One of the “36 Strategies of the Chinese,” is ‘Creating Something Out of Nothing, ‘ essentially this strategy advocates a false front, not to deceive completely but for the moment at hand. The belief being in this strategy, that if one can conceal the truth for the moment one could “save face,” in the long run. For the past six months China has not seemed to be powerhouse that it once was, as well she has taken some public relations hits. It is now believed that Corona Virus did originate in a lab in Wuhan, China. So called spy balloons that were thought to originate from China were shot down over U.S. skies, and China’s economy has been hit in the last three years. One by their zero Covid policy, two by the State insisting that it can put their fingers in any privatized pie that it wanted to, and three a drop in U.S. and European demand, among other factors. This is why a couple of weeks ago when China’s foreign minister accused the U.S. of trying to contain China he was making something out of nothing.
The scheme of creating something out of nothing is based on deception. However deceit is a temporary fix to a larger problem, usually when on is at one’s wits end. Now I would never say that China would be at wits end. However there are some economic factors that she is facing that I don’t see her being able to cure anytime soon. And what needs to be cured as quickly as possible are youth unemployment, the slump in housing, and again accruing the faith private investment. Now this is why yesterday as we go to post, the new Premier Li Qiang, sought to assuage investors and entrepreneurs, and went around any Sino-American tensions. China needs her factories to be humming and she needs America to buy products from said factories.
However I believe China is making one huge economic mistake, and although she must be complimented for trying to broker peace between Saudi Arabia and Iran at this point we are skeptical but to have them credit, talking is a great first step. Saudi Arabia and Iran isn’t where she is making her economic mistake, it is with Russia. While China has her own economic concerns, propping up Russia as it battles Ukraine will discourage European and the United States from acquiring goods from China when they possibly can get them from somewhere else. And the days of China believing that she is the only game in town are over. Especially when investors and entrepreneurs from China are leaving China. This war will go on for much longer than any of us realize, and as Russia is being propped by China now and the Yuan is strong, the toll we believe will leave the Yuan weaker as we move into the summer. The resources that Russia will need to continue this war even China won’t be able nor willing to give and those are human resources. As Russia finds it harder to recruit and maintain their flow of bodies, the more expensive this war will become. Draining resources from of course Russia but China as well. No the U.S. is not trying to contain China, however China may be contained by Russia’s needs as this war continues. Again that statement was just, temporary. They had to create something out of nothing in that moment. Again if China keeps propping up Russia, that will leave America and Europe, “Observing The Fire From The Other Side Of The River.” Another one of the “36 Strategies,” to be continued.
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