#005, Economic Exploitation

The Situation.  American consumers still rush to stores to buy “Made in China” products by the container shiploads.  American investment portfolios directly assure Chinese communist leadership with vital cash flow to fuel their strategy.  American businesses are at the point of full addiction to Chinese production capacity.  And yet many Americans just want things to get back to the way they were.  President Xi Jinping could not be happier if he had planned it that way.  And he did.

QuestionWith US partisan politics badly dividing Americans, is it possible for all sides to sense the reality, gravity, and long-term impacts of uncontested Chinese communist economic exploitation? 

The Bottom Line:  The gravest risk for Americans on all sides of the political aisle today is likely  this:  Americans squabbling about “China” and remaining obedient to the will of the CCP.  This means, American consumers, investors, and businesses continue to pump life-blood cash into Chinese communist leaderships’ coffers.  Americans’ rising understanding of China’s economic warfare, however, may serve to contain and contest this.

Implications.  President Xi Jinping will not likely squander present opportunity to weaken USA.  His twin advantages?  (1) Interconnected American dependencies and addictions to Chinese cash, profits, and products. (2) US partners and proxies in key decision-making positions.  The nature and future impacts of this brilliantly-conceived advantage represents the essence of “Economics as a Weapon” under China’s 2049 strategy.

Key Points

It is more complicated than this, but in layman’s terms, the following five categories are major components of China’s economic aggression:  

  • General Merchandise
  • Business “On the Cheap”
  • Hi-Tech Addition
  • US Government and Business Contracts
  • Natural Resource Monopolies

General Merchandise.  Chinese communists’ ability to produce low-cost products is driven by the need to keep its people employed;,while also creating a global grassroots consumer base.  This reflects a marriage between internal stability and external dependencies – the off-spring of which is “cash”.  Read further here…

Business “On the Cheap”.  Low-cost products are attractive by a combination of cheap labor and purposely-depressed Chinese currency.  “Made in China” entices America CEOs seeking optimal profit margins with hidden compensations, as well as less management, infrastructure, and overhead headaches.  Read further here…

Hi-Tech Addiction.  America’s declining manufacturing capacity, Chinese espionage and infiltration into America’s university, research, and developmental institutions, as well as the global monopolization of rare earth minerals, together have enabled China to get a lock on the High-tech production market.  Read further here…

US Government and Business Contracts.  Chinese capacity to “deliver all things” has turned Chinese businesses into “must have” partners and product sources.   This is due to the required advantages in winning competitive bids.  “Over 90% of American companies in China say that their Chinese competition, both state and private, receive ‘tangible benefits’ that they do not.”  See first article…

Natural Resource Monopolies.  Not surprisingly, China has marketed its ability to “deliver” to its American and foreign customers and partners by handling all the dirty work:  Natural resource curation, infrastructure construction and maintenance.  Controlling and or monopolizing vital natural resource deposits is a part of this process.  Read further here…


  • Mass and Momentum.  China’s leadership, businesses, and labor force have much vested in their success to date.  It is unlikely they will back off effective exploitative economics.  “No-rules competition” under strong centralized government command, control and subsidies, is now a proven model.  This is accomplishing the Han Dynasty’s dream of resurgence and dominance on the world stage.
  • Heeding the Signs.
    • When The White House had Chinese businessmen lined up to “spend the night” at The White House with massive “donations” following, then something “economic” was not quite right.
    • When China moved into the circle of acceptable trading nation states, despite human rights abuses on an industrial scale, economics became a dark affair.
    • When China attained unfair manufacturing and trade dominance by World Trade Organization advantages, the CCP leadership’s strategic success became apparent.
    • Finally, when Xi Jinping as Chairman of the UN Security Council refused to put COVID-19 on the UN’s agenda; while also asserting he would continue China’s dominance of the pharmaceutical industry, then the exploitation of circumstances for strategic control became unmistakably confirmed.

Good intelligence and reconnaissance rely on such indicators such.  These all point to a Chinese communist strategic agenda of dominance over USA.  The mass of such indicators for decades is now crushing in their combined implications.  Americans today face a broad array of economic disadvantages enabled by China’s “war by other means”.

  • Mutant Multi-nationalism.  In the process of gaining control of various manufacturing, production, investment, and consumer markets, China has been able to get America to embrace a twisted form of multi-national economics.  This has been to the determinant of US self-reliance.  Over time this has, more disturbingly, corrupted national security and US prosperity, on top of eroding core American values concerning self-reliance and self-determination.

There is still time

To their credit, the Peoples’ Republic of China has effectively turned capitalism into a weapon of devastation under communist command and control.  This effective blend of totalitarian control of free-market economics is nested within Chinese communist economic model of “war by other means”.  By China’s leaders’ own admission, they are threatened by Western philosophies, values, and principles… and so they have used America’s and The West’s free market openness against them.

For all their cunning, Chinese communist leaders’ role in the COVID-19 crisis has well served Americans on all sides, as well as global audiences.  This is by exposing the true nature of modern Chinese “dragon economics” as a weapon of war.

Duplicitous American decision makers, as the second dragon, are in a dilemma:  They enabled Chinese destructive economics.  There is no running from this long-standing record, because an accumulation of evidence is now becoming apparent to all Americans.  Unmistakable facts will rise from this.

The two Dragons’ trails widen and deepen…

– The China Factor Network

p.s.  Along with all of our reports, we invite counter-point arguments and inputs.  Contact us directly by clicking here.

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