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US expert warns of PRC economic trap

A US military expert said China may be trying to take over Taiwan by using a strategy of “economic entanglement.”

Barry Watts, a senior fellow with the Washington-based Center for Strategic and Budgetary Assessments, told a US congressional commission this week: “Why use military force if economic entanglement leading to economic capture is succeeding?”

In testimony before the US-China Economic and Security Review Commission, Watts said that the most common scenarios for a conflict between the US and China were built around a Chinese attempt to invade Taiwan.

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Memo says Taiwan not a party to IHR

A “leaked” internal memo from the WHO made public yesterday raised new questions about Taiwan’s participation in the International Health Regulations (IHR).

The memo, handed out by Democratic Progressive Party (DPP) Legislator Kuan Bi-ling (管碧玲), states: “Taiwan, as a province of China, cannot be party to the IHR” — an agreement that dovetails with Beijing’s position.

World Health Assembly (WHA) Resolution 25.1, referring to the 1972 clause that ejected Taiwan’s representatives to the WHO, remains a “touchstone for such matters,” the confidential document said.

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Newsflash

Chinese President Hu Jintao (胡錦濤) urged an end to a “zero sum” Cold War relationship with the US and proposed new cooperation, but resisted US arguments about why China should let its currency strengthen.

Indeed, in a sign that the future of the US currency continues to concern the most senior levels of the Chinese government, he said the US dollar-based international currency system is a “product of the past.”