The goal of economic engagement has been to turn China into a land of hard-working consumers, so shouldn’t Washington be pleased with China’s economic explosion?

Maybe not all together pleased, as it turns out.  Apparently the U.S. Government has some concerns – and another commission. 

The US-China Security Review Commission was created in October 2000.  Its purpose is “To monitor, investigate, and submit to congress an annual report on the national security implications of the bilateral trade and economic relationship between the United States and the People’s Republic of China (PRC), and to provide recommendations, where appropriate to Congress for legislative and administrative action.”

According to a recent report by USCC China has learned the lessons of capitalism so well that its burgeoning economy, and how it is using it, poses a security threat to the US.

The 209-page document asserts that Beijing is a growing economic and military threat. And China, despite its promises to the contrary, does little to protect human rights, ensure religious freedom or curtail the illegal sales of nuclear materials and missile-related technology to countries accused of sponsoring terrorism. 

Just as disturbing is the fact that China is increasingly challenging the US in the manufacturing of airframes, computers and aeronautical guidance systems.  This growing reliance on high quality, low-price Chinese imports threatens to “undermine the US defense industrial base,” according to the report.

As strange as it may seem, particularly worrisome is the rapidly strengthening economic ties between the U.S. and the PRC. This has enabled China, through trade and access to more than 14 billion dollars raised in US capital markets, to modernized its military and expanded its influence in South-East Asia at the expense of the U.S.

The report also blames the rush of multinationals to China for aggravating the massive $201.6 billion of the nation's trade deficit was with China. (The commissioners must have read Oblivious Maximus and the Company Store.)

“This kind of behavior is not trade; this is global manipulation by companies for their own bottom line,” says Maryland legislator Richard D’Amato, Chairman of the commission.  William Reinsch, a former Clinton administration under-secretary of commerce was the lone dissenter on the commission.  He said that “The majority has bent over backward to avoid describing the Chinese as a ‘threat’ — yet the belief that they are permeates every chapter.”

Not mentioned explicitly is the PRC's aggressive competition for resources such as oil, gas, metals, concrete and so on.  This behavior is particularly glaring in Africa and Latin America.

In Africa, the PRC has no compunction whatsoever about doing creative trading with regimes that the Western powers are loath to deal with because of human rights violations.  Some of these countries have rich oil reserves and metals deposits.  The PRC has a great advantage in those countries.

It also has an advantage, increasing daily, with developments in Argentina and most of the rest of the region.  Hugo Chevez and many other leaders of the leftist persuasion have little love for the United States, and the Bush Regime in particular.  These countries, all the way from the tip of South America up to and including Mexico, are rich in various natural resources.  Argentina, in particular, is a significant supplier of oil to the United States.  Peru, Chile and other countries that might not be so rich in oil have rich deposits of bauxite (aluminum), copper and other valuable ores and minerals. 

The PRC is actively mining and drilling politically in those nations, with some disturbing success.  Once again, as a Communist nation, it has an inside track because of the strong leftist tilt in most of the Latin American countries.

While the majority on the commission has bent over backwards to avoid calling China a threat, the Bush Regime is bending over backwards to kiss its own arse as well.  Desperate for allies in its ephemeral war on terrorism, it continues to laud China’s economic gains in public.

In private, however, several leading government officials say they worry that the stage is quickly being set for an epic struggle between the eagle and the dragon.

George, watch out for that flame!!