PikeCowboy
Junior Member
hard to fight a whole nation war when the effort is bottlenecked at transportation across the pacific.
yea I agree. The tyranny of distance is one of the main reasons why the US will have trouble with a conflict anywhere near China. ESPECIALLY against a near-peer opponent like China, the tyranny of distance will have a greatly exaggerated effect. Much more so than if the US was dealing with third-world countries.hard to fight a whole nation war when the effort is bottlenecked at transportation across the pacific.
Money is not real. Financial capital is not real. Production is. Physical goods are. If a war disrupted China's access to USD denominated global finance, all that would mean is China would have to develop more capacity for self finance which, while certainly a hassle, is a lesson many governments have had to learn and put into practice in major wars throughout history. This is *a* problem for China, but it's hardly the problem you're making it out to be. If you were given the choice, would you rather have all the production and no monetary tender, or all the monetary tender but no production? GDP doesn't tell the story you think it does here. As a market price based aggregate it really doesn't tell you about real economic capacity in autarkic conditions.You're both making an error in assessing the sheer complexity and fragility of the dynamic system that current world economy and security architecture constitute.
There is no direct historical precedent to what's happening between US and China so we have to think in metaphors. I suggest Britain vs Germany in early 20th century.
Russia is Russia and plays the same role in both. India and Pakistan are Balkans and Turkey, also due to the link to Middle East. SouthEast Asia is France and other Western European countries. Indonesia is Italy. Australia is Africa.
- China is Germany - an industrial power with limited access to strategic resources, which depends on political cooperation from partners to sustain the access. China also intends to expand its market base just as Germany planned political expansion into Russia with the help of their Mitteleuropa strategy. For Germany the existential threat was blockading Germany to prevent them from using their economy to full extent.
- America is Britain - an industrial power with greater access to strategic resources which depends on control of sea lanes of communication. America has already established a market base and wants to defend it against competitors. For Britain the consolidation of German control over Europe was an existential threat because it disrupted maritime transit routes that Britain depended on.
Except that the direct conflict between Germany and Britain occurred across the North Sea and the English Channel. The direct conflict between China and America occurs across the Pacific which is half of the globe.
If China was to project power over Japan - a strategic ally and geopolitical asset, think Belgium in pre-WW1 model - it won't be comparable to what happened in WW1. While Germany could simply walk across the border into Belgium Britain could reliably maintain supply routes for its forces there. In comparison maintaining supply lines from America to Japan for any large-scale conflict is extremely difficult in purely logistical terms, even without the additional threat from Chinese military. WW2 doesn't apply there because in WW2 a decisive industrial advantage, as well as access to oil, was with the US. Japan had a significantly smaller industrial base and relied on captured territory for oil which could be disrupted by US navy. In US-China conflict the industrial advantage will be with China and due to geography energy won't be a significant problem, while no matter how much energy US has at its disposal it has to carry it to Japan.
If you look at Europe today then unless the US-China conflict takes place in Russia Europe will play the role of the US, except with no energy source of its own and with a demographic threat from the south that the US didn't have to deal with because the populations of Central and South America were smaller.
But for China the situation is not as advantageous as you may think.
This is the nominal GDP (USD) from dissolution of Bretton Woods to today. Note how anomalous the GDP growth for US and China is compared to the rest of the countries.
I only included the main European economies because I prepared this for a different argument, but it will largely hold even when you include other fast developing economies. From large countries only Bangladesh has a comparable proportional growth but at a much smaller scale, so it's not unexpected.
So what does the graph tell us? It demonstrates that current Chinese economy is in as much an inflationary bubble as the US and disruption to global trade will affect both to the same nominal extent.
It doesn't matter that China grows thanks to a trade surplus with the US because that trade surplus is financed by US borrowing from the future against no collateral - for example via a constant (since 2001) budget deficit which constitutes the most direct evidence of money creation that inflates American GDP.
China is producing goods paid for by money that don't have any backing in goods or services that add real value. In terms of how business cycle occurs there is no difference where the production takes place, only if it's sustainable in economic terms. If you borrow from the future - overtly by debt, or covertly by inflation - you can never calculate correctly the amount to be borrowed because you lack natural mechanism for limiting your expenditures - resource scarcity. Inevitably you borrow too much because your behavioural programming hasn't evolved for this type of thinking.
And that means that China's growth is not sustainable because it feeds of American growth which is not sustainable.
There are some differences that will affect how the fallout of the crash would unfold and I don't know enough about China's economic system to predict with any certainty so I will just outline the fundamental principles.
China is artificially lowering the value of the Yuan and keeps the domestic and international markets separated - i.e. keeps Chinese people poorer than those who are involved in international trade - which means that any crash will not affect domestic consumers to the same extent as in the US. It will however affect the international traders massively and if they managed to establish an oligarchical dynamic within China, then it will push China on the wrong path very quickly.
China is also still investing in capital goods and infrastructure while the US has long ago moved to a consumption-based model. This means that while GDP numbers may be high Chinese people don't have as much capital on their hands directly and their personal standard of living won't be as affected while investment in such sectors can be easily stimulated by public expenditure. Japan has stimulated its economy in the 90s this way and while Japan had nowhere to go with it, China may hope for a realignment of global economy in a 10-20 year period so it may be a viable way out.
China also has nominally a socialist system in place so in case of crisis socialist measures can be imposed for social control. This solution doesn't exist in the US, especially with the most radical capitalist/oligarchical faction returning to power soon. Popular dissent and disorder will be far more destructive there, especially due to firearm ownership.
However if this coupled system is disrupted China will still hurt a lot and far more than Europe for example. Europe's nightmare scenario is energy price spike - just what we've seen in 2022. As long as energy prices are affordable we can adjust our economy to most shortages. A disruption of trade with China would be an incentive to realign production methods and supply chains as long as energy is available. And here is the interesting twist: what happens with energy prices when USD collapses? They become very affordable as long as energy comes from the US which will need all the hard exports to shore up the collapsing currency - which will be also into the interest of EU. US is already selling energy to Europe. If they fight a war against China they will sell more and cheaper to fund it. Which is why US is happy with EU-Russia conflict being frozen, it's leverage and insurance.
So while the entire world will feel the disruption just like during the pandemic the poorer countries will be affected proportionally more, while the most affected economies will be US and China as well as Japan and Korea since they will be in theater.
And that is why China is unlikely to seek an overt conflict with the US but will instead insist on a long-term slow and mostly peaceful transition of power and influence which is inevitable at this point. The only country that has a (misguided) incentive to start a war is America, because it does benefit a specific group of people in America. Political power is a parasitic relationship so as long as those in power benefit the rest may suffer. Just like Putin and his clique ran Russian economy into the ground to protect his own power there are people in America that may choose that route instead of doing what would benefit most in the country, but required sacrifice from the few.
But to argue that China can simply walk through a global economic crisis unscathed because it produces a lot of goods demonstrates ignorance of fundamentals of economics.
This strategy mirrors the failed "king cotton" approach of the Confederacy in the American Secession War. The world will adapt and China will lose its advantage forever, apart from the few industries that rely on resources.
China has an extremely sefish economic policy that hurts the world to the same extent as what America does so most developing countries of the world will rejoice at any disruption to trade with China. That will be their chance and they will not waste it.
The US top military official said that US can win vs China in a Taiwan scenario, but it will take a whole nation effort. He was speaking at the Aspen Security Forum. A whole nation effort means all out war. A Taiwan scenario might likely be over well before that point. What makes me happy is that even the top US commander knows that a conflict with China will be very difficult for the USA. They are not living in an invincible USA delusion.
China's biggest vulnerability would be its trade routes and sea lanes. If you look at it from a purely objective POV. I don't think it takes a rocket scientist to guess where the US and its allies would choose to focus their efforts in a prolonged conflict.
It currently does not have the same capacity to do sustained deployment of large CSG away from its continental shelf. It also has very sparse over seas bases and resupply depots. Its refueling assets for the PLAAF is also a small fraction of that of the US, and cannot have large fleet of strike platforms too much beyond the first island chain. The US is also beefing up its marine expeditionary units to do air and sea control around island groups.
Given this, places like the strait of Malacca, and too lesser extent Lombok and Sunda, would be major choke points that adversaries can use to choke off trade and especially energy. Some amount of increase in over land routes could mitigate some of the issues, but at a much higher cost, and possibly some delays. Other straits like Tsushima, Batanes, and Miyako would also be choked off to some extent, although those locations would be highly contested. The Indian Ocean is another area that would even be more difficult for China to do any commerce protection and the like.
Just looking at this dispassionate way, the current platforms and force structure of China would not allow much possibility of countering those types of moves.
China's biggest vulnerability would be its trade routes and sea lanes. If you look at it from a purely objective POV. I don't think it takes a rocket scientist to guess where the US and its allies would choose to focus their efforts in a prolonged conflict.
It currently does not have the same capacity to do sustained deployment of large CSG away from its continental shelf. It also has very sparse over seas bases and resupply depots. Its refueling assets for the PLAAF is also a small fraction of that of the US, and cannot have large fleet of strike platforms too much beyond the first island chain. The US is also beefing up its marine expeditionary units to do air and sea control around island groups.
Given this, places like the strait of Malacca, and too lesser extent Lombok and Sunda, would be major choke points that adversaries can use to choke off trade and especially energy. Some amount of increase in over land routes could mitigate some of the issues, but at a much higher cost, and possibly some delays. Other straits like Tsushima, Batanes, and Miyako would also be choked off to some extent, although those locations would be highly contested. The Indian Ocean is another area that would even be more difficult for China to do any commerce protection and the like.
Just looking at this dispassionate way, the current platforms and force structure of China would not allow much possibility of countering those types of moves.
The reason chokes are valuable is because interdicting mercantile activity to any meaningful degree, as defined by crippling economic pressure, is actually both extremely difficult and extremely inefficient, to the point of practical infeasibility, in open ocean. And this is putting aside the geopolitics of whether China's major trade partners (which is basically all of SEA) would be okay with picking up all that splash damage and being equally affected collateral parties.
In today’s day and age the US simply would not have enough ships to do a meaningful blockade by open ocean, especially once you factor in attrition. There’s much more traffic and much fewer warships. Also keep in mind the choke works both ways. The blockading power will also be vulnerable to counter-offense because holding the chokepoint also requires force concentration.That would for the most part depend on how committed are US, Japan, and Australia are to winning a prolonged conflict.
Having live fire in the strait the Malacca would definitely damage relations with the like of Indonesia, Malaysia, and maybe even Thailand, but that's probably not enough to force them to participate in the conflict. The same can be said of most countries in the northern India ocean basins. The other closer choke points are along the first and second island chain, that are either bordered by close US allies like the Phillipines or Japan, or basically inconsequential countries like Palau or Micronesia. If US was really committed to preventing China from dominating the western pacific, then a decade or even two of damaged relationships would not be a deciding variable in the equation.
US generally has enough bases in the region, and can beef up certain critical bases in the area from itself, or very close allies. If you look at places like Diego Garcia, Coonawarra/Darwin, Guam, Wake, etc, are all relatively protected areas that can currently serve, or be relatively quickly built up to be major logistic hubs. They are still vulnerable to intemediate range ballistic missiles, but it would be difficult for China to reach out to regularly threaten those locations with forces other than PLARF.
I don't think the USN and USMC are dumb enough to put a lot of assets around Naha and bases on Luzon, basically exposing them to constant rain of strikes, but controlling access points to the wider world ocean, from relatively rear areas that can be somewhat protected by their own small A2AD network, that they would be able to do.
How does the US plan on replacing China's exports to 140+ of the world's nations? Shortages of components in one industry will have cascading effects to adjacent ones. Without access to China's supply chain we're gonna see large scale industrial and economic collapse across the globe. Hundreds of millions of lives would be at risk.China's biggest vulnerability would be its trade routes and sea lanes. If you look at it from a purely objective POV. I don't think it takes a rocket scientist to guess where the US and its allies would choose to focus their efforts in a prolonged conflict.
It currently does not have the same capacity to do sustained deployment of large CSG away from its continental shelf. It also has very sparse over seas bases and resupply depots. Its refueling assets for the PLAAF is also a small fraction of that of the US, and cannot have large fleet of strike platforms too much beyond the first island chain. The US is also beefing up its marine expeditionary units to do air and sea control around island groups.
Given this, places like the strait of Malacca, and too lesser extent Lombok and Sunda, would be major choke points that adversaries can use to choke off trade and especially energy. Some amount of increase in over land routes could mitigate some of the issues, but at a much higher cost, and possibly some delays. Other straits like Tsushima, Batanes, and Miyako would also be choked off to some extent, although those locations would be highly contested. The Indian Ocean is another area that would even be more difficult for China to do any commerce protection and the like.
Just looking at this dispassionate way, the current platforms and force structure of China would not allow much possibility of countering those types of moves.
Commerce protection is the wrong way to think about it. Trying to protect slow, fat, vulnerable civilian shipping is a losing game in the modern information-rich battlespace. Instead of conceding the initiative, a better approach would be to exploit asymmetric vulnerabilities. The first and second island chains are islands. Unlike China, they can only be resupplied to any significant degree by sea. In order to contest anything in Asia, the US must protect its own supply lines. Degrading port infrastructure and distribution networks on those islands has a direct impact on their ability to project power. And in the case of island nations, like Japan or the Philippines, civilian consumption will also be vital. If you can only protect a limited number of convoys, do you send munitions or food? The more assets devoted to protect such convoys, the fewer the US has available to run interdiction.
In a conflict which cuts off trade, China will suffer. Its enemies will starve.