The End of China’s Reign Part 2

Strategy 2

Counter-Encircle China With a Free and Open Indo-Pacific

In stark contrast to its attractive name, China’s Belt and Road Initiative is actually an imperial colonization strategy.

If the smaller countries fail to meet their repayment deadlines, China starts plundering petroleum and mineral resources as debt repayment, and assumes ownership of harbors and ports to lease them out (e.g. Pakistan).

They are making countries in the Belt and Road switch to Chinese telecommunications services, thus exporting their domestic surveillance society to the world. Finally, they are turning harbors and seaports they have acquired into military facilities from where they can conveniently deploy their forces.

China’s ambitions reach out even to Central and North America, Africa and the Pacific Islands. China’s Belt and Road to global predomination is no mere fantasy.


The U.S. Counterstrike

The U.S. is challenging this move.

Last October, while Vice President Mike Pence was making his declaration that signaled a turnaround in their China policy, Trump signed into law the Better Utilization of Investments and Leading to Development (BUILD) Act. The Act will not only help the U.S. support the development of countries with low-income economies, but also countries with lower-middle-income economies. It will become a major source of funding for the Free and Open Indo-Pacific strategy (FOIP).

The FOIP is gradually materializing to become an organized power to counter China’s Belt and Road Initiative. Japan and the U.S. have jointly committed US$70 billion to finance infrastructure in the Indo-Pacific region. Australia has also agreed to this new strategy.


Save Countries From China’s Trap

Infrastructure management in Asia and Africa will require an estimated US$26 trillion by 2030. No single country can meet these demands, and this is where strategy becomes important.

The FOIP strategy is that the U.S., Japan, Australia and India come together to cooperate on national security and economics. The four countries combined are more powerful than China, the power balance being 2.7 to 1 in FOIP’s favor.

The FOIP consists of countries that uphold freedom and democracy, and they must concentrate their powers to prevent countries in the Belt and Road from falling prey to communism.

For example, FOIP could pledge their support to the Philippines to prevent China from cajoling the island nation and transforming the South China Sea into the “Sea of China”.

Myanmar, Laos, Thailand and Cambodia are prime targets for China’s debt trap diplomacy, and Indonesia may soon fall prey to Sinicization. FOIP must hurry in providing support to these South-East Asian countries.


Planting Seeds To Increase Pro-Japan Countries

Looking at Japan, it is a country that has high-quality infrastructure technology and human resource training systems. Japan also led the founding of the Asia Development Bank (ADB), which aims to cut poverty in Asia, and still has a major influence on the institution.

The ADB is now following China’s lead, and Japan needs to make major amendments to their policies. The Bank’s greatest debtor is China, yet China is loaning huge sums of money to other countries. Any moral country would repay outstanding debts first.

Nor can we overlook the fact that Japanese Prime Minister Shinzo Abe announced his support for the Belt and Road Initiative last year, when he should really be taking the lead in the FOIP strategy against it.

Integrating with China-leaning financial groups out of want for profit would only profit China and further injure Japan’s national interests. Japan must clarify their stance.

Making infrastructure investments in Asia and Africa means planting seeds of happiness for future wealth. It will become a shield to protect those countries from China’s totalitarian madness, and eventually lead to their prosperity. And when these countries look back at the source of their happiness, they will surely look back to Japan. This is how you create pro-Japan countries in the future.

Strategy 3

Regain World’s No.2 GDP With “Japan First” Policy

The third way of retaking center-stage from China is to adopt a Japan First policy and make domestic advancement the top priority.

That means cutting corporate and consumption taxes to entice Japanese businesses back from China, and revitalizing the economy. It is also necessary to advance key industries such as space, aviation, defense and robotics.

This will increase the number of businesses while reviving long-term loan institutions that can support high-potential ventures and small businesses over a long period of time.

Back during the post-war restoration period, the Long-Term Credit Bank of Japan and the Industrial Bank of Japan proactively loaned funds to smaller businesses to aid in the growth of electric, automotive, heavy and chemical industries. But after the economic bubble burst in the early 1990s, these banks ran aground, and there were no banks left in Japan that could make stable long-term loans.

Larger businesses can issue corporate bonds and stocks to obtain funding, but small to medium businesses have no choice but to loan money from banks, and when banks aren’t lending this leaves them deprived of funds. The last three decades were a time when most big businesses and new industries were stillborn.


Long-Term Loans For Japan’s Prosperity

Mamiya Suzuki, the dean of the Successful Management faculty at Happy Science University, is a strong advocate of the revival of long-term loan banks. Here’s what he had to say:

“Long-term loan banks have the mission to create new industries in Japan. But we need the government’s active input to revive them. Long-term loan banks issue credit to collect funds, and they collect revenue from the interest. But the government should only set a low tax rate on that revenue.

“Long-term loan banks could also issue war bonds to help strengthen Japan’s national defense, and the government should cut income and corporate taxes for individuals and groups who invest in it. This sort of reward system is effective in gathering funds to enrich the country and strengthen the army [the Meiji era government slogan].

The government can also extend the trade zone through assertive diplomacy, provide a stable supply towards capital investment and research/development funds, aid in the development of allied nations, and secure export partners.”

The purpose of a Japan First policy is to kickstart national advancement. It means cutting taxes to attract Japanese businesses back into the country. And it means reviving long-term loan banks to invest in new businesses and to create new industries. A Japan First policy will spark Japan’s economic growth, and help the country regain the ‘number 2′ position in the world’s GDP rankings before another three decades pass.


The three strategies for inverting China’s reign


Why China made such rapid progress in the last 3 decades

  • The global community actively invested in China
  • How Japan can regain center-stage in the next 3 decades

  • Start a financial war with China and initiate the Yuan’s collapse
  • Seek liberalization of finance in China
  • Freeze assets belonging to people who contributed to human rights infringements in China



Why China made such rapid progress in the last 3 decades

  • China’s excessive infrastructure investments domestically and beyond
  • How Japan can regain center-stage in the next 3 decades

  • Focus on infrastructure investments in Asia and Africa through the Free and Open Indo-Pacific to counter the Belt and Road Initiative



Why China made such rapid progress in the last 3 decades

  • Japanese businesses crossed over to China
  • How Japan can regain center-stage in the next 3 decades

  • Cut taxes to attract Japanese businesses back into Japan
  • Revive long-term loan banks to invest in new businesses and industries
The End of China’s Reign Part 2
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