+1Any hostilities and trade-Investment disruptions with China will be economic hurtfull for all Asia, especially in ASEAN and East Asia. However what China does with continue military posturing will made their neighbours have to choose side.
I agree with John Fedup that any hostilities with China will suck Global economy down..I also agree with Sturm that nobody can fill the China's void in Investment and Trade..at least for mid term..but eventually I do believe many 'relative' mature in developing stages economies in ASEAN, and ROK plus Japan can work something out to fill the Chinese void..
China it self is not the Allmighthy economies that many of Chinese Internet wariors potrait it..China economy is more fragile then what the surface shown..
China afterall not a fully developed Economies..no matter it is the world 2nd largest..Like any large populated developing economies..it need certain percentage of annual economy growth to maintain social-economic stability.
Indonesia will have recession if it growth bellow 4%, many Investment Bankers and Economiest put 4.5%-5% as minimum threshold growth numbers that India has to maintain to keep economic stability...whille the threshold number for China many believes is 6%.
Those economies at this moment only growth around 1% above their 'minimum' threshold..that include supossedly mighty China. In sense China actually can't afford to have prolong military conflict with anybody..unless it want to risk heavy damage to its own economy.
Perhaps why now Japan willing shown more determined face to China..since despite it miniscule economic growth rate compared to China, but as developed Industrial Economy..they actually have more economic sustainability compared to China..
China now has many excess capacity that need to be feed commercially to keep its work force socially maintanable..any prolong conflict..can risk damaging its growth..and risking internal social order..and that I believe more risk for China in the end then any external conflict.
So..in the end this Military posturing I believe is part of diplomatic bluffing..questions is..if the bluff being challenge by regional power like Japan..will China answered it back..knowing the risk it will made to its own economy thus..potential internal social stability..
a list of some of chinas emerging problems
- 25m new military aged unemployed young men are appearing every year
- huge disconnection between city and country people - the north west, south west and west are frustrated that all development appears on the economic hubs and the regions are left to fend for themselves
- the push to modernise means that less labour intensive jobs are available - so those unemployed young men can't get the factory jobs that were prev available
- a huge disproportion of males to females - and a trend where foreign males are seen as a better catch
- a high proportion of the 25m new additionals are uneducated - and the women are after smarter men
- the education system can't keep up with the population
- a rising sense of nationalism or nativism and where the countries leaders turn on and turn off the patriotism to suit their narrative - this is happening far more frequently - and in real terms starts to indicate that maybe the govt has less control than what they portray
- a rising resentment by the corrupt military elements as the civil administration side makes an attempt to weed out corruption - and is failing, especially with respect to forfeiture of traditional commune properties to make way for retail and industrial developments. its a universal truth, that property development in a lot of cultures invites some dislocation if not worse corruption. this is also being played out in the rural areas
- pollution levels that are killing arable land and impacting upon general health and wellbeing
- an increasing bellicosity by the hawks that they should go to war with the US and/or Japan sooner rather than later
- a massive inferiority complex across the nation stemming from the Arrow Wars in the 1840's and a strong desire to be retributive as payback to the west - this is a very strong theme with the Hawks
- problems with water supply and quality
- problems feeding the population and becoming more dependent on imports as arable land gets taken up by commercial interests and any available land has a high risk of being compromised due to pollution issues etc...
- knock on effects of one child policy
- knock on effects of no family support for the elders in the new economy
the west was hoping that if trade ties were strong then the possibility of war would be reduced and we could all sit around the table and sing kumbayah
the hawks are fundamentally disinterested and want to turn the PACRIM into a chinese lake - and considering how much world commerce and trade goes through the SCS and ECS, then thats a scarey thought if the chinese decide to start declaring it as national zones and reinforce it with ongoing military exercises which will add costs to goods as it will cause trade routes to be adjusted to bypass contested areas - and that will only work so far.
however, they won't be shy about dropping dragons teeth into sea lanes of interest
all in all its a cluster, and I think that chinas has bought the worst case scenarios forward by 10 years at least - and that sooner rather than later, there will be a maritime incident involving shooting and lives lost
a lot of people don't realise that china has the dubious history of being involved with military incursions and punch ups with every one of its land neighbours since WW2, and that she's already had a shooting war with Vietnam in 1988 over the Spratleys, and that she's caused naval friction with 4 of the countries making claims on the Spratleys/Paracels. She's far from being benign, and this notion that she promotes that she doesn't fight but negotiates is absolute tosh
Last edited: