US Trade with Russia & China: The Imbalance

In 1973 David Rockefeller went to China and came back writing of what he saw of China’s “social experiment” being one of the “most important and successful in human history.”[17] His Standard Oil soon obtained exclusive rights to oil exploration, and his Chase Manhattan Bank quickly followed.  When in 1978 Taiwan was formally dumped, America’s first Ambassador to Red China was Leonard Woodstock, an early member of David Rockefeller’s Trilateral Commission. On the heels of Rockefeller went Coca Cola, Boeing, and Mitsui-Petro Chemical, all affiliated with the Trilateral Commission; starting a momentum that has made China the universally recognized juggernaut of world capitalism.[18]

What has developed between the USA and China is a symbiotic economic relationship that exists neither between the USA and Russia nor Russia and China. Niall Ferguson describes what he calls the “growing interdependence” between the USA and China:

Far from being strategic rivals, these two empires have the air of economic partners. The only question is which of the two is more dependent, which, to be precise, stands to lose more in the event of a crisis in their amicable relationship, now over thirty years old.[19]

While China has been heralded as the power that will be co-equal if not surpassing the USA, leaving Russia in a subordinate position, Russia has the upper hand in economic relations with China, and “will continue to sell oil and weapons on Russian terms.”[20] Trade relations, while heralded by both states, are inconsistent. Of particular significance, Stratfor has forecast that, “competition and mutual suspicion would prevent the rejuvenation of a strategic partnership between the two Eurasian powers. Moscow’s determination to economically integrate with Western Europe also is driving a wedge between the two.”[21] The European Union, not China, is Russia’s main trading partner, and the EU is the most important investor in Russia, based on the 1994 “Partnership & Co-Operation Agreement,” with the aim of an integrated market.[22] In terms of US goods trade, Russia stands at 24th; US foreign direct investment (FDI) in Russia (stock) was $21.3 billion in 2009 (latest figures).[23] However, China is the USA’s second largest goods trading partner, and US foreign direct investment (FDI) in China (stock) was $49.4 billion in 2009 (latest data available).[24]

To what extent, then, is there a geopolitical alliance between Russia and China that is genuinely rooted in a common outlook? Who or what are their common “outer enemies”? The fact seems that, despite the occasional verbiage on the world stage about “tensions” between the USA and China, or future possibilities of geopolitical rivalry over oil supply routes, the power distrusted by both is Russia, and Russia in turn deeply distrusts both.

Russia & USA

The rapport between the USA and Russia was very brief: the interregnum of Gorbachev and Yeltsin, followed by a renewed “Cold War” with the rise of Putin. Gorbachev is today feted as a celebrity by the globalist elite for his having dismantled the Soviet bloc, with the prospect of re-colonizing Russia; a project that had been abruptly halted by Stalin. Gorbachev’s 80th birthday celebration at the Royal Albert Hall, March 2011, was billed for “The Man who Changed the World.”[25]

Ynet News, one of the large Israeli media outlets, stated of the Gorbachev festivities that among the attendees were Israeli President Shimon Peres, and unnamed “oligarchs.” Israel’s Shimon Peres was a featured guest of the event, Ynet News reporting: “In his speech, the Israeli president said Gorbachev fought to regain what his country had lost to communism, adding that the former Soviet leader changed history.”[26]

However, despite the flurry of jubilation up until the drunken clown Yeltsin, Russia never could be relied upon to stick to the script, and the Council on Foreign Relations laments that “Russia is heading in the wrong direction.”[27] One of the CFR recommendations is to directly interfere with the Russian political process, urging US Congress to fund opposition movements by increased funding for the Freedom Support Act, in this instance referring specifically to the 2007-2008 presidential elections.[28] Authors of the CFR report include Mark F Brzezinski,[29] who served on the National Security Council as an adviser on Russian and Eurasian affairs under President Clinton; Antonia W Bouis, founding executive director of the Soros Foundations; and James A Harmon, senior advisor to the Rothschild Group, et al.

The high level policy makers of the globalist establishment, far from seeing China and the USA as rivals, see them as the linchpins of the “new world order.” A report carried by Forbes states:

The US and China are not in a competition to dominate the world, former Secretary of State Henry Kissinger said during a meeting in Beijing on Tuesday.

“Such competition is meaningless,” Kissinger was quoted saying in Tuesday’s China Daily. Regarding the South China Sea issue, Kissinger said that freedom of navigation in the area, in which the US has claimed national interests, is a separate issue apart from the territorial disputes between countries in the region.

“The US’ primary interest is a good relationship with China, not provoking difficulties with it, and the US is not stirring up the Philippines and Vietnam,” he said.

…The controversial Kissinger was in China for a series of public and private meetings, and also took time-out to promote his book, On China.

“What I tried to do with my new book is to explain…what the Chinese think about the world,” he told China Daily. “That’s the best I could do in the spirit of building confidence between the two countries,” he said.[30]

The joint Sino-American project is noticed within Russia. Alexander Lukin, Director of the Center for East Asian and SCO Studies at the Moscow State Institute of International Relations, stated in a scholarly paper:

Two U.S. foreign-policy pundits, Zbigniew Brzezinski and Henry Kissinger, have recently come out with programs for solving global problems in the new situation. In fact, they have proposed to the newly elected U.S. president, Barack Obama, changing the U.S. foreign policy. The positions of the two policymakers do not fully coincide; yet they agree on one thing: a stable future of the world depends on whether or not the United States and China are able to put aside their differences and launch constructive cooperation between themselves.[31]

Lukin also cites an article by Kissinger where he proposes a Sino-US alliance to shape the global system, stating that the USA must be wiling to compromise in order to display its goodwill to China, going so far as to shape China and the USA “into a design for a common destiny, much as was done with trans-Atlantic relations in the postwar period.”[32]

Lukin refers to the anti-Russian motivation that continues to be a primary factor in the thinking of Zbigneiw Brzezinski, as one of the major theorists for US hegemony, Lukin writing:

The two veteran policymakers build their reasoning on different logic. Kissinger follows up on his own geopolitical concepts, while Brzezinski apparently remains committed to the dominating dream of his life – creating a widest possible anti-Russian coalition. Yet, for various reasons, there is much in common in their recommendations.[33]

Lukin believes that there are various scenarios such as protests from human rights activist in regard to China, that make a Sino-US alliance of the type proposed to Brzezkinski unlikely. His reasons for objections seem naïve. However, Lukin does make an interesting comment about the implications of such a shift in alignments, one being a realignment between Russia and Europe, which he states is a desirable project for Russian policy-makers:

Finally, geopolitically, a U.S. shift towards China would create favorable conditions for the fulfillment of a daydream of many politicians in Moscow: the separation of Europe from the U.S., its rapprochement with Russia, and the creation of a Europe from the Atlantic to the Pacific Ocean. Realistically minded policymakers in Washington are unlikely to be delighted by the prospect.[34]

Despite his belief in the “unfeasibity” of a Sino-US pact, Lukin states of high-level relationships that will at least likely bring the two closer:

Nevertheless, a certain shift in Washington from the ideologization of its foreign policy to pragmatism would inevitably lead to closer cooperation with China. Circles close to the administration are actively discussing the idea of establishing a U.S.-Chinese cooperation commission, to be led by Vice President Joseph Biden and Premier Wen Jiabao (similar to the former U.S.-Russian Albert Gore-Victor Chernomyrdin commission). The two countries have agreed to broaden their bilateral strategic dialogue on economic issues and include security issues in it. They have also announced plans to start discussions on global warming. In addition, shortly before Clinton’s visit, they declared the resumption of consultations between their defense ministries, which had been suspended by China last year after the George W. Bush administration announced plans to sell large quantities of armaments to Taiwan.[35]

Both Kissinger and Zbigniew Brzezinski continue to serve US Administrations, and Brzezinski has served as President Obama’s foreign policy adviser. Brzezinski stated when Russia invaded Georgia:

Fundamentally at stake is what kind of role Russia will play in the new international system. Unfortunately, Putin is putting Russia on a course that is ominously similar to Stalin’s and Hitler’s in the late 1930s… Not only the West, but the rest of the international community, must make it clear that this kind of behavior will result in ostracism and economic and financial penalties. Ultimately, if Russia continues on this course, it must face isolation in the international community – a longer range risk to its own well-being… The question is not what obligation the West may have at the moment. The question is about our longer term interest. If a Russia, which misjudges its power and its capacities embarks now on a blatantly nationalistic and imperialistic course, we will all suffer.[36]

It is notable that Brzezinski advocates a new Cold War containment of Russia in its own spheres of interest by the “international community,” and that there is concern about Russia as a nationalistic and imperialistic state that does not fit into the globalist schemes for a “new international system.” Brzezinski rightly sees Eurasia as pivotal in world power politics. Russia’s influence over Eurasia is therefore of primary concern to Brzezinski, and to contain that influence he advocates a Sino-American alliance. He writes of the volatile situation in Eurasia:

In the western periphery of Eurasia, the key players will continue to be France and Germany, and America’s central goal should be to continue to expand the democratic European bridgehead. In the Far East, China is likely to be increasingly pivotal, and the United States will not have a Eurasian strategy unless a Sino-American political consensus is nurtured. In Eurasia’s center, the area between an enlarging Europe and a regionally rising China will remain a political black hole until Russia firmly redefines itself as a post-imperial state. Meanwhile, to the south of Russia, Central Asia threatens to become a cauldron of ethnic conflicts and great-power rivalries.[37]

It can be seen from the above passage that Brzezinski is recommending:

• The further ongoing subversion of the former Soviet bloc states that has been taking place via the so-called “velvet” and “color revolutions” orchestrated by the Soros Open Society networks, Freedom House, National Endowment for Democracy, etc.

• Ensuring that Russia is limited in its relationship with Europe.

• Aligning with China in containing Russia.