The three protectionist conditions and China's "Indigenous Innovation" are:
1. The American company loses control of the enterprise when granting Chinese minority partnership (the power to get access to any or all of the information about the venture, including trade secrets) (p. 81).
2. Forced technology transfer: American companies must surrender their intellectual property to their Chinese partners as a condition of market entry.
3. Forced export of Western research and development facilities to China
(lessons from Evergreen Solar, General Electricity as typical examples)
Using its economic power, China has digested others' intellectual property, and has gradually transformed itself from the factory of the world to an advanced economy.
Chapter 7 discusses how China has built up its colonies across Africa, Asia, and Latin America, locked down the world's major natural resources, locked up new markets, and exported Chinese citizens to its satellite states (p. 98). In Peru Chinese colonialists bought Mt. Toromacho, a copper treasure, for $3 billion in order to make a profit of 2,000% from this investment. In the mean time, Peruvians living on the mountain continue to suffer from hunger, illiteracy and poverty (pp. 94-95). China follows amoral foreign policies, offering repressive regimes (in Sudan, Liberia, Nigeria, for instance)access to anything they want(p. 104).
Even Australia, South Africa and Brazil are running large trade deficits with China and succumb to its checkbook (pp. 105-107).
Chapter 8 (Death by Blue Water Navy) explains why the fact that China's Military Power Rises Should Raise Red Flags (pp. 111-126). It reveals how China has impressively been developing its army, air force and navy capabilities.
Chinese military's future goal is to secure naval supremacy in the western Pacific waters inside the second line of defense from the Japanese archipelago to Guam Islands and Indonesia. After that Chinese military will vie with US naval forces in the Indian Ocean and in the entire Pacific regionAmerica's growing military problem today is that the biggest auto plants are now no longer in Detroit, but in Chendu, Jilin, Nanjing, Wuhu; the busiest shipyards are in Bohai, Dalian, Fujian, Jiangan; and Chinese mills and smokestacks now churn out ten times more tonnage a year than the American steelmakers in Chongqing, Hebei, Shanghai, and Tianjin(p. 125).
Asahi Shimbun (p. 118)
China's two-step military preparation to defeat the US power: 1. pirating in order to develop credible weapons systems, 2. building them in sufficient quantities to overwhelm its opponent's technologically superior forces (p. 126).
Chapters 9 and 10 discuss the threat of China's growing modern espionage and asymmetric warfare. In Sun Tzu's words, "One spy is worth 10,000 soldiers."(p. 131). Recently,Li Fengzhi has said, "Spying is war without the fire."
He was an analyst for China's Ministry of State Security who slipped quietly into the US as a graduate student at the University of Denver in 2003, pursuing a Ph.D in international politics. He later chose to defect to the USA (p. 130).
China's spy network seeks to acquire new technologies, trade secrets and processes, vacuuming bits of information from research facilities, sensitive national laboratories, Silicon Valley start-ups, and defense-related companies (p.131).
China's cyber espionage and virtual spymasters are now using a variety of digital honeypots to hijack data. Thus, Chinese computer hackers pose a greater threat. Major goals of cyber espionage are:
1. disrupting the operations of Western systems by vandalizing websites, and overwhelming the servers with a "denial of service" attack;
2. stealing valuable information;
3. corrupting data, causing significant downstream damage; and
4. taking control of system that control physical assets.
China's cyber spies lure their social networking friends into visiting photo-sharing sites. Once hooked by this bait, the American firm employees' computers were infected with a viral code which forwarded their user names and passwords to the hackers, allowing them to get access to valuable corporate data.
China's DNS (Domain Name Services/ the phonebook of the Internet)manipulation projects its censorship beyond its borders. Incomplete DNS data is used to block Internet users to get access to Websites the Communist party has unfriended (p. 145). China's censorship is increasing as China tries to claim more administrative authority on the Internet.
(To be continued)
Sources:
Death by China
Available at:
https://docs.google.com/viewer?a=v&pid=explorer&chrome=true&srcid=0B23GcuCxvQVBNjhjNGE4NjctZGZmNy00YTNmLWFlYmUtZjY3OTc3OThhNjU4&hl=en_US&authkey=CIuC07sC
Video with Author Greg Autry
http://deathbychina.com/introvideo.html
URL of Intro
http://deathbychina.com/
Baiqiao Tang’s Blog
http://www.deathbychina.com/blog/?p=92
