Tag: China

False Metrics, False Conclusions

As has been repeatedly pointed out by Owen and others, the more one lies, the more one loses the ability to recognize the truth even when it is staring one right in the face. The idea that China’s economy is collapsing, and therefore the Chinese Communist Party is on the verge of succumbing to a populist color revolution that will produce a neoliberal democratic government subservient to Clown World, has been floated persistently ever since Xi Jinping cancelled the planned “Jump to China” in 2015. A recent Washington Post article is only the latest example of this economic illiteracy:

Economists have started revising their predictions on when China might overtake the U.S. economically — and if it ever will. Despite Mr. Xi lifting the world’s most draconian covid-19 restrictions at the end of 2022, construction in China has slowed, manufacturing prices have declined and consumer spending has flattened. China’s stock market has lost $6 trillion in value in three years. A dozen cities and provinces have been told to halt construction of infrastructure projects — cutting into their main source of revenue.

The biggest economic threat has come from the slowdown in the property market. Building has slowed, and more than 50 major developers are either out of cash or have defaulted. Fears abound of insolvencies leaving millions of unfinished housing projects… China recorded a respectable 5.2 percent economic growth rate last year, but the real rate is lower when adjusted for falling prices. Rather than being an economic juggernaut, China seems likely to be entering a period of deflation, the sorts of conditions that led to Japan’s “lost decade.”

Xi is Taking China’s Economy, WASHINGTON POST, 21 February 2024

Translation into Sane Economics: China is doing exactly what the USA should have done back in 2008 or sooner. It is clearing the bad debt out of its economy, refusing to prop up bankrupt corporations, and preventing further malinvestment from taking place.

This isn’t merely feel-good propaganda for neoclowns in Washington, it’s economic illiteracy and evidence that the Washington Post can’t even get its neo-Samuelsonian economics right. Note that the real economic growth rate is not LOWER than 5.2 percent when adjusted for falling prices, it is HIGHER. Growth rates measure GDP, which are priced in currency. So when prices increase, the real GDP and the real growth rate are lower. When prices fall, the real GDP and the real growth rate are higher.

Remember, modern neo-Samuelsonian economics do not take debt into account, not even when the vast majority of the money supply is comprised of credit-money rather than gold or paper money. Which is why, in Clown World economics, borrowing and spending money that is created out of thin air counts as economic growth, and writing off bad debt counts as economic contraction.

Just as trade wars are GDP-beneficial for nations with trade deficits, deflation is real growth rate-beneficial for nations with credit money. Russia Today knows better too:

If there’s one thoroughly unoriginal strand of thought on China present in the mainstream media today, it is the idea that China’s economy has been wrecked, and that Xi Jinping’s policies are to blame. Such commentary, pushed by every major mainstream outlet on a weekly basis, frequently promotes a narrative of the “end” of China’s rise, often talks about “decline” and squarely places responsibility on Xi Jinping, who supposedly ended the dynamic of an open and prosperous China for increasingly centralized, authoritarian rule and a return to communist fundamentals.

Such an article was pushed this week by the editorial board of the Washington Post, in a piece titled “Xi is tanking China’s economy. That’s bad for the US”. The article was hardly original in its premise, stating the above argument pretty much word for word…

First, what is always, always ignored is that Xi Jinping deliberately set about changing the structure of China’s economy in order to end a growth boom based solely on real estate and debt. The newspapers love to waffle on about the “real estate crisis” and Evergrande, but can you imagine how big the problem would have been had previous policies been continued and China pushed for obscene 10% growth targets based on an explosion of debt? Xi Jinping ended this and initiated a process of deleveraging which deliberately slowed down China’s economic growth to around 6% when he came to power. Why? Because debt is not a sustainable mechanism and his policy has been literally to push the real estate industry into a managed recession, even if that has short-term repercussions.

Secondly, Xi Jinping’s policy has been to reinvent China’s economy to meet upcoming challenges by transforming it from a low end, export, real estate boom economy, into a high-end technological powerhouse. Instead of investing aimlessly in local government real estate booms, China has redirected state money to building up high-value industries including renewable energy, computing, semiconductors, automobiles, aviation, among other things. It is primarily this bid to become the global technological leader (by default of size) that has triggered the backlash from the US on an economic level and thus the bid to try and cripple China’s technological advance through export controls, which in fact show little evidence of working.

Xi isn’t destroying China’s economy – he’s changing it, RUSSIA TODAY, 26 February 2024

Just as everything looks like a nail to the man whose only tool is a hammer, the Neo-Samuelsonians of Clown World do not understand any economic policy that does not rely upon expanding the money supply and increasing GDP through the issuance of more debt. Which, of course, is why they neither see nor understand that China’s economy is neither contracting nor collapsing, it is rather being cleansed of bad debt and reconfigured into a more realistic economy capable of providing genuine economic growth as measured in production, real goods, and manufacturing capacity rather than in money, fake services, and ever-increasing credit.

China is not following the Japanese example; to the contrary, it is doing the precise opposite and refusing to prop up its zombie banks and overleveraged corporations. The fact that Xi Jinping has the wits and the courage to do what neither Ben Bernanke nor any US President has had the wisdom to do should not concern the neoclowns. It should absolutely terrify them, because it means that Clown World will have absolutely no chance whatsoever to even begin to make up its massive steel-production and manufacturing-capacity disadvantages vis-a-vis China.

Remember, the economists who are telling you that China’s economy is collapsing are the same economists who told you Western sanctions were going to cripple the Russian economy. Their axioms are incorrect, their metrics are false, and therefore, their conclusions are guaranteed to be wrong.

Unlike the USA, China is dumping its bad debt.

DISCUSS ON SG

The Great Bifurcation Widens

Both China and India are making it very clear that they will not stop doing business with Russia, and more importantly, that they are neither impressed nor dissuaded by the additional sanctions being imposed upon them by the EU, the UK, and the USA.

The EU last week agreed on a new package of sanctions against Russia that for the first time targets Chinese and Indian companies accused of “supporting Moscow’s war efforts,” the Financial Times reported on Thursday.

The measures of the EU, which will be its 13th package of sanctions imposed in response to Russia’s military operation against Ukraine, were followed by the UK and the US. Britain announced a new package of sanctions against Russia that includes three electronics companies in China, Reuters reported on Friday.

Then, the Biden administration announced on Friday more than 500 new sanctions against targets in Russia, which reportedly include measures against Russia’s main card payment system, financial and military institutions and entities outside of Russia…

When it comes to the Ukraine crisis, China’s position has always been consistent. China is not a party directly involved, and it did not choose to be a bystander or add fuel to the fire. China will continue to play a constructive role in bringing an early end to the conflict and restoring peace in Ukraine.

There is nothing to criticize regarding the pursuit of peace, and it is believed that this thinking is shared by many other emerging countries.

Fundamentally speaking, Western sanctions against Russia are actually illegal and unilateral actions, which have not been approved by the UN. The US and its European allies, regardless of how powerful they are, do not represent the entire international community. It makes no sense for them to escalate sanctions and exert pressure on other countries by targeting normal economic exchanges between Russia and other countries.

What Indian External Affairs Minister Subrahmanyam Jaishankar said recently on the sidelines of the Munich conference may just show the view of all those who have not participated in Western sanctions against Russia.

Jaishankar said, “If I am smart enough to have multiple options, you should be admiring me.” He said that India should not be criticized for having multiple options and reaffirmed its stand and commitment to buying Russian oil.

The world is not ruled by the US and its European allies only. Their goal of containing Russia is their own business, and they have no right to demand other countries sacrifice their development opportunities to serve Western strategies. When it comes to how to deal with Russia, emerging economies should have the right to consider and choose from their own interests.

What has happened over the past two years has proved that unilateral sanctions and extreme pressure have not only done great harm to the global economy, but have also disrupted the international order the West has been trying to maintain.

Including Chinese, Indian firms in Russia sanctions unreasonable, GLOBAL TIMES, 25 February 2024

It’s going to be a difficult year for everyone in the West, and things are going to continue to get more difficult as the flow of free money continues to dwindle away to nothing and the ability of the Fed to export inflation to the rest of the world disappears as the majority of the global population exits Clown World’s economy.

But with these harder times comes opportunity, as those organizations that are not built on debt and have genuine success based on genuine customers will have the opportunity to grow steadily as their competitors continue to fail. Just to give one example, think about how many alternatives to this blog have vanished over time, while the traffic here is steady and offshoots such as Sigma Game are already averaging 7,500 views per day in its first month.

Just as success isn’t distributed evenly during credit bubbles, failure isn’t distributed evenly during economic contractions. The key is to focus ruthlessly on your core market, be persistent in your performance, and constantly strive to improve your quality while your competitors are cutting corners and trying to raise their margins to make up for their declining sales.

DISCUSS ON SG

The Axis of Asymmetry

Pepe Escobar observes that Clown World is losing on every front to the unrestricted warfare being waged by the BRICSIA+ alliance:

The Axis of Asymmetry is in full swing. These are the state and non-state actors employing asymmetrical moves on the global chessboard to sideline the US-led western rules-based order. And its vanguard is the Yemeni resistance movement Ansarallah.

Ansarallah is absolutely relentless. They have downed a $30 million MQ-9 Reaper drone with just a $10k indigenous missile.

They are the first in the Global South ever to use anti-ship ballistic missiles against Israel-bound and/or -protecting commercial and US Navy ships.

For all practical purposes, Ansarallah is at war with no less than the US Navy.

Ansarallah has captured one of the US Navy’s ultra-sophisticated autonomous underwater vehicles (AUV), the $1.3 million Remus 600, a torpedo-shaped underwater drone able to carry a massive payload of sensors.

Next stop: reverse engineering in Iran? The Global South eagerly awaits, ready to pay in currencies bypassing the US dollar.

All of the above – a maritime 21st-century remix of the Ho Chi Minh trail during the Vietnam War – spells out that the Hegemon may not even qualify as a paper tiger, but rather as a paper leech.

None of this should have come as a surprise to the strategists of Clown World, except they were so accustomed to lying that they no longer have the ability to ascertain the truth and their arrogance caused them to actually believe in their nonsensical rhetoric about being Special or Exceptional.

As events proceed, it is becoming abundantly clear that it is China that is winning WWIII, because the events closely follow the strategy laid out in Unrestricted Warfare by Qiao Liang and Wang Xiangsui in 1999. You cannot possibly understand anything about what is happening, or how systematic the undermining of every foundation of Clown World has been, without reading that book.

The Chinese strategy goes well beyond conventional military issues; that is the literal meaning of “unrestricted” in the title. And it is fundamentally asymmetric; Escobar doesn’t mention Qiao and Wang’s book in his article, but his use of the word strongly suggests that he is familiar with it. The two Chinese colonels defined the concept thusly:

ASYMMETRY—SEEK NODES OF ACTION IN THE OPPOSITE DIRECTION FROM THE CONTOURS OF THE BALANCE OF SYMMETRY

’Asymmetry’ “fei junheng” as a principle is an important fulcrum for tipping the normal rules in beyond-limits ideology. Its essential point is to follow the train of thought opposite to the balance of symmetry “junheng duicheng” and develop combat action on that line. From force disposition and employment, selection of the main combat axis and the center of gravity for the attack, all the way to the allocation of weapons, in all these things give two-way consideration to the effect of asymmetrical factors, and use asymmetry as a measure to accomplish the objective.

No matter whether it serves as a line of thought or as a principle guiding combat operations, asymmetry manifests itself to some extent in every aspect of warfare. Understanding and employing the principle of asymmetry correctly allows us always to find and exploit an enemy’s soft spots… This use of asymmetrical measures which create power for oneself and make the situation develop as you want it to, is often hugely effective. It often makes an adversary which uses conventional forces and conventional measures as its main combat strength look like a big elephant charging into a china shop. It is at a loss as to what to do, and unable to make use of the power it has.

So, it’s now clear that China is using its allies in Russia, Yemen, and elsewhere in much the same way that Russia was using the Donbass militias, Wagner, and the Chechens in Ukraine. Even Gaza may be a front, although whether it was created, anticipated, or was simply a fortuitous coincidence is impossible to know at this juncture. And this means we not only have not seen the main axis of the conflict, it almost certainly means we haven’t even begun to understand the full extent of the asymmetrical probings for more of Clown World’s soft spots or the consequences of the exploitation of those that are revealed.

Speaking of those soft spots and the exploitation thereof, Escobar makes a prediction that I have not previously seen.

The endgame: only a West Asian Special Military Operation, to the bitter end, will settle the Palestinian tragedy. A translation of what happens across the Slavic Axis of Resistance: “Those who refuse to negotiate with Lavrov, deal with Shoigu.”

DISCUSS ON SG

A Bold Move

Since crossing the previous red lines have gone so well for NATO, the USA, and Europe over the last two years, Clown World has now decided to further antagonize both Russia and China. It’s certainly a bold move, anyhow. It’s not a smart one and it smacks of desperation. We’ll see how it works out for them…

ATO Secretary General Jens Stoltenberg said that Ukraine has a right to use its Western-supplied weapons to defend itself against Russia, even if that includes striking targets within Russia’s borders.

“This is Russia’s aggressive war against Ukraine, which is a blatant violation of international law,” Stoltenberg told Radio Liberty during an interview on Tuesday. “And according to international law, Ukraine has the right to self-defense. And it also includes strikes against legitimate military targets, Russian military targets outside of Ukraine. That’s international law, and of course, Ukraine has the right to do that to defend itself.”

A NATO official confirmed with Financial Times on Thursday that Stoltenberg meant that Kyiv’s right to self-defense included striking Russian military targets outside of Ukraine.

Russian President Vladimir Putin has repeatedly warned against Ukraine using its Western-supplied equipment to launch attacks on Russian territory, saying that doing so could risk escalating the conflict. The warnings had originally made allies like the United States hold off on supplying Kyiv with long-range weapons capable of reaching Russia, but NATO allies have since given Ukraine such arms.

First, there is no “international law” and there never has been. It’s just a rhetorical phrase that is always applied to the enemies of Clown World and always ignored whenever it’s applied to the servants of Clown World.

Second, reality is reciprocal. Ukraine does have the right to defend itself. Ukraine does have the right to strike Russian military targets outside of Ukraine. But Russia has the right to defend itself too, and to defend itself by striking NATO military targets outside of Russia and Ukraine.

As we’ve repeatedly been shown since 2014, Russia is very, very patient and circumspect. It has no reason to strike back at NATO right away, because time, migration patterns, and economic pressure are on its side. This F-16 insanity is just a desperate attempt to bait Russia into giving the neoclowns in Washington an excuse to escalate from a losing proxy war to an all-out direct war that will permit it to declare martial law, mobilize the economy, and reinstitute the draft before China makes its move on Taiwan.

I doubt Putin and his generals will take the bait. Instead, they’ll just shoot down the F-16s and increase the pressure on Clown World in two or more fronts, beginning with Odessa.

Putin is reportedly on the brink of a new land grab to defy the West by possibly announcing soon that Russia is taking control of a breakaway Moldovan region. There is speculation that unofficial state Transnistria is poised to make an appeal to Putin to join Russia. The landlocked strip along the Dniester River is wedged between Moldova and Ukraine. Putin already has a ‘peacekeeping’ force of up to 2,000 troops in the territory which Russia says overwhelmingly wishes to be incorporated by Moscow. There are also likely thousands of Russian paramilitaries on the ground. A fear is Putin will use a speech at the Russian Federal Assembly on February 29 to green light annexation.

Hey, the USA is always supportive of democratic self-determination, right. But don’t be surprised if a new front is opened somewhere in Asia as well.

The European Union has placed tighter trade restrictions on Chinese companies that it claims are supporting Russia, the European Council said in a press release on Friday. The restrictions are part of a 13th round of sanctions imposed on Friday, a day before the second anniversary of Russia’s military operation against Ukraine.

But no worries. We are assured that in the event of war with China, Ukraine stands with the USA, and “Ukraine ready for war with China if US asks.” So the neoclowns have got that going for them, anyway, which is nice.

DISCUSS ON SG

The Humor of the Hugo

If you have a dark and morbid sense of humor, as I do, then you will surely be amused by the fact that it isn’t “Space Raptor Butt Invasion” or”Alien Stripper Boned by the T-Rex” or NK Jemisin winning the most Best Novel awards in science fiction history that has turned out to be the low point for the annual charade that is the Hugo Awards.

The Hugo Awards have been a debacle of epic proportions for nearly a decade. Once revered as an award that heralded classic works in the science fiction genre, it’s been mired in politics since extreme leftists in publishing decided to put political agenda ahead of stories. 2023’s Hugo Awards came under fire when serial cuckold Neil Gaiman complained about his Sandman series on Netflix being disqualified under nebulous circumstances. Now, that political agenda is coming back to bite them as newly leaked emails from Chengdu Worldcon’s committee reveal the Hugo Awards team conspiring to spy on award nominees on behalf of the Chinese government to rig the awards…

The emails objectively prove that the 2023 Chengdu Worldcon Hugo Awards were rigged, that votes were discounted and didn’t matter, and that it was entirely because of politics. While the people in charge are pointing to China as the problem, the Americans involved wilfully dug up dirt on several different authors on behalf of the Chinese to discredit their peers in the field.

It begs the question, if these science fiction clout chasers did this just to appease China, what happened in years past when their political opponents were getting nominations, and how much did they rig those Hugo Awards? Regardless, with a scandal of this level, an honest can’t look to the Hugo Awards as anything other than political-driven pointlessness. These aren’t the best science fiction works in craft. They’re just political propaganda pieces.

We are amused. We are very, very amused. And, to be honest, despite my very low expectations of them, I never imagined the freaks from File 770 and Worldcon would turn out to be spies for a foreign power.

Okay, on further review, Jemisin as three-time Best Novelist is still the low point. But that’s just sad. This, on the other hand, is hilarious.

DISCUSS ON SG

Bambi Sanctions Godzilla

The EU leaders are subjecting their economies to the same savage attrition that the Kiev regime is subjecting all the men of Ukraine. Only Kiev hasn’t been stupid enough to declare war on China as well as Russia.

Beijing rejects “illegal sanctions” and will defend the interests of its companies, the Chinese Foreign Ministry has said following a report that the EU could blacklist some of the country’s firms for allegedly helping Russia to evade the bloc’s restrictions.

The EU is planning to place restrictions on three Chinese businesses and one Indian company as part of its 13th round of sanctions on Russia over its conflict with Ukraine, the Financial Times reported on Monday.

Brussels believes the firms in question are helping Moscow to circumvent existing restrictions, especially through the supply of electronic components that can be repurposed for use in drones and other weapons systems. If the plan is approved by member states, it will see the EU sanction companies from mainland China and India – two of the bloc’s key trading partners – for the first time.

”We are aware of the relevant reports,” the Chinese Foreign Ministry said in a statement on Tuesday. “China firmly opposes illegal sanctions or ‘long-arm jurisdiction’ against China on the grounds of cooperation between China and Russia. Chinese and Russian companies carry out normal exchanges and cooperation and do not target third parties, nor should they be interfered with or influenced by third parties,” the ministry said.

Beijing “will take necessary measures to resolutely safeguard the legitimate rights and interests of Chinese enterprises.”

This decision to sanction Chinese companies goes so far beyond stupid as to genuinely raise the question if the Europeans are intentionally destroying their own economies and industrial capabilities at the orders of Washington in order to prevent their companies from being able to compete with the USA once the Great Bifurcation is complete and the West no longer has the ability to trade with Asia, Africa, or Araby.

Every single one of the twelve rounds of Russian sanctions has not only failed, but made the Russian economy stronger. Given that the Chinese economy is much larger, not only than Russia, but also than the combined economies of the European Union, what are the chances that this expansive thirteenth round will be any less disastrous.

It’s never been more clear that the post-WWII occupation of Western Europe by the United States never ended, or that the dirty sixties hippies were essentially correct and the good old conservative Republicans were totally wrong. The USA truly is an empire imposed by military force, it was never an armed force of charitable do-gooders just trying to help everyone by spreading peace and democracy around the world.

In the meantime, the Chinese have just demonstrated what they think of Switzerland’s now-defunct neutrality.

Bloomberg: The Swiss government is going to hold a peace conference for the Ukraine-Russia war soon. Does China have any intention to attend that?

Wang Wenbin: China’s position on the Ukraine crisis is consistent and clear. We have played a constructive role in advocating an end to the fight and a political settlement of the crisis. We will continue to promote peace talks and work for a political settlement of the crisis in our own way.

Bloomberg: Did you say you will use this forum to promote the settlement or you said you’ll use any forum to promote the settlement of the crisis?

Wang Wenbin: We will continue to play a constructive role in promoting the political settlement of the crisis in our own way.

Translation: No, we will not attend, participate, or promote any attempt by a pro-NATO government to play arbiter. You’re not neutral, you took Ukraine’s side, and you’re not fooling anyone. Also, don’t even think about trying to sanction our companies or we will sanction you right back, and you need our market more than we need yours.

DISCUSS ON SG

Why Tucker Went to Moscow

Russia Today suggests a logical explanation for the belated interview:

A few years ago, Russia was accused of interfering in American political processes. Now the opposite has happened. US domestic politics is dragging the Russian factor – represented by President Vladimir Putin – into its own electoral process.

Journalist Tucker Carlson is a strongly ideological man who represents a certain political camp. He brought to Moscow a profound spirit of internal American confrontation.

Carlson was probably personally curious to hear a lot of previously unknown things about our circumstances, but the goal wasn’t to learn or broaden horizons. The Putin interview was a challenge to the establishment in his home country.

The aim was to break through the conventional narrative – supported by the mainstream media – so that an alternative can fill the breach.

Tucker wasn’t finally permitted to go and do the interview with the President of Russia. He was sent by one of the saner factions of Clown World to try to extricate its empire from the suicidal path on which it has been set by the lunatic neocon faction.

The question is whether this saner faction, which still wants to preserve Clown World and its evil clown empire, is merely trying to avoid simultaneous war with Russia and China or if it still playing Cold War games and trying to make nice with Russia while gearing up for direct conflict with China.

We should able to determine that if Tucker follows up his interview with Putin by one with Xi or not.

All that being said, I very much doubt the “divide and conquer” strategy on which the clowns have relied for centuries will work. Both the Russian and Chinese presidents are not only very smart, but very well aware of the strategy and its consequences for their nations.

DISCUSS ON SG

Trump’s Trade War 2.0

Contra economists from both the Democratic and Republican parties, a trade war in 2025 would be a very, very good thing for the US economy:

Former US President Donald Trump has told advisers he wants to impose a 60% tariff on all imports from China if he wins this year’s election, the Washington Post reported on Saturday, citing three unnamed people familiar with the plan. The measure would trigger major disruptions to the US and to economies around the world, which would far exceed the impact of the trade wars initiated by Trump during his first presidential term, economists from both the Democratic and Republican parties told the newspaper.

During his current presidential campaign, Trump has pledged to revoke China’s status as a “most favored nation” for trade. The designation is applied to almost all nations that do business with the US, and the White House can introduce any tariffs on imported goods from countries that do not have it. According to the GOP front-runner, tariffs on foreign goods raise vital revenue for the US budget, and current import levies are among the world’s lowest.

China ranks third in the list of US trading partners, behind Mexico and Canada. In November, Beijing accounted for 11.7% of total US foreign trade.

As I pointed out six years ago on Chinese state television, a trade war is very much to the advantage of the United States economy. The net effect of the Western sanctions regime on the Russian economy only serves to underline my original point: a trade war is, by definition, always beneficial to the trading party that has a negative trade balance. And the USA has a massive trade deficit vis-a-vis China. Unlike a naval war in the Pacific, an air war in the Middle East, or worse, a ground war in Europe, this is one war that the USA literally cannot lose.

The reason the Russian economy didn’t suffer from the trade war the West imposed upon it despite having a trade surplus is because the West is now actually the smaller of the two global markets by a significant margin, both in terms of population and purchasing power parity. What Russia lost in Western trade, it more than gained in trade with the BRICSIA countries. And from the defense manufacturers to fast food chains, Russia’s industries benefited massively from the protection from Western imports that was inadvertently provided by the sanctions regime.

As recent history has demonstrated, the Clown World economists are totally wrong, even by their own Samuelsonian metrics.

DISCUSS ON SG

China Sanctions USA

It’s going to be interesting to see how the corpocracy changes its tune once it starts losing its access to the world’s largest market, as yesterday, the Chinese Foreign Ministry announced sanctions on five US defense companies:

Q: The US recently announced new arms sales to Taiwan and sanctioned Chinese businesses and individuals under various pretexts. China said it would take countermeasures. Could you tell us specifically what those measures are?

A: The US arms sales to China’s Taiwan region in blatant violation of the one-China principle and the stipulations of the three China-US joint communiqués, particularly the August 17 joint communiqué of 1982, and the illegal unilateral sanctions the US has imposed on Chinese companies and individuals under various false pretexts seriously harm China’s sovereignty and security interests, undermine the peace and stability across the Taiwan Strait, and violate the legitimate and lawful rights and interests of Chinese companies and individuals. China strongly deplores and firmly opposes this and has made solemn démarches to the US. 

In response to these gravely wrong actions taken by the US and in accordance with China’s Anti-Foreign Sanctions Law, China has decided to sanction five US defense industry companies, namely BAE Systems Land and Armament, Alliant Techsystems Operation, AeroVironment, ViaSat and Data Link Solutions. The countermeasures consist of freezing the properties of those companies in China, including their movable and immovable property, and prohibiting organizations and individuals in China from transactions and cooperation with them.

I would like to stress that the Chinese government remains unwavering in our resolve to safeguard national sovereignty, security and territorial integrity and protect the lawful rights and interests of Chinese companies and citizens. We urge the United States to abide by the one-China principle and the three China-US joint communiqués, observe international law and the basic norms governing international relations, stop arming Taiwan, and stop targeting China with illegal unilateral sanctions. Otherwise there will be strong and resolute response from China.

This is clearly just a warning shot across the bow of the US corpocracy. Because if the Chinese really want to increase the pressure on the US government, they will sanction Apple, Disney, and other entertainment companies. The amount of lobbyists descending upon Washington DC in response would make D-Day look like a small commando raid.

DISCUSS ON SG

The Shadow War Continues

Unlike the American people, the Chinese are very well aware of the way in which the CIA is attempting to spy upon them:

The WSJ has exposed quite a bit this time. Firstly, it revealed the public proclamation by the CIA of engaging in espionage activities against China, possibly in an attempt to exaggerate its own value and seek increased budgetary support from Congress. However, this also amounts to self-incrimination. When the US hypes and targets alleged “Chinese spies,” it consistently fails to provide concrete evidence. Instead, it initiates a smear campaign against China and subsequently demands China to prove its innocence. This pattern reveals that the US is fully aware of the lack of legitimacy in these “spy” allegations, yet shamelessly continues to clamor as if “no one can do anything about it.” The US is always very self-confident for being “right,” but its notion of “righteousness” differs fundamentally from the universally accepted definition.

Secondly, it proves that China’s counter-espionage work is highly effective. It has dismantled the US spy network in China and prevented it from rebuilding for 10 years. This is a major achievement in counter-espionage, causing the US to stumble in the face of China’s robust anti-espionage defense. When China revised its Counter-Espionage Law, it faced criticism from Western public opinion. Now it appears that the intention behind this criticism was to pressure China into removing its defenses and allowing their spies to operate freely within China’s borders. Fortunately, China has not fallen into this trap. China has been able to defend against espionage in the past, and will also have the ability to render CIA infiltration useless in the future.

Thirdly, it reminds us that the string of counter-espionage must be tightened. The CIA has indicated that rebuilding its spy network in China is currently their main focus and will continue to be so for the foreseeable future. In 2021, there were reports that the CIA established a mission center for China, the only single-country mission center at the agency. All of this may make the situation of China’s counter-espionage more complex and severe.

I very much doubt it is a coincidence that a) Xi unexpectedly took power, b) the CPC terminated its partnership with US Jewry, and c) the US spy network in China was dismantled at approximately the same time. Nor is it a coincidence that the BRICS framework was ready to present to the nonaligned nations within months of the US sanctions regime being imposed upon Russia in response to the Special Military Operation in Ukraine.

So, it’s interesting that China is now willing to openly discuss, in its English state media, what has been happening for the last ten years. I don’t know why this topic is being presented for discussion, but I suspect it is significant in some way.

DISCUSS ON SG