Monday, July 23, 2018

China 'Most Significant Threat' Facing U.S.

FBI, CIA Sound Alarm Over China Cold War, Warn "Most Significant" Threat Facing US

Forget the Russian hysteria: according to Michael Collins, the CIA’s deputy assistant director for the East Asia Mission Center, it is China that is waging a "quiet cold war" against the United States, using all its resources to try to replace America as the leading power in the world.

"Beijing doesn’t want to go to war", he said during a speech at the Aspen Security Forum in Colorado on Friday, but the current communist government, under President Xi Jingping, is subtly working on multiple fronts to undermine the U.S. in ways that are different than the much-publicized activities being employed by a far weaker Russia, and which the media is obssesed with.

Collins also warned that rising U.S.-China tension goes beyond the trade dispute playing out in a tariff tit-for-tat between the two nations, according to AP.
Among the numerous concerns over China subtle efforts to steal influence he cited pervasive efforts to steal business secrets and details about high-tech research being conducted in the U.S. Meanwhile, the Chinese military is expanding and being modernized even as the U.S., as well as other nations, have complained about China’s construction of military outposts on islands in the South China Sea, which Collins said he "would argue that it’s the Crimea of the East."
Collins’ comments track warnings about China’s rising influence issued by others who spoke earlier this week at the security conference. The alarm bells come at a time when Washington needs China’s help in ending its nuclear standoff with North Korea.

Earlier in the week, FBI Director Christopher Wray also underscored US concerns about China, which he said represents the "broadest and most significant threat America faces." During an interview with NBC’s Lester Holt at the Aspen Ideas Forum on Wednesday, Wray said that the FBI has economic espionage investigations in all 50 states that trace back to Chinese activity.
“It covers everything from corn seeds in Iowa to wind turbines in Massachusetts and everything in between,” said Wray. “The volume of it. The pervasiveness of it. The significance of it is something that I think this country cannot underestimate."

Here we bring readers' attention back to what we wrote back in May when we said that for all the talk of the escalating confrontation between the US and China, Bank of America's Chief Investment Officer Mike Hartnett believes that the "trade war" of 2018 should be recognized for what it really is: the first stage of a new arms race between the US & China to reach national superiority in technology over the longer-term via Quantum Computing, Artificial  Intelligence, Hypersonic Warplanes, Electronic Vehicles, Robotics, and Cyber-Security.
This is hardly a secret: China's long-term strategy is laid out in its "Made in China 2025" blueprint: It aims to transform “China’s industrial base” into a “smart manufacturing” powerhouse via increased competitiveness and eroding of tech leadership of industrial trading rivals, e.g. Germany, USA, South Korea; this is precisely what Peter Navarro has been raging against (even if his message is in need of some refinement) and hoping to intercept China's ascent early on while it's still feasible.
At the forefront of China ambitious growth plan, Beijing's investments in "advanced internet and communication technologies, embedded systems and intelligent machines" aim to ensure that 40% of China’s mobile phone chips, 70% of industrial robots, 75% of basic core components and 80% of renewable energy equipment are “Made in China” by 2025.
Meanwhile, the China First strategy will be met head-on by an America First strategy.  Hence the "arms race" in tech spending which in both countries is intimately linked with defense spending. Note military spending by the US and China is forecast by the IMF to rise substantially in coming decades, but the stunner is that by 2050, China is set to overtake the US, spending $4tn on its military while the US is $1 trillion less, or $3tn.
This means that some time around 2038, roughly two decades from now, China will surpass the US in military spending, and become the world's dominant superpower not only in population and economic growth - China is set to overtake the US economy by no later than 2032  - but in military strength and global influence as well.

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