‘China ready to go to war to safeguard national interests’
PTI, Feb 12, 2011, 04.06pm IST
The article published in the Qiushi Journal, the official publication of the ruling Communist Party of China (CPC) said China must adhere to a basic strategic principle of not initiating war but being ready to counterattack.
“We must send a clear signal to our neighbouring countries that we don’t fear war, and we are prepared at any time to go to war to safeguard our national interests,” the article said, suggesting an aggressive strategy to counter emerging US alliances in the region….“Throughout the history of the new China (since 1949), peace in China has never been gained by giving in, only through war. Safeguarding national interests is never achieved by mere negotiations, but by war,” it said.
It suggested that China should use its economic clout and trade as a weapon to rein in neighbours….
China on its part, it said, can consider the idea of launching economic warfare through strategies to contain the US dollar and making effective use of forums like the IMF and initiating a space war by developing strong space weapons…
It also said the China should also launch a public opinion war by making an effective use of the free media in the US and other democracies.“Of course, to fight the US, we have to come up with key weapons. What is the most powerful weapon China has today? It is our economic power, especially our foreign exchange reserves (USD 2.8 trillion). The key is to use it well. If we use it well, it is a weapon; otherwise it may become a burden,” it said.
China, it said, should ensure that that fewer countries should keep their forex reserves in US dollars.
“China, Japan, the UK, India, and Saudi Arabia are all countries with high foreign exchange reserves,” it said analysing each country’s ability to align with China against the US.
So in view of this China should “pick up courage” and go for aggressive buying of other currencies, including the Indian Rupee hence taking the lead in affecting the market for US dollars.This approach, it said, is market-driven and it will not be able to easily blame China.
“Of course, the most important condition is still that China must have enough courage to challenge the US currency. China can act in one of two ways. One is to sell US dollar reserves, and the second is not to buy US dollars for a certain period of time,” which will weaken the currency and cause deep economic crisis for Washington.
Given the fact that China is the biggest buyer of US debt, its actions will have a demonstrable effect on the market.
“If China stops buying, other countries will pay close attention and are very likely to follow. Once the printed excess dollars cannot be sold, the depreciation of the dollar will accelerate and the impact on Americans wealth will be enormous.
“The US will not be able to withstand this pressure and will curtail the printing of US currency,” it said.
All posts Copyright (c) 2011 Kevin Freeman, All Rights Reserved
