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US media hide military threats against China

This insightful article by Sara Flounders, originally published in Workers World, exposes the incredible hypocrisy shown by the ‘free’ media – giving non-stop coverage to China’s allegedly aggressive response to Nancy Pelosi’s Taiwan visit whilst studiously ignoring the RIMPAC maneuvers being carried out at the same time by the US naval command.

Sara notes that the US maintains a constant military presence in the region, and connects this back to the imperialist domination of China, starting with the First Opium War nearly 200 years ago. Just as the Opium Wars were fought to impose British imperial hegemony, so is the current escalation in the Pacific region being carried out in order to impose US imperial hegemony. The difference being that, following the establishment of the People’s Republic of China in 1949, the CPC-led government has been able to “rebuild a strong, united China which is increasingly able to defend its coastal waters and resist US imperialist demands.”

The author points out that the US is conducting a “desperate imperialist strategy to reverse its declining global position”, and is wreaking havoc in the process. Progressive and pro-peace forces worldwide must join hands against this menace.

Consider what is being said, as well as what is totally omitted, in the U.S. coverage of China’s naval action around Taiwan.

The U.S. naval command RIMPAC (Rim of the Pacific Amphibious Assault Training) was carrying out maneuvers involving 170 aircraft, 38 ships, four submarines, and 25,000 military personnel from all the G7 imperialist countries. Some 19 other Asia Pacific countries were pulled in for symbolic participation. RIMPAC is the world’s largest international maritime exercise.

This aggressive maritime action took place from June 29 to Aug. 4. In other words, it was going on as Speaker of the House Nancy Pelosi was visiting Taiwan.

The shaping of information is all pervasive. Whether it is FOX News, CNN, AP, the New York Times or the Washington Post, the multibillion-dollar media are part of and totally intertwined with U.S. military industries. They collaborate in hiding U.S. war plans and provocations.

The role of the corporate media in totally distorting the news on China must be challenged.

China: COVID, computer chips, airliners, and US imperialism

This interesting article by Chris Fry, writing in Fighting Words, analyzes the escalating tech war initiated by the Trump administration and being carried forward under Biden. Desperate to slow down China’s economic and technological rise, the US is spreading all manner of lies in order to impose sanctions on China.

In dealing with China, the primary goal of each successive administration is to successfully maintain U.S. hegemony, to assert the power of the U.S. ruling class to profit from exploiting Chinese workers as well as the rest of the global working class and oppressed nations without restrictions.

These sanctions will inevitably fail to prevent China’s development, but in the meantime are already impacting the livelihood of the working class in the West. As Mao Zedong famously remarked in 1957: “‘Lifting a rock only to drop it on one’s own feet’ is a Chinese folk saying to describe the behavior of certain fools. The reactionaries in all countries are fools of this kind.”

The leadership of the People’s Republic of China (PRC) likes to describe its social and economic structure as “Socialism with Chinese characteristics.” But we can describe the U.S. system, driven by its insatiable greed for profits and global hegemony, as “Imperialism with imperialist characteristics”.

A July 5th Bloomberg article revealed that the Biden administration is pressuring the Netherlands to force Dutch companies to stop selling computer chip manufacturing equipment to China:

The US is pushing the Netherlands to ban ASML Holding NV from selling to China mainstream technology essential in making a large chunk of the world’s chips, expanding its campaign to curb the country’s rise, according to people familiar with the matter.

A computer chip ploy for a vast subsidy for Big Tech

Since the 1970s, U.S. Big Business has closed thousands of plants and factories across the country, while finance capital has invested trillions in overseas facilities to exploit low wage workers. Currently, the predominant manufacturer of the leading edge 5nm computer chip is the Taiwan based TSMC Corporation in Taiwan.

Senator Sanders stated in a July 14th editorial for the Guardian describing a current piece of chip-industry pushed legislation for $52 billion in subsidies to build a TSMC chip facility in the U.S.:

Let’s review some recent history. Over the last 20 years, the microchip industry has shut down more than 780 manufacturing plants in the United States and eliminated 150,000 American jobs while moving most of its production overseas – after receiving over $9.5bn in government subsidies and loans.
In other words, in order to make more profits, these companies took government money and used it to ship good-paying jobs abroad. Now, as a reward for that bad behavior, these same companies are in line to receive a giant taxpayer handout to undo the damage that they did.

Pelosi’s one-night stand in Taipei accomplished her goals

In this short article, originally published on his Edu/Pol Newsletter, veteran US progressive activist Mike Klonsky draws a connection between Pelosi’s Taiwan visit and the shady dealings of her venture capitalist husband, currently under investigation for an insider trading scandal involving semiconductors made on the island.

If Nancy Pelosi’s aim was to destabilize the region and pull the rug out from under Biden’s upcoming meeting with Xi, her stopover in Taiwan was a resounding success. Her visit to Taiwan could also have a large impact on the semiconductor business, which has a heavy presence in China and Taiwan.

China now says it is canceling or suspending all dialogue with the U.S. on issues from climate change to military relations and anti-drug efforts in retaliation.

AP reports this morning

China is canceling all communication between its area commanders and defense department, along with talks on military maritime safety. Cooperation on returning illegal immigrants, criminal investigations, transnational crime, illegal drugs, and climate change will also be suspended.

China also announced unspecified sanctions on Pelosi and her venture-capitalist husband, Paul, who is currently under investigation for an insider-trading scandal involving semiconductors, made in Taiwan.

Can’t say they weren’t warned.

Early in July, it was disclosed that Paul Pelosi had exercised call options for as much as $5 million worth of Nvidia stock ahead of deliberations in Congress about a bill that would boost the U.S. semiconductor industry.

It wasn’t the first time Paul Pelosi had invested in a semiconductor company as momentum built behind congressional funding for the industry, which produces computer chips needed for a broad range of technology.

On her brief stopover in Taipei, Pelosi met with Mark Liu, Chairman of Taiwan Semiconductor, a company with a market capitalization of more than $430 billion. The recently passed CHIPS Act provides funding to the semiconductor sector and encourages the building of foundries in the U.S., something that was likely discussed between Pelosi and Liu.

Pelosi, who has said the CHIPS Act could create an opportunity for U.S. cooperation with Taiwan, recently came under scrutiny for her husband exercising call options of NVIDIA Corp. The Pelosis eventually sold their shares in NVIDIA.

Taiwan Semiconductor is building a $12-billion plant in Arizona.

Get it?

In July, Pelosi claimed that her husband has “absolutely not” made any stock trades based on information from her.

Paul Pelosi was also busted recently for causing a crash while driving his Porsche while drunk.

DSA open letter opposing the US Innovation and Competition Act (USICA)

We are pleased to reproduce and invite support for this Open Letter to US Congressional Representatives, initiated by the International Committee, and its Asia & Oceania and Anti-War Subcommittees of the Democratic Socialists of America (DSA), expressing opposition to the US Innovation and Competition Act (USICA), which they describe as a move “to counter China as part of a New Cold War fuelled by US imperialist interests, which further destabilizes geopolitical relations and jeopardizes efforts toward greater global cooperation on issues affecting everyone worldwide.” The statement decries further militarisation of the Pacific region along with the increased anti-Asian racism and violence in the US and declares:

We believe that US industrial policy should not be built upon imperialist ambitions that serve only to drag the world into a new Cold War. We believe that working people in the US and elsewhere deserve policies that invest in public works programs, climate resilience, infrastructure, healthcare, and more.

The undersigned chapters and members of the Democratic Socialists of America and other allied organizations and individuals strongly condemn Congress’s use of industrial policy and other elements of the proposed US Innovation and Competition Act (USICA) to counter China as part of a new Cold War fueled by US imperialist interests, which further destabilizes geopolitical relations and jeopardizes efforts toward greater global cooperation on issues affecting everyone worldwide.

We call on members of Congress to oppose this aggressive escalation and push back on the narratives that have fueled rising anti-Chinese sentiment in the US, marked by increased anti-Asian racism and violence. We oppose the USICA and other legislation that calls for increased military budgets, further militarization of the Indo-Pacific region, and fosters anti-Chinese propaganda efforts, all based on nothing more than perceived threats to US geopolitical interests. Elected members of the US Congress have the duty to prioritize the needs and concerns of their working class constituents instead of those of arms manufacturers and defense contractors who have fueled decades of endless war at the expense of genuine global cooperation and common prosperity for working class people everywhere.

We believe that US industrial policy should not be built upon imperialist ambitions that serve only to drag the world into a new Cold War. We believe that working people in the US and elsewhere deserve policies that invest in public works programs, climate resilience, infrastructure, healthcare, and more. The US Innovation and Competition Act is not created for those purposes, instead it is overwhelmingly focused on preserving US global hegemony by fabricating narratives aimed at painting China as a threat and riling up global conflict in an effort to undermine an increasingly multipolar world. If enacted, the bill would ramp up interference in the sovereignty of nations throughout the world, establish an anti-Chinese federal bureaucracy, intensify the militarization of US global policies, and continue the legacy of US industrial policy being weaponized against socialist movements globally. This legislation will promote confrontation and conflict with China, escalate the potential for military conflict between nuclear powers, and hinder global cooperation needed to address critical issues like climate change.

For these reasons, we strongly condemn the USICA and urge members of Congress to oppose the bill and call for an end to US policies that threaten hundreds of millions of people in the Indo-Pacific region and could spiral into worldwide conflict.

Keith Lamb: Blocking China’s semiconductor industry is an attempt to impede the construction of socialism

We republish below an important piece of analysis by Keith Lamb, originally published in CGTN on 23 November 2021, seeking to understand the US’s motivations in imposing restrictions on China’s semiconductor industry. The author concludes that semiconductor technology is crucial for China’s goal of building a modern socialist country by 2049, and that the US and its allies are determined to impede – or ideally prevent – any further economic breakthroughs for socialist China.

Since 2015, the U.S. has introduced technological restrictions preventing China from both competing openly in consumer markets and acquiring technology. Restrictions have focused on the semiconductor industry and correlated sectors. For example, the Chinese chipmaker Semiconductor Manufacturing International (SMIC) was blacklisted in December 2020, and, just before this, U.S. and non-U.S. chipmakers who use U.S. semiconductor technology, were forced to comply with U.S. sanctions meaning they could no longer take orders from companies like Huawei.

The U.S. has justified its actions by citing China’s civil-military integration where semiconductors can be used in advanced weaponry. However, even if true, considering the U.S. military and the microchip industry grew in tandem, this crossover wouldn’t be extraordinary. At any rate, it isn’t China’s military that surrounds the U.S., and nor does China seek to confront the U.S. which sits securely protected by two oceans and two compliant neighbors.

Justin Yifu Lin: China must lead the new industrial revolution

Justin Yifu Lin is one of China’s most distinguished economists and a former Chief Economist and Senior Vice President at the World Bank. We are very pleased to republish here from Asia Times his important article on the Fourth Industrial Revolution. Lin points out that new industries will predominate in China by the time of the People’s Republic’s centenary in 2049. He notes how historically the United States has taken measures to prevent any rising power from being able to challenge its hegemony. China therefore needs to break through the US blockade and to do so it must lead the new industrial revolution. China not only has the material conditions to do this, he argues, but also a number of comparative advantages over the US.

As a national mandate, the 19th National People’s Congress of the Communist Party of China (CPC) in 2017 announced its “Two Centennial Goals”: the first is to complete building a moderately prosperous society in an all-round way in China, which is to be achieved at the 100th anniversary of the CPC in 2021, and the second is to build the People’s Republic of China into a modern socialist power by 2049, the 100th anniversary of its founding.

There are a number of characteristics of a modern country. One is that China’s GDP per capita should reach at least half of that of the United States, the other most powerful country.