Part 2 of the Series: Why Confrontation With China Destroys The U.S.
EIR: What would you say is the economic and technological impact of that policy, both on China, and also on the U.S.?
Dr.Koo: It’s unfortunately a zero-sum approach that the U.S. is taking
First, it assumes that by taking this approach the U.S. will win at the expense of China, and that China will lose. But what will actually happen, of course, in a zero-sum approach, is that each side will try to endeavor to win at the expense of the other.
The eventual outcome is lose-lose—both sides lose.
It’s arguable whether China will lose more than the U.S., and the reason I say that is because, China has a much more vibrant, healthy trading relationship with virtually all parts of the world compared to the U.S. So, economically, they have a lot more reach and flexibility.
Second, it goes without saying that China has a very complete, robust manufacturing base, which we do not.
We have already emptied out our manufacturing base, and for Trump to impose a tariff barrier and presume that that will bring the manufacturing base back is very wrongheaded.
It shows his, I guess, ignorance on the basic principles of economics.
I don’t find, and I don’t expect, that very many manufacturing firms will come back unless the economics is basically favorable. And as you know, the justification for the tariff barriers was that it was going to be “free money” coming to the U.S. Treasury, and the Chinese exporters were going to pay for it.
And of course, that was far from reality.
The reality is the increased prices the American consumers end up paying, so it’s not free money; it’s coming out of one pocket and going to the other. That just raises the cost of living. There’s no question that by separating or attempting to separate the two economic spheres of influence, if you will, that both will lose.
I’m not at all sure that the U.S. will come out ahead in a lose-lose outcome.
War Over Taiwan?
EIR: Let me address the strategic crisis that we’re living through now between the U.S. and China. Ambassador Chas Freeman, who was the interpreter for Richard Nixon on his famous 1972 visit to China and who went on to have an esteemed diplomatic career, is a China scholar and expert.
In an interview with EIR last month, said he thought that the U.S. had gone beyond the “red line” of China vis-à-vis the Taiwan situation, beyond the “One China, Two Systems” policy, by backing up the Democratic Progressive Party’s [DPP] policies in Taiwan, calling for independence.
The U.S. appears to be sleepwalking into war both in the Russian and the Chinese situations, which could be, of course, disastrous for mankind.
Dr. Koo: Right.
EIR: You’re very familiar and knowledgeable about the developments in Taiwan. What do you think about how Taiwan got to the point that they’re now being used as a lever for a very evil policy?
Dr. Koo: Unfortunately, the party in power in Taiwan, the DPP, probably doesn’t see the situation the way you just enunciated. I think they’d like to see themselves as a tail trying to wag the dog.
Unfortunately, the Biden administration, like the Trump administration preceding it, is encouraging them on that line of thinking. By that, I mean, they are encouraged to push the line in the sand, if you will. I think we’ll have to go back to when the DPP came to power, with Chen Shui-bian their first elected President.
It’s a very strange politics in Taiwan. Chen Shui-bian was elected because there was a bullet that made a right turn and grazed his belly on the night before the election, and also hit his vice president candidate in the knee. It created such an uproar that he successfully got enough sympathy votes to put him over and got him elected. Once he was elected, he changed the core [school] curriculum for grades K-12 and disconnected the Taiwan history from that of the mainland, so that the Taiwan kids growing up no longer know that they’re a part of the Chinese culture, Chinese history, and that their characters and poems and literature came originally from China.
So the disenchantment, or this disaffection, of the Taiwan people started with Chen Shui-bian, or perhaps even from Lee Teng-hui, when Lee Teng-hui was President.4 Gradually, the people in Taiwan have become more and more detached from any sense of affiliation with the mainland. That’s a very important factor that’s happening here. The other thing is that the DPP has very successfully convinced the people of Taiwan that they are infinitely better off than what’s going on in mainland China, despite the fact that, if they were fortunate enough to go to Shanghai and go to other places, they could see for themselves what a difference it is.
In fact, the elites, the better educated, better motivated, which is maybe a couple of million of the young Taiwanese people, are living and working in mainland China, establishing their careers there. A lot of them are working for Taiwan companies that are based in mainland China. They know the difference, but when they go back to Taiwan on home leave, they can’t even talk about it, because the local Taiwan folks would hoot at them and heckle them, and don’t believe what they’re saying.
So there’s a dichotomy here between Taiwan and mainland China. Beijing feels that time is on their side. Eventually, the people in Taiwan will recognize that it’s in their benefit to be part of China and not to be trying to be the fifty-first state of the United States of America, which will never happen, even though the DPP seems to be deluded in that sense and that feeling.
Is Taiwan a spark? I think Taiwan could be a spark for a war and conflagration if that’s what the United States wants. If the U.S. pushes to the point where Beijing feels that they have to respond, then we will have a disaster in our hands. But as you know, the way the situations are being portrayed by our mainstream media and by our politicians is totally distorted. Whether it’s about Taiwan, about Xinjiang, about Afghanistan, about any part of the world where we have troops and we have bases. Somehow, we’re there to save the world and the Chinese and the Russians are there to destroy the world. Whereas in actual fact, it’s just the opposite.
U.S. Destabilization in Hong Kong
EIR: You mentioned Hong Kong. I know you’ve been very active in business, as well as just knowledgeable about Hong Kong for a long time.
As you know, in 2020, just as there were rioters in the streets across the United States burning down shops, shopping centers, attacking police and so on, the same thing had been going on in Hong Kong the year before, where masked, black-clad young people were driven to go out and set fires and attack police and so on.
And yet this was called, in the U.S. press, in regard to he Hong Kong riots, “peaceful protests for democracy.” So, what is your view of the role of Hong Kong today in regard to China, as well as in its relations with the West?
Dr. Koo: I’m glad you brought it up, Mike, because this is a classic example, a fabrication and distortion, of what’s going on in Hong Kong. The riots in Hong Kong started in 2019. It all started because a young Hong Kong couple went to Taiwan and the boyfriend murdered the girlfriend, who was pregnant at the time, and cut up her body and put it in a suitcase, and then went back to Hong Kong by himself.
And because there were no extradition treaties between Taiwan and Hong Kong, he basically went home scot-free and was free to roam around the streets. The law enforcement couldn’t do anything about it. So, that brought home the point and the need to have an extradition treaty between Hong Kong and rest of the world.
In fact, at the time, Hong Kong was one of the few territories or countries that did not have extradition treaties, neither with Taiwan nor with Beijing.
So, when the Chief Executive of Hong Kong started to enact an extradition treaty, the opposition, the “democracy movers” of Hong Kong, objected, created a riot, and insisted that they must not have this extradition treaty, because, they claimed, that with it they could be extradited, they could be arrested and be sent to Beijing at any time, and they would be threatened.
That really created the unrest and the riot. What we found out afterwards, is that those protesters were being funded by the NED, the National Endowment for Democracy, which is a CIA-funded arm whose mission is to create unrest, instability, and disturbance anywhere in the world, in countries where the power that reigns is not to our liking. That’s what happened in Hong Kong.
The media not only considered it a democracy movement—one of our leaders, the Speaker of the House, as a matter of fact, publicly said, “What a beautiful sight that was!” Well, when the riots happened in the United States, I didn’t find anybody saying that they were a beautiful sight. It was clearly destruction and lawlessness and so on.
So today what we have in Hong Kong, is an extradition treaty in place, we have a pledge of allegiance to the Beijing government in place, and we have a voter turnout to elect a batch of legislators for the Hong Kong government.
All three things are cause for the Western media to criticize and say this is lack of democracy in Hong Kong. Well, let’s look at it, OK? The voter turnout was very low, was 30%, to elect the legislators. This just happened.
Well, guess what? The normal turnout in New York City is 26%. So, do we say New York City is lacking democracy? Well, maybe it does lack democracy, but certainly you won’t find mainstream media reporting it on that basis.
The Pledge of Allegiance? Well, it seems to me, we, in school, pledge allegiance to the flag all the time, and nobody complains about it as being an illegal maneuver. So, we’re looking at double standards, and it’s always to the benefit of us looking good and China looking bad.
(To be continued)
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