Lethal Trajectories - Michael Conley [198]
China’s trade surpluses, manufacturing prowess, lower cost structures, and capital surpluses give it distinct competitive advantages. Its long-term strategic focus on infrastructure development and renewable energy systems, and its quest to lock in access to scarce resources, all but guarantee its continued economic growth.
Unencumbered by the political preconditions on trade imposed by the United States and other nations (e.g., lack of overt human-rights abuses, adherence to fair labor laws, and so forth), China is a less demanding business partner for many countries. China’s boilerplate strategy seems to be to invest in the infrastructure of a new trading partner, usually in a manner that secures access to physical resources such as oil fields. The raw materials China imports are then turned into finished goods, which are sold back to the host country and others, often along with military equipment and high-tech goods. As an added inducement, China’s veto power in the UN Security Council can provide air cover for regimes fearful of sanctions. It is a win-win for China, as it ensures the continued employment of its massive work force and builds global clout through economic partnerships and not military power. China also owns a growing portion of Western economies—particularly the United States—in the form of large infrastructure investments, T-bill holdings, and massive dollar amounts held by its central banks.
Power structure in the People’s Republic of China: The structural labyrinth of the People’s Republic of China (PRC) is complex. While the dominant power resides in the Communist Party of China (CPC), the CPC’s central focus of power resides in the Politburo Standing Committee (PSC). While the workings of the PSC are not well understood outside of China, it is known to be a nine-person group that meets weekly, and it is believed to make big decisions by consensus. The larger oversight body is the twenty-four person Politburo, and Politburo members generally hold key positions in government and have a voice in key personnel matters. For purposes of this book, the title Chairman was used in place of the title President, which is now used in the PRC. As in the book, the president often holds multiple positions of power in China.
China’s SCO Pact and other alliances: As a lead partner in the Shanghai Cooperative Organization (SCO), China is aligned with Russia and the oil-rich “stans” of Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. Iran, Pakistan, and other countries have observer status in the SCO. The SCO gives China access to oil and political influence in a pivotal region of the world. China has also secured a growing presence in the oil-belt areas of Africa and South America, including the new Brazilian deepwater oil fields. China’s current investments in Venezuela have provided Hugo Chavez with an alternative market for his oil, presumably replacing shipments to the United States.
China’s blue-water navy: A “blue-water” navy is one capable of operating on the high seas, as compared to a “brown-water” navy operating mainly within the confines of a nation’s coastal waters. China’s navy is ramping up its blue-water capability with strategic implications for current maritime powers. That decision reflects China’s desire to a) protect the security of international sea lanes to the Gulf Region and other distant trade partners, b) establish firmer control of the mineral-rich seabeds of the South and East China Sea, and c) extend its reach beyond the South China Sea and Philippines into what is called the second island chain, reaching out to Guam and overlapping the American navy’s area of supremacy. While not an immediate threat to American sea power, China is devoting about a third of its military budget to the development of its navy, with the most impressive growth taking place in their submarine