FRICTIONS IN THE SOUTH CHINA SEA – CHINESE STRATEGIC MISTAKE
(Why Indonesia and Japan are pivotal in Asia)
Anis H. Bajrektarevic
( Geopolitics of Energy Editorial Member & Chairperson for Intl. Law & Global Pol. Studies, Austria)
Copyright: Anis H. Bajrektarevic on line
On the eastern, ascendant flank of Eurasian continent, the Chinese vertigo economy is overheated and too-well integrated in the petrodollar system. Beijing, presently, cannot contemplate or afford to allocate any resources in a search for an alternative. (The Sino economy is low-wage- and labor intensive- centered. Chinese revenues are heavily dependent on exports and Chinese reserves are predominantly a mix of the USD and US Treasury bonds.) To sustain itself as a single socio-political and formidably performing economic entity, the People’s Republic requires more energy and less external dependency. Domestically, the demographic-migratory pressures are huge, regional demands are high, and expectations are brewing. Considering its best external energy dependency equalizer (and inner cohesion solidifier), China seems to be turning to its military upgrade rather than towards the resolute alternative energy/Green Tech investments – as it has no time, plan and resources to do both at once. Inattentive of a broader picture, Beijing (probably falsely) believes that lasting containment, especially in the South China Sea, is unbearable, and that – at the same time – fossil-fuels are available (e.g., in Africa and the Gulf), and even cheaper with the help of warships.