The weapon China fears most isn't a weapon at all

The Weapon China Fears the Most

Dirty Little Secrets

by James Dunnigan
StrategyPage.com
March 23, 2005


The US trade deficit (the value of goods bought from China versus what was sold to them) reached $162 billion. That amount accounts for over twenty percent of China's GDP (total economic activity.) This has serious military implications. If China goes to war with the United States, the first impact would not be bombs, but an end to exports to the United States. Putting over a hundred million Chinese out of work would have a larger impact than any bombing campaign. Taiwanese companies also control over $50 billion of economic activity in China. Taking Taiwan, in one piece, would add about ten percent to China's GDP. But the loss of American markets would be far greater.

Thats why its gone as long as it has without any war so far. This is also why I think the US will eventually "give" Taiwan to the Chinese for some sort of political/finacial gain. The US can do this because they would still have the finacial advantage as Taiwans economy is strongly dependant on sales to the US as well.

I'll agree with your assertions. Losing our business is about the last thing on the planet that China needs or wants right now. I too think that we will end up letting Taiwan slip back into China without any major warfare. Like Hong Kong, Taiwan is a capitalism virus to China, primed to continue infecting their socialist system.