Headlines last week were blaring that the Chinese were willing to calm their attitude toward the U.S. regarding the ongoing trade war.
In fact, they even hinted that they would not retaliate against whatever the U.S. has in mind for the coming weeks.
This is quite the milestone according to some, but I’m remaining, as always, skeptical.
Too many years in counterintelligence seems to have increased my sense of cynicism.
Fact is, if the Chinese are backing down, I suspect they may have something much more devastating in mind.
Because when a blowhard suddenly becomes docile, that’s when there’s reason for concern.
And in this case, it has nothing to do with the financial trade war.
A member of China’s Ministry of Commerce commented on this new tack that “China has plenty of means for countermeasures, but under current situation, the new question that should be discussed right now is about removing the U.S.’s new tariffs on $550 billion Chinese goods to prevent escalation of the trade war.”
China’s means of countermeasures often means less financial and more military.
Despite its new attitude toward the trade war, the Chinese have been getting more and more aggressive in another area.
Now, that’s not to say the U.S. is completely innocent in all regards of this area, but escalating tensions aren’t doing anything to prevent stomach ulcers.
It’s Time to Worry when Things Go Quiet – and Hot
On Thursday last week, it was reported that the U.S. Navy had sailed a warship within 12 nautical miles of the Fiery Cross and Mischief Reefs “in order to challenge excessive maritime claims and preserve access to the waterways as governed by international law.”
This is the attitude that the U.S. has been maintaining throughout the tensions in this area – that this stretch of water is the right of all countries, not just China.
China has not-so-respectfully disagreed.
Which is demonstrated in the airstrips and buildings it has built on these two reefs.
Not to mention aggressive moves by its own navy and warships.
All this comes at an inopportune time, as China had two weeks ago denied U.S. access to ports in Hong Kong after several months of increasingly violent protests.
To put it mildly, things are getting hot.
And I fear it will be us who will be cooked.
That’s not even taking into account the fact that the Chinese have been bulking up their military presence in the South China Sea for years now, and has every intention to use it if necessary.
This includes powerful missiles that could destroy the U.S. Navy ships in the area.
They’ve already tested these missiles, and when I tell you that they’re some of the most impressive I’ve ever seen, you can be sure that is saying something.
This is why you must know about this.
The Chinese may be calming down regarding the trade war, but nothing will make them back down in this vital and highly-trafficked sea route.
Along with the tensions in the Persian Gulf, ongoing civil war in Libya, a collapsing economy in Venezuela, internal disputes inside the U.S. government, and many other crises rising up throughout the world, I have a feeling things may come to a head soon.
At this moment, all we can do is wait and see.
The post The Trade War Front Just Got Quiet – But the South China Sea Is as Hot as Ever appeared first on Oil & Energy Investor.
Powered by WPeMatico