If America Was the Arsenal of Democracy for the Allies in WWII, Then What to Think of The Rise of China?

I voted for and support President Trump for reelection in 2020 because, I see him as the first President in recent years to recognize and act on reversing the De-Industrialization of America. The graphic below shows the ranking of world manufacturers. This in itself is not troubling. However, as you read later in this document, the rise of China may not be done solely for Humanitarian purposes and to lift 1.5 billion chinese from poverty. The Chinese 100 year plan 1949-2049 serves the CCP First.

The Rise of China since 1950

In 1950, China was not a significant manufacturer of automobiles when compared to other nations. I took screen shots of a you tube video presented by USCB which showed the changing world manufacturing of automobiles from 1950-2020. This video is on you tube.

Then, by the year 2000, China progressed to rank #8 manufacturing just short of 2 million vehicles per year and more than the UK.

China is admitted to the WTO (World Trade Organization) in 2001 and China welcomes western Industry to setup manufacturing facilities in China.  Yes, we gave much of our manufacturing expertise to China, but what they were not given, they took. The automobile production which is mostly for Chinese consumption, is an index of economic growth and increased demand for steel, aluminum, copper and other materials. 

The astounding production year 2016 is shown below and still increasing. China is now building more than 2X the number of motor vehicles than we do in America. 

Some may say, “so what?”  They have 1.5 Billion people in China and they need a lot of cars.  This is true. Yes, they do need a lot of cars, but let’s take a look at China’s Published Grand Strategy:

Well, the supply chain for building motor vehicles is much the same as for military equipment. 

Remember recent history of America in WWII when FDR referred to us as the “Arsenal of Democracy” Steel, aluminum, copper, electronics, ships, planes, tanks, guns, etc.

 Below is the World Steel Association report from 2018 steel production. (World Steel Association: https://www.worldsteel.org/steel-by-topic/statistics/World-Steel-in-Figures.html)

I have seen these numbers, at least the percentages, in other articles and magazines. Fact: China produces over 50% of the World’s steel and Aluminum. 

On aluminum, in 2016 I was preparing for a talk and copied the aluminum production from the Aluminum Institute web site. This talk text is included on this Blog in 2016. References for World Aluminum Production are on the web at: (https://alucycle.world-aluminium.org/public-access/) Today they have updated the site to show a Sankey Diagram of aluminum flows by country and including recycling. 2018 data, International Aluminum Institute diagram is copied immediately below: 

The photo credit on the aluminum ingots on the dock is from the Wall Street Journal which wrote quite a bit about how China was taking over the world aluminum production in 2016. It began about 2002 from the chart above (no longer on the IAI website)

This was of particular interest to me because I did a great deal of work for ALCOA, all around the world, every year from 1977 to about 2012. I saw first hand how their business was shrinking from many plants all over the world and in 2006, about 125,000 employees, now drastically downsized. Thanks to China dumping of metal ingots on the world market.

Usually, I write about energy and electric power generation. That was my career for 50+ years. The observation I made during those years of world travel was that economic prosperity and energy use usually parallel each other. That is, it takes a lot of energy to create manufacturing  jobs and to produce primary metals. China after entering the WTO then began building new power plants at an incredible pace. They built more coal fueled power generation capacity in twenty years than America did in the preceding 100 years. This is not an exaggeration. The coal consumption data as compiled by the EIA (U.S. Department of Energy, Energy Information Administration) is copied below. China uses about 5X America’s coal consumption for electric power generation.

China’s “Belt and Roads Initiative” is worldwide. It includes gaining control of ports and natural resources all over the world, including Africa and South America. I personally was involved with a meeting with a law firm in West Virginia in 2008 and China was attempting to purchase WVA metalurgical coal mine. As you will see below, they have secured a foothold in American Real-Estate in the Mariana Islands.

Not only does China consume a lot of coal for power generation, but they have exported their coal plants at extremely cheap prices to other countries of the world. This improves their manufacturing economy, employs millions of workers at home and expands their reach. It also works toward the economic harm of America (and all western countries) through unfair competition.

Here is one example of a coal plant being built in Dubai with a joint venture of Chinese investments and UAE. Link: https://www.nsenergybusiness.com/projects/hassyan-coal-fired-power-plant-dubai/

China is exporting their power generation equipment with components manufactured in China, all over the world. America once did this through USAID. 

Below is from a lecture by a retired General who had personal experience in command of Pacific Defense installations.

So, what is the economic activity that China is engaged in, in the South China Sea and Western Pacific?

Bloomberg News of Casino built in Saipan by China: https://www.bloomberg.com/news/features/2018-02-15/a-chinese-company-has-conquered-a-piece-of-america

Some would say, so, China built a Casino on American soil in Saipan. So what? Also in the news if you dig deeply, is reference to China building military bases on manmade islands in the South China Sea and Pacific.  Here are some satelite photos:

Energy and Economic Prosperity are inter-related. The World uses about 100 million barrels of oil per day. Much of this oil is transported to Asia through the Straits of Malacca.

So, if I get back to the matters of manufacturing, energy and economic prosperity, then a picture can be drawn of the rise of Chinese influence and control and the reduction of American influence and control. The economic piece of the aggression is ceding of the western Free World’s Manufacturing might to China. In doing so, it provides a revenue stream to fund their military buildup. One estimate of the projected military resources in 2025 is shown below. The red images of planes, missles, ships, submarines are China’s. The blue represent America’s. 

In my opinion, the return of manufacturing to the U.S.A. is important. Remaining energy independent is important. Keeping America’s military strong to continue Ronald Reagan’s legacy of “Peace through Strength is important. 

Additionally, protecting America’s Intellectual Property and securing the R&D of  American Universities and Industry is important.

It is not only steel and aluminum that China has exceeded all other world manufacturers. It is also Pharmaceuticals as we learned during the recent Pandemic. It is also Rare earth minerals and electronics as used in modern electronic devices. Manufacturing by U.S.A. companies also funds R&D which is then owned by the inventing company. If manufacturing is lost in America much of the funding for higher education as well as R&D will be compromised.

All of these and more require a President to place America’s priorities FIRST. These are some of the reasons why I voted for President Trump and a Straight Republican Ballot.

Let me close by asking before you vote, please do research on the inter-relationships of the importance of being energy independent, economic prosperity, fair trade and improving K-12 as well as Trade and College education within our borders.

Dick Storm

November 1, 2020

Additional References:

1. Brian T. Kennedy, President of American Strategy Group, “Facing Up to the China Threat”, https://imprimis.hillsdale.edu/facing-china-threat/
2. German News on 40 years of China’s Rise in Economic Power: https://www.youtube.com/watch?v=1SBnK9XIlZE
3. PBS Hour Power and Prosperity Nov 2019: https://www.youtube.com/watch?v=JovtmKFxi3c
4. Bloomberg News of Casino built in Saipan by China: https://www.bloomberg.com/news/features/2018-02-15/a-chinese-company-has-conquered-a-piece-of-america
5. Dubai Coal Power Plant being built by China joint venture: https://www.nsenergybusiness.com/projects/hassyan-coal-fired-power-plant-dubai/
6. Vehicle Manufacturing 1950-2018 You Tube: https://www.youtube.com/watch?v=kZCeuTzc850
7. World Steel Association report from 2018 steel production. (World Steel Association: https://www.worldsteel.org/steel-by-topic/statistics/World-Steel-in-Figures.html)
8. International Aluminum Institute:  web site. https://alucycle.world-aluminium.org/public-access/
9. Dick Storm’s Blog, “The Importance of Energy to Economic Prosperity” https://dickstormprobizblog.wordpress.com/2020/09/21/part-4-the-importance-of-energy-to-economic-prosperity/