gakakkad wrote:
4) It can start a war. It can arm up, invest wholesale in defense R&D, in procurement of foreign weapons systems and manufacture of its own weapons systems. And it can use these weapons systems in the pursuit of other kinds of power... geostrategic power. An additional benefit to this method of monetizing its debt is that it does not lead to civil unrest (at least as long as China can claim victory) but rather, to an upsurge in jingoistic nationalism that strengthens the position of an authoritarian government.
Excellent post . Brilliant analysis . But just one question. Why not just invest in weapons r&d etc? Why start a war? I mean they could keep buying stuff for their armed forces etc. And poakroach arms market is quite big in itself . Because starting a war with India has its consequences without doubt. It ll surely cost them a huge deal India by no means is a pushover .Starting a war to save economy is by no means a good idea . USSR was in the same situation in 80's as China is now. Even then there was a talk about SU overtaking USA economically etc. But what happened after the afghan war?
Besides they ll surely have to get it done without a security council sanction . However bad we assume the west to be , security council is not crazy enough to authorize any action against India. So illegal war per se has its consequences . Sanctions and economic consequences might be devastating . Already there is a lot of noise in the west to shift production back home. It can very well happen . True China is a big market for western companies and by that means is almost irreplaceable. But the problem here is that Chinese consumers have got no home grown option .
What about fears from Taiwan . SoKo and Japan about a similar action? Would not they start worrying that they ll be attacked next ?
And China is still no where near as powerful as the US is to get away.
Only thing I am worried about is MOD/BABU's/MEA...That they ll not authorise a retaliatory strike upon Chinese invasion.
Gakakkad ji, the answer to your question "why go to war, why not just invest in weapons" is borne out by a truism which we have seen in action ever since WW I. The existence of a military industrial complex in modern states, inevitably leads to military conflict.
China has ALREADY been investing in weapons R&D, manufacture and procurement since the late '90s, more and more throughout the last decade. Now it is doing so even more intensely as a means of monetizing its debt. But as this happens, the pressure to use what has been accumulated, is also rising. Let me try to explain with an example.
Every year in the CPC politburo, different factions have to come up with requests for budget allocation. One very powerful faction may be the Militarists... PLA plus defense/armaments contractors. They are the ones who stand to benefit, when China decides to monetize its debt by investing in weapons R&D and procurement.
But there are other factions also. Let us say, in 2003, the Militarists put forth a budget of $10 billion (just a random figure.) Meanwhile, some party member from Shenyang wants $2 billion to build a Hello Kitty amusement park. Some other guy from Harbin wants $5 billion for a dam/irrigation project.
The Militarists insist that they should get the priority. After all China is in danger. Japan is acting tough on Senkoku Island. India has recently tested nukes and they might weaponize soon. Dalai Lama said something threatening in his speech.
Also, CPC economic czars favour the idea of spurring the economy by spending on defense, so the Shenyang guy and the Harbin guy are denied. The money is granted to the Militarists to manufacture SSNs and aircraft carriers.
This goes on every year. Let us say in 2009, the Militarists want $20 billion. They say that Taiwan is behaving very aggressively, Vietnam is taking control of the Spratly Islands, India is raising mountain divisions in "South Tibet" etc.
This time the Shenyang Hello Kitty guy and the Harbin Dam/Irrigation guy are more adamant in their refutation. They say, "we already had to go without funds because you Militarists were talking about Japan/Senkoku and Indian nukes in 2003. You got your money, what did you do with it? How are we more secure?"
However, once again the CPC czars favour the idea of monetizing the debt by spending on defense. So they give the Militarists $20 billion to spend on JF-17s, BMP knockoffs, IRBMs and whatever else.
But at the same time, pressure from the factions opposed to the Militarists is rising. Pretty soon the Militarists have to show results to justify all the money they have been getting, and the money they plan to keep getting in future.
One day in 2011, news comes that India is about to test the Agni V. This is a moment-of-truth for the Militarists. They HAVE to do something to justify the funds they have been getting all this time, at the expense of other interests, in order to keep future tranches of money flowing.
Note that at this time, even the opposition from the other Non-Militarist factions in the Politburo works in favour of starting a war. In my example, the Harbin guy and the Shenyang guy will start asking: "you have been taking money for years and years, while we have had to do without the Hello Kitty Amusement Park and the Dam. Now you tell us that India may soon have missiles capable of reaching Harbin! Meanwhile your precious SSNs and Carriers are rusting in the harbour. You have been given what you asked for in terms of budget, how are you going to serve our interests?"
The Militarists have painted themselves into a corner with their justifications for building a Military Industrial Complex. Their only choice is to say, now is the time, and manufacture a case for war. They go to town with propaganda, declaring that Vietnamese aggression in the South China Sea has reached unacceptable limits; that the ally Pakistan is now more anti-US than ever before; that the US is now weak and not likely to interfere in any war prosecuted by China; that India must be crushed before it deploys Agni III and test Agni V. They drum up a war-beat of "now or never."
Conflict is then a fait accompli; as it was for the Germans in 1914, the Americans in 1965 and 2003, the Russians in 1980. The political dynamics of a Military Industrial Complex will necessarily shift the equilibrium towards war. Whether it's a constitutional monarchy or a democracy or a socialist republic or a dictatorship doesn't matter. It always happens.
Of course, the factions opposed to the Militarists in the CPC politburo, will right at this moment be advancing the same counter-arguments against war that you have cited. India can cause a lot of pain in retaliation; Security Council will not support us; other countries like SoKo/Japan will get more nervous.
But given historical precedent, all these sensible reasons are simply ignored or consumed by war hysteria, which the Militarists are trying to build up. For everything there is a counter argument: India will only become more powerful given time, we must consolidate "Southern Tibet" or we will lose our chance, India must be taught a lesson before it commits to increasing naval presence in the South China Sea or forming a military alliance with US/Japan/Australia. Given the political momentum, war is inevitable.
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Now to Kanson's question about Taiwan. If PRC wanted a war, why would they pick India and not Taiwan? I think the answer is, they're still not sure (despite US' apparent weakness) that US and Japan will not rush to Taiwan's defense. However, they may calculate that this is not true of India. With Pakistan on their side, and US staying out of the conflict, the PRC Militarists may feel more confident of securing a military "victory" against India than one against Taiwan.
Also, Kanson, about Agni V testing this year. If it happens, it is a good thing. It is a sign that we are not idly waiting with the axe over our heads, that we are trying to close the window of opportunity for China to prosecute a two-front war against us. Still, for the present Agni V is untested and I don't know if Agni III is even deployed. IF what Bharat Karnad says is true, 20kT weapons is the most we have. So the assessment, that GOI is trying very hard to avoid war by courting certain factions within Pakistan, holds good.