China - What should we do?

Dr John Sydenham

I live in the UK. Our tattered democracy is stumbling under the weight of anywhere people. I was taught that the UK believed in the Common Law and Democracy. That the tyrant King Charles I was overthrown by Parliament and the People. That a settlement was reached in 1688 that guaranteed that Common Law and Democracy were the path for the future. I still believe this. It was this sentiment that gave rise to the spread of freedom around the world and to the USA.

The recent Parliamentary report: “The UK and China’s security and trade relationship: A strategic void” is deeply shocking. It considers foreign relations with China without any clear application of British beliefs.

In foreign relations there are three groups of foreign countries: those that reflect our values to an acceptable degree, those that are chaotic but pose no systemic threat to our way of life and beliefs and those that are a threat to our existence. We are happy to trade with the EU because, although they lack the concept of Common Law, they are democratic. We forgive them for having whole regions such as Germany that lack trial by jury. We trade with Saudi Arabia because they are chaotic and not a threat to our existence despite being an anathema for us. We do not trade with N. Korea because they are sworn to our destruction as well as being an anathema, they are in the third group of nations.

We trade with China despite it being in the third group.

After the Second World War it became normal to have relations with the first two groups but not the last. The UK and USA had learnt the lesson of the 1930s and realized that expanding the power of mortal enemies through trade was a disastrous mistake. The Cold War enacted this lesson by keeping our mortal enemies at bay by limiting trade. This generation has forgotten the lesson of the last century.

The Parliamentary Report shows that the lesson of WWII is now lost. It summarises it’s conclusions with statements such as:

“China will remain a key global economic player and an important trading partner for the UK. There are increasing opportunities for UK businesses, particularly in the services sector, so maintaining productive economic relations with China would have significant advantages for the UK”.

The Report does consider the persecution of minorities and dissidents in China but fails to transmit the enormity of what is happening. The authors are anywhere people who lack the moral courage to stand up for their beliefs. China is a pariah but the Report avoids this conclusion.

Uyghurs and Tibetans are being imprisoned for wanting to pursue their own way of life and religion. The scale of this imprisonment exceeds that of minorities by the Third Reich in the 1930s. Half a million Tibetans have been moved into work camps and about a million Uyghurs and other minorities have been put into a mixture of work and concentration camps.

The image above is from an important article by Reuters: Tracking China’s Muslim Gulag which documents the dreadful treatment of minorities by China. These “Minorities” that are actually the populations of conquered states.

China has a Social Credit System that has shocked all those who have reported on it:

“China's social credit system has been compared to Black Mirror, Big Brother and every other dystopian future sci-fi writers can think up. The reality is more complicated — and in some ways, worse.” (Wired).

It uses AIs and an army of spies and commercial organisations to examine every action and communication of a Chinese citizen. Those who conform are rewarded and those who rebel are punished. Dissidents disappear. This is a level of state control that has never been seen before. It is the exact opposite of the British idea of freedom.

China regards the heritage of British democracy as the enemy. It sees this in racial terms. On the alliance between the USA, UK, Australia, Canada and New Zealand China says:

“The five countries share a great sense of superiority toward Anglo-Saxon civilization, and they have tried to comprehensively suppress China and other countries with different ideologies.”

“Five Eyes [are] today's axis of white supremacy,” (China Global Times)

There is no discussion of the rule of law and democracy, the threat to China is from the “Anglo-Saxon” race and “white supremacy”. And China is determined to fight it.

China has identified democracy as a cultural phenomenon associated with Anglo-American culture and has launched a massive attack at the cultural level, this involves replacing the populations of Anglo countries and polarising their politics.

China is a genocidal surveillance state that is an existential threat to the West. This is the issue. The Report includes details of China’s problems but misses the issue entirely. The question for Western Governments is whether Universities, Multinationals and International Banks are putting us all at risk from China.

Should multinational Corporations, Universities and International Banks be allowed to elevate profit above principle as well as imperilling us all?

Our universities have been massively infiltrated by China. Not only by students but by bribes. Every large university has links with China that provide a boost for careerist academics. The penetration of Western academia has been a major objective of modern China and the scale of this penetration is breathtaking. Almost every Western laboratory has Chinese staff who are still Chinese citizens and owe allegiance to China. China entices Western academics into collaborations including setting up laboratories in China where leading Western scientists can get their names on papers and receive extra pay in return for occasional visits where they are debriefed on progress in the West. Most UK and US universities now have Chinese outposts ie: Scripps Institute, the Harvard-China Project, Cambridge-China collaboration, Stanford-China , etc. type the name of any well-known university followed by "China" into Google and you will see how China has gained control over Western academia.

As the Report by the Intelligence and Security Committee of Parliament on China said: “Professor Steve Tsang told us that, within six months of him taking up a new appointment at SOAS, a political counsellor from the Chinese embassy approached him, offering him anything he wanted in an attempt to curry favour: “It is as blatant as that.””

UK Universities receive billions of pounds annually from students from China:

It is comical that Western academics believe that they are influencing China when the penetration of Western academia was deliberate Chinese policy (1000 Talents Plan etc).

The Parliamentary Report seemed to have no understanding that their witnesses were representatives from universities, multinational business and international banks who had already accepted the Chinese Yuan.

How big is the threat from China and how will this threat be manifest?

The Third Reich shows us that foreign powers are a special threat if they are running a wartime economy in peacetime. This now appears to be the case in China: "It is preparing for a split between the U.S. and China and it is preparing for Taiwan unification," said another Chinese expert. "You should recall the Mao Zedong-style wartime economy." (Nikkei Asia)

Another preliminary to war is the way China is making moves to lessen its reliance on the dollar so that it has a free hand when it makes its first moves against Taiwan and the South China Sea.

The threat from China is also ideological. The defeat of Anglo-Saxon hegemony and the end of White Supremacy are the slogans of this ideological attack. China knows that race is the weak underbelly of the West. It is not that the West is especially racist compared with the rest of the world, in fact the Western weakness is the opposite. The Maoist Black Liberation Movement was the most important subversive group sponsored by China to exploit the weakness of the West and set the agenda and it is still receiving funding. The name “Black Lives Matter”, is based on the abbreviation “BLM” which is an acronym for the Black Liberation Movement, and it receives funds from the Chinese Progressive Association.

Almost 10% of UK undergrads are Chinese Nationals and these have instructions to support China. Most leading universities have “Confucius Institutes” that ensure that students from China are towing the line.

The most dangerous current influence of China on the West comes from its Sovereign Wealth Fund. Had the Parliamentary Report been produced by people who believed in the UK they would have started by examining the trillions of dollars that China is recycling from their trade surplus back into Western society. The cash is, ironically, held in Western offshore tax havens such as the Cayman Islands and only a small amount of it has been accounted for. Most of the cash disappears into a network of investment vehicles that are difficult to trace back to China. This money is almost certainly corrupting every level of our society (especially universities and media). It is converting the battle into the importance of defeating “Anglo Saxon hegemony” and “White supremacy” rather than the battle for free speech and democracy. The Chinese “psychological operations” have seized the agenda by successfully converting political difference into race hate.

It is clear that China has found a way to control our mainstream media but the Parliamentary Report did not investigate how this has happened. Was it a result of the subversion of universities or of direct and indirect media ownership or due to interventions by multinational business or all of these?

China is winning the pre-war period. When the war comes both the USA and UK will be too weak and demoralised to fight and win.

Where has the desire to defend our own culture gone? The Parliamentary Report seems to find nothing of value in being British and British values. They are happy to negotiate away our society if this maintains profit levels for multinational commerce and banking. (See The Globalist Threat).

The Parliamentary Report is yet another line in the epitaph of the West.

China’s Overseas Wealth

China has over 3 trillion dollars of foreign exchange reserves (Trading Economics). The official figure for Chinese foreign investment is $65 bn (CEIC Data). Where does all the rest of the money go?

Much of the cash goes to the China Investment Corporation (CIC) which has $941 bn of Chinese cash under management.(Wikipedia).

The CIC owns Central Huijin Investment Ltd. (CN), and Warlord Investment Corporation (CN). These have Hong Kong subsidiaries China Everbright Holdings and CITIC Capital Holdings which in turn own a whole suite of offshore companies. (See Webb-site.com).

The offshore companies have names such as Datten Investments Limited (VG), Guildford Limited (VG), Honorich Holdings Limited (VG), Kenco Investments Ltd (VG), Hero Investments Ltd (VG) etc. The VG stands for British Virgin Islands (the tax haven where Richard Branson lives).

Another subsidiary of CIC is CIC International Co. Limited (CN) which directly owns Bridge Hill Investments Limited (KY) and Country Hill Limited (KY) which are based in the Cayman Islands (KY).

The huge advantage of having Investment companies in Tax Havens managing a TRILLION dollars plus of investment is that no-one knows where the money is ultimately is invested. It is also the case that no-one really knows how much is invested. One trillion dollars is the minimum amount. We can probably assume 1.5 or 2 trillion as the correct figure. Some of these investment companies have minority foreign partners such as Citicorp, Brunei sovereign wealth, Singaporean banks etc. so that they control truly huge amounts of investment.

The ten largest multinationals in the world can be purchased for about $3 trillion. You can get a controlling interest for $1.5 trillion.

However. Chinese investment does not stop with the CIC. Chinese companies, all of which are accountable to the Chinese government, have invested a further $2 TRILLION globally. (See China Global Investment Tracker ). 80 large UK corporations have 50% or more Chinese ownership, the list includes Reuters building, football clubs such as Aston Villa and West Bromwich, Hamleys toys, Skyscanner, AIM etc. although many of these purchases have been dubious and some resold since 2018. (See China Global Investment Tracker )

Next time you hear a CEO of a multinational saying that we should go easy on China it is likely that you are listening to China. The West should never have let this happen.