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De Omnibus Dubitandum - Lux Veritas

Sunday, December 1, 2013

China: Beijing's Investment in Europe Reveals Long-Term Strategy

November 27, 2013
China is making inroads into Central and Eastern Europe. In recent years, as the crisis in the European Union bears down on Western Europe's economic vitality, the capacity to fund and invest in peripheral regions like the Balkans and Baltics has waned. As a result these countries have begun to seek supplemental sources of capital, technology and trade. The countries of Central and Eastern Europe are looking to develop low-level commercial ties outside their immediate neighborhood in order to reduce their near-total reliance on Russia and the EU.
Chinese investment in Central and Eastern Europe is sure to grow in the coming years, but will be constrained both by logistical and political-administrative factors, as well as the region's basic geopolitical reality. In the near term, China looks to Central and Eastern Europe primarily as a market for its own strategic industries and perhaps another window into Western European markets. In the long term, it may seek to utilize rail and other infrastructure investments into the region to build more integrated trans-Eurasian transport systems……Such a network, if ever realized, would eventually link together disaggregated investments from inland China and Xinjiang to Central Asia, the Middle East, Russia and on to Western Europe. Needless to say, the constraints on building overland ties across Eurasia -- and especially through South Asia and the Middle East, as envisioned in China's long-discussed Iron Silk Road plan -- are enormous, both logistically and politically. But then so were the constraints on the Great Wall……Read more: (Subscription required)
My Take – This is…in my opinion….as delusionary as most of China’s economy.  I like the Silk Road analogy because it demonstrates the weakness in all of this; time and space!  There is no natural connection emotionally, intellectually, culturally or geographically.  As for the Great Wall analogy; I think that presents a false narrative implying the wall was successful.  To some extent it was, but in reality it was militarily indefensible.  In order to have access to China’s interior all the ‘barbarian nomadic tribes’ had to concentrate their forces at any one point in the wall and it would have been impossible to repel them.  
There were thousands of miles of Wall and communications was a serious problem.  At one point the Wall was attacked and it took two weeks for the troops to become aware.  The wall could be breached in that time.  Admittedly, there were a lot of soldiers assigned to the wall as a whole, but there were never very many at any one point, and it would take some time to muster enough from the rest of the wall, wherein the attacking force would merely move a contingent to a now weakened part of the wall.  Smoke signals were used later, but that still didn’t solve the problem of moving the troops in sufficient numbers and bad weather would have rendered smoke signals useless.  
Economically it was a constant drain on China, not to mention that maintaining the wall, and supplying the soldiers had to be a logistical nightmare , since much of it was built over terrain that was waterless, mountainous, largely uninhabited and had no local supply of food or water.   From my point of view it was a long term failure, and a waste as the ‘ultimate’ defense system, much the same as Hadrian’s Wall in England, or better yet, the Maginot Line in France. 
The same weaknesses exist in their economic plans, big, cumbersome and poorly thought out.  They have the example of Hong Kong, which they have avoided reforming into the economic system that rules the rest of China because it is successful.  So why don’t they adopt the same program for the rest of the nation?  Because it’s all about power and control, which brings me to another point.  The corruption among China’s ‘elite’ is staggering.  Many have foreign accounts and are fleeing the country with billions, but when escaping one has to have somewhere to go.  Could this be part of an elaborate escape plan for these elites down the road?  Does that seem like a strange thought?  Perhaps, but nothing is ever as it seems in China and we should remember that China has a lot of history, and the Chinese are complicated thinkers. 

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