Friday, November 18, 2011

An Unrelated Twist on Decoupled Economies, USA vs. China

"...[I]n the event of a confrontation with the United States, China’s entire supply chain and overseas investments are helpless hostages."

This is something I (and probably a lot of us) had not previously considered. China is becoming the manufacturer of all things for all nations, but they are not a country rich in natural resources. So they are not only a leading exporter of finished goods, they are an importer of raw material and (as in the linked story) energy. If China were to start some sh*t and get the USA involved, the USA and other nations would possibly be able to take steps to completely cripple the Chinese economy, causing domestic revolt in China, by preventing access to key resources in foreign nations where China gets their stuff to make your stuff.

So if China acts up, China loses almost automatically*? Wow.

Hat tip: Instapundit

*assuming competent response by the other players on the world stage, that is!

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