Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
THEY DON'T RING THE BELL AT THE CRPTO MARKET TOP! - 20th Dec 24
CEREBUS IPO NVIDIA KILLER? - 18th Dec 24
Nvidia Stock 5X to 30X - 18th Dec 24
LRCX Stock Split - 18th Dec 24
Stock Market Expected Trend Forecast - 18th Dec 24
Silver’s Evolving Market: Bright Prospects and Lingering Challenges - 18th Dec 24
Extreme Levels of Work-for-Gold Ratio - 18th Dec 24
Tesla $460, Bitcoin $107k, S&P 6080 - The Pump Continues! - 16th Dec 24
Stock Market Risk to the Upside! S&P 7000 Forecast 2025 - 15th Dec 24
Stock Market 2025 Mid Decade Year - 15th Dec 24
Sheffield Christmas Market 2024 Is a Building Site - 15th Dec 24
Got Copper or Gold Miners? Watch Out - 15th Dec 24
Republican vs Democrat Presidents and the Stock Market - 13th Dec 24
Stock Market Up 8 Out of First 9 months - 13th Dec 24
What Does a Strong Sept Mean for the Stock Market? - 13th Dec 24
Is Trump the Most Pro-Stock Market President Ever? - 13th Dec 24
Interest Rates, Unemployment and the SPX - 13th Dec 24
Fed Balance Sheet Continues To Decline - 13th Dec 24
Trump Stocks and Crypto Mania 2025 Incoming as Bitcoin Breaks Above $100k - 8th Dec 24
Gold Price Multiple Confirmations - Are You Ready? - 8th Dec 24
Gold Price Monster Upleg Lives - 8th Dec 24
Stock & Crypto Markets Going into December 2024 - 2nd Dec 24
US Presidential Election Year Stock Market Seasonal Trend - 29th Nov 24
Who controls the past controls the future: who controls the present controls the past - 29th Nov 24
Gold After Trump Wins - 29th Nov 24
The AI Stocks, Housing, Inflation and Bitcoin Crypto Mega-trends - 27th Nov 24
Gold Price Ahead of the Thanksgiving Weekend - 27th Nov 24
Bitcoin Gravy Train Trend Forecast to June 2025 - 24th Nov 24
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

China’s Maritime Moves Are Nothing More Than a Show of Strength

Politics / China US Conflict Jun 13, 2016 - 03:14 PM GMT

By: John_Mauldin

Politics

BY GEORGE FRIEDMAN : The Chinese have a strategic problem in the South and East China Seas. China is obviously interested in what happens in these waters, but there is much speculation as to why the level of interest is so high.

The answer is simple: China wants to keep foreign powers away from its coast and away from waters vital to its global trade routes.

China’s greatest threat in these waters is the United States. Given the size of the US Navy and the location of the islands off China’s coast, the Navy is capable of blocking China's access to the ocean. This would deal a serious economic blow to China.


Countering this threat means building a navy that could challenge the US…  a far from easy task. So, the Chinese actions in these seas are meant to suppress American influence and boost China’s ability to control shipping lanes. 

This calls for a show of strength.

China wants to threaten countries around the South and East China Seas

There has been ample debate that China’s interest in the seas is linked to resources. Observers—notably those in the business sector—tend to believe that an economic motivation lurks behind every strategic move. Frequently, one does.

That is not, however, the case here for a few reasons. Tapping oil that might be in the seabed would be very costly. In light of the current and foreseeable market for oil, this is not a viable plan. 

Oil platforms at sea are also highly vulnerable to air attack. Extraction costs and exposure risk would render oil drilling irrational. So, let’s look elsewhere.

The real economic issue is that China’s coastal zone is hemmed in by islands that stretch from the Strait of Malacca to Japan. These islands create fairly narrow passages, with many too shallow for deep draft vessels. 

The size of the US naval fleet means it could easily blockade China’s coast. China wants to erase this threat, and so its moves are designed to intimidate countries on the perimeter of these two seas, from Japan to Indonesia. 

The logical path to achieve this goal would be for its navy to take control of key islands blocking China’s access to the global oceans. The problem is that China’s navy is not up to the task. 

There has been much talk about the surge of China’s naval power. However, this “surge” moves China’s capability from “very little” to “some.” China remains in no position to challenge the US, even in its coastal waters.

China’s navy isn’t as dangerous as the US Navy represents

The US Navy has an interest in presenting the Chinese as a serious threat.

Since the Cold War’s end, the US Navy has faced few challenges, and the fleet has shrunk in response. The growing Chinese threat supports the US Navy’s call to increase its budget. 

So, the Navy will estimate the potential threat to be as large as possible. This is the normal procedure for government bodies within the Congressional budgeting process.

The sense of dread about the Chinese navy stems from this dynamic. But the fact is, while China has built ships, it has not built a navy that is on par with the US.

The core American naval fighting force is the carrier battle group (CBG). The US has 11 such strike groups. The Chinese have yet to float a domestic-built, operational aircraft carrier, let alone a CBG.

China has ships, but it doesn’t have fleets. A fleet creates a single, integrated fighting force under a unified command. Fleet operations—and having ships fight an integrated battle—are very complex.

The key is to have experienced military leaders and well-trained staff. The requisite experience is passed between generations of commanders through tradition and doctrine. 

The Chinese have never had the sort of navy they are trying to build today. They can build ships, but creating an operational navy poses a big hurdle.

The Chinese pose a different kind of naval threat

The Chinese have an alternative to a CBG and fleet operations: land- and air-launched anti-ship missiles. They might be unable to engage in surface-submarine warfare. They can, however, use missiles to force the US fleet away from crucial islands.

China has developed missiles with enough range to threaten a line extending from the Aleutian Islands to Guam to Australia. The strategy is to saturate US fleet anti-missile defenses using massive salvos of missiles. This would then clear the way for China’s navy.

This strategy has two flaws. First, this would require a space-based survey on the location of US ships across a broad area. A great deal has been made about Chinese anti-satellite capabilities. Yet, I strongly suspect the US—which has been refining this problem since the 1970s—is way ahead of China on this.

Second, China’s missiles are vulnerable. I would assume that US technical intelligence has mapped China’s launch sites and control facilities. The US would respond to the threat using air and missile attacks on Chinese launchers. 

This attack would not use nuclear weapons, but precision-guided munitions able to sufficiently diminish the Chinese threat thus allowing US fleet operations in the desired waters.

What’s ahead for China

China is in a difficult military position. Its best strategy is to convince countries like the Philippines that they are better off aligning with China than the US. 

To do this, China has made fairly feeble moves around key islands, dredging sand to make new islands, moving ships around, and flying close to American aircraft.

None of these tactics are strong enough to change the balance of power in the waters around China. Ironically, they have drawn an increased American presence. 

China can make threatening gestures toward the US but can’t afford to mount a serious challenge. The precise capability of the Chinese navy is an open debate. But to engage the US in combat and suffer defeat—even in a small skirmish—would be among the worst outcomes for China.

China’s strategy of inducing shifts in the alignment of countries around the South and East China Seas requires a credible naval force. But China cannot predict how capable its navy will be in combat, and the political fallout from failure would cascade globally, regionally, and within China.

China is currently trying to hold things together in the face of domestic economic failures. Its emergence as a global power acts as a psychological brace for the regime. It cannot afford to lose that brace.

This explains why the Chinese can’t let go of the two seas issue, nor can they do anything decisive. Carter’s description of what is going on is fairly reasonable. But it does not amount to a serious military threat.

China’s various minor actions have been magnified by the Chinese and the Americans for different reasons. Still, the fact is that China has been very cautious in a matter of fundamental importance to it: access to the world’s oceans. 

If it could have done something decisive, it would have. The risks and the realities at sea being what they are, China is likely to continue this strategy.

Subscribe to This Week in Geopolitics

George Friedman provides unbiased assessment of the global outlook—whether demographic, technological, cultural, geopolitical, or military—in his free publication This Week in Geopolitics. Subscribe now and get an in-depth view of the forces that will drive events and investors in the next year, decade, or even a century from now.

John Mauldin Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in