MY EYES ARE ON CHINA. ARE YOURS?
It is bad feng shui to ignore the truth– by some disorderly arrangement of facts. As such, I am keeping my eyes on China.
There is an eclectic mix of turbulent world affairs– currently involving riots and demonstrations– as well as dramatic proclamations about territorial disputes (with government-staged demonstrations in China). All this tumultuous activity can make your head spin. Not mine. I’m keeping my eyes on China.
China is on an aggressive geostrategic path to energy security. China’s energy sector relies on SOEs (state-owned enterprises). Yes– “state-owned”– remember that we are talking about a COMMUNIST monster, just in case all the decades of deceptive mercantilist practices have lulled you into a false sense of security, when it comes to trade with China.
As part of China’s goal of energy independence, it secures foreign oil sources for domestic consumption. All of the decisions that Beijing makes as supreme owner of the Chinese people and of the Chinese energy sector are centered on strengthening this dominance.
But China’s growing dependence on foreign oil is making Beijing very jittery. As such, part of China’s geostrategic approach to energy security includes the settlement of territorial disputes in its neighborhood, as well as political and economic influence globally, through assistance to other countries.
China’s energy future hangs on the balance—unless it dominates reliable foreign supplies at prices that support it’s “China-comes-first” approach to trade. Approximately 80% of China’s oil imports emerge from the Middle East and Africa—so, political, economic and military influence in these regions is paramount for Beijing—along with control of navigable waterways for transport. In addition, China is aggressively stockpiling uranium for its nuclear energy “concerns”– while it flexes its military muscle for the world to see.
So concerned is China over navigable waterways and its journeys through the worrisome Strait of Malacca and the Suez Canal– that it has become the most active economic and diplomatic participant in Arctic exploration of the Northern Sea Route, as well as the North-West Passage from the Atlantic over the northern end of North America, as navigable alternatives. The Northern Sea Route significantly cuts the journey from Shanghai to ports in Europe. In August, a Chinese icebreaker named Xue Long traveled through the northern route. No doubt, the Communists in Beijing have embarked on a Marco Polo journey to encircle the world’s economy.
While the Middle East burns, China sharpens its teeth on the prospects of infrastructure rebuilding and economic control of the region. So, expect Chinese emissaries to be bearing gifts during Libya’s Infrastructure and Construction Summit in Istanbul. China is also participating in aggressive land acquisition in Sudan and Ethiopia– and is threatening to divert the waters of the Nile River. Egypt depends on the water from the Nile to import or grow its grain. These ancient waters flow through Ethiopia and Sudan before they reach Egypt. Egypt’s arid climate creates total dependency on the Nile. The Muslim Brotherhood and their Islamic extremism in the streets of Cairo will end up looking like a distraction– when China is done with Northern and sub-Saharan Africa.
There is no question that China has positioned itself to lead the world economically—including striking trade deals with a growing list of nations that are bypassing the US Dollar to trade in renminbi.
I’m keeping my eyes on China. Are you?
Copyright © 2012 Marielena Montesino de Stuart. All rights reserved.