China Beginning To Sound Like North Korea

Beijing is beginning to sound like the Korean Central News Agency (KCNA) when it comes to the way it has been handling the South China Sea disputes

That’s bad news for investors. A military confrontation would derail the economic integration and growth of the region and hurt the global economy -- most notably China, which has yet to develop a domestically driven economy.

The South China Sea disputes began as a regional tug of war between China and several neighboring countries, but they soon turned into a showdown of economic and military might between China and the US.

Two years ago, China raised the stakes by building artificial islands in the South China Sea. America responded by expanding its naval presence around the artificial islands, and by upgrading its missile capabilities in South Korea.

In the beginning, China confined its response to a few harsh statements about America’s “violation” of international law, and by trying to enlist diplomatic allies with the AIIB initiative.

Then, China raised the stakes by announcing that it will send nuclear submarines into the area to “deter” US presence.

“Strategic nuclear missiles are the foundation of a military deterrence,” so went a Global Times editorial. “China has been adopting an ‘effective nuclear deterrence’ strategy, with much fewer nuclear warheads than the West powers. Also, China is the only one among the nuclear powers to announce a no-first-use policy. It means that China's nuclear deterrence lies in its capability to strike back.”

“China's nuclear deterrence must be real and effective so as to play an important role in the US government's making of its China policies,” continues the same Global Times editorial. “Just as when any country assesses the US power, it will immediately think about the US aircraft carriers and not risk a head-on military confrontation with the US.”

More recently came an arbitration ruling. In a case that was brought against China back in 2013, it was found that China was in violation of Annex VII of the United Nations Convention on the Law of the Sea (UNCLOS), the primary treaty governing international maritime law.

The ruling, which is also a victory for the US, Philippines’ close ally, means that China cannot legally write its own navigation rules in South China Sea or control the trade that flows through one of the world’s busiest waterways.

One would expect that China, a permanent member of the United Nation’s Security Council, would respect and comply with the ruling. Instead, Beijing has raised its tone, declaring the ruling null and void, and reaffirming its determination to continue building the artificial islands.

Worse, high-ranking Chinese officials are warning that navigation patrols by foreign navies could end “in disaster,” according to Reuters.

Do I read this right? If so, that sounds like North Korea’s defiance of UN rulings over its nuclear program, and repeated accusations and threats against its neighbors and the US.

Is that what China really wants?

Source: Finance.yahoo.com