging a vehement campaign in the WTO to be granted the privileged status of a “market economy.” If it succeeds, it will be largely spared inconvenient anti-dumping procedures in the future. But do China’s Communist Party leaders seriously believe that the rest of the world will actually reward them for their dubious trading practices?
The answer is yes, and they have good reason to be optimistic. When it comes to diplomacy, Beijing knows how to win. Whether it’s at the WTO, the United Nations or other international organizations, China is in the process of outmaneuvering the West everywhere.
And how are they doing this? SPIEGEL explain all here. A must read for anyone who is misguided enough to believe that China’s influence is either benign or beneficial to the world.
I make no apologies for reproducing so much of this article here; these are truths that should be burned into the hearts and minds of all those that give a damn about the future of the planet, whatever their nationality or ethnicity.
August 5th, 2010 at 4:51 pm
While I wouldn’t contest the overall thesis, I think it may be a bit overstated, or ineptly stated, in parts.
It’s hard to read the phrase “[the Chinese] knack for public relations” without getting snot all over my keyboard.
August 5th, 2010 at 5:52 pm
‘It’s hard to read the phrase “[the Chinese] knack for public relations” without getting snot all over my keyboard.’
Yeah, they get no points for that observation.
August 10th, 2010 at 3:11 pm
[...] If Evans-Pritchard’s assessment is accurate – and there’s no reason to suppose otherwise – the US are 15 years away from recovering the rare-earth supply chain they once had, the time for sober realisation is NOW. [...]