Saturday, January 30, 2010

Chinese Fire Drill

China is pretty pissed over America's announcement Friday that we're selling $6.4 billion in arms to Taiwan, and these days the Chinese can hurt us in the wallet far easier than they can hurt us militarily.
China suspended military exchanges with the United States, threatened unprecedented sanctions against American defense companies and warned Saturday that cooperation would suffer after Washington announced $6.4 billion in planned arms sales to Taiwan.

The response to Friday's U.S. announcement, while not entirely unexpected, was swift and indicated that China plans to put up a greater challenge than usual as it deals with the most sensitive topic in U.S.-China relations.

"This is the strongest reaction we've seen so far in recent years," said Stephanie T. Kleine-Ahlbrandt, northeast Asia project director for the International Crisis Group. "China is really looking to see what kind of reaction it's going to receive from Obama on this."

China's Defense Ministry said the arms sales to self-governing Taiwan, which the mainland claims as its own, cause "severe harm" to overall U.S.-China cooperation, the state-run Xinhua News Agency reported. Vice ministerial-level talks on arms control and strategic security were postponed.

The warning comes as the U.S. seeks Beijing's help on issues including the global financial crisis and nuclear standoffs in North Korea and Iran. Tensions were already high after recent U.S. comments on Internet freedom and a dispute between Google and China, as well as President Barack Obama's plan to meet with Tibetan spiritual leader the Dalai Lama this year.

China's Vice Foreign Minister He Yafei told U.S. Ambassador Jon Huntsman that the sales of Black Hawk helicopters, Patriot Advanced Capability-3 missiles and other weapons to Taiwan would "cause consequences that both sides are unwilling to see," a ministry statement said.

The Foreign Ministry also threatened sanctions against U.S. companies involved in the arms sales, which hasn't happened in past sales to Taiwan.

"Our action regarding Taiwan reinforces our commitment to stability in the region," U.S. State Department spokesman P.J. Crowley said Saturday. "We know China has a different view. Given our broad relationship with China, we will manage this issue as we have in the past."
It's the whole "sanctions against U.S. defense contractors" that is getting people's attention over this.  That's a card China's not been willing to ever play before, but now they clearly see they can go straight after us where it hurts and that they aren't afraid to do so.

Things are getting interesting:  Chinese "May you live in interesting times" interesting.

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