By Stu Cvrk and Larry Schweikart
Part II of a Four Part Series
Part I HERE
The Long War
Which country is the greater long-term threat to U.S. interests? Communist China or Russia? In economic terms, the case is clear that Communist China will remain an existential threat to U.S. national security for the foreseeable future. Consider that China’s GDP is approaching that of the U.S., as noted here:
The Gross Domestic Product (GDP) in China was worth 14,200 billion US dollars in 2019, according to official data from the World Bank and projections from Trading Economics. The GDP value of China represents 11.72 percent of the world economy.
In comparison, the U.S. GDP was $21.2 trillion in 2019, while Russia’s GDP was $1.75 trillion in 2019. China’s economy is almost ten times that of Russia. Economically speaking, the Chicoms’ effort to subvert, spy on, and influence the US in terms of personnel resources alone dwarfs what the Russians can bring to bear on a daily basis. However, Trump also had begun eating into even that Chicom strength. Recently, China’s foreign exchanges have been running low. Exports, which had been growing at a 25% annual rate, shrank to a growth rate of only 2% in 2020. (“China’s Foreign Exchange Reserves are Running Out,” Epoch Times, November 11-17, 2020). China’s outstanding foreign exchange debt is $2 trillion, 60% of which is in one—to two-year short-term limits that must be paid in foreign currency. Now, about one-third of China’s foreign investments have flowed out of China and will continue to increase.