President-elect Trump’s meeting this past Friday with Japanese Prime Minister Shinzo Abe may have been conducted in an unofficial capacity, but it should still worry the US’s rivals. Japan, growing nervous of China’s expansionism, has been cozying up to Russia, who views Japan as a potential ally, counterbalance and check to China’s growth in the Pacific.
Counterbalancing Chinese influence would be prudent as China is introducing their own free trade agreement, the RECP, in the wake of the political death of the Globalist TPP. China’s proposal would include Australia, Japan, and India, aiming to govern and regulate 40% of the world’s trade. The Chinese, who along with the Russians have been suffering from a severely compressed timeline for their operations due to the oil glut and economic sanctions, will have to speed up their operations even further as Trump’s protectionist tariffs could severely impact China’s exports. But I speculate that China’s military infrastructure in the South China Sea, the mechanism responsible for the enforcement of any prospective trade deal, will not be able keep pace with the speed up in negotiations and planning.
One possible indication of these forthcoming protectionist policies is a Congressional advisory commission’s annual report recommending that Congress block Chinese state-run firms from buying up American businesses.
“Carolyn Bartholomew, the Democratic-appointed vice chairman of the review commission, said that while China restricts foreign investment with laws banning foreign participation in large swaths of its economy, Chinese companies face no such obstacles in the U.S.”
China is facing more severe, long-term problems in Trump, who wants to reorganize the world economy and renegotiate the Globalist trade deals that have benefited countries like China since the 90’s. Trump also doesn’t believe in the climate change apocalypse, calling it a Chinese plot. Although nobody can deny that the smog and pollution over Beijing is real, the Chinese are relying on climate change/rising sea level hysteria to fuel interest and investment in their renewable energy industry from island nations in the Southeast Pacific.
Heavily invested in technologies like solar, China has agreed to join Japan in a proposal to integrate the countries of the Pacific Rim into one massive electrical “super grid” running entirely on renewable energy. However, the project is a long-term infrastructure deal requiring huge amounts of fixed capital over the next 34 years, so nothing is set in stone at this time.
“The entire idea is contingent on ultra high voltage power transmission lines, thousands of miles operating at more than 1,000 kilovolts AC/800 kilovolts DC. High voltages reduce losses over long distances, and both Russia and Japan already have hundreds (in Russia’s case thousands) of miles of ultra high voltage lines up and running. These pale in comparison to China’s infrastructure; since 2009 China has built nearly 10,000 miles of UHV power lines, with about the same again to come online in the next two years.
“The larger GEIDCO’s interconnected web of renewable energy becomes, the more stable the supply is, because it’s less dependent on individual sources, so moving toward a global energy network that shares power from Greenland to South Africa, Australia to Switzerland is the ultimate goal.”
In their mission to overturn the Western hegemony, Russia and China have split their duties to depress the US economy before ultimately shutting it out.
Russia and its Iranian allies have been using military force to exploit the US quagmire in the Middle East. By intervening in Syria and taking on ISIS, Russia looks like a stabilizing force and Putin accumulates political capital, which he uses to gain access to oil and business ventures in the Middle East and to form economic unions in Asia. Putin even cut oil deals with a disgruntled Israel, still upset over their treatment by the Obama administration and the Iran deal. By increasing their influence over world oil production, Russia can cut into the value of the petrodollar with their oil-ruble, and maybe end the oil glut which has stalled their economy.
On the other front, China’s offensives concern economic and monetary policy. Before the yuan was given reserve currency status by the IMF, it was being decoupled from the dollar’s exchange rate and strategically devalued to help China recover from their stock market crash and to slightly advantage Chinese exports at the expense of the US. Looking forward, the Chinese are developing technologies like the “super grid” to construct a framework for a renewable energy industry. The goal is to get in front of and shut out the US from dominating any forthcoming, Eco-friendly world energy market, designed to heavily favor green energy through policies that the Chinese and Globalists have been calling for. Policies like carbon taxes, carbon credits, carbon markets and their accompanying commodity games for Wall Street to play with.
But now, Trump, with his disregard for climate change and Globalist trade deals, will force them to fundamentally revise their strategies. Trump will have to step carefully as spoiling China’s green energy super grid plan could push the balance of power and world energy markets into the hands of Putin’s oil industry, or vice-versa. The President-elect said during his campaign speeches that he would invest in all forms of energy. That would be a good start.