NEO – China’s Global Political Shift



 … by  F. William Engdahl,    … with  New Eastern Outlook, Moscow


The seven golden domes of St. Petersburg
The seven golden domes of St. Petersburg

[ Editor’s note: Brother Engdahl has a timely review of America’s self-inflicted foreign policy wounds from its decision to create a New Cold war. I think Obama skipped that part in his State of the Union.

China’s US trade, and the EU also, was a big engine in China’s massive economic expansion, that no one would have believed possible when its modernization campaign began.

Yes, there have been growing pains, like the poisoning of a significant part of its precious agricultural land along its rivers with heavy metal irrigation.

But Peking also did not divert huge investment capital into military expenditures, but into long term infrastructure investment. Rather than build a global-reaching air force and navy, they bought massive amounts of US debt and had $1.3 trillion of US currency reserves last time I checked.

What was America’s answer to this wonderful situation? Some idiot came up with the Asia Pivot, which should have been named “America’s next foreign policy disaster”.

The continuing economic fratricide in the West has caused China to look for more stable long term partners among its neighbors. Peking seems to have chosen them all.

Their move to decrease exposure to the Western financial settlements monopoly and dollar-dominated trade now proceeds at top speed, as the US and EU have openly declared economic war on the East despite their smiles at world economic gatherings.

"The Red tide is rolling back"
“The Red tide is rolling back”

I have been editorializing for some time on Western leadership quality, which has declined to a point where many in the Intel community are beginning to view it as a national security threat in itself.

Treason within the political class always was a problem, and has become a much bigger one.

As Gordon Duff so bluntly dropped the bomb at the Syrian Counter Terrorism conference, which I was so fortunate to have been able to video, this threat does not come just from the particular countries themselves. Its wellspring was our political elites’ unholy marriage with international crime, in order to secure a permanent source of limitless funding to win political races.

An old term to describe this used to be “a marriage with the devil”, which only needs to be update to “a marriage with the devils“, as there are so many. And the old adage, “we have met the enemy, and they are us”, has never been more pertinent… Jim W. Dean ]


China begins to turn its back on the West ... over it military and economic aggression
China begins to turn its back on the West … over its military and economic aggression

–  First published  …  January 10, 2015  


F. William Engdhal
F. William Engdhal

I have been to China over the years more than a dozen times. I have spoken with people at all levels of policy-making, and one thing I have come to realize is that when Beijing makes a major policy change, they make it carefully and with great deliberation.

And when they arrive at a new consensus, they execute it with remarkable effect on all levels. That is the secret to their thirty-year economic miracle. Now China’s top leadership has made such a policy decision. It will transform our world over the next decade.

On November 29, 2014, a little-noted but highly significant meeting took place in Beijing as Washington was absorbed with its various attempts to cripple and ultimately destabilize Putin’s Russia. They held what was termed The Central Conference on Work Relating to Foreign Affairs. Xi Jinping, Chinese President and Chairman of the Central Military Commission, delivered what was called “An Important Address” there.

A careful reading of the official Foreign Ministry statement on the meeting confirms it was indeed “important.” The central leadership of China has now made official a strategic global shift in geopolitical priorities in Chinese foreign policy.

No longer does China regard its relationship with the United States or even the EU as of highest priority. Rather they have defined a new grouping of priority countries in their carefully-deliberated geopolitical map.

China has taken a distinctly different path from the US
China has taken a distinctly different path from the US

It includes Russia, as well as the entire BRICS’ rapidly-developing economies; it includes China’s Asian neighbors as well as Africa and other developing countries.

To give a perspective, as recently as 2012 China’s foreign priorities in the world, including China); Multilateral Organizations (UN, APEC, ASEAN, IMF, World Bank etc.), and public diplomacy which determines which situations to become engaged in around the world.

Clearly China has decided those priorities no longer work to her advantage. Policy priorities were described in a general framework: Great Powers (principally the USA, EU, Japan, and Russia); Periphery (all countries bordering China); Developing Countries (all lower income countries).

In his address to the meeting, President Xi highlighted a sub-category of developing countries:

“Major Developing Powers (kuoda fazhanzhong de guojia). China will “expand cooperation and closely integrate our country’s development” with the designated Major Developing Powers, Xi declared. According to Chinese intellectuals, these are countries now deemed especially important partners “to support reform of the international order.”

Two can play the economci war game, and 3, 4 and 5
Two can play the economic war game, and 3, 4 and 5

It includes Russia, Brazil, South Africa, India, Indonesia, and Mexico, that is, China’s BRICS partners, as well as Indonesia and Mexico. China has also ceased calling itself a “developing country,” indicating the changed self-image.

Vice Foreign Minister Liu Zhenmin indicated one significant aspect of the new policy when at the conference in Beijing he declared that the “imbalance between Asia’s political security and economic development has become an increasingly prominent issue.”

China’s proposal to create an Asian “community of shared destiny” aims to resolve this imbalance. That implies closer economic and diplomatic ties with South Korea, Japan, India, Indonesia, even Vietnam and the Philippines.

In other words, although the relationship with the United States will remain highest priority because of America’s military and financial power, we can expect an increasingly outspoken China against what it sees as American interference.

"Dollar Boat" diplomacy has replaced gunboat diplomacy, and is sinking
“Dollar Boat” diplomacy has replaced gunboat diplomacy… and is sinking

This was seen clearly in October when the official China Daily wrote an op-ed during Hong Kong’s “Umbrella Revolution” asking, “Why does Washington Make Color Revolutions?”

The article named the Vice President of the US Government-financed regime-change NGO, National Endowment for Democracy as involved.

Such directness would have been unthinkable just six years ago when Washington tried to embarrass Beijing by stirring up violent protests by the Dalai Lama Movement in Tibet just before the 2008 Beijing Olympics.

China is openly rejecting the usual Western criticism on human rights and recently declared a freeze in China-UK diplomatic relations following a meeting by the Cameron government with the Dalai Lama and to Norway over its recognition of dissident Liu Xiaobo. Over the past year, step-by-step Beijing has dismissed Washington’s criticism of its reclamation of its historical claims in the South China Sea.

But perhaps most significant, in recent months, China has boldly moved an agenda to build alternative institutions to the US-controlled IMF and World Bank, a potentially devastating blow to US economic power if it succeeds.

To counter the US attempt to economically isolate China in Asia through creation of a US Trans-Pacific Partnership (TPP), Beijing has announced its own Chinese vision of a Free Trade Area of the Asia-Pacific (FTAAP), an “all inclusive, all-win” trade deal that really promotes Asia-Pacific cooperation.

Elevating Russian Relations

Xi and Putin toast a recent cooperation agreement
Xi and Putin toast a recent cooperation agreement

At present, what clearly emerges is China’s decision to make its relation with Putin’s Russia central to this new priority strategy.

Despite decades of mistrust following the 1960 Sino-Soviet split, the two countries have begun a depth of cooperation unprecedented.

The two great land powers of Eurasia are welding economic bonds that create the only potential “challenger” to future American global supremacy, as US foreign policy strategist, Zbigniew Brzezinski described it in his The Grand Chessboard in 1997.

At a time when Putin was engaged in a full-scale NATO economic sanctions war aimed at toppling his regime, China signed not one, but several gigantic energy deals with Russian state companies Gazprom and Rozneft, allowing Russia to offset the growing threat to her west European energy exports, a life-and-death issue for the Russian economy.

During the November APEC meeting in Beijing, where Obama was given an unmistakable Chinese diplomatic downgrade for the official photo by being told to stand next to the wife of one of the Asian presidents while Putin stood beside Xi. In politics symbols, especially in China carry great import as an essential part of communication.

During the same occasion, Xi and Putin agreed to build a West Route Gas Pipeline from Siberia to China, as an addition to the historic East Route Pipeline agreed with Russia in May. When both are completed, Russia will deliver 40% of China’s natural gas.

At the same occasion in Beijing the Chief of the Russian General Staff announced significant new areas of cooperation between Russian Armed Forces and the Chinese PLA.


Now, in the midst of Washington’s full-scale currency war against the Russian ruble, China has announced its readiness, if asked, to help its Russian partner.

On December 20 amid a record fall in the Ruble to the dollar, Foreign Minister Wang Yi said that China will provide help if needed and is confident Russia can overcome its economic difficulties.

At the same time, Commerce Minister Gao Hucheng said expanding a currency swap between the two nations and making increased use of yuan for bilateral trade would have the greatest impact in aiding Russia.

There are other synergies between Russia and China where both coordinate more closely, including Putin’s decision to meet in Spring with the North Korean President, as well as with India, a long-time Russian ally with whom China has had fragile relations since the 1950’s.

As well Russia has a strong position with Vietnam going back to the Cold War and development by Russian oil companies of Vietnam’s offshore oil discoveries.

In short, for both, once in a harmonized geopolitical strategy, Brzezinski’s worst geopolitical nightmare is taking on a life of its own, thanks, largely, to the very stupid policies of Washington’s neo-conservative warhawks, President Obama, and the very rich, loveless families who pay their bills.

All of these moves, while fraught with danger, signal that China has deeply understood the Washington geopolitical game and the strategies of the neo-conservative US warhawks and, like Putin’s Russia, have little intention of bending their knee to what China sees as a Washingtonian global tyranny.

The year 2015 shapes to be one of the most decisive and interesting in modern history.

F. William Engdahl is strategic risk consultant and lecturer, who holds a degree in politics from Princeton University and is a best-selling author on oil and geopolitics; exclusively for the online magazine “New Eastern Outlook”.

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Jim W. Dean, Managing Editor

Jim W. Dean is managing editor of Veterans Today wearing many hats from day to day operations, development, writing and editing articles.

He has an active schedule of TV and radio interviews.

Jim comes from an old military family dating back to the American Revolution. Dozens of Confederate ancestors fought for the South in the War Between the States. Uncles fought in WWII and Korea. His father was a WWII P-40 and later P-51 Mustang fighter pilot. Vietnam found several uncles serving, a cousin, and brother Wendell as a young Ranger officer. His mother was a WWII widow at 16, her first husband killed with all 580 aboard when the SS Paul Hamilton, an ammunition ship with 7000 tons of explosives aboard, was torpedoed off the coast of Algiers.

He has been writing, speaking and doing public relations, television, consulting and now multimedia work for a variety of American heritage, historical, military, veterans and Intel platforms. Jim's only film appearance was in the PBS Looking for Lincoln documentary with Prof. Henry Lewis Gates, and he has guest lectured at the Army Command and General Staff School at Fort Gordon.

Currently he is working to take his extensive historical video archives on line to assist his affiliated organizations with their website multimedia efforts, such as the Military Order of World Wars, Atlanta, Sons of the American Revolution, Sons of Confederate Veterans , Assoc. for Intelligence Officers, the Navy League, Georgia Heritage Council, National Memorial Assoc.of Georgia.

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  1. Great Intro by Jim Dean and a great piece as usual by William Engdahl… always enjoy reading Engdahl … he knows what he is talking about …

  2. Bill Engdahl’s report and analysis are consistent with what the U. S. ex-patriot forecaster Jim (I’m not an economist”) Willie has been reporting for some time based on his global intel sources. JW holds a Ph.D., but it’s in statistics, not economics, so he has not been forced to kiss the Keynesian ring. His reporting on Russia, Ukraine and Syria has also been consistent with intel reports of VT. Among other things, Willie has reported that the City of London and Frankfort are competing to be the major financial hub for underwriting yuan-based bonds in Europe, and Frankfort is his projected winner. Thanks for this Engdahl piece; it’s a winner, too.

  3. Couple of days ago there was a big uproar in romanian television about the swiss frank. Banks here dont lend out money in Euro or Dollars anymore, only swiss frank, claiming thats stable and that the borrowers are only eligible for a loan in swiss frank. Now the swiss frank gained huge value in a matter of few days and now the borrowers are screaming hell. Was wondering whats going on untill i came across Rts report. Im guessing this is one of Chinas many moves.

  4. It will be interesting to know what is being played behind the scenes. China has successfully attracted huge investment from all major corporations of the world except the major arms manufacturers of the United States. Such commitment by the corporations must have been made with equally huge commitment from the Chinese side. These gigantically sized investments have been the real engine behind China’s spectacular growth for the last 30 years. But how have all these come about? Did Henry Kissinger’s game changing visit to China in 1971 really serve as the first step to open up China’s market? This article says nothing about those interesting points. Instead it reports about events that have been common knowledge to all. Sorry, but it is not a geopolitical analysis, far from it…

  5. An excellent article which lays bare the complete ineffectiveness and failure of the USG’s China Policy which of course has been hijacked by the Organized Crime Cabal that uses its “owned” elected officials to do its own bidding and care nothing about America the Republic or We The people. Try finding this kind of analysis anywhere else, only VT published stuff this good.

  6. Around every 250 and 500 years world systems of culture and civilization undergo a major change. Around 500 years ago (1517) there was a shift in Western Civilization from the Mediterranean to primarily the Atlantic regions. In the period of 1756-1764 there was a dramatic shift to London.

    We live in an electromagnetic era where devices based upon waveforms are pervasive. Cycles are just another waveform and exist in everything from climate to real estate prices. For an example of a cultural and civilization cycle see

    This is a BIG deal. This is a change that only comes around every 250 and 500 years.

  7. the “WEST” has Always Had Some Stereotypical LIES Lying Around , such as ;

    “Israel” has existed Forever and will Remain so ”

    ” The #World has Always been this WAY and it Will Always Remain the Same , NOTHING U Can do About it ”

    ” EveryOne is A Cheat Just like the Jewish Zionists & All Governments Do the SAME ”

    #ALL#BULLSHIT , WAKE up , YES There are Respectable ” Yehudi” in #China #Beijing BUT Never Count on Those to be #anti-Human like these Khazars

    the Stupid {censored} {censored} #Khazar are at the END of the Burning Rope that They been Dearly Hanging on to ………………

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