Red Star Dominance: Oil, Arms and T-Shirts

China is in the driver’s seat. It has a command economic which is bolstered by the free market. It has a multitude of contractual agreements which international corporations and governments. Moreover, “Beijing sees energy shortages as one of the biggest potential threats to national security and social stability. China became a net importer of oil in 1993 and imports since then have risen sharply. Last year it imported 2.46 million barrels per day (bpd), accounting for about 40 percent of current demand.” That’s right 40% and rising. However, the key to China’s ability to dictate demand and control arrangements with other countries is the fact that America the other net importer of oil is owned by China. This is a figurative and literal truth. Our massive and grotesque deficit is largely financed by the Chinese and the export – import ratio favors China. In effect, America can not go to war economically or militarily with China.

America has become the paper tiger and vague threats such as “Deputy Secretary of State, Robert Zoellick … warn(ing) that Beijing's ties with 'troublesome' states such as Burma and Zimbabwe, were ''going to have repercussions elsewhere'' and the Chinese would have to decide if they wanted to pay the price.” What price is he talking about? Maybe he is referring to the price of Banana Republic T-Shirts coming off the sweat shop floors in Peking? Or maybe the arm deals with the Sudanese? No it must be the “Chinese companies … long-term contracts valued at 200 billion dollars,” with Iran.

The Chinese have learned from the now defunct Soviet Union. Gone are the days of 5 years plans, bureaucratic mismanagement and great purges. The Chinese have found a medium of complete control within the free market system. It has perfected the state run monopoly on a global scale. This is not to be taken lightly. Massive shortages of labor are not to be found. Economic slow down is absent. And competition is relevantly benign. The state can have its cake and eat it too. In this case, it is an American cake. Moreover, all ingredients are made in China.