When the China Bubble Bursts
If the world has invested in the wrong things, and China is one of those things, then the bursting of the China bubble may be the greatest catastrophe of all. China’s financial system is a mess, and a major crisis cannot be far off. With the U.S. economy dipping lower and Europe facing its own financial nightmare, China cannot postpone its own day of reckoning. So what will China’s leaders do? What plans have they made?
To give readers some idea of the problem, a recent WikiLeak revealed that the U.S. had advanced knowledge of a secret Chinese missile test last year. In response to this revelation, Chinese Gen. Xu Guangyu told the South China Morning Post that American officials possessed enough advanced detail to suggest the presence of a sensitively placed U.S. spy in China’s rocket forces. According to the South China Morning Post, Gen. Xu said that “if China could no longer keep secret its missile launches, it would not be able to launch a surprise attack on the U.S.”
But why would China want to launch a surprise attack on the U.S.?
In 2005 Chinese Defense Minister Chi Haotian explained that an ailing Chinese economy would produce a social explosion that could sweep away the Communist Party. “If we do not have good ideas,” warned Chi, “China will inevitably change … and we will all become criminals in history. After some deep pondering, we finally came to this conclusion: only by turning our developed national strength into the force of a fist striking outward – only by leading the people to go out – can we win forever the Chinese people’s support and love for the Communist Party.”
To survive the consequences of an economic downturn, the Party needs to lead the Chinese people – as Chi Haotian suggests – “out of China.” This may seem confusing to those who think China is a post-Communist country; but as journalist Richard Mcgregor points out in his book The Party, China is yet a Leninist state. And yes, they really are Communists, though what this means is lost on nearly all outside observers – and somewhat bewildering to the Chinese themselves. The rulers of China keep their Communist goals and objective from public view. They do not like the glare of publicity; and so they banned Mcgregor’s book because he underscored the Party’s control over the army, police media and big business.
Two things are important to remember about the Chinese Communist Party: first, Communism remains a philosophy set against freedom; second, Communism is ultimately about the elimination of capitalism in favor of socialism (because capitalism opens the way to freedom). This latter point was underscored by none other than Deng Xiaoping himself – and by the Party in its secret conclaves today. But few in the West have bothered to read Deng’s collected works. Neither have they understood the reason for the Communist Party retaining its name and its ideology behind the scenes, where its strategies are meditated in secret.
The rationale behind Chinese capitalism is not to eliminate Communism. The rationale is to fight fire with fire – to defeat capitalism by capitalist means. The objectives of “Chinese capitalism,” as conceived by Deng Xiaoping, were outlined in an article published by the Hong Kong newspaper Cheng Ming on 6 June 1991. Here it was shown that Deng Xiaoping was secretly working to advance Sino-Soviet supremacy while the Americans were duped into giving China everything it needed. After the fall of the Soviet Union, as reported by Bill Gertz in the Washington Times of 21 Oct. 1992, China and Russia signed a pact restoring intelligence ties. From that point forward the Russians assisted the Chinese in their continuing military buildup.
The Chinese Communist goal was clearly stated at the beginning, in 1977, when Deng Xiaoping explained the strategy of opening economic relations with the West. Deng told the CCP Central Committee that they were engaged in “the international united front struggle” which was a strategy about which the “American imperialists” know absolutely nothing. “We belong to the Marxist camp,” he explained, “and can never be so thoughtless that we cannot distinguish friends from enemies.” According to Deng, President Nixon and President Ford were enemies, as well as President Carter. All future “American imperialist leaders” were also enemies. “What we need mainly is scientific and technical knowledge and equipment,” he said. In the future, America “will have no way of avoiding defeat by our hands.”
The strategic thinking of the Chinese Communist leadership holds that as long as America continues to enrich China, and as long as China can build its military power, then peace is workable. But when the economic wellspring runs dry and the Sino-American partnership has exhausted its profitability, then peace becomes unworkable. Rising discontent within China must then be diverted. The natural course would be for the people to hold the country’s leaders responsible, and to remove them from power. Many of these leaders would be tried as criminals, and would lose their heads. The only alternative to this would be war with the United States. This course automatically shuts down the Chinese democracy movement, which would have to choose between China and America in the course of a life-and-death struggle. In such a contest, the Chinese Communist Party automatically wins the assent of nearly all Chinese – including democrats.
And so, the best course for a failing Chinese economy is war. One might ask what kind of war? In a secret 2005 speech given by Chinese Defense Minister Gen. Chi Haotian (titled “War is not far from us and is the midwife of the Chinese century”), a biological attack on the United States was suggested as optimal. “It is indeed brutal to kill one or two hundred million Americans,” said Gen. Chi. “But that is the only path that will secure a Chinese century….” Having already noted that millions of Chinese would die if the Chinese economy collapsed, Gen. Chi explained that the only way out for China was to “teach the Chinese people to go out” (i.e., attack the United States). “We, as revolutionary humanitarians, do not want deaths,” said Chi. “But if history confronts us with a choice between deaths of Chinese and those of Americans, we’d have to pick the latter….”
Worried about the Chinese public’s reaction to the mass extermination of Americans, the Chinese Communist Party conducted an online survey through an intermediary. “[W]e wanted to know whether the people [of China] would rise up against us if one day we secretly adopted resolute means to ‘clean up’ America,” Gen. Chi explained. The survey asked if it was acceptable to shoot prisoners of war, along with women and children. If an overwhelming majority approved of such measures, “then they would approve our ‘cleaning up’ America,” said Chi.
The curious American reader might ask how the Chinese public reacted to the survey. “What turned out to be comforting,” noted Gen. Chi, “is they [the Chinese public] did not turn in a blank test paper. In fact, they turned in a test paper with a score of over 80. This is the excellent fruition of our Party’s work in propaganda and education over the past few decades.”
And so, if China’s economy stops growing, America should expect that its relations with China will deteriorate. This is based on the internal logic of the Chinese political system – which appears to be locked on a collision course with America.
About JR Nyquist
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