REPORTED BY WEIZHEN TAN OF CNBC
ON SEPTEMBER 24, 2020
“China is converting its economic growth into military power, and I think here is the true dilemma for those that seek to invest in China. It’s understanding precisely what you are investing in, what is going on here,” said Jonathan Ward, founder of advisory firm Atlas Organization.
Speaking at the inaugural Jefferies Asia Forum last week, Ward said there are many Chinese corporations — including those in the aerospace, tech and construction industries — that are “backed by the military.”
As the line between state and business blurs, it becomes harder for investors to know how much control the Chinese government has over the company, and how independent the business might be.
China wants a strong military
China’s defense spending has grown and is now greater than all its regional neighbors combined, Ward said. He cited the Pentagon’s latest report on Chinese military developments and said China’s ground troops, as well as its navy, air and missile forces, were among some of the largest in the world.
“In 2019, the PRC announced its annual military budget would increase by 6.2 percent, continuing more than 20 years of annual defense spending increases and sustaining its position as the second largest military spender in the world,” according to the 2020 China Military Power Report.
Ward also pointed out that Chinese President Xi Jinping has made clear his country’s goal of building a strong army that can fight and win wars.
“We are closer than ever to realizing the rejuvenation of the Chinese nation, and we need to build a strong military more than ever in history,” Xi reportedly said at the founding anniversary of the People’s Liberation Army. “Our military must regard combat capability as the criterion to meet in all its work and focus on how to win when it is called on,” Xi said.
How would a Biden Presidency respond to the growing economic and military threat of CHINA?
Can we really say one way or another for sure?
Will Biden be as confident and bold as President Trump has been in our dealings with this COMMUNIST COUNTRY?
MY feelings are inconsequential because I am confident that Biden will rely on Military Advisors in how to handle China... but, there will be no military advisors when it comes time to negotiate trade deals....
If we spend more money on social welfare programs, will we have enough money to build up our military against CHINA or will be have to borrow more money from CHINA???
China owns ONE THIRD of our current NATIONAL DEBT in case you were not aware of that...
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