Thursday, January 21, 2010

China's Control of Trade

 Investors and Observers simply have to recognize that the "Rules" that China play by...are their rules.
  Google's hacks and Censorship (Google's threats to pull out mean NOTHING), China's State Bank Investment Fund policies (China will shortly become Africa's largest multi-country investor), and more.
  China's exterior investment policies are closely tied to China's Foreign policies.
  "We have given China the bullets for their guns."
  While the U.S. absolutely considers "commerce" an integral part of it's Foreign Policy in the sense of Free Trade, encouraging commerce as a "lever" on other government's policies, we are increasing the leverage of risk over us that other governments hold because of our trade debt obligations and currency values.
  This can only end badly, absent a more forceful push for restraint by the U.S. on others, and we have seen how that works...not at all.
  The Chinese are the best at two-faced negotiations and talks, and when pressed with threats, just respond twice as hard.
  Our current policies are a "no win" situation; we have NO leverage over our supposed "partners" in the Security Council or in Bilateral negotiations-practically none.
  We're helping our geo-political competitors in the (faint) hope of influencing them in the direction we want.
  Since China's (and Russia's, Islamic Confederation States and ...and...) objectives are different than ours, this can't work.
  We would be much better off with a China-like attitude about our external relations, "It's our way or the highway."

Posted via email from dis's posterous

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