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China Readying Its Armed Forces for Military Engagement

War with China
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Just last week, President Xi Jinping addressed his top officials, proposing that China’s state of military readiness must be accelerated in preparation for potential conflict.

Given the state of global contention surrounding the nation, from territorial disputes in the South China Sea to numerous tensions with the US ranging from trade to Taiwan, China may be taking a proactive, if not pre-emptive, role in identifying key trigger points that may render political disputes with the military.

According to Xinhua, China’s official state-run news agency, Xi informed his top brass that the risks China is facing have significantly increased and that further actions are needed to stabilize China’s development and overall security:

"The world is facing a period of major changes never seen in a century, and China is still in an important period of strategic opportunity for development."

In short, Xi proposes that China’s military forces must be ready to wage war in a new 21st-century environment. This means that armed forces’ reaction capacity must be accelerated, joint operation capabilities must be upgraded, and new types of combat forces, tactics, and strategies must be developed.

Xi also reiterated the long-standing belief that China has the right to use military action to “reunite” with Taiwan, dismantling the latter’s state of independence from the mainland to which it belongs.

What’s remarkable is the timing of these comments, occurring just days after President Trump had prolonged his commitment to Taiwan by signing into law the Asia Reassurance Initiative Act.

As we’ve reported before, these moves constitute the “military” aspect of a much larger geopolitical and macroeconomic strategy.

On the macroeconomic front, we can ascertain China’s discreet maneuvers against the US dollar, particularly their massive gold reserve purchases toward establishing a new gold standard; a move that can ultimately displace the US dollar’s reign among China’s current and prospective trade partners.

Unless tensions between the US and China escalate to extremes beyond matters economic, the likelihood of military conflict between the two nations appear unlikely.

But conflict on the economic front is a current reality. And preparation for a full-scale assault against the US dollar is in the works. In other words, such an attack is not a matter of if, but when.

Fortunately, this is a situation in which individual Americans can exercise a degree of control--by using the same weapon that’s being used against the dollar...that is: BUYING GOLD. 

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All articles are provided as a third party analysis and do not necessarily reflect the explicit views of GSI Exchange and should not be construed as financial advice.

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