The Myth of Chinese Capitalism

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TODAY'S TOPIC: The Myth of Chinese Capitalism
Cross linked with  44 Days and SoundCloud
DATELINE: 8.15.15/ Rev. 8.20.15  |||  Reposted 8.30.22

SINOLAND.JEFF

One of the great fabrications of Western mainstream media, among academics and on Wall Street is that China, starting in 1978 with Deng Xiaoping’s economic reforms, became a capitalist country. The favorite Western shibboleth bandied about is that, China’s authoritarian regime (it’s almost never called a government) runs a system of state capitalism. This is said with a genuflecting air of superiority and righteous consternation because it’s not quite copacetic; it smells like warmed-over chop suey.

State capitalism is supposed to mean that China’s leaders, whom I collectively call Baba Beijing, map out grand national plans and mandate to China’s businesses what they are to do and not to do, whether they like it or not, markets be damned, and tax incentives and subsidies are offered to push them in the desired direction. This so called state capitalism is considered to be inherently unfair, since Western capitalism mythically only responds to the needs of “free markets” and the “free movement” of capital, investments and goods across our Planet, in search of profits.

The self-reassuring message is that China is fully in fold of Western capitalism, except Baba Beijing plays dirty, using its own set of rules. Keeping it in the rubric of capitalism justifies why China has become, in just one generation, the world’s largest economy in purchasing power parity (PPP), eclipsing the United States for the first time since 1872, when America’s rapidly expanding colonial empire overtook China’s centuries-held #1 position. During the last generation, China has become the world’s #1 manufacturer, exporter and cross border trader, as well as Planet Earth’s largest creditor. During this time span, Baba Beijing’s policies have created the world’s largest and still fastest growing middle class, bringing a materialistic lifestyle to 1.3 billion citizens. This superficial image of the Chinese buying Stuff and Fluff, just like super-consuming Westerners, further gives outsiders the impression that China is just a copycat, eastern version of crass Americana.

Nothing of all this could be further from the truth. In 1949, China gained its liberation from Western and Japanese imperial subjugation and became history’s most successful socialist and communist country. From 1949-1978, the Mao Era, China’s GDP grew an average of 7% per annum. Mao sincerely wanted the Chinese to get rich, just that all that wealth must be distributed as equally as possible. This is reflected in China’s 1978 GINI coefficient being a very egalitarian 0.16. A GINI coefficient of zero means that all the income is evenly distributed to all citizens and a coefficient of one means one person has all the income and everybody else has nothing. As a comparison, Sweden’s is currently 0.25, the lowest in the world, China’s is 0.37, the US’s is 0.41 and for all of humanity, 0.65. https://en.wikipedia.org/wiki/Gini_coefficient

Billboard tribute to Deng Xiao ping (Shenzhen, China on a busy Saturday afternoon, Jan. 2010)

Billboard tribute to Deng Xiao ping (Shenzhen, China on a busy Saturday afternoon, Jan. 2010). The display reads: "Uphold the Party’s Fundamental Policies – Don’t Waver for One Hundred Years."

During this same time frame, 1949-1978, the United States garnered 8% annual growth, just one percent more than the communist-socialist model. Given that the United States and its NATO supplicants successfully shut out China from international finance, investment and trade, until the mid-70s, the Mao Era economic statistics are truly remarkable. With the advent of Deng Xiaoping’s reforms and opening up China’s economy to do battle with Western capitalism (the Deng Era, 1979-2012), China’s economy has grown an average of 10% per annum, while America’s growth averaged 6%. A not-well-known point of history is that many of Deng’s reforms were actually started by Mao, Deng and Zhou Enlai, going back into the 70s and 60s, which helps explain the Mao Era’s phenomenal socioeconomic achievements. These earlier reforms were cleverly rebranded as “new” by Deng. Western capitalists eagerly lapped it up, in their lustful pursuit of Chinese profits, starting in 1978.


Deng-Mao

Far left is Deng Xiaoping; to right is Zhou Enlai and center stage is Mao Zedong. Many of Deng’s much ballyhooed socioeconomic reforms were actually begun by these three titans of Chinese communism, starting in the 1960s. (Image by baidu.com)

deng-mao-2

One of the greatest head fakes in geopolitical history: Deng Xiaoping giving eager Western capitalists the impression that China’s economic reforms would mean selling off state owned assets, preferably at fire sale prices. Pictured here is Deng on the left, absorbing Mao Zedong Thought from New China’s founder, the Chairman himself. (Image by baidu.com)


China’s amazing socio-economic success story during the Mao Era has been completely expunged behind the Great Western Firewall. https://www.greanvillepost.com/2015/06/16/radio-sinoland-mao-zedong-ow-or-wow-2015-5-1/ For Western colonialism, it must not become common currency that a once poor, technologically repressed country of China’s size, any size for that matter (think Cuba or Eritrea), can succeed economically and socially, under the banner of socialism and communism. It is for this reason that there is a relentless foghorn of Western propaganda to discredit any and all gains made by non-capitalist countries. The West’s owners surely don’t want free thinking people and their leaders in Africa, the Americas and Asia to get any radical ideas.

"Beijing is going in the opposite direction of Western colonialism, by rolling out a massive, nationwide social security and retirement program for anyone living here, even foreigners, if they pay payroll taxes...

These imperial lies have continued into the Deng Era. China is still a communist and socialist country. Baba Beijing has simply used the West’s methods, markets, investment and technology to continue to advance the wellbeing of China’s people, within its non-capitalist economy. This is hard for most Westerners to wrap their heads around, that China has been and continues to be a communist and socialist country, till now, 2015, and will continue to be so as long as Baba Beijing is in power. This explains why the West has been relentlessly trying to overthrow the Communist Party of China (CPC), since liberation in 1949.

Like the United States, Russia and France, the People’s Republic of China was founded and hewn from revolution. China’s long history and vision for the future are clearly spelled out in its constitution. The most recent version is from 1982, when Deng Xiaoping was China’s paramount leader. Here is an excerpt from the constitution’s preamble, http://en.people.cn/constitution/constitution.html

After the founding of the People's Republic, the transition of Chinese society from a new- democratic [Editor’s note: China’s first republican period, with Sun Yat-Sen, 1912-1949] to a socialist society was effected step by step. The socialist transformation of the private ownership of the means of production was completed, the system of exploitation of man by man eliminated and the socialist system established. The people's democratic dictatorship led by the working class and based on the alliance of workers and peasants, which is in essence the dictatorship of the proletariat, has been consolidated and developed. The Chinese people and the Chinese People's Liberation Army have thwarted aggression, sabotage and armed provocations by imperialists and hegemonists, safeguarded China's national independence and security and strengthened its national defense. Major successes have been achieved in economic development. An independent and fairly comprehensive socialist system of industry has in the main been established. There has been a marked increase in agricultural production. Significant progress has been made in educational, scientific, cultural and other undertakings, and socialist ideological education has yielded noteworthy results. The living standards of the people have improved considerably. Both the victory of China's new-democratic revolution and the successes of its socialist cause have been achieved by the Chinese people of all nationalities under the leadership of the Communist Party of China and the guidance of Marxism-Leninism and Mao Zedong Thought, and by upholding truth, correcting errors and overcoming numerous difficulties and hardships.

The basic task of the nation in the years to come is to concentrate its effort on socialist modernization. Under the leadership of the Communist Party of China and the guidance of Marxism- Leninism and Mao Zedong Thought, the Chinese people of all nationalities will continue to adhere to the people's democratic dictatorship and follow the socialist road, steadily improve socialist institutions, develop socialist democracy, improve the socialist legal system and work hard and self-reliantly to modernize industry, agriculture, national defense and science and technology step by step to turn China into a socialist country with a high level of culture and democracy. The exploiting classes as such have been eliminated in our country. However, class struggle will continue to exist within certain limits for a long time to come. The Chinese people must fight against those forces and elements, both at home and abroad, that are hostile to China's socialist system and try to undermine it.


One of China's fast trains. The nation's infrastructure continies to modernize, while in most of the West, especially in America, the ruling private sector

One of China's fast trains. The nation's infrastructure is being rapidly modernized, while in most of the West, especially in America, the ruling private sector neglects public works and investments that benefit the masses.

China’s constitution clearly states that the Chinese people will govern themselves via their people’s democratic dictatorship. This dictatorship will guarantee the integrity of the People's Republic of China as a socialist state. This simply means that China’s citizens invest in the CPC to represent them and act on their behalf. Among the Chinese, this faith in their central government to do the right thing, and protect the citizens, their livelihoods and the country’s borders, is called the Heavenly Mandate. The Heavenly Mandate is a unique, sociopolitical concept that includes all previous emperors and dynasties, going back 5,000 years. The Heavenly Mandate stipulates that if the current Baba Beijing does not take care of the people’s business, it will be replaced with a new one.

The other key philosophy stated in China’s constitution is that the CPC is authorized to use dictatorial powers to vanquish any anti-revolutionary imperialists and hegemonists (Westerners) and fight the exploiting classes (meaning capitalists), both inside China (fifth column compradors) and outside China (Western empire), who are all trying to overthrow the CPC (via Western international institutions, NGOs and internal and external psyops/blackops subversion).

This unique, overriding sociopolitical, communist-socialist mandate is still true today, in spite of the Deng Era reforms. There is widespread, willful propaganda behind the Great Western Firewall to deny this anti-capitalist reality. Deng was a wily, masterful politician and charmer, and his diminutive body size disarmed his Western opponents, making them feel over-confident. He told them exactly what they wanted to hear and the Western empire began sharpening its knives, waiting to carve up and exploit China, just like it did for 110 years, from the 1840s’ Opium Wars until liberation in 1949. This period is known to the Chinese as the century of humiliation. But the real truth of Baba Beijing’s intentions was expressed by Deng, in 1982 that,

TiananmenGateMaoPortrait

Mao's image still presiding on Tiananmen (Gate of Heavenly Peace)

Chairman Mao did very good things. Many times he saved the Party and the state from crisis. Without him the Chinese people would, at the very least, have spent much more time groping in the dark. Chairman Mao’s greatest contribution was that he applied the principles of Marxism-Leninism to the concrete practice of the Chinese revolution, pointing the way to victory. It should be said that before the sixties or the late fifties many of his ideas brought us victories, and the fundamental principles he advanced were quite correct. He creatively applied Marxism-Leninism to every aspect of the Chinese revolution, and he had creative views on philosophy, political science, military science, literature and art, and so on… We won great victories for the revolution precisely because we adhered to Mao Zedong Thought… We will reaffirm that his contributions are primary and his mistakes secondary. We will adopt a realistic approach towards the mistakes he made late in life. We will continue to adhere to Mao Zedong Thought, which represents the correct part of Chairman Mao’s life. Not only did Mao Zedong Thought lead us to victory in the revolution in the past; it is — and will continue to be — a treasured possession of the Chinese Communist Party and of our country. That is why we will forever keep Chairman Mao’s portrait on Tiananmen Gate as a symbol of our country, and we will always remember him as a founder of our Party and state. Moreover, we will adhere to Mao Zedong Thought. We will not do to Chairman Mao what Khrushchev did to Stalin.

Best as I can tell, there is not much market-oriented liberalism to tease out of Deng’s statement.

The world has now entered China’s third great modern era, President Xi Jinping’s, starting in 2013. Xi did not get a PhD in Marxism-Leninism, upon which is based on Mao Zedong Thought, for nothing. He is mobilizing China’s people with his highly popular Chinese Dream, to achieve a moderately prosperous, socialist society, thereby rejecting mindless consumption. This is the antithesis of America’s gluttonous, greedy, self-centered me-ism.

The Chinese Dream also fully encompasses the goal of living in a clean and safe environment. Xi knows that all these capitalist adoptions in China have badly degraded the air, soil and water, as well as making it the world’s poster child for unsafe work conditions, as the Tianjin port explosion and numerous mining accidents can attest. Poll after poll shows that the people’s democratic dictatorship is clamoring for Green, Clean and Safe. If Baba Beijing does not address its citizens’ demands, it could quickly lose the Heavenly Mandate.


Tianjin port disaster

Baba Beijing will undoubtedly use the Tianjin port disaster as an administrative cudgel to push through more costly and stringent workplace safety legislation. The owners of the port storage company, Ruihai International Logistics, will surely face capital punishment or spend the rest of their lives behind bars. The fact that Ruihai is not a government owned company also gives Baba Beijing a powerful bully pulpit to tout the benefits of state owned enterprises, and they may use this tragedy to forcefully buy out privately held companies that are working in high risk fields.

A big sign that China is still communist-socialist is that Baba Beijing is going in the opposite direction of Western colonialism, by rolling out a massive, nationwide social security and retirement program for anyone living here, even foreigners, if they pay payroll taxes. This ambitious initiative also includes universal health care for everyone, especially children, the elderly and infirm. Meanwhile, the West is working furiously to dismantle its social and medical programs, or at the very least, making them much more expensive for its citizens, as well as looting many billions of dollars and euros from pension funds.

Xi Jinping and the CPC are also fully committed to bringing China’s 90 million poorest citizens out of extreme poverty, by 2030. This, while the West can’t defund and cancel fast enough what’s left of its sundered safety nets, for society’s most vulnerable. Xi is one of the world’s most powerful leaders. Yet, he regularly underscores this government mandate to the press and the people, even traveling to pockets of severe poverty, to drive home the point. The last US president who openly talked about poverty was Lyndon Johnson, and that was 50 years ago. As a country founded on communism and socialism, I’ve never heard a Chinese citizen complain about the less privileged taking what they should rightfully keep as “their own”. The idea that China’s worst off are economic leeches sucking off “hard working citizens” is unimaginable and repugnant here.

China is still very much communist, because every square meter of this country is owned collectively by the Chinese people, via the state. No one can buy the dirt under any piece of property. All one can do is have a long term lease, which by legislation, cannot exceed 70 years. For foreign businesses, this is quite acceptable, since there are very few capital investments, if any, that are not fully depreciated off the books in less than 50 years, most in 5-20 years.

Anybody on Planet Earth can invest in China’s real estate, but if you wish to keep it longer than 70 years, you will have to renew your lease contract and pay its going market value, to do so. This is what China’s constitution means that, “The socialist transformation of the private ownership of the means of production was completed”, meaning the entire country’s landmass was nationalized. Baba Beijing is continuing to try different ways of making the country’s land more productive, via creative laws and regulations, but it is still all collectively owned, every square millimeter.

The fact that China’s lands are collectively owned is suppressed behind the Great Western Firewall, because it is inconvenient that such an incredible, communist-socialist economic success story, is a proven fact. Only “private ownership” can assure the happiness and wellbeing of the people, or so goes the myth of Western capitalism, as peddled by Adam Smith and Francis Bacon. In reality, Smith and Bacon were only concerned with the prerogatives of the elite one percent.

China’s state sector, meaning government-owned businesses, dominates the national economy, and its presence is being felt, more and more, across our Pale Blue Dot. There are 155,000 state-owned enterprises (SOEs) in China, in every imaginable sector and industry. Their book value is US$17.4 trillion, more than America’s annual GDP. Since the 1990s, China has been and continues to adopt capitalist practices to make its SOEs perform better and be more transparent. A number of them are selling a portion of their ownership to the public, by listing shares on Chinese stock markets, keeping the vast majority of ownership in government hands, usually up to a 70% government-30% stock split. This sort of shareholder accountability has improved the performance of China’s SOEs, which is Baba Beijing’s goal.

Some of the bigger SOEs are splitting off sector-specific businesses and then selling minority stakes in them on the stock market, to allow these new entities to focus their specialized energies, compete on the national and world stage. Conversely, other SOEs are being consolidated to become planet conquering giants, in the energy, commodities, transportation, infrastructure and communication sectors. Thirdly, SOEs are spending billions of dollars and euros all over the world, buying outright or investing in stock traded companies, to add to their bottom line, ironically now making them government-owned under the SOE rubric.

chineseIndustryValue

China’s people’s democratic dictatorship owns US$17.4 trillion in assets, more than the United States’ annual GDP. Not being able to plunder and pillage all these resources causes Western capitalists and the political leaders they own, to foam at the mouth with covetous rage. Image by baidu.com)

The bigger they are, the more profitable they tend to be. On the capitalist sacred list, Fortune’s Global 500 Companies, http://fortune.com/global500/ China’s socialist behemoths are more and more competing head to head with the West’s most successful, stockholder corporations. In 2000, China only had 10 companies listed on this capitalist Holy Grail. By 2010, the count was up to 46 and this year, 99. Only 22 of these nearly 100 Chinese companies are majority shareholder owned. All the others are proudly flying the flag of China’s people’s democratic dictatorship.

How profitable are China’s government owned corporations? Last year, China’s 12 biggest SOEs on the Global 500 list made a combined total profit of US$201 billion. http://fortune.com/2015/07/22/china-global-500-government-owned/ China’s democratic dictatorship owns the world’s largest petroleum company (SINOPEC- bigger than ExxonMobil, BP and Shell), the largest bank (ICBC- bigger than Citibank, HSBC and Bank of America), the largest utility business (State Grid- bigger than E.On and Eléctricité de France), the largest construction engineering firm (China State Construction Engineering- bigger than Bechtel and KBR), the largest railroad business (China Railway Engineering), the third largest telecomm outfit (China Telecommunications), the sixth biggest insurance group (China Life Insurance) and the tenth largest automobile manufacturer (SAIC). The Chinese people own four of the world’s Top Ten banks and two of the five largest petroleum concerns.

China-profits-chart

In 2014, US$201 billion in profits came from China’s 12 biggest state owned enterprises. China’s communist-socialist economic model scares the hell out of Western empire, since it offers an attractive and successful alternative to the West’s 1%-99% capitalist system of colonial exploitation and resource extraction. (Image by FRS)

The largest of these publicly owned SOEs are managed by the world’s wealthiest sovereign asset organization, China’s State Assets Supervision and Administration Commission (SASAC). SASAC answers directly to the highest levels in Baba Beijing’s hierarchy, the State Council, which is headed by China’s Premier, Li Keqiang (#2, behind Xi Jinping). He is imminently qualified, having earned a law degree and a PhD in economics. SASAC keeps tabs on what are considered strategic sectors, which include aerospace, airlines, aluminum, architecture & design, automotive, aviation, banking, chemicals, coal, cotton, electronics, engineering, forestry, heavy equipment, gold, grain, heavy machinery, intelligence services, iron, materials, metallurgy, mining, non-ferrous metals, nuclear energy, ocean shipping, oil, pharmaceuticals, postal services, rail, salt, science and technology research, ship building, silk, steel, telecoms, travel and utilities. Most of these sectors are state monopolies or nearly so. http://www.sasac.gov.cn/

Other sectors that are state monopolies or dominated by SOEs are airports, arms and weapons, banks, dams/hydroelectricity, insurance, ports, tobacco, solar and wind power and toll roads and bridges.

The economic model that the West cannot bring itself to admit is truly succeeding. The hen on the left is state owned assets. China’s SOEs are represented by a successful boy, who is handing state income eggs to the country and its commonwealth: the people’s democratic dictatorship. (Image by cnsphoto.com).

The economic model that the West cannot bring itself to admit is truly succeeding. The hen on the left is state owned assets. China’s SOEs are represented by a successful boy, who is handing state income eggs to the country and its commonwealth: the people’s democratic dictatorship. (Image by cnsphoto.com).

The Western empire’s utter denial and arrogance towards China’s communist-socialist economic model were embarrassingly revealed recently, by a World Bank China Assessment report. In it, a couple of graphs were presented, showing that China’s FIRE sectors (finance-insurance-real estate) are essentially state monopolies. This admonition was termed as an insulting threat to Baba Beijing, as if China’s leaders and people don’t know what’s best for them. It stated that if China does not reform its financial sector, whose Western definition means selling off all state owned FIRE assets to the West, then trouble could lie ahead. It also derisively commented that all this state control is “making [China] an outlier by international standards”. http://finance.ninemsn.com.au/newsbusiness/aap/9004661/world-bank-retracts-part-of-china-report

Well, I should hope so, because China’s economy is communist-socialist, and not at all capitalist. This World Bank gaff of conceit was extirpated from the report a couple of weeks later, with the lame excuse that it had not been “adequately reviewed” before publication. The fact of the matter is, this was a classic Freudian slip, which accurately mirrors Western Empire’s true fears. Why? Because China’s economic performance has, since 1949, beaten the pants off of “unfettered, free market” America - by a long shot - and China’s superior communist-socialist model will increasingly outpace Western colonialism, as it slowly collapses into irrelevance.

This is what truly frightens Western colonialism to the quick. With the advent of China’s communism-socialism rising up as an alternative to the West’s 1%-99% system of exploitation and resource extraction, imperial propaganda has been relentless in brainwashing its citizens, to deny this model’s existence and discredit its many successful examples around the world.

Instead of America and the West being looked up to and admired as the model to adopt, China is rapidly taking center stage, to offer the world a different vision: revolutionary red communism-socialism. In fact, it is already happening. SOEs are popping up all across the world economy. In 2014, 23% of the Global 500 companies were SOEs, compared to only nine percent in 2005. This trend should continue into the 21st century, since China has shown that its economic model is clearly superior to Western colonialism. If Baba Beijing can bring the Chinese Dream to full fruition, by the stated goal of Year 2050, humanity just might have a chance to survive after all.

The next time someone starts regurgitating Randian, Chicago School, jungle capitalism tripe, hit back with the facts in this article and share its link We owe it to future generatons to bring down the Great Western Firewall and speak truth to power.

Going into the 21st century, the West’s colonial-imperial economic model is going to be seriously challenged by China’s model of communist-socialist state-owned enterprises (SOEs). (Image by infographic.com)

Going into the 21st century, the West’s colonial-imperial economic model is going to be seriously challenged by China’s model of communist-socialist state-owned enterprises (SOEs). (Image by infographic.com)


JEFF J. BROWN, Special Correspondent, Beijing

Jeff-J.-Brown-TEDx-talk-2014.3.1Jeff J. Brown is the author of “44 Days Backpacking in China: The Middle Kingdom in the 21st Century, with the United States, Europe and the Fate of the World in Its Looking Glass” (2013), “Reflections in Sinoland – Musings and Anecdotes from the Belly of the New Century Beast” (2015), and “Doctor WriteRead’s Treasure Trove to Great English” (2015). He is currently writing an historical fiction, “Red Letters – The Diaries of Xi Jinping”, due out in 2016. He is a member of The Anthill, a collective of authors who write about China. Apart from his columns to The Greanville Post, he also submits articles on Oped News and Firedog Lake. His articles have been published by Paul Craig Roberts, The Saker, Ron Unz, Alternative News Network, Russophile, 15 Minute News, The Daily Coin, Hidden Harmonies and many other websites. He has been a guest on Press TV.


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The U.S. Government’s Frauds About Taiwan

Please make sure these dispatches reach as many readers as possible. Share with kin, friends and workmates and ask them to do likewise.




Current U.S. Government policy regarding Taiwan is directly violating prior commitments that the U.S. Government had made to the Chinese Government regarding Taiwan, which commitments will here be summarized by excerpts from the first of those previously made commitments:

https://history.state.gov/historicaldocuments/frus1969-76v17/d203
https://archive.ph/lvJX8
203. “Joint Statement Following Discussions With Leaders of the People’s Republic of China”
Shanghai, February 27, 1972. …
the two sides stated that:
—progress toward the normalization of relations between China and the United States is in the interests of all countries;
—both wish to reduce the danger of international military conflict;
—neither should seek hegemony in the Asia–Pacific region and each is opposed to efforts by any other country or group of countries to establish such hegemony; and
—neither is prepared to negotiate on behalf of any third party or to enter into agreements or understandings with the other directed at other states.
Both sides are of the view that it would be against the interests of the peoples of the world for any major country to collude with another against other countries, or for major countries to divide up the world into spheres of interest.



The two sides reviewed the long-standing serious disputes between China and the United States. The Chinese side reaffirmed its position: The Taiwan question is the crucial question obstructing the normalization of relations between China and the United States; the Government of the People’s Republic of China is the sole legal government of China; Taiwan is a province of China which has long been returned to the motherland; the liberation of Taiwan is China’s internal affair in which no other country has the right to interfere; and all U.S. forces and military installations must be withdrawn from Taiwan. The Chinese Government firmly opposes any activities which aim at the creation of “one China, one Taiwan,” “one China, two governments,” “two Chinas,” and “independent Taiwan” or advocate that “the status of Taiwan remains to be determined.”
The U.S. side declared: The United States acknowledges that all Chinese on either side of the Taiwan Strait maintain there is but one China and that Taiwan is a part of China. The United States Government does not challenge that position.

Here is the current U.S. Government policy regarding this matter:

“Opinion Nancy Pelosi: Why I’m leading a congressional delegation to Taiwan”
Washington Post Op-Ed, by Nancy Pelosi
August 2, 2022 at 10:52 a.m. EDT
Some 43 years ago, the United States Congress overwhelmingly passed — and President Jimmy Carter signed into law — the Taiwan Relations Act, one of the most important pillars of U.S. foreign policy in the Asia Pacific.
The Taiwan Relations Act set out America’s commitment to a democratic Taiwan, providing the framework for an economic and diplomatic relationship that would quickly flourish into a key partnership. It fostered a deep friendship rooted in shared interests and values: self-determination and self-government, democracy and freedom, human dignity and human rights.
And it made a solemn vow by the United States to support the defense of Taiwan: “to consider any effort to determine the future of Taiwan by other than peaceful means … a threat to the peace and security of the Western Pacific area and of grave concern to the United States.”


Actually, Pelosi (and her boss, Biden) lie to say that “The Taiwan Relations Act set out America’s commitment to a democratic Taiwan,” because the phrase “a democratic Taiwan” would — in that context, in which there would be “a solemn vow by the United States to support the defense of Taiwan” — refer to a Taiwan in which the majority of its residents reject Chinese nationality and support secession of Taiwan from China. Today’s U.S. regime supports “the defense of Taiwan” ONLY IF Taiwan joins its currently undeclared war to conquer China. That’s where the lie lies, in this case. To support a local majoritarian control of Taiwan as an independent nation, as being the basis for that (or any other) region’s right to secede from their existing (larger) nation, would be rejecting that larger nation’s (in this case, China’s) right to self-defense, because any nation’s self-defense depends upon its structural integrity and its (that larger region’s) right to prohibit any of its (local) regions (including Taiwan) from allying itself with a hostile nation whose government is seeking conquest against that larger nation (such as the U.S. Government is).

For example: during America’s Civil War in the 1860s, Britain and France supported the slave-states (the “Confederacy”) in their right to secede from the Union (the United States), because (as Kevin Lees euphemistically wrote about this in National Interest) “European powers realized it would be in their national interest to divide the United States into two weaker components that could easily be played against each other in future international affairs.” America’s aristocracy don’t care about “democracy” (other than — like any aristocracy does — to defeat democracy everywhere), but they do want to weaken any country that they are hoping to “regime-change” or take over. Breaking off a piece of a targeted nation is a prominent standard traditional way to do that — to weaken a targeted victim-nation.

I previously discussed this when responding to a reader-comment:

https://theduran.com/the-pretended-progressivism-of-yves-smiths-naked-capitalism-blog/#comments
Eric Zuesse replying to “InnerCynic” (who had supported ALL secessionist movements that reflect majority-opinion in a given region):
Re. your "I see no reason why the people of Taiwan cannot make the same decision":

You falsely assume that ANY secession that is supported in a plebiscite should AUTOMATICALLY be granted. See, on this question:
https://www.e-ir.info/2020/05/29/the-united-nations-self-determination-state-failure-and-secession/

The residents on Taiwan were long opposed to secession, but were transformed to favor secession only because in 1945 the U.S. Government switched from being an ally of China to treating China as its enemy to be conquered by the U.S. and began a campaign of subversion to change that public opinion in Taiwan and ultimately, after decades, achieved that, as a hostile act against China, which includes its being a hostile act against Taiwan (IRRESPECTIVE of whatever the majority of residents in Taiwan might want at any particular time). China will NEVER allow any enemy to break off a part of China. China is not a declining power — America is. And, furthermore, in international law, the right of ANY nation to protect its sovereignty against any hostile power is bedrock. Nothing is more fundamental in international law than a nation's right of self-defense. If America challenges China on this, then China will be at war against America, and it will be WW III, and America will be aggressing against China. Russia will be on the side of China in that war. You want that?

“InnerCynic” did not reply.

Regarding, however, the concern about “democracy” (when that asserted objective can be used as an excuse for aggression): Starting only late in the 20th Century did the U.S. Government begin to press more firmly to break off Taiwan from China. Consequently, Taiwan’s National Chengchi University instituted in 1994 annual polling on a number of policy-options regarding the way forward regarding Taiwan’s status. At that time, the most popular option, supported by 38.5% of residents, was “Maintain status quo, decide at later date.” A different policy-option, “Maintain status quo, move toward independence,” was supported by only 8.0%. However, as-of June 2022, those two percentages have become virtually tied at around 28.5% for each, which are thus now tied as being the top two policy-choices. So, apparently, this could be the time to strike. And, obviously, Pelosi and Biden — and the rest of the U.S. regime — are hoping that it is. But if a plebiscite is being held in an area so as to determine whether or not a particular regional breakaway would be ‘democratic’, it still can be a subterfuge, either by an aggressor-nation or by its targeted victim-nation, in order to ‘justify’ what it is trying to do. Clearly, the U.S. regime is trying to conquer its former WW II ally, China. As usual, the current American Government’s claims to being (much less to its defending) democracy are fraudulent.

Furthermore, another lie by Pelosi in her public statement to the people of Taiwan was that “The Taiwan Relations Act … made a solemn vow by the United States to support the defense of Taiwan,” because, as Wikipedia’s article on the Taiwan Relations Act states, “The TRA does not guarantee the U.S. will intervene militarily if the PRC [China] attacks or invades Taiwan.” The U.S. regime is no more interested in the defense or welfare of the people in Taiwan than it is interested in the defense or welfare of the people of Ukraine. To them, it’s just another proxy-battlefield for some other nation’s canon-fodder to be suckered into going through the meat-grinder of war to weaken and ultimately absorb target-nations (in this case, China) for the benefit of American billionaires’ unlimited greed for expanding their global empire to include the entire world: “hegemony.”


ABOUT THE AUTHOR
Investigative historian Eric Zuesse’s new book, AMERICA’S EMPIRE OF EVIL: Hitler’s Posthumous Victory, and Why the Social Sciences Need to Change, is about how America took over the world after World War II in order to enslave it to U.S.-and-allied billionaires. Their cartels extract the world’s wealth by control of not only their ‘news’ media but the social ‘sciences’ — duping the public.


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China has just now released a “white paper” on the Taiwan reunification issue

Please make sure these dispatches reach as many readers as possible. Share with kin, friends and workmates and ask them to do likewise.


Robert Vannrox
METALLICMAN


MetallicMan
China has just now released a “white paper” on the Taiwan reunification issue

China has just laid down the "rules of engagement" regarding Taiwan reunification. It's being ignored or minimized by the Western "news", but it is a strikingly important document. MM discusses this document.

 It’s comprehensive and explicit. China has explicitly explained - in great detail - what will happen, and how.

  • Taiwan will be reunified with China just like HK and Macao have been.
  • Taiwan will keep its own governance system.
  • Taiwan will have complete access to the great resources of mainland China.
  • Taiwanese citizens get automatic citizenship and all residency documents will automatically be converted to regional “household registers”.
  • Taiwan will have significant representation in the Chinese government.
  • China will not hurt, harm, or attack any Taiwanese citizen, as they are Chinese citizens, UNLESS they are working in behalf of a foreign government.
  • There can be ZERO foreign interference.
  • If there is foreign interference, China will go to war against that foreign nation and all forces, and “tricks” at it’s disposal will be used. There will be no restraint.
  • Any foreign interference suggesting, funding, supplying or actuating interference in the reunification process is a war-generating “red line”.
  • The foreign government will be viewed as the enemy of the reunification process. Not the Taiwanese people.
  • Taiwan is not permitted to possess political parties that promote separatist movements. they must be disbanded, and then banned.

And much, much more. Of course, it’s not being reported in the Western “news”, but China has made the situation very EXPLICITLY clear.

Best regards,
Robert Vannrox
METALLICMAN


Addendum
China releases white paper on Taiwan question, reunification in new era

Source:Xinhuanet Editor:Li Jiayao2022-08-10 10:11:23


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Creativity, Entrepreneurship, and Other American Myths

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Americans boast incessantly about their competitiveness and the miracles of their predatory capitalist system, but on examination, these claims appear to be mostly thoughtless jingoism that transmutes historical accidents into religion. If we examine the record, US companies have seldom been notably competitive. There is more than abundant evidence that their efforts are mostly directed to ensure an asymmetric playing field that permitted them to avoid confronting real competition. And, in very large part, major US corporations have succeeded not because of any competitive advantage but by pressure and threats emanating from the State Department and military. New York Times columnist Thomas Friedman stated the truth quite accurately when he wrote, “The hidden hand of the market will never work without the hidden fist. McDonald’s cannot flourish without McDonnell Douglas.”

Xerox was once almost the only manufacturer of photocopiers in the world. Kodak was once almost the world’s only maker of cameras and photo film; Where are Xerox and Kodak today? More recently, Motorola was the leading manufacturer of mobile phones; Where is Motorola today? US-based RCA Victor was one of the largest producers of TV sets in the world. Where can you buy an RCA TV set today? Where are the great Pan Am World Airways and Continental Airlines? Where are E.F. Hutton, General Foods, RCA, DEC, Compaq? Where are American Motors, Bethlehem Steel, Polaroid cameras, and so many more? Gone, because they couldn’t deal with effective competition.

Boeing Aircraft would be gone today if not for the extensive subsidies it receives from the US government. It’s true that Airbus receives subsidies too, but Boeing is supported by billions in US military research grants against which it can apply much of its current expenses. Not so many years ago, IBM was the only manufacturer of office and home computers. Where can you buy an IBM computer today? GE was once the largest manufacturer of electric home appliances, lights and lighting fixtures. Where is GE today? Transformed into a financial company, beaten out of all consumer markets because it couldn’t compete. IBM defenders will tell you that the company willingly abandoned the PC market to focus on mainframe computers and information services, but no company abandons a profitable market. The truth is that IBM faced manufacturers who could produce PCs for a quarter of the cost, and were forced out of the business. GE defenders would make a similar claim, but GE couldn’t compete in the vast consumer markets and was driven out too.

The three major US auto manufacturers are in the same position. Chrysler has been bankrupt three times already, and survives today only because of Fiat having taken it over. The great General Motors went bankrupt, and was saved only by $60 billion of cash injections from the US and Canadian governments – money which will never be recovered. And in spite of that, GM would have anyway disappeared from the earth if not for its sales in China – which are now three times GM’s sales in its own country; even Americans are refusing to purchase GM’s tired and dying brands. Only Ford has been able to keep its head above water, and then only just. We could produce a list of hundreds of US companies who thought they were great until they faced some real “competition”, and then rapidly disappeared. It’s true there are business failures in every country, but other countries don’t boast about their God-given omnipotence and their world-beating competitive supremacy.

Along similar lines, the Americans have never forgiven the Europeans and Russians for producing supersonic passenger aircraft after all US attempts failed. And they are unlikely to forgive China and Russia for the deployment of working hypersonic missiles when all domestic attempts have failed.

And then we have the genuine mythology of Alexander Graham Bell who didn’t invent the telephone, Thomas Edison who, by his own admission, never invented anything – including the light bulb, the Wright Brothers who were never the first to have powered flight, and the great Albert Einstein who plagiarized everything he published. The list is very long.

Descriptions of American ingenuity and competitiveness were never accurate or valid, but mere jingoism fabricated by Bernays’ adherents to further promote the self-serving mythology of virtuous American capitalism. The truth is that the large US companies thrived on only brute force, heavily supported by their own government to limit competition both domestically and abroad. The US government and military have always existed primarily to browbeat other nations and economies into submission, to help US corporations obtain unfair trade deals, exclusive access to resources and markets, effectively colonising and subjugating much of the world. American business has seldom been able to compete when placed on an equal footing with other competitors because the US business model works only on a “take it by force” basis. Kodak, Xerox, and so many other American icons disappeared when the playing field did indeed become level.

We need only look at the US domestic market to see the truth of this. When Japanese and German automobiles were finally permitted into the US market on equal terms, the American auto firms mostly entered a long slide to bankruptcy – because they couldn’t compete. Almost every computer and electronic device sold in the US today is a foreign brand because Americans couldn’t compete when the playing field was level. Motorola’s crappy phones were a great success until Nokia and others entered the US market. Harley-Davidson exists only because of a 50% import tax on competing motorcycles; Ford Motors would also be in bankruptcy if not for the heavy protectionist tax on light trucks. The American mobile phone companies and ISPs would disappear into the bankruptcy courts within a year if foreign firms were permitted into the market. Cisco Systems, the grand American Internet infrastructure champion, would within three months be reduced to assembling Playstations for Sony if Huawei were given free access to the US market. The story is the same for countless American firms that were once dominant in their home market but quickly disappeared when protectionist trade tariffs and duties were eliminated and foreign products could enter the US on fair or equal terms. The dominant US firms surviving today are able to do so due mostly to rampant protectionism and oligopolies created by the US government to ensure their survival.

The same is true in foreign markets. Few American companies have been able to survive in other countries, other than the fast-food chains. Most recently, Domino’s Pizza is leaving Italy with its tail between its legs after ten years of failure, blaming the bankruptcy on COVID. But there is a long string of American failures preceding this; E-Bay and Home Depot left China in tears a few years ago. Uber’s China business was taken over by Didi, and there are many more. Those American firms that have survived, have done so primarily by purchasing domestic brands and using that distribution system to support their foreign market entries, and most of those have succeeded only due to astonishing criminality in their foreign joint ventures.

And it is an axiom in the auto business that nowhere in the world can you buy an American car except in North America and China, and the China market may soon disappear in spite of what seemed an initial success.

At one time, US banks, radio and TV companies, print publishers and others were heavily restricted from mergers and takeovers on the sound basis that society needed to be protected from the predatory nature of concentrated ownership. But for the past 50 years the elites who control the large US corporations have exerted enormous influence on the government to remove domestic restrictions on monopolies, and eventually their political influence succeeded to the point where today the entire nation has only a few media firms, auto manufacturers, pharmaceutical firms, oil companies, telecommunications firms and major banks. In each case, companies were bought, merged, swallowed or bankrupted until only a few very large survivors remained.

American banking corporations were once permitted to operate only within a single state, in part to sensibly ensure that local deposits were converted to local development loans rather than being siphoned off to develop other richer regions. But the powerful East-Coast bankers, heavily supported by the FED, convinced the government that all those small regional banks needed “competition” to make them “more efficient” and to bring them into the big leagues of the modern financial world. And of course, once approval was received, most of the local banks were purchased, enticed into a merger, bankrupted or forced out of business, and now a small number of banks controls most of the US economy. And, as we would expect, the new mega-banks did indeed siphon off local deposits to richer centers, thereby vastly increasing the nation’s income disparity and relieving the government of its control of regional development. All the claims about the need for, and benefits of, competition were false. The purpose of these mergers and purchases was never to foster competition but to eliminate it. Today, a few major US banks control the bulk of the nation’s business, and instead of competing with each other in some meaningful way they generally conspire together to plunder their customers. Where there is real competition consumers have choices, but what are the choices with the banks? You can leave one bank that offers poor service while cheating you to go to another bank that will offer poor service while cheating you.

This pattern prevailed in banking, transportation, telecommunications, the media, the petroleum industry and others, to create a situation where these giant firms could totally dominate an industry to control not only prices and production levels, but also the rates of both future investment and technological innovation in these industry sectors. Those innovations escaping this capitalist net were soon either driven out of business or were purchased and killed. These are precisely the same arguments American companies and the US government utilise today in China to pressure China’s government to open industry sectors to US multi-nationals, claiming the benefits of competition and the need for efficiency as necessary credentials to enter the modern world. These claims are equally as much a lie in China as they were in the US.

In fashion similar to their mythical inventiveness and entrepreneurship, nostalgic and misinformed Americans today pine for “the returning of pride once again to what was once the global standard of creativity, quality and style in manufactured products – the mark on all our goods saying ‘Made in the USA’”.



But this is just one more foolish American myth. The US was never a world standard of anything except weapons and maybe pornography, and even then they stole most of that from Germany and Japan. Mostly, American products, like their automobiles, have always been crappy. It is true there have been some products of acceptable quality emerging from the US, but these have always been much in the minority and the few examples used as evidence of this claim are virtually the only examples. The Americans have never been able to produce machines or tools that could match those of Germany, or shoes and clothing as fine as those of Italy, or wines and food products as good as those of Europe.

We are constantly reminded that the Americans, being so creative and innovative, spend huge amounts of money on R&D, but these claims are short on detail and therefore disguise the objectives of corporate R&D in America. Companies in most countries invest in research to produce products of higher quality and greater reliability or durability, but US firms typically have interest only in finding ways to produce more cheaply so as to enhance profitability. Large American firms focus at least 60% of their entire R&D budgets on ways to lower costs, with product quality inevitably being the loser. American investment in R&D is merely a kind of race to the bottom, with every firm competing to discover new ways to substitute substandard materials and produce a more cheaply-made product that can be sold at the same price. Many components are internal where the materials quality is not obvious to consumers, but for those which are external and subject to consumer evaluation we see superficial America at its best. Manufacturers conduct consumer tests of their R&D ‘innovations’ to determine if the public are able to detect the cheap substitutions, the goal being to degrade product quality and cost as much as possible in a way that will not be apparent to the consumer. Lawrence Mishel, President of the Economic Policy Institute, wrote that “the US is a country interested only in finding the shortest route to the cheapest product”.

Despite all the mythical propaganda, the Americans have never placed much value on a skilled work force, and the quality of American goods has reflected this for 200 years. Neither American people nor their corporations have ever valued product quality, the people having for generations been programmed to value superficiality and appearance over substance, eventually resulting in the almost universally low quality throwaway society we see today. One of the main results of this low-class attitude is the American use of technology. Companies in Germany, Japan, China, and much of Europe, will take advantage of new technologies to produce better and higher-quality products but the Americans almost invariably use it to lower their cost of production and raise their profits. Product quality is always the loser. Even today, a German Volkswagen that requires repairs after a year is an anomaly; an American Buick that doesn’t, is a miracle.

The American Entrepreneurial Spirit

Americans have a bad habit of sloppiness with their vocabulary, an unthinking and simple-minded tendency to contaminate definitions by exaggerating them beyond the bounds of all good sense, mostly to fabricate grist for the propaganda mill. One such foolishness is of course the American definition of democracy which sometimes seems to include a thousand unrelated and mostly mythical items like freedom. One American acquaintance stated that a pet’s ‘right to dog food’ was ‘a human right’ and therefore included within the meaning of democracy. I sincerely doubt that one American in 50 could provide an intelligent definition of either democracy or freedom; the words simply mean whatever each person wants them to mean, the media pundits even less intelligent than the rest of the population.

We have the same problem with the use of ‘entrepreneurial’ as an adjective, the definition often expanded to include things like innovation or creativity or independence, and sometimes even ‘freedom’, and of course including the filing of new patents. But when the US military funds MIT for weapons research and obtains useful discoveries, this is hardly an example of the entrepreneurial spirit at work. An entrepreneur is someone who takes the initiative to form a new enterprise, the term being only peripherally related to innovation or the generation of ideas. Richard Branson may be entrepreneurial in designing and building a new space ship for tourists, but for each one of these we have several million who open their own pet shop.

The Americans constantly flaunt companies like Microsoft, Google and Facebook as examples of their entrepreneurial abilities but, like most all else, the few examples claimed are virtually the only examples that exist. And in almost every case I know of, especially with examples like Google and Facebook, there was enormous government , State Department and CIA political involvement, heavy funding, and enormous commercial pressure without which these enterprises would never have seen the light of day. Google is virtually a department of the CIA; Facebook and Twitter may not be much better. Warren Buffett and Michael Dell may be exceptions, but there are precious few of these. Apple would qualify, as would the creation of Hewlett-Packard, but America’s list is much shorter than China’s, with firms like Huawei, Wahaha, Xiaomi and 50 million others who started their own businesses. Like all the supposedly great things about America, the nation’s entrepreneurial spirit is just another utopian myth created by the propaganda machine as one more aspect of brand marketing.

In the US, a new college graduate who has a job and isn’t already bankrupt with student loans, will take his first paycheque to a car dealership and borrow whatever he can to buy a car, and spend years paying off the debt. A new Chinese graduate will leave his full-time job at 5;00 PM and wash dishes in a Chinese restaurant until midnight, saving every penny until he can put a down payment on a house or an apartment which he will then rent out. And he will continue applying his salary from both jobs, supplemented by the rental income, until the house has enough equity for a down payment on a second property. And he continues, while he lives in a small rented flat, and after 5 or 6 years he has one house paid for, which he can then live in almost free, with another well on its way. He will continue to apply all income and rentals until the second home is also paid off, after which he can bank his entire salary and buy a new Mercedes if he wants one, or start his own restaurant, or buy a third house. Which way is better? Where is the evidence of “the entrepreneurial spirit” in the American?

Nevertheless, and in keeping with the American defense of their pitiful PISA scores and educational system, the propaganda machine never tires of boasting of the breadth and depth of entrepreneurial America, of the adventurous spirit that pervades the nation, of the US being a veritable hotbed of entrepreneurs and business leaders and inventors. But of all claims of American superiority, and in spite of all the blatantly false myths about every other part of American excellence, this claim is so silly as to defy understanding of its origin. In a lifetime of travel, I have almost never met an American who dreamed of having his own business, and the same is true for Canadians, Brits, Australians and Germans. Italians yes, many; Americans, none. But in more than 25 years of constant exposure to Chinese people, and in a decade of experience within China, I am still genuinely surprised to meet a Chinese who does not dream of having his or her own business. The desire to be one’s own boss is virtually embedded in Chinese DNA and would serve as one of the defining adjectives of the Chinese people. There is nothing in the US to compare to it, and there has never been. In fact, it is China, not the US, that is flooded with entrepreneurs and the spirit to strike out on one’s own. Ningbo, a small affluent city in East China, is known primarily for its abundance of millionaires, and has an extraordinarily strong private business base, with one in four local people involved in export-related industries. Where do we find this in America?

In the business school of the university in the small town of Yiwu, in Zhejiang Province near Shanghai, all the students – all the students – have their own businesses. They may only be Taobao online shops, but they all make money. In fact, it is part of their business-school curriculum that they at least open online shops to take advantage of Yiwu’s massive commodities markets, and learn how to buy, sell and market those goods across the nation. Many accept largish orders and market internationally – and these are kids. Some of them make $100,000 a year in this minor part-time occupation while they are still undergraduates. Many are also quite fluent in English and are taught to act as agents, purchasing advisors, negotiators and translators for foreign buyers, accumulating business skills and experience of enormous value. Where do you find this in America? Where do you find this at Harvard? The American business schools pretend that entrepreneurship entails imagining an iphone in your garage and finding an angel willing to pump $200 million into putting your show on the road. But for every one of those you can find in the US, China has 6 million of its kind, and guess who’s driving the Ferraris. And guess who spends 6 hours in front of the TV every night, still believing the sun revolves around the earth and still unable to find his country on a map of the world.

As well, if you read my E-book on ‘How the US Became Rich’, (1) it is heavily documented that great numbers of products that the mythological narrative now credits to American inventiveness were simply copied or stolen from other nations, often with the encouragement and financial support of the US government. Coca-Cola is one such example, but there are literally hundreds of others, including most manufacturing machinery and processes.

There are a great many of these “firsts” that were never American, but where the claim has been made and the title confiscated as part of the long series of historical myths used to bolster the jingoism of American supremacy. Americans firmly believe they are exceptional in their ability “to turn the abstract into practical products for everyday people to be able to afford”. In evidence, they produce a long list of products and consumer goods that evolved from their “scientific research”, and that, according to them, is “so long and obvious as to sound like bragging”. The only flaw in this mythical narrative is that none of the claims are true. Almost no items on their “bragging list” were invented by Americans, and in the cases where US residents were the first to apply for patents, they were not Americans but virtually all by immigrants who had built on someone else’s work. Many Americans believe that IBM created the personal computer, but Germany’s Konrad Zuse built the first functional programmable computer in 1936, and Olivetti in Italy, as well as scientists in Russia and Poland, had working computers long before that.

The fabled P-51s.

And it goes much further than this. The Americans are exceptionally proficient at creating historical myths that demonstrate their supposed moral superiority in virtually every area, freely rewriting history or carefully burying crucial facts in juvenile attempts to mislead. One such myth concerns the fabled military aircraft, the P-51 Mustang which, according to the Americans, single-handedly won the war in Europe, defeated the German Luftwaffe all by itself, and “is widely considered the best piston single fighter of all time”. Of course, it is no such thing, except to the Americans themselves. For one thing, the Americans’ brief flash at the end of the conflict hardly ‘won the war’ but, more importantly, this aircraft’s original designation was the XP-78, a name almost nobody has ever heard of, and for good reason. The aircraft’s performance was underwhelming to say the least and, with its American-built Allison engines was of no more use during wartime than a lawn mower. It was the re-fitting of this aircraft with the British Rolls-Royce Merlin engine that made it useful. With the Merlin generating twice the power with less than half the fuel consumption of the US engine, the aircraft did indeed have great range and performance – as did the Spitfires and other British aircraft, but the original American version wouldn’t have made a list of the top 500. And yet nowhere in any American narrative do important facts like these appear. In these areas, as in so many others, the US is a nation based on lies.

In related propaganda, anything developed first by another nation will not actually exist in the American mind or be recognised in the American narrative until it is subsequently copied and produced by the Americans, at which point they will assume full credit for having taken a flawed and primitive foreign concept and developed it into the only real good version. The British Harrier aircraft is one such example that comes immediately to mind, as are Italian espresso and cappuccino. On the other hand, any country creating anything similar to that existing in the US will discover its product being immediately denigrated as just a cheap copy of an infinitely-superior American invention. Americans are such a pain in the ass.

Creativity and Innovation

The floods of new patents notwithstanding, there is no evidence that Americans are any more innovative or creative than any other nation of people. Equally, there is no evidence that Americans are any more resourceful than people from other nations, and I would argue they are rather less so. Moreover, two major conditions serve as strong contra-indications of these claims of American inventiveness.

One is that most of the invention and innovation that occurred in the US was not done by “Americans”, whoever they are, but by people from other nations, a large percentage of these being Chinese. In fact, in America’s famous Silicon Valley 50% of the participants are Chinese and another 40% Indian. That wouldn’t seem to leave too much creativity or innovation for Americans. Indeed, without these foreigners, US innovation might come to a virtual standstill and Silicon Valley might have amounted to nothing. The US has for decades offered free graduate-level education and attractive research jobs to the best and brightest of other nations, which is simply colonialism in another form, effectively purchasing the brightest students from other nations then taking credit for their inventions or patents. The truth is that precious little of the inventiveness that occurred in America in the past was ever done by Americans. Even today, a recent study financed by New York mayor Bloomberg proved that 75% or more of all patents emerging from US educational institutions were obtained by foreigners, a great many of whom were Chinese. The US educational system has never fostered either inventiveness or creative thinking; what it has done, and perhaps done well, is to hire creative minds from other nations and then claim their work for itself. It has been only through plundering resources and the brightest people from other nations, that the US has progressed and become rich overall. If not for that, America today would be of no more consequence than Australia.

The second is that a surprising amount of the innovation emerging from America in recent decades did not come from lofty ideals, satisfying consumer needs, or other moral truisms, but was simply commercial fallout from military research. As noted elsewhere, MIT, one of the most prominent and praised US educational institutions, was created for the sole purpose of military research and until recently was almost 100% funded by the US military. The US may well have its share of intelligent and innovative people, but their talents have been mostly directed to war, marketing, and the marketing of war. When the Americans were flooding the people of Vietnam under a tsunami of millions of liters of napalm, they discovered the Vietnamese were cleverly avoiding their planned immolation by submerging themselves in water and extinguishing the flames. The Department of Defense quickly assembled the best and brightest Americans (at Harvard) who, innovative as always, discovered they could infuse the napalm with particles of white phosphorus that would burn a man to death even while under water. American ingenuity at its best.

The US government has arranged widespread ‘public-private partnerships’ with many educational institutions for the purpose of military research, and after the military determines how to weaponise something, they then let parts into the private sector. The Internet was a military project, as was the American GPS system. Google Earth resulted from US military spy satellites; radio, computers and microwaves were military projects. The list is long. When this massive seconding of the American educational system for military use became a target of public objection, the US government did what it and its corporations always do: they moved it offshore. In late 2013 der Spiegel reported an outbreak of public condemnation when it was revealed that German universities had received tens of millions of dollars from the US for military research, and many other foreign universities are in the same position. The Americans are now attempting to utilise the best and brightest from all Western nations in their headlong rush to create military invincibility, hijacking the research departments in the world’s universities and paying scientists and researchers from all nations to make their contribution to American military superiority.

Americans are not “inventive”. They are greedy and self-serving, interested much more in commercial domination and control than in creativity. Creativity is defined by art, not by money and, since Americans have no art, they have redefined creativity as something that produces money. And it’s even worse than this. As I’ve noted elsewhere, about two-thirds of American R&D budgets are directed exclusively to finding ways to degrade product quality and lower the cost so as to make a cheaper product and increase profits. In what way is this a reflection of “creativity”? Even worse, the US government and corporations have not only hijacked all American universities as incubators of profit but also as hotbeds of weapons research, now extending this to the research departments of universities in other Western nations. I’m sorry to say this, but of all the available fields of human endeavor that would benefit from the application of imagination, the Americans have chosen only two: the search for ways to provide less while charging more, and ways to kill more people faster and from a greater distance. This is not creativity. It is a kind of mass hysteria in a population that long ago lost its moral compass and sense of values, a people rendered powerless by a profusion of propaganda that redefined a life worth living as one of superficiality, greed and domination.

In late 2015, Robert McMillan wrote an article in the WSJ in which he noted that China’s supercomputing technology is growing rapidly and that China has had for years the world’s most powerful supercomputers. China’s Tianhe-2, which had for years been ranked the world’s most powerful supercomputer, could perform 34 quadrillion calculations per second. The machine in second place, the US military’s installation at its Oak Ridge National Laboratory, could perform 17 quadrillion calculations per second – exactly one-half as fast as China’s, and this in spite of spending billions of dollars to improve their capability. McMillan stated that the increasingly poor American results are not from a slowdown in the US effort but an acceleration of research in China. Only a few months later, Xinhua news reported that China’s National Supercomputer Center would soon be releasing the prototype of a supercomputer that will be 1,000 times more powerful than its original ground-breaking Tianhe-1A (which was then superseded by the Tianhe-2). A few months later, in 2016, China introduced its new supercomputing system, Sunway-TaihuLight, the world’s fastest for the seventh straight year, and using entirely Chinese-designed processors instead of US technology. This new Chinese computer is capable of 125 petaflops, or quadrillion calculations per second, more than seven times faster than America’s Oak Ridge installation, and the first computer in the world to achieve speeds beyond 100 PFlops. The supercomputer’s power is provided by a domestically developed multi-core CPU chip, which is only 25 square centimeters in size. As well, in 2015 China displaced the US as the country with the most supercomputers in the top 500, China having 167 and the US 165, with Japan third at only 29.

I must say it was not only comical but instructive to follow the heavily-politicised transcript emerging from the US government on these ‘computer wars’, and so heavily parroted in the US media. For years, the Americans published – at full volume – lists of the world’s fastest computers, with their equipment always leading the pack, with calculation speed being the only appropriate measure. In that process, US government officials and the American mass media took advantage of every opportunity to denigrate the Chinese for their lack of innovation. Then one day Chinese engineers produced a supercomputer twice as fast as the Americans’ best effort, and suddenly the goalposts were moved. The measure was no longer calculation speed but the fact of using home-grown processors, so even though the Chinese machines were much faster than those of the Americans, they were using US-sourced microprocessors, so the Americans still won. The US government and media even enhanced their deprecation of China, loudly proclaiming that China would be nothing without US technology. So Chinese engineers designed their own microprocessors and produced a supercomputer five times faster than the best the Americans could manage, and suddenly the Americans have disappeared from the radar. Neither the US government nor the media appear to have any further interest in either the capability or the numbers of supercomputers, and the Americans seem to have lost interest in publishing lists of the world’s fastest computers. But on the bright side, Chinese authorities report that the NSA has launched hundreds of thousands of hacking attacks, looking for a way to steal and copy the technology for China’s new microprocessors.



ABOUT THE AUTHOR
Mr. Romanoff’s writing has been translated into 32 languages and his articles posted on more than 150 foreign-language news and politics websites in more than 30 countries, as well as more than 100 English language platforms. Larry Romanoff is a retired management consultant and businessman. He has held senior executive positions in international consulting firms, and owned an international import-export business. He has been a visiting professor at Shanghai’s Fudan University, presenting case studies in international affairs to senior EMBA classes. Mr. Romanoff lives in Shanghai and is currently writing a series of ten books generally related to China and the West. He is one of the contributing authors to Cynthia McKinney’s new anthology ‘When China Sneezes’. (Chapt. 2 — Dealing with Demons).

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Producing New Enemies for No Reason Whatsoever

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A good friend of mine, learning of the impending visit of Speaker of the House of Representatives Nancy Pelosi to Taiwan, recalled Homer’s description of Helen of Troy, “The face that launched a thousand ships and burnt the towers of Ilium.” Well, Nancy ain’t no Helen of Troy, but she might nevertheless be in the business of launching warships and burning cities due to her bizarre interpretation of her foreign policy prerogatives as Speaker.

It is like watching a train wreck developing in slow motion. Witnessing the highly dangerous behavior of the Biden Administration and its acolytes in power like Pelosi, one feels compelled to ask whether the White House and Congress are now setting the stage for the elevation of China to the status of foreign enemy number one? Indeed, if one has been hanging around Washington for the past twenty-five years or so, it was hard to miss the often-surfaced bipartisan contention that China is America’s major over-the-horizon adversary, or even enemy, with its growing economy, its successful geopolitics, and its huge industrious population. I can still recall my shock at hearing Democratic Senator Jim Webb, an honorable and highly intelligent Iraq War critic, telling a conservative gathering in 2015 that the real future threat to the United States would be coming from China.

Fear of China, sometimes dubbed in racist language as the “Yellow Peril,” has a long tradition in the United States and in Europe. In the current context, the US government is certainly apprehensive about where the increasing rapprochement between China and Russia is going, summed up by Secretary of State Tony Blinken as “The deepening strategic partnership between the People’s Republic of China and the Russian Federation and their mutually reinforcing attempts to undercut the rules-based international order run counter to our values and interests.” Ironically enough, that development stems from the inept US diplomacy exemplified by Blinken’s tunnel vision that most recently allowed a negotiable crisis to develop into a full-fledged war over Ukraine.

But a much more significant development stems from the Chinese success when playing at what might be called the global geostrategy game. The Chinese Silk Road project threatens to create a new economic reality for Eurasia, squeezing the US out and creating unique networks for marketing, transportation, and the contractual exploitation of third world natural resources. Again ironically, the US was once upon a time the master at creating such networks to benefit the American economy and workers, but unmanageable debt plus inflation combined with outsourcing and lack of any industrial policy means that that advantage has largely vanished. To put it bluntly, China has outcompeted the United States, and whether that constitutes a threat depends on which side of the fence one is standing on.

NATO alliance Secretary General Jens Stoltenberg, is also part of the gamesmanship, observing how “China is substantially building up its military forces, including nuclear weapons, bullying its neighbors, threatening Taiwan … monitoring and controlling its own citizens through advanced technology, and spreading Russian lies and disinformation.” Stoltenberg and Blinken’s indictment of China was followed by a NATO issued “strategic concept” document that declared for the first time that China poses a “systemic challenge” to the alliance and declarations by the heads of the CIA and MI6 that China constitutes the “biggest long-term threat to our economic and national security.”

One would not expect China to be silent when confronted by the threats from the West and, indeed, Beijing has made clear that Washington is “playing with fire” and that there would be “consequences.” Chinese Foreign Ministry spokesman Zhao Lijian observed that the “so-called rules-based international order is actually a family rule made by a handful of countries to serve the US self-interest,” adding that “[Washington] observes international rules only as it sees fit.”

It would be correct to describe the US-China relationship as currently occupying a low point. The result has been to create an international crisis where there was none to start with, and it goes on. There have been two more interesting developments in the US versus China saga in the past two weeks. First came a video-link two hour and seventeen minute “summit” between US President Joe Biden and Chinese President Xi Jinping. Biden’s declared mission was to address those issues that impeded a more manageable relationship between the two countries, or at least that is how it was described.

The issues discussed by Biden and Xi included not taking any steps that would challenge the status quo re Taiwan as well as Chinese territorial claims in the South China Sea which the US maintains have inhibited “freedom of the seas” for foreign vessels transiting the area. China has responded that it is only exercising its sovereignty and stresses that its international presence is largely derived from its perfectly legal commercial and business activity. Other issues under discussion included what to do about climate change and the evolving situation in Ukraine. The possibility of rolling back some tariffs imposed by Donald Trump apparently was not discussed.

More provocative by far than the Biden phone call, which at least was ostensibly intended to mend fences, is the decision by Nancy Pelosi to make an August trip to Taiwan, which has now been completed. It was the first visit by an American official at that level since 1997 and it sought to confirm the US total commitment to defend the Taiwanese if China were to seek to establish full control of the Island. The proposed visit had been linked to moves by Secretary of Defense Lloyd Austin, who shifted US military resources in the Far East to provide possible protection for Pelosi’s travel on a US Air Force plane if the Chinese were to attempt to block her by declaring a no-fly zone over the island. Austin ordered the Commander of US Forces in the Indo-Pacific region (aka INDOPACCOM) to send the Ronald Reagan Carrier Strike Group into the South China Sea as a “show of force,” which was construed as a deliberate demonstration to the Chinese that they have no actual sovereignty over Taiwan.

In the event, China responded to the Pelosi visit with a live fire military exercise in the air space and in the waters around Taiwan and whatever takes place next will have to be dealt with by the Taiwanese. The Pentagon is reportedly preparing “options” if China actually does choose to invade. But nevertheless, the visit, which cost the US taxpayer $90 million, was clearly intended to send certain signals to Beijing and those signals were not only not friendly but even threatening. Pelosi assured Taiwan’s president, Tsai Ing-wen, that there would be US support despite threats from China, saying “Today the world faces a choice between democracy and autocracy. America’s determination to preserve democracy here in Taiwan and around the world remains ironclad.” Sounds familiar, doesn’t it? It is also language that is largely intended to appeal to the domestic audience in the US with midterm elections coming up in November. It always is popular to take cheap shots at Russia, Iran or China.

Interestingly, President Joe Biden, apparently supported privately by Austin, actually opposed the Speaker’s trip as it reportedly could disrupt his intention to actually meet Xi face-to-face at some point in the future. Pelosi, who lacks having any actual constitutional foreign policy role apart from approving budgets, has provided ammunition for those among the Chinese leadership who have come to believe that the United States cannot be trusted to honor any agreement made with a foreign government. The Speaker clearly had not heard about or understand the “One China Policy” and the “strategic ambiguity” that governs the relationship between China and the US over Taiwan to avoid any military escalation regarding that issue. Joe Biden, admittedly, has also muddied the waters by declaring three times that the US might have to use force to defend Taiwan if it is attacked as Ukraine was, even though he and his aides later insisted that he was not changing policy. The US, for its part, actually concedes the island is part of China, though “strategic ambiguity” has meant that Beijing has not yet sought to assert direct political control over it. Given that status and the threatening moves by Austin to protect Pelosi’s trip, one might imagine what the American reaction would be if China were openly making plans to fly its fighter jets into US airspace in order to forcibly land a senior Chinese official without an invitation from the State Department.

As always, there have been other possible developments, including reports that the US-funded National Endowment for Democracy (NED) is active in currently unstable Myanmar (Burma), fomenting trouble to distract China in its own backyard. NED is notorious for its role in regime change operations that were once the responsibility of the CIA, including the 2014 Maidan revolt in Ukraine. China is surely aware of the American involvement in regional meddling. Pushing from the other direction, North Korea is threatening to use nuclear weapons if it is attacked by the US and South Korea, which will inevitably involve China. Pyongyang was responding to reports that Seoul and Washington are planning war games that will include a “decapitation exercise” simulating the assassination of North Korea’s leader Kim Jong Un.

On balance, the United States has little to gain and much to lose by ratcheting up the pressure on China and its leadership in an attempt to create the “Pearl Harbor Moment” so much desired by the neocons and the hardliners in government. On the contrary, Nancy Pelosi should have stayed home and the White House should be working even harder to identify and pursue those opportunities for cooperation between the two countries. The ongoing bipartisan framing of China as an enemy of both the United States and of NATO is not the way to go, as it will literally force the Chinese to respond in kind. If one considers what is going on with Russia in terms of disruption of international trade, just imagine what would happen if the world’s biggest economy in China were to begin its own round of sanctions and selective withholding of manufactured goods. And then there is the risk of igniting yet another needless war, one that also comes with nuclear weapons as a last resort if either side were to perceive that it was “losing.” It is just not worth it, is it? But then again, it never is.

ABOUT THE AUTHOR
Philip M. Giraldi, Ph.D., is Executive Director of the Council for the National Interest, a 501(c)3 tax deductible educational foundation (Federal ID Number #52-1739023) that seeks a more interests-based U.S. foreign policy in the Middle East. Website is councilforthenationalinterest.org, address is P.O. Box 2157, Purcellville VA 20134 and its email is inform@cnionline.org.

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