More smoke got blown this week. South Korea’s president is stepping-up efforts to talk to China about North Korea. Asian culture dictates that a country as big as China doesn’t give a rat’s synthetic tail about what a small country like South Korea thinks. All South Korea can expect is to be in China’s debt merely for listening since the diplomacy won’t affect outcomes whatsoever. China probably knows this. Whatever “deal” does or does not follow Moon’s efforts with the Chinese will be an indication of China’s greater intentions for the future. Don’t expect too many fireworks; it’s mostly politicians blowing smoke.
Things in Korea are stepping up, however. More sanctions are coming down. Secretary of State Tillerson commented about possible naval blockades, which sent a threat of “declared war” bouncing back from the North Koreans—more blown smoke from all sides. As for South Korea and Japan cooperating with the US—they will be “watching” missiles from North Korea. Usually, missiles have little to watch other than a trail of—well, a trail of smoke.
The big note to take about Moon is that his obsession with “talking” and “reconciliation” could prove very valuable after other players (the US, the UN, possibly China and others) do their parts to initiate reunification on the Korean Peninsula. When Korea becomes one country again, it might benefit from a leader like Moon who hungers for an opportunity to get opposite sides talking. But, we’ll see.
China’s state-run tabloid commented that a visit from the US Navy to a Taiwanese Naval port would activate a kind of “Anti-Secession” law in China and China’s PLA would invade Taiwan and immediately reclaim the territory. The statement came months after US Congress approved and planned such port visits between Taiwan and the US for 2018. Taiwan is responding by constricting and banning select visits from Chinese diplomats, usually surrounding topics of “Human Rights” and warlike rhetoric. Again, all sides blowing more smoke without a shot fired, yet.
Usually, boiler cars bellow more smoke, blow their whistles, and let off steam as buildup to a conflict mounts—or just before a train wreck. The smoke is not without meaning, but as of this week, smoke blown remains little more than blown smoke and neither the topics nor the players have changed.
In fact, every small development reported by news outlets seems to follow the format of new facts in the first few paragraphs followed by the same, long background story, whether the background is about a conflict between North and South Korea or between Taiwan and China. That’s what you call a clue: The press seems to feel that the public will need that background for the avalanche of news to come.
Forget Japanese waters, headlines worry about North Korea and Hawaii. South Korea has their own two cents to add over the assassination of Kim Jong-un’s half brother at Kuala Lumpur International. China says that North Korea and the US are like two trains headed on a collision course. China has a kind of “plan” to bring the US and North Korea together, but the US won’t make concessions for obeying a UN resolution and there is no mention of China cutting off its supply. It seems China wants to be the “great reconciler”, but the rift is too far between East and West. Japan’s answer is to strike first.
Taiwan may be able to make its own response. This week, the US handed off two Perry-class frigates to Taiwan. Taiwanese naval officers will learn how to operate the frigates from the US Navy and the ships should set sail in May. This is a very interesting development since President-elect Trump received a phone call from President Tsai, and since the US still has yet to deliver on several military sales, especially F-16s, that closed during the terms of former Presidents Obama and Ma.
China’s response to events this week is two-fold. An editorial with a persuasive tone appeared in China’s state-run Global Times, arguing that India would help itself more if it cooperated with Chinese strategies rather than Japanese and US strategies. Xi Jinping also underlined and emphasized China’s great need to catch up on technology. This comes in the wake of the coming American Lockheed Martin F-35 “Lightning II” fighter jet and the US Navy’s new electromagnetically trajected railgun. China’s response is both telling and predicting.
While China has made advances, both in approaching Tomahawk cruise missile technology and in nearing the completion of its first home made aircraft carrier (reverse engineered from a Soviet era carrier), China still feels claustrophobic. Taiwan, Japan, South Korea, and India, not to mention the distant-yet-present US are all naval forces too close to China’s back yard. Xi feels the “squeeze”. China is in a tight spot.
President Xi also revisited his long-standing mission of countering squander and corruption within the Communist Party. By underlining the points he did, he seems to be vying for equity and credit. Doesn’t China’s leader have enough credibility or does Xi know something the West doesn’t? Regardlessly, the greater wild card is India. China believes that India is on the fence and is open to persuasion—and China is correct. Soon, India will feel its own squeeze. The question, then, will be whether India feels inclined to side with China rather than forces farther to its east or if India will decide to reverse engineer Western technology write persuasive editorials of its own.
China has reportedly announced that it has been outdone by US technology. This implication came from the statement that it can only respond to the US “freedom of navigation” exercises by sending nuclear subs to the South China Sea. While some claim that the reports from Beijing are “exaggerated”, either scenario shows Beijing revealing its position of weakness and needing to resort to drastic measures. The report seems to have come as a response to reports of the US Navy’s use of the new electromagnetic-powered hypersonic railgun.
An international tribunal on China’s claims, activities, and islands in the South China Sea is expected in the coming weeks. China has already announced to declare the ruling illegal and will not comply. There seems to be no word on whether “contempt of court” charges against China will be included in the tribunal, in lieu of the recent comments. Elementary power brokers strive to understand the concept that, in our day, law comes from the resolve of the masses and to change the law, one must first court the masses. We’ll see.
Then, there’s money. Concern is growing over an ENRON-style ingrowth and implosion in China’s economy. While wealth management portfolios formerly focused on deriving profits from bonds (AKA real, individual people), the swelling trend is to invest in other banking investments. This is an exceptionally large problem since many banking investments now get their money from wealth management. So, Chinese banks are making more of their money by getting money from each other, and less from actual people.
Then, there’s currency. China has set the value of its currency at a five-year low. This in the shadow of recent comments from the US Fed chair. The high seas are not the only battle front irritating the international community. And, currency value isn’t either, for that matter.
There’s also trade. Not only Taiwan, but now Europe is getting cold feet in trading with China. Taiwan won’t resume cross-straight talks until it gets some laws passed to make the playing ground even. And, some in China’s circles echo similar statements from front-running US presidential candidate, Trump.
Speaking of Taiwan, the newly elected president, Tsai, visited a Taiwanese Air Force base for the first time in her new presidency. She seems less shy of talking about her own the military than Obama is of his. While China may not notice the responses of the international community, China will notice Tsai. Perhaps that is why the nuke subs are on the way.