China's Aggression Can't Be Ignored

Written by Jason Simpkins
Posted June 26, 2020

Over the past few years, China has gotten increasingly aggressive...

  • It's launched large-scale cyberattacks against rival governments and private companies, stealing vital information. 
  • It's attempted to seize control of the South China Sea — a body of water it shares with half a dozen neighboring countries.
  • It's sent its navy and air force to harass those same neighbors, instigating conflicts with Japan, Taiwan, Vietnam, Malaysia, and others.
  • It's gotten in a number of scrapes with India on their contested border.
  • It's ramped up global propaganda campaigns. 
  • It's brutally cracked down on its own citizens — jailing dissidents and forcing Muslims into concentration camps.
  • It's reabsorbed Hong Kong, eradicating the liberal bastion's autonomy.
  • And it's repeatedly attempted to intimidate U.S. forces in the region — going so far as to attack some with laser weapons.

All of this while China has vastly increased its military spending and advanced capabilities — particularly with respect to hypersonic and nuclear weapons.

Indeed, China’s latest defense budget increased by 6.6% from $167 billion to $178 billion — the fifth-largest annual increase in China’s modern history.

The fact that China, the epicenter of the Coronavirus pandemic, is spending more money on defense and choosing to cut costs elsewhere should tell you something about its intentions.

If it doesn't then China's strongman president Xi Jinping will tell you himself.

“We must explore ways to train and to prepare for war when epidemic control efforts are getting normalized,” Xi declared. “We must hasten to step up preparations for armed warfare, carry out real-combat military training with flexibility, and to comprehensively enhance our army’s abilities to perform military missions.”

And it has. 

As I said above, the number of military confrontations centering around Chinese forces is increasing in frequency and intensity.

On May 5, a fight broke out between Indian and Chinese troops patrolling the two countries' shared border in the Himalayan mountains. Soldiers fought hand-to-hand and with rocks and clubs, leaving 11 soldiers injured on both sides.

And that was just the latest scuffle in what's shaping up to be a very busy year for Chinese forces...

  • On February 17, as the death toll of the Coronavirus approached 2,000, including five people outside of China, a Chinese destroyer attacked a U.S. plane with a laser weapon.
  • On April 2, China’s coast guard rammed and sank a fishing vessel off the coast of Vietnam.
  • On April 9, the Chinese aircraft carrier Liaoning and five warships crossed the Miyako Strait between Taiwan and Japan.
  • On April 17, a Chinese survey vessel, the Haiyang Dizhi 8, flanked by as many as 10 Coast Guard and maritime militia ships, sailed into Malaysian waters.

And that's just to name a few.

Taiwan has been a major focal point of Chinese aggression and it could be next to be re-absorbed after Hong Kong.

China's air force and navy have come to menace Taiwan on at least 10 separate occasions since mid-January. In fact, Chinese military planes have violated Taiwan's air defense space eight times this month — six times in one week alone. And one of those incidents came just hours after a U.S. transport plane had flown over the same area.

The escalation in Chinese hostility hasn't gone unnoticed.

"We need to carefully monitor China's intentions, not only their capability," Japanese Defense Minister Taro Kono said Thursday, two days after a Chinese submarine ventured near his country's waters.

U.S. officials are on alert, as well.

“We are concerned by increasing, opportunistic activity by the People’s Republic of China to coerce its neighbors and press its unlawful maritime claims in the South China Sea, while the region and the world is focused on addressing the Covid-19 pandemic,” Defense Secretary Mark Esper recently warned.

And U.S. Navy Capt. Michael Kafka told CNN: “The People’s Republic of China is attempting to use the regional focus on COVID to assertively advance its own interests.”

That rhetoric is being backed by an increased presence, too.

For the first time since the Cold War, three Navy aircraft carriers are now patrolling in the Pacific, along with all of the Pacific Fleet's forward-deployed submarines. 

Meanwhile, the Air Force has continually dispatched bombers to the region, flying over the South China Sea and landing four in Guam along with 200 personnel from Dyess Air Force Base in Texas.

However, while tensions are heating up and forces are multiplying, communication between the United States and China has never been weaker.

With the trade war, pandemic, spying, cyberattacks, and military clashes, communications between both countries are all but frozen.

Literally hundreds of “track one” intergovernmental communication channels have shut down, including a hotline between the two defense ministries and a dialogue mechanism for the two armies.

And now that the Coronavirus has restricted travel and canceled group meetings, like the annual Shangri-La Dialogue in Singapore, officials are no longer meeting face-to-face.

So with no official communication and no access to back channels, both sides are left in the dark about the other's intentions. 

The only thing they have to go on are public comments in newspapers, other media outlets, and at political rallies. 

As a result, the chances of a conflict erupting accidentally, on purpose, or accidentally on purpose have never been higher. 

So if you'd like to stay abreast of the latest developments and learn what steps investors should be taking to safeguard and multiply their wealth, check out The Wealth Warrior — the only investment newsletter fully dedicated to global and domestic security.

My latest report thoroughly details China's efforts to build ultra-powerful laser weapons to destroy U.S. submarines and satellites — as well as the company that's fueling a U.S. response. 

You can find that here.

Fight on,

Jason Simpkins Signature

Jason Simpkins

follow basic@OCSimpkins on Twitter

Jason Simpkins is Assistant Managing Editor of the Outsider Club and Investment Director of Wall Street's Proving Ground, a financial advisory focused on security companies and defense contractors. For more on Jason, check out his editor's page. 

*Follow Outsider Club on Facebook and Twitter.

Heal Your Ailing Portfolio Body