Since the United States is now discussing an economic “stimulus” of almost $1 Trillion, we have been trying to figure who benefits most from this deal? The answer is China, if they decide to underwrite the U.S. loan, and buy the U.S. Treasurys that will fund the stimulus. Just by doing that, China will get more than $300 Billion in payments of interest from the U.S.
So, why does China like this deal, in addition to the money? China wants power and the ability to call the shots. “Buying” the American debt is a lot faster and potentially less expensive than fighting the U.S. with some future Chinese military — which is not culturally in China’s psyche or style anyway…..
“I think the objective of the grand strategy is to squeeze out, very slowly and very gradually, the influence of the United States in East Asia, without war, with economy and culture,” said Chong-pin Lin, Professor at the Graduate Institute of International Affairs and Strategic Studies at Tamkang University in Taiwan at Princeton.
Chong-pin engaged Princeton University students and professors in a lively discussion Nov. 18 that focused on China’s relationship with Taiwan and China’s growing importance in world affairs.
A professor at the Graduate Institute of International Affairs and Strategic Studies at Tamkang University in Taiwan, Chong-pin was brought to Princeton by the East Asian Studies department. His lecture was titled, “More carrot than stick: Beijing’s adjusted Taiwan policy.”
Chong-pin mentioned beauty pageants and high-visibility sporting events as examples of China’s emerging emphasis on culture.
“Now I think it’s generally agreed that Beijing is using economic and cultural influence to establish its international status,” he said. “The idea is to make the rest of the world look to Beijing unconsciously or subconsciously as the future mecca of the world.”
By Megan DeMarco
The Times (Trenton, NJ)
Read about China’s “Grand Strategy” to ease the U.S. out of East Asia: