Red Chinese Military Threat

The Threats from Red China's Military
& U.S. Technology Transfers
The Conservative Caucus
450 Maple Avenue East * Vienna, Va. 22180 * 703-938-9626

Excerpted from Howard Phillips Issues & Strategy Bulletin of November 30, 2005

PENTAGON DOWNPLAYS PRC MILITARY BUILDUP

"Months overdue, the Pentagon’s annual report to Congress on China’s military power is a mix of happy talk, flabby strategic musings, and sobering facts. …

"The one thing that is clear is that publication of this year’s Annual Report on the Military Power of the People’s Republic of China was delayed while its initial and more alarming conclusions about China’s strategic intent were toned down.

"Senior administration officials overruled the report’s authors, professional analysts, and policy advisers at the Pentagon intent on providing an unvarnished account of China’s military. And, contrary to conventional Washington wisdom, this was done not over the heads of the most senior ranks in the Pentagon but with their agreement."

EVIDENCE IGNORED

"A more accurate picture would take note of China’s noncompliance with its pledges to the World Trade Organization; its failure to use its leverage with North Korea to end Pyongyang’s game of nuclear Russian roulette; its continuing refusal to abide by human rights and refugee conventions it has signed; its less-than-stellar nonproliferation record; its use of Chinese nationalism to browbeat Japan; its refusal to cooperate with the other great powers in the Proliferation Security Initiative; its obstructionist policies on Iran, Sudan, Zimbabwe, and Burma; and of course its repeated threats to use military force to unify Taiwan with the mainland – and, if need be, engage in nuclear brinkmanship to prevent the United States from intervening to stop a forcible reunification. It is this fuller – but unstated – account of Chinese behavior that fits with the substantive heart of the report, documenting China’s rapid and dramatic improvements in military capabilities."

HOWEVER, THE FACTS SPEAK LOUDLY

"What’s new in this year’s report is the finding that China’s military buildup has begun to have serious implications not only for the cross-strait balance of power but also for the region as a whole.

"The People’s Liberation Army possesses a growing fleet of nuclear and diesel submarines, has 650-730 mobile ballistic missiles, and is working on aerial refueling for a significant percentage of its 2,600 combat aircraft."

JAPAN RECOGNIZES THE PROBLEM

"Toss in new and improved command, control, and communication systems and over-the-horizon targeting capabilities, and the picture that emerges is a China with military capabilities that are not just Taiwan-centric. While the report suggests that these capabilities ‘could pose a credible threat to other modern militaries operating in the region … over the long term, if current trends persist,’ most regional militaries are already worried. When Chinese ships and subs begin making clandestine trips into Japanese home waters – as they have – the signal being sent to Japan and the region is clear enough."

TAIWAN MAY FALL LIKE A RIPE FRUIT

"Beijing does not believe a full-fledged invasion would be necessary to accomplish its goal. Rather, the PLA leadership, according to its own doctrinal papers, thinks a combination of ballistic-missile, special-operation, and aerial strikes could be sufficient to shock Taiwan’s population and leadership into accepting Beijing’s version of ‘one China.’

"For similar reasons, China is working hard to develop the capacity to blockade Taiwan. The submarine modernization program that the report details is extensive. Eight new quiet KILO-class diesels will soon be added to the four already in the arsenal; China’s indigenous SONG diesel is now in serial production; and a new diesel submarine, the YUAN class, was launched last year. Chinese naval journals indicate a deep interest in blockading operations, and pay close attention to the vulnerabilities of Taiwan’s island economy. …"

U.S. AIRCRAFT CARRIERS TARGETED?

"China’s military knows that it must be able to prevent, or, at least severely complicate, the American Navy’s use of its aircraft carriers. To this end, as the new report spells out, China’s antiship cruise missile force is growing by leaps and bounds. It has begun to field high-end, supersonic and subsonic cruise missiles on its new destroyers, attack boats, and submarines. It has even experimented with use of maneuverable, multiple-entry MRBMs and SRBMs to hit carrier battle groups. Once China solves the problem of longer-range detection and targeting, it will pose the most serious threat to American carriers in the world. …"

PRC’S ICBMS MORE DANGEROUS THAN KATRINA

"The report also details China’s programs to upgrade its intercontinental ballistic missile force with new solid-fuel, road-mobile missiles and new sea-based, submarine-launched systems. The net effect will be a more survivable, more accurate, and more lethal nuclear strategic capability – aimed primarily at the United States. As General Zhu Chenghu, dean of China’s National Defense University, not so subtly reminded American visitors recently: Should the United States intervene in a conflict between China and Taiwan, ‘the Americans will have to be prepared that hundreds … of [their] cities will be destroyed by the Chinese’ nuclear weapons."

BEIJING PREPARES TO NEUTRALIZE AND DEFEAT U.S. DEFENSE OF TAIWAN

"Combine the PLA’s fascination with ‘carrier killing,’ its ability to degrade severely the operational utility of U.S. air bases in Japan through missile strikes, its aggressive pursuit of space and counterspace capabilities, and its upgraded nuclear arsenal, and you have a military that believes it has or is close to having the means to make any American president think twice before going to Taiwan’s rescue. …"

HISTORICALLY, CAPABILITIES OFTEN BECOME INTENTIONS

"But rather than face the facts presented in the report about the character and scope of China’s military buildup, the tendency in the senior ranks of the administration is to wash over them with sound bites about our relationship with China being ‘good but complex.’ Or worse.

"The day after the report was issued, in response to a question about the cross-strait military balance, Marine general Peter Pace, vice chairman of the Joint Chiefs, said, ‘There’s lots of countries in the world that have the capacity to wage war,’ but ‘very few have the intent to do so. … There’s absolutely no reason for us to believe there is any intent on [China’s] part.’ Absolutely? …

"General Pace had better hope his statement doesn’t go down in history alongside George Tenet’s now infamous, ‘It’s a slam dunk, Mr. President.’ " Source: Gary Schmitt and Dan Blumenthal, The Weekly Standard, August 8, 2005, pp. 14-16

CHICOMS MAY MILITARILY DOMINATE HIGHER GROUND OF SPACE

"China’s second manned space launch has ignited a new round of debate over the implications of the PRC’s burgeoning space capabilities. ‘China is serious in investing’ in space capabilities that have ‘significant military applications in the future,’ retired Air Force China specialist Mark Stokes tells Voice of America. ‘Space assets, as well as countering … the U.S. use of space or other countries’ use of space, are important force multipliers that can help to even the playing field when you are going up against a technologically superior adversary.’ According to Stokes, the space launch constitutes ‘a stepping stone for a longer-range program to make them a significant player in military space in the future.’ — October 12" Source: Ilan Berman, China Reform Monitor, 10/20/05

Excerpted from Howard Phillips Issues & Strategy Bulletin of February 28, 2005

CONDI OMITS RED CHINA FROM HER LIST OF TYRANNIES

"Condoleezza Rice lists ‘outposts of tyranny,’ but Communist China is missing: According to Secretary of State-designate Condoleezza Rice, there are six ‘outposts of tyranny’ (Washington Times): Stalinist North Korea, Iran, Burma, Belarus, Cuba and Zimbabwe. As for Communist China, Rice preferred ‘building a candid, cooperative and constructive relationship with China that embraces our common threats but still recognizes our considerable differences about values’ (Cybercast News). Never mind that the Communists have several economic and/or military ties to all six ‘outposts,’ and that their treatment of their own people qualifies for nothing but tyranny." Source: China_e_lobby News of the Day, 1/19/05

TRADE DEFICITS FUND BEIJING MILITARY SPENDING FOUR TIMES OVER

"Some confusion on the U.S. trade deficit with Communist China: John E. Tamny, an infrequent National Review Online columnist, takes on those of us who are worried about the massive trade deficit with Communist China (which may pass $150 billion for 2004 once all the data is in). Tamny’s economic arguments aside, he doesn’t even deign to discuss the fact that said trade deficit (the largest bilateral imbalance on the planet) is enough to fund the Communists’ official defense budget more than four times over – and their real defense budget more than twice." Source: D.J. McGuire, china_e_lobby@yahoo.com, News of the Day, 1/10/05

ISRAEL SURREPTITIOUSLY AIDS CHICOM MILITARY TO THE DETRIMENT OF THE U.S.

"Israel’s persistent clandestine military dealings with China have created waves with the U.S., reports International News Services. Israel has reportedly concealed from Washington an upgrade of a major weapons system it sold to China more than a decade ago. By assisting in upgrading China’s weapons system, Israel violated its commitment not to transfer U.S. technology to China without Washington’s permission. Israel is China’s second-largest arms supplier, after Russia. Although diplomatic relations between Israel and China were established only in 1992, military ties go back to the early 1980s. Until formal diplomatic ties were established in the early 1990s, the nation’s military relationship was covert. Israel sold approximately US$4 billion worth of arms to China during the covert relationship.

"During the 1990s, while much of the West penalized Beijing following the Tiananmen Square Massacre, the Sino-Israel military relationship grew rapidly. After Israel was pressured by the U.S. to scrap a $250 million deal to sell China the Phalcon, an airborne radar system, the military relationship soured. Washington claimed that providing Beijing access to the technology would upset the military balance between China and Taiwan and threaten U.S. interests in the region. When the U.S. Congress threatened to cut the $2.8 billion it gives Israel annually if the deal went ahead, Israel buckled and scrapped it.

"For years, the U.S. government has expressed concerns over Israel illegally transferring technology to China. During the Gulf War, the U.S. gave Israel Patriot Missiles as protection against Iraqi Scud missiles. In 1992, a U.S. intelligence report revealed that soon after the end of the Gulf War, Israel had sold Patriot anti-missile data to China. Washington has also alleged on several occasions that Israel violated agreements by exporting to China restricted U.S. technology it buys with yearly U.S. subsidies. This was the case with the largely U.S.-funded Lavi fighter-plane program, the technology of which Israel passed to Beijing. China’s F-10 fighter jet is believed to be almost identical to the Lavi.

"In 2002, a deal for Israeli communication satellites was signed with the United States. Early this year, an Israeli delegation went to China for talks on rebuilding military ties. Beijing’s relationship with Israel has enabled it to acquire ‘dual-use technology’ that the U.S. and Europe have been reluctant to provide. [December 21]" Source: Al Santoli, American Foreign Policy Council’s China Reform Monitor, 1/12/05

CHINESE REDS ASSERT SOVEREIGNTY OVER JAPANESE ISLANDS –– AND THE OIL-RICH WATERS AROUND THEM

"March 27: Chinese activists symbolically claimed Beijing’s sovereignty over small, uninhabited islands – known as Senkaku in Japan and Diaoyu in China – located between southern Japan and Taiwan in the East China Sea, reports the Washington Post. Japanese security forces arrested the handful of Chinese activists on the islands, which drew both official and unofficial hostility. A Chinese Foreign Ministry official announced, ‘The arrests were an illegal action that breaks international law … a serious provocation against Chinese sovereignty and territory and Chinese citizens’ human rights.’ Japanese Prime Minister Koizumi stated, ‘The islands are Japanese territory.’ The islands came under Japanese control in 1895, following the Sino-Japanese War. Japan retained administration of the islands in 1972, after signing an agreement with the U.S. Both China and Taiwan claim the islands."

CONTROL OF ISLANDS WOULD BE KEY IF BEIJING LAUNCHES MILITARY ASSAULT ON TAIWAN

"May 14: The Japanese Defense Agency plans to send 7,200 ground troops to the country’s southernmost islands in the event of a future confrontation with China, reports the Kyodo News agency. Tokyo assumes that in the event of a Chinese attack on Taiwan, China would also invade islands in the Okinawa prefecture to block counter-attacks by the United States and Japan." Source: Al Santoli, China Reform Monitor, 6/2/04

BUSH REJECTS TAIWAN AS IRAQI ALLY TO APPEASE CHICOMS

"Even though Spain and Honduras pulled their troops out of Iraq (plus the U.N.), the one country that is willing to send 5,000 troops isn’t being asked to help. Despite Taiwan’s willingness to reduce the manpower shortage in Iraq, the U.S. would rather not upset the Red Chinese (who bluster that as a ‘renegade’ province, Taiwan’s elected government does not have the ‘right’ to dispatch troops abroad). With so many U.S. troops dying over there, and with our so-called allies on the run, the refusal of the U.S. to accept Taiwanese peacekeeping troops is bad on both substance and symbolism." Source: The American Sentinel (Lee Bellinger, editor), June 2004

CHICOMS SEEK THEATER AIR SUPERIORITY vs. U.S.

"May 26: The Chinese naval air corps will receive 24 advanced Su-30MK2 fighters from Russia during the coming months, reports Jane’s Defense Weekly. The planes have enhanced anti-ship munitions, including the KH-31 supersonic anti-ship missiles. According to an unreleased U.S. Air Force report, the most advanced U.S. fighter aircraft, the F-15 Eagle, is inferior to the Su-30, reports Charles Smith in NewsMax.com. In a recent air exercise between U.S. and Indian air units, the Su-30MKs often won long-range engagements against the F-15, using AA-10 air-to-air missiles." Source: Al Santoli, China Reform Monitor, 6/2/04

Excerpted from Howard Phillips Issues & Strategy Bulletin of May 31, 2004

BUSH WILL SEND MORE DUAL-USE HIGH TECH TO RED CHINA’S PEOPLE’S LIBERATION ARMY

On April 28, "Following a meeting in Washington with Chinese Vice Premier Wu Yi, U.S. Commerce Secretary Donald Evans promised to ease curbs on exports of computers and other technologies that could be used in Chinese weapons systems, reports Charles Smith in NewsMax.com. Smith warns that the curbs could jeopardize U.S. and East Asian security because, as stated in a February 2004 U.S. General Accounting Office [GAO] report, China does not adhere to treaties it has signed on ‘dual use’ equipment. According to the GAO, Beijing continues to violate provisions, such as permitting inspections to verify that exported equipment is not being used for military purposes." Source: Al Santoli, China Reform Monitor, 5/13/04

Excerpted from Howard Phillips Issues & Strategy Bulletin of December 15, 2003

RED CHINA CHALLENGES U.S. FOR CONTROL OF SPACE

"While speaking at a geo-spatial intelligence conference, Lieutenant General Edward Anderson, deputy commander of U.S. Northern Command stated, ‘In my view it will not be long before space becomes a battleground,’ reported the Sydney Morning Herald. ‘Our military forces … depend very, very heavily on space capabilities, and so that is a statement of the obvious to our potential threat, whoever that may be,’ Anderson said. ‘They [China] can see that one of the ways that they can certainly diminish our capabilities will be to attack the space systems,’ said Anderson, who was formerly with U.S. Space Command."

WITHIN 20 YEARS CONTROL OF SPACE WILL BE DECISIVE

"Rich Haver, former special assistant for intelligence to Defense Secretary Donald Rumsfeld, said he expects battles in space within the next two decades. ‘I believe space is the place we will fight in the next 20 years,’ said Haver. Responding to a question regarding the implications of China sending a man into space, Haver commented: ‘I think the Chinese are telling us they’re there, and I think if we ever wind up in a confrontation again with any one of the major powers who has a space capability, we will find space is a battleground.’ " Source: Al Santoli, China Reform Monitor, 10/30/03

RED CHINA SEEKS MILITARY CONTROL OF SPACE

"Chinese military planners have focused on ‘information warfare’ and ‘space supremacy’ as the key components of their country’s battlefield ‘Supremacy Theory,’ enunciated in an October 28, 2003 People’s Liberation Army Daily article, ‘Space is the Commanding Point for the Information Battlefield.’ The broad philosophy driving the development of China’s space technology, observes Asia Times Online, is to destroy or capture satellites and other space-based sensors, which will make it difficult for opponents to operate their precision-weapons capability. In addition, the Chinese are developing micro- and nano-satellites that can effectively intercept satellites utilized by other countries." Source: Al Santoli, China Reform Monitor, 11/19/03

CHINESE NANOWARFARE COULD DESTROY OUR ABILITY TO DETER OR RETALIATE AGAINST A NUCLEAR ATTACK

"The word ‘nano’ means ‘one billionth.’ Nanotechnology is a field of many fields, some of them civilian, dealing with such small systems. What is of interest to us is tiny systems (they are called ‘assemblers’) of molecular nanotechnology. Such assemblers can penetrate molecules and transform or destroy them.

"The world peace has been based on Mutual Assured Destruction. That is, every nuclear power such as the United States, Russia, or China has had means of nuclear retaliation, which an enemy nuclear attack cannot destroy. Thus, nuclear weapons can destroy New York, Moscow, or Beijing, but they cannot destroy submarines deep underwater, carrying nuclear missiles, underground nuclear installations, or bombers on duty high in the air carrying nuclear bombs. Nano assemblers are expected to be able to find these means of retaliation and destroy them by penetrating in between their atoms. Thus an attacked country can be destroyed safely by nuclear weapons because it has no means of nuclear retaliation to retaliate after the enemy nuclear attack and destroy the attacker by way of Mutual Assured Destruction. …

"Let me recall the description a nanotechnologist has e-mailed to me. A molecular assembler I spoke about is a device capable of breaking and creating the chemical bonds between atoms and molecules. Since a molecular assembler is by definition able to self-replace, the first could build a duplicate copy of itself. Those two then become four, become eight, and so on. This compounding capital base could lead to a massive and decisive force within days. As Eric Drexler described it in his book – which he published in 1986! – ‘a state that makes the assembler breakthrough could rapidly create a decisive military force – if not literally overnight, then at least with unprecedented speed.’

"Such a device is capable of rapidly manufacturing and deploying billions of microscopic/macroscopic machines at relatively little cost. These machines could comb the oceans for enemy submarines and quickly disable the nuclear arsenals they carry. Similar acts of sabotage could be carried out simultaneously against land-based nuclear facilities and conventional military forces in a matter of hours, if not minutes.

"The race to build a molecular assembler, if won by China, will result in its worldwide nanotechnic dictatorship. We are certainly at a crucial juncture in history, not unlike 1938 and its nuclear scientists who foretold the atom bomb. This time, we cannot afford to be caught sleeping." Source: Lev Navrozov, NewsMax.com, 9/26/03

U.S. DEFENSE FACTORY CONTROLLED BY RED CHINA

"Citing national-security concerns, two Democratic lawmakers are engaged in a last-ditch effort to halt plans for the transfer of an Indiana factory that produces critical technology used in the guidance systems of U.S. ‘smart bombs’ to the People’s Republic of China.

"The Department of Defense denies any impropriety, but some observers are asking: Is it a case of politics as usual, or a cover-up? The Magnequench factory (originally known as UGIMAG) was sold in August 2000 to a consortium that included Chinese interests. In 2001, it was announced the plant would be shut down.

"The factory is responsible for producing 80 percent of the rare-earth permanent magnets used in the guidance systems of U.S. ‘smart bombs,’ according to lawmakers.

"On Aug. 1, the office of Rep. Pete Visclosky, D-Ind., issued a statement indicating he and Sen. Evan Bayh, D-Ind., were mounting a ‘last-ditch’ effort to halt the factory move to China. Citing the loss of 225 northwest Indiana jobs, Visclosky also expressed concern over the ‘transfer of sensitive defense technology to the People’s Republic of China.’ …"

BUSH ADMINISTRATION STONEWALLS THE TECH TRANSFER

"The two lawmakers reportedly received no response from letters sent to President Bush on March 6 and May 1. Two letters sent to Treasury Secretary John Snow (on May 20 and June 5) received a response turning down a request from the congressman for a meeting. Several phone calls also have received no response. …

"Magnequench, a high-tech company created in 1986 by General Motors, pioneered the development and production of sintered neodymium-iron-boron (NdFeB) – magnets used in the guidance system of ‘smart bombs.’ Beijing San Huan New Materials High-Tech Inc. is a holding of the Chinese Academy of Science Business Group and was established in 1985. China National Non-Ferrous Metals – previously described by the Wall Street Journal as a ‘high-flying state company’ – operates under the control of the State Council, one of the major organs of the Chinese government.

"The 1995 sale required approval from the Committee on Foreign Investments in the U.S., or CFIUS. The CFIUS is an inter-agency committee chaired by the secretary of treasury, tasked with conducting reviews of foreign acquisitions that might threaten national security.

" ‘Concerns raised by American officials about what they considered a clear case of the PRC attempting to obtain control of vital U.S. weapons technology were shot down, and CFIUS permitted the buyout,’ reported Insight magazine and WND. …"

BEIJING’S TOP COMMIES ARE INVOLVED

"Archibald Cox Jr., founder of the Sextant Group, was appointed president and chief executive officer. And Shannon Song, the former finance director of state-run China National Non-Ferrous Metals Import & Export Corporation, was appointed as a member of the board of directors. Song is now senior vice president strategic planning and is also responsible for China operations. [San Huan New Materials chairman Hong (Harry)] Zhang is the husband of Deng Nan, second daughter of China’s former premier, Deng Xiaoping. Deng Nan serves on the PRC State Council as vice minister of state for the Ministry of Science and Technology. Broad technology policy directives originating in the upper levels of the Communist Party hierarchy are fine-tuned and implemented by the State Council and its institutions."

TECHNOLOGY ACQUISITION IS A TOP GOAL FOR PRC

"The ministry oversees the ‘863 Program,’ an aggressive science and technology acquisition program first launched by Deng Xiaoping and funded and controlled by the Chinese government. It is formally known as the National High Technology Research and Development Program of China. Its name comes from the month (March) and year (1986) it was implemented.

"U.S. government reports indicate the ‘Super 863 Program’ (as it was called after 1996) calls for continued acquisition and development of technology in a number of areas of military concern, including machine tools, electronics, petrochemicals, electronic information, bioengineering, and nuclear research, aviation and space. …"

"SUPER 863" IS A MILITARY THREAT TO U.S.

"About the 863 Program, the 1999 congressional Cox Report noted, ‘These projects could advance the PRC’s development of materials, such as composites, for military aircraft and other weapons.’ Potential dual-use of exotic materials acquisitions were said to be a key area of military concern.’ … According to Russia/China expert Dr. Alexandr V. [Nemetz], Chinese language explanations of 863 emphasize military goals above civilian goals. …"

RED CHINA – NOT IRAQ – IS THE REAL THREAT TO U.S. SECURITY AND SURVIVAL

"It is Nemetz’s opinions that since 1986, through its 863 Program, China has been developing post-nuclear superweapons using knowledge gained from the ‘dragnet’ of the eight fields of research.

"Nemetz, who refers to the West as ‘geostrategically lobotomized,’ has been highly critical of the Bush administration’s war on Iraq, faulting it for not focusing on what he considers to be the far greater threat of strategic developments in China.

" ‘Project 863 has at its disposal not only everything necessary for its development of non-machine post-nuclear superweapons, but also the scientific manpower of the entire world,’ said Nemetz. Nemetz is a consultant to the American Foreign Policy Council and co-author of ‘Chinese-Russian Military Relations, Fate of Taiwan and New Geopolitics.’ A former student of the Moscow Institute of Steel and Alloys, Nemetz worked at the Presidium of Academy of Sciences USSR as an expert on the economic and technological development of China and Japan, and published several dozen articles and booklets in the Soviet scientific media. …

"In a January 2003 interview with [Insight writer Scott] Wheeler, Magnequench President Cox initially denied but later confirmed having a contract for the production of rare-earth magnets for the JDAM – the U.S. Joint Direct Attack Munitions project commonly referred to as ‘smart bombs.’ " Source: Sherrie Gossett, WorldNetDaily.com, 8/12/03

BUSH TRADE POLICIES DIMINISH THE DOLLAR

"[T]he GOP House voted 270 to 156 for President Bush’s free-trade deal with Chile … consider what we got in this deal and what we gave up.

"Chile’s GDP of $70 billion is not even 1 percent of ours. Her per-capita GDP of $4,400 is one-eighth of ours. We have thus gained access to a tiny Latin market, while Chilean manufacturers just gained privileged access to the $10 trillion U.S. market, where consumers have a per-capita GDP of around $37,000.

"Moreover, to give the president his victory, Republicans had to put party interests on the shelf. For Democrats have lately begun to notice that under President Bush, one in every seven U.S. manufacturing jobs has vanished. U.S. manufacturing jobs have been disappearing at the rate of 75,000 a month for 34 months. U.S. workers in manufacturing are now fewer in number than in the 1950s and the smallest share of the labor force since the early 1800s."

TRADE DEFICIT SINKS THE DOLLAR

"Why? Simple. As we import the products of foreign factories in record volume, we close our own factories and ship our jobs, our technology and our future abroad. In May, the U.S. trade deficit in goods was running at the astronomical rate of $562 billion a year. Because of that deficit, since Bush took office, the dollar has lost one-fourth of its value against the euro. …"

RED CHINA HAS REPLACED USA AS WORLD’S TOP CHOICE FOR FOREIGN INDUSTRY

"[W]ho has been the big winner….? No question about it. Beijing. Last year, China ran a $103 billion trade surplus with the United States. This year, her trade surplus is running at $120 billion, and China has surpassed America as the world’s premier recipient of foreign investment."

BUSH HAS CREATED MILLIONS OF JOBS IN COMMUNIST CHINA

"Her trade surplus with America now accounts for 100 percent of China’s economic growth. Thus, it is unfair to say the president has not created any jobs. He has created millions of jobs in China, as he has presided over the loss of 2.6 million manufacturing jobs in the United States. …"

BEIJING USES OUR MONEY TO BUILD THEIR MILITARY

"According to a Pentagon report this week, China last year deployed and targeted 100 new missiles on Taiwan for a total of 450 and has begun a crash program to build longer-range missiles to strike and paralyze U.S. bases on Okinawa, Guam and South Korea.

"China’s buildup now includes home production of the Russian Su-27 and Su-30 fighter-bomber, eight new Kilo submarines with anti-ship cruise missiles and Sovremeny destroyers with supersonic Sunburn missiles, originally designed by Moscow to sink aircraft carriers. These missiles are being purchased with the Nimitz, the Truman, the Kennedy, the Lincoln and the Ronald Reagan in mind." Source: Patrick J. Buchanan, WorldNetDaily.com, 8/4/03

BUSH’S HUGE DEFICITS STRENGTHEN BEIJING’S LEVERAGE ON U.S.

"Congress should consider the sobering fact that the Chinese hold billions of dollars of U.S. debt. The dollars the Chinese acquire by selling us goods and services eventually must be returned to the United States. Since the Chinese are not buying an equivalent amount of American goods and services, they use dollars to finance our extravagant spending.

"In fact, our ability to continue funding the welfare-warfare state without destroying the American economy depends on foreigners buying our debt." Source: Rep. Ron Paul, M.D. (R-Tex.), LewRockwell.com, 11/4/03

WILL U.S. DOLLARS CONVERT CHINESE COMMUNISTS TO COMPASSIONATE CONSERVATISM?

"Just as President George W. Bush gave final approval for granting permanent normal trade status to communist China, Harry Wu, perhaps the world's leading human rights dissident, strongly criticized the United States for what he considers inconsistent Western policies in dealing with dictatorships."

BUSH AND CLINTON FAVOR SUBSIDIES FOR RED CHINA, NOT SANCTIONS

"'What is America's China policy? The Americans and Europeans have an interesting idea---the idea that money can free the people oppressed by a totalitarian regime. The idea goes like this: "If we invest in the Chinese communist dictatorship, then soon they will be a thriving capitalist society and a democracy,"' Wu told WorldNetDaily in an exclusive interview."

U.S. SANCTIONS TOPPLED ANTI-COMMUNIST REGIME IN RSA

"'We also had sanctions against apartheid South Africa -- a pro-Western, anti-communist ally --because of human-rights problems. Before he left office, former President Clinton applied sanctions against the Burmese fascist dictatorship. If money can indeed change totalitarian societies, then we should re-examine our policies towards Cuba and Iraq.'"

SUBSIDIZING "SENSITIVITY TRAINING" FOR TYRANTS

"Speaking specifically about the European Union's announcement that it was creating a 'fund' to assist with human-rights issues inside China, Wu said, 'I don't think much of this action by the EU. The fund plans to train wardens and judges who serve the Chinese dictatorship. During World War II, did we train wardens and prison guards where the Nazis kept Jewish prisoners? No, the West never did this. During the Cold War, did we train Soviet wardens who ran the gulags? So then why train wardens running the logai prison system?"

BUSINESS WITH CHINA PROMOTES COMMUNISM, NOT CAPITALISM

"Wu -- who spent 20 years in a Chinese slave-labor camp -- is not convinced that the West's business relations with China are leading the communist regime towards the path of democratic capitalism.

"'When I talk to Western businessmen about their dealings with China, I raise what I feel are several important issues. First, business is not a charity. I tell Western businessmen, 'You are making money dealing with China.' From my view, Western business offers a blood transfusion of money to the Chinese government," Wu said."

AMERICAN CONSUMERS SUBSIDIZE FUTURE COMMUNIST ASSAULT ON U.S. MILITARY

"'[R]ecently, Russia received an order from the Communist dictatorship in China to buy two destroyers, destroyers that were designed by the Soviet Union to attack and defeat the U.S. Pacific fleet. Now let me get this straight. You have two communist dictatorships -- one was the Soviet Union and now, communist China. Today, Russia's government has no money. The other, China, has lots of money. Russia has no money because of her socialist economic system. China has lots of money to buy weapons because of her trade with Western businessmen. This is crazy.' ...

"'The Chinese military is using our money to buy weapons -- submarines, ICBMs and fighter jets. Imagine what the PLA will have ten years from now. Chinese spies are all around America, especially Washington, D.C. The PLA has stolen all kinds of equipment from America, including night-vision scopes. The FBI and CIA know this. It is an open secret.'"

U.S. AID TO CHINA AIDS POLITBURO NOT THE PEOPLE

"'The majority of money from trade and investment with the West is not going to better the lives of ordinary Chinese citizens. Rather, the majority of the money is going to the Chinese government in order to upgrade their military,' Wu said."

BEIJING IS A WORLDWIDE GEOSTRATEGIC THREAT BECAUSE OF $360 BILLION BOOST FROM THE WEST

"'China is the financier of most of America's enemies, including North Korea, Iraq, Libya and Iran. China is also building a new naval base in Burma and has expanded her reach into South Africa, the Panama Canal, close to the Suez Canal in Sudan and also into the Bahamas.'...

"'The West has invested $360 billion in China in recent times. This money has been used buy the communist dictatorship in Beijing to buy off dissidents and fund terrorists around the world. The Chinese problem for the West is no different than the problem with the Soviet Union. People ask me, "Why didn't people in America speak out about our business dealings with communist China?" I must answer, "Former President Clinton wanted to find financial resources for his re-election from the Chinese dictatorship."'

CHINESE REDS ARE NOT FIGHTING TERRORISM

"According to Wu, there can be no doubt that America's embrace of the communist dictatorship in Beijing as an 'ally in the war against terrorism' is a mistake that will haunt the West for generations to come....'China claims that her cracking down on Islamic separatists in the western regions is part of the West's war on terrorism. This is simply not true. I think it's clear that those seeking autonomy in western China are just like the Tibetans,' Wu said."

NAZI EXPERIMENTATION ON HUMANS —— WAS IT WORSE THAN CHINA'S?

"Wu explained that he testified before Congress about China's horrendous record for forced organ harvesting and about china's 'one-child' policy...'There is one sure way to combat China's organ harvesting. Stop the Chinese doctors who want to tend to the organ recipients from coming to America. Stop issuing them visas. Put them in jail. They are like Nazi doctors,' Wu said."

BOYCOTT "MADE IN CHINA"

"Concerning America's gargantuan importation of Chinese-made products, including toys, Wu said that the 'Chinese dissident community wanted to organize a boycott of Chinese-made goods for Christmas 2001, but we just ran out of time.'

"'It is impossible to avoid all Chinese-made items,' Wu said. 'But toys are different. Christmas gifts are given to express love. But think: Was this toy made by forced labor in a Chinese slave labor factory? If so, then this toy is a product of blood and tears. I would ask Americans to stop buying Chinese toys in order to show love to the Chinese people suffering in forced labor camps and factories.'" (Source: Anthony C. Lobaido in WorldNetDaily.com, 12/28/01)

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