March 01, 2007

Talisman Sabre v Peace Mission

Battlefield Asia heats up this year with rival war games planned in Russia and Australia. In June "Talisman Sabre 2007" will bombard Australia's Northern Territory including ecologically sensitive areas around the famed Great Barrior Reef. The joint exercises will involve up to 14,000 USA troops and 12,000 Aussies and test all sorts of new weapons in a massive training of land, sea, and air forces in various simulations of an attack on China. The air component will fly B1 and B2 bombers from Guam on a round trip to rain bombs on the land below. The games are a result of permissions granted the USA in 2004 by the government of Australian Prime Minister Howard. There is some popular opposition building in Australia and the games could impact Howard's chances in this year's elections.

Not to be outdone, Shanghai Cooperation Organization leaders Russia and China will kick off "Peace Mission 2007" in July a joint excercise in the Chelyabinsk region of Russia's southern Urals. Chelyabinsk is an industrial powerhouse and home to Russia's biggest iron and steel complex. Both Presidents Putin and Hu are rumoured to be attending. The games will take place in a region close to the Kazakhstan border around 1,000 miles from the borders of Iran and Iraq. It is believed Russia is pressuring China for a direct military alliance perhaps by joining the Collective Security Treaty Organization. But Beijing appears in no hurry to forge an alliance although a change in Iran could change that quickly.

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February 26, 2007

H.CON.Res.73

The chief Taiwan water carriers in the US House of Representatives have introduced (yet again) a bill to recognize Taiwan as an independent country. The bill, sponsored by Republican 2008 Presidential candidate Tom Tancredo is a Chinese New Year's gift to embattled Taiwan President Chen Shui-Bian and his dismally unpopular Democratic Progressive Party (DPP) which the Republicans continue to school in the worst ways of American style democracy.

The bill has been referred to the House Committee on Foreign Affairs where it will flounder with all the other time and money wasting efforts by the Taiwan foreign lobby influenced Taiwan Congressional Caucus.

The two biggest supporters of this latest buffoonery are Reps. Tancredo and Steve Chabot of Ohio. Chabot is co-chair of the Taiwan group. Rep. Chabot delivered the news of the Bill directly to his constituents in Taipei on his "exciting" Chinese New Year trip that whisked him up and down the island and featured meetings with President Chen and politicos from the American Embassy, er, Institute in Taipei.

In American politics, you get what you pay for. Taiwan has famously lavished trips on Congress for years and powerful Taiwan lobbying groups exert plenty of influence all over the USA.

Steve Chabot's number one source of contributions is PAC money from "ideology, single issue" groups. In the run-up to the 2006 election, Chabot accepted important contributions from two Taiwan issue PACS: the Taiwanese American Action Council" and the "Taiwanese American Victory Fund."

Tom Tancredo is a long time "bomb thrower" for Taiwan and, as regular readers may remember, I had a spirited exchange with congressman Tancredo's office before on the issue of his unwaivering support for Taiwan. As for Tancredo, almost half his money comes from out-of-state and is dominated by unidentified contributions by unnamed individuals. Tancredo's largest single contributer in the 2006 election was the law firm Bartlit, Beck, etc. counsel in Taiwan related cases.

February 15, 2007

China To Buy Chrysler

In a move sure to enrage the "Blame China" crowd in the USA Congress, DaimlerChrysler announed a restructuring of Chrysler indicating that "all options" are open and they are looking for a partner. Almost 10,000 jobs will be lost in the USA adding to the ruinous record of American automakers. In the past year alone, almost 100,000 United AutoWorker jobs were cut, high-wage salaries that will likely never return.

As you heard from us in our very first video report of January 9, 2007, Damilerchrysler signed a joint venture deal with Chery Automobiles of China to sell Chinese cars under a Chrysler brand.

Similar deals are already proving successful such as the Toyota Yaris and Honda Fit, both made in China.

China's auto sector is getting extremely competitive as Chinese carmakers jockey for position into the American market. The industry still needs a lot of consolidation but it is expanding exponentially and China is now awash with cash.

Speculation is that a Chinese company, possibly even Chery, might make an offer Dr. Z can't refuse.

Don't forget, the Chinese already own two famous British brands once the pride of the industry: MG and Rover. The Chinese are adept at accelerating economic and technological growth. It took half a century for Toyota to go from joke (the Crown in 1955) to rival GM in US car sales. An American car company and brand such as Chrysler with dense networks of dealers, suppliers, and services, would be the perfect opportunity for a Chinese auto company to leapfrog ahead.

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