China and oil

China is a major consumer of oil. As their economy grows so does their need for oil. Although China does produce oil domestically most of the increase in their consumption is derived from imports. more than half of China’s imported oil is from the Middle East. Most of China’s imported oil comes through the Malacca Straits. U. S. naval domination of the South China Sea is a potential threat to that oil supply. The increase in world oil prices is less due to unrest in the Middle East and other oil-producing areas than to increases in Chinese consumption (hat tip: Steven Taylor).

Chinese monetary policy and banking

Chinese monetary policy while deft is increasingly fragile. Chinese banks have recently had to write off a significant amount in bad debts. With China’s increasing economic influence as a world trader monetary or banking problems in China could have worldwide impact.

China trade and Mexico

The enormous increase in imports into the U. S. from China over the last few years has large come at the expense of Mexico and other Latin American countries. This has resulted in a deteriorating economic situation in Mexico and increased immigration (legal and illegal) from Mexico into the United States.

China and North Korea

North Korea is basically a Chinese client state. Without Chinese support Kim Jong-Il’s government would be unlikely to endure for long. And so long as Chinese support continues Kim Jong-Il is in a strong bargaining position with the United States. No talks with North Korea that don’t include China are worth conducting.

China and U. S. debt

China is one of the largest foreign holders of U. S. debt. The Chinese are, in effect, recycling their trade surplus into U. S. Treasury bonds. If China were to stop doing this due to domestic eonomic instability or to dump their Treasury holdings for any reason whatsoever it could have a notable effect on interest rates in the United States. This is a major concern especially with the current deficit position of the U. S. government.

“One Child Policy” and social stability

The double whammy of China’s “One Child Policy” and the traditional value of male children in the society has resulted in the abortion of millions of female babies. The imbalance between males and females that has resulted is likely to be a substantial source of social unrest in China as the 21st century unfolds. Historically such imbalances have resulted in higher crime rates, greater societal violence, and militarism.

China and Taiwan

Recent Chinese saber-rattling with respect to Taiwan is troubling. Defense of Taiwan in case of Chinese invasion has been U. S. policy for more than 50 years. Is it still? Human rights, industrial policy, environmental issues. The list goes on and on. Why isn’t anyone asking questions about China? “

Dave’s post constitutes weighty evidence that if we threw out the celebrity airhead anchormen and replaced them as moderators in the presidential debates with a panel of quality bloggers, the country would be better informed – and probably more entertained as well.

Welcome aboard !

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