Riding the Dragon

From the Norwegian Coast Guard to Israeli drone technicians, 8 surprising winners of China's massive military buildup.

BY TREFOR MOSS | MARCH 7, 2012

Even by the hot-money standards of China's economy, defense is an exceptionally lucrative growth industry. The country's 11.2 percent defense budget increase announced March 4, which gives the People's Liberation Army (PLA) $106 billion to spend in 2012, is merely the latest in a long succession of generous budget hikes that have doubled China's military resources every six or seven years since the early 1990s.

This bonanza has produced many winners within China, from the average soldier to domestic defense contractors to ordinary citizens who feel China's sense of pride being restored. Even President Hu Jintao will feel a little more secure in his command of the military after signing off this year's $11 billion PLA pay raise.

Yet some beneficiaries of Beijing's military largesse can be found far beyond China's shores. Some are allies and suppliers that stand to gain directly from the trickle-down of PLA procurement and overseas operations. Others represent the counterbalance of governments wary of China's military ascent. Here are just eight of the unintended passengers on Beijing's defense budget escalator.

Ed Jones/AFP/Getty Images

Feng Li/Getty Images

 

Trefor Moss is a Hong Kong-based journalist and a former Asia-Pacific editor at Jane's Defence Weekly. He can be followed on Twitter @Trefor1.

BETALOVER

6:27 PM ET

March 7, 2012

Not insightful in some parts

First, if China's military buildup is massive (the USA’s gargantuan), it has not been sudden, certainly not due to Taiwan or dispute in the South China Sea. 11 percent is in line with the Chinese growth in GDP so the percent GDP spent on defense is about the same.

Second, the Philippines and Vietnam cannot expect to outspent or outgun China. The populace is far more fervent than the government for these countries. In fact, governmental relation with China is manageable as China has declared that it will not be the first to use force or the threat of force. China makes claims on the SCS but has indicated the willingness to negotiate. War is not the way out as any war will degrade the value of the prize sought. China will use its economy as the leverage; there is nothing small countries can do as they need China's economy.

Third, Taiwan’s vulnerability is not naval. Subs are not the critical weapon. The most vulnerable for Taiwan is its abjectly exposed and vulnerable energy linked. The mainland will just target oil-tankers leaving Taiwan after a few more decades. Nothing significant and abrupt is going to happen across the Taiwan Strait in the next ten years at the very least. The mainland is not ready but when it is there will be nothing Taiwan can do when the time comes afterward. The key is that Taiwan will never have the courage to start a war. Yes, if Taiwan does not start a war, it will have to negotiate. With very little force, the mainland will be able to profoundly affect the Taiwan economy by creating increasing levels of energy security for long term business planning on the island.

The USA will not start a war for Taiwan, as the USA does not and will never know what the people of Taiwan really prefer, negotiation for a niche within China or war for the mere chance of independence if it wins after destruction or one country one system if it loses after destruction. Taiwan will choose to negotiate for peace and prosperity and give up on any “right of self-determination” when the time comes, may be by 2040.

The USA will do nothing, not even non-military interference that will just lead to war in another decade or two. Hong Kong II is in the offing, not more subs for Taiwan, which will be useless as Taiwan will not have the courage to start a war with them.

 

JUNGHOKIM

8:07 PM ET

March 7, 2012

How can the list be complete

without including South Korea and Japan's massive naval buildup as a result of Chinese emergence?

Strange that something as ephemeral as a minor budgetary bump in the Norwegian Coast Guard gets more attention than the Japanese/Korean ambitions for blue-water navies, to hedge against Chinese dominance of their main trade routes down the sea.

 

IAN GRAY

8:12 PM ET

March 7, 2012

Drones?

What a joke. All that drone technology is originally from the US, stolen by the zionist supremacists and actually sold to China and Russia.
http://www.nytimes.com/1993/10/13/world/israel-sells-arms-to-china-us-says.html

http://www.youtube.com/watch?v=wzr_hRsSuGM

 

BING520

1:43 AM ET

March 8, 2012

Chinese Military Buildup

I am a Chinese, and have never believed Chinese military buildup could pose a threat to anyone. Communist Regime is dishonest with Chinese people, with history, and with itself. CCP lie over and over again and pretend we don't know anything and accept their lies.

The greatest threat to China and to Chinese is NEITHER America NOR any of our neighbor. The threat is from within. Most people are disgusted by the regime and CCP. Our discontent and disgust are wide and deep. We all know CCP is inflaming nationalistic sentiment to divert our attention. People can't help ourselves. I got into this mode sometimes, but few really want to shed blood for this regime and CCP. Yes we want to compete to be as great as USA, but not under the flag of CCP, and not in an armed conflict.

 

FLEM

1:55 PM ET

March 10, 2012

I fully agree with the

I fully agree with the comment above. The greatest threat to China and to Chinese is NEITHER America NOR any of our neighbor. The threat is from within. Most people are disgusted by the regime and CCP. ...but time will tell. frauen

 

CAROLINES

4:25 PM ET

March 11, 2012

Anyone wanting to do business

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The help our humble little business to set up there and are gradually expanding with their continued backup and know-how.

 

THUSALWAYSTOGENIUS

11:50 PM ET

March 11, 2012

Ambassador of Death: Attack of the Drones

In our world and our time, Drones (Unmanned Aerial Vehicles), which were experimentally manufactured in 1916, were first armed in order to attempt to kill Osama bin Laden.

They were and still are proven to be unreliable due to the fact that their target abilities are far from surgical precision, they are unstable when flying in less than perfect weather and they crash very often. In addition, loss of communication with these drones is one of the many technical issues that lead to their sub par performance. After consideration, President Clinton decided to shut down the project.

Later on, Bush reopened the project, refinanced it and made used of these drones 44 times, despite the acknowledgement of the performance reports. The attacks evidently lead to casualties; bodies were often hidden and buried by troops on the ground.

However, for now, most drones aren’t exploited for military purpose. They are mostly used for surveillance, reconnaissance, news reporting, border patrolling, intelligence and inspection.

As such, most industrialized countries such as China, France, United Kingdom, Germany, Russia, India, Canada, Australia, Pakistan, Japan and Brazil do “harvest” drones. Some of the super drones have even been baptized. Israel named theirs Heron; the United States upgraded their Predator with the Avenger; and, last but not least, Iran named theirs Karrar, which is Farsi for Striker. President Ahmadinejad infamously nicknamed his Persian Menace: the Ambassador of Death.

Episode X : The Persian Menace

Do not let the Ambassador of Death mislead you into being alarmed. The Ambassador of Death is not Darth Vader’s vehicle of choice. This drone is intended for, and I quote: “Peace and Friendship“. Logically, why should we be nervous over Iran since they have not initiated any attack towards any other country in over 200 years? And yes, the Persian Gulf War has been taken in consideration when making that statement.

That being said, it evidently is not the case when shifting our attention towards the previously mentioned pro-drone countries. Over 239 drone strikes were ordered under the Obama administration. Many of these attacks were carried out against the advice of U.S. Officials and Diplomats. In fact, that tendency has led the Obama Administration of being responsible for at least 85% of drone strikes around the world, particularly in Pakistan.

This is the same Obama that won the Nobel Peace Prize in 2009. Even then, his addition seems unsuited and undeserved, when one remembers past laureates.

As mentioned in a previous article of mine, the five countries (United Kingdom, United States, France, Russia and China) that have secured permanent United Nation seats are also the top global arm dealers. These same countries have been accusing Iran of secretly building nuclear weapons and pressuring them to halt their nuclear program.

It is important to understand or remember that the U.S. did not only assist but also coordinated the launch of the Iranian Nuclear Program in the 50s. This program was maintained for decades, until the 1979 revolution.

This support was even symbolized and categorized as the “Atoms for Peace” Program, implemented in 1953 by Eisenhower. Let’s acknowledge that a program would not be complete without an appropriate inaugural speech. And where else but at the United Nation General Assembly can a prestigious one take place? In this case, the cleverly named “Atoms for Peace” speech quickly followed Eisenhower’s “Chance for Peace” speech.

All this backing did result in the inception of Iran’s first nuclear power plant, which was completed and activated thanks to Russian assistance, in 2011.
The irony! The Atoms for Peace Program’s main principle was to reassure the world during the Cold War (between 1945 and 1991). Sarcastically, the Russians presided over its closing ceremony.

As a counter attack, the International Atomic Energy Agency (IAEA) board, nations and multinational entities officially reprimanded and sanctioned Iran. This judgment was internationally supported by detailed tangible and evidence. The Iranian authorities, or should I say THE Iranian Authority, Ayatollah Seyed Ali Hosseini khamenei, has not yet been successfully coerced by the international pressure. The U.N. inspectors can come and go as often as necessary, it’s all in good faith, from both parties.

Remember, it’s a ll about Peace and Friendship.

“Look up in the sky, it’s a bird, it’s a plane… No, it’s a drone!”

The Empire Will Strike Back. It is just a question on which Empire will strike first.

Guess who’s building nuclear power plants now?

READ MORE AT : THUSALWAYSTOGENIUS

 

CARY PALMIOTTO

4:48 AM ET

April 5, 2012

Development in China

I think that, recently, China have developed so quickly both economy and military. There is a question that, With the quick development such that, will China develop faster than American?. Besides, China military is developing modern weapon and invade some countries around such as Vietnam, Philippine... by many unreasonable policies. United Nation need to take part in and take care of this problem. Preventing the reasonable action of China government.