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How China Bought The World AudioChapter from Follow The Money AudioBook by Michael William McCarthy
27th March 2024 • Voice over Work - An Audiobook Sampler • Russell Newton
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Follow the money, How China Bought the World, written by Michael William McCarthy, narrated

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by Russell Newton.

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No drug, not even alcohol, causes the fundamental ills of society.

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If we're looking for the source of our troubles, we shouldn't test people for drugs.

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We should test them for stupidity, ignorance, greed, and love of power.

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Human humorist PJ O'Rourke.

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The first rule of journalism, according to O'Rourke, is never pay for your own drinks.

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The second rule of journalism, according to journalists sober enough to have an intelligent

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opinion, might be start at the beginning.

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You see, every good story has a beginning, middle, and sometimes even an end.

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To tell the whole story, you need to back up the horse and wagon to the starting point,

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if you can find it.

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If you are a certain age, you may remember the very real threat of nuclear war between

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the USA and the USSR back in the early 60s, when Nikita Khrushchev thought he could sneak

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missiles into Cuba without anyone noticing.

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This came to the attention of US President John F. Kennedy, who sent warships to intervene.

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As the motion picture 13 days later revealed, the world came very close to nuclear Armageddon.

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If you are of that certain age, you may also have heard your mother tell you to finish

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your food at dinner.

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This warning usually came with the addendum, there are starving people in Africa, or China,

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India, Pakistan, depending on your mother's grasp of global geography.

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How and why a young child would have any interest in countries and starvation on the other side

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of the world is a different story altogether.

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But food was scarce those days for many people, even in North America.

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The point is that China was a poverty-stricken nation for centuries up to just one generation

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ago.

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Those of a current age may think that China has always been a prosperous society, cranking

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out vast amounts of consumer goods in special economic zones to send to Western consumers

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keen to buy made-in-China stuff simply because it is cheap.

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China was always a poor country during thousands of years of rule by various emperors and dynasties,

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and even under the rule of foreign countries in the 19th and 20th centuries, see Japan

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and Great Britain.

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When the Communist Party gained control in 1949, the country sank lower and lower into

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poverty.

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The old joke about communism is, we pretend to work and they pretend to pay us.

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Communism is a fine idea, in concept, but it doesn't work in reality.

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In nature being what it is, most people want to own or control what they have worked for.

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In the case of China and its rise to global power, many journalists will agree that the

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story starts with the death of that jolly old mass-murder Mao Zedong, when Deng Xiaoping

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took control of the CCP, Chinese Communist Party, in 1978, and instituted market reforms.

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This is bureaucratic jargon for allowing business people to do business, sometimes referred

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to as capitalism, as long as the CCP leaders maintain rigid control of the country and got

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credit for the resulting prosperity.

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Should you listen to the wisdom of Wikipedia, never the most detailed source, but it saves

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time doing deeper research, the reforms carried out by Deng and his allies gradually led China

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away from a planned economy and Maoist ideologies, opened it up to foreign investment and technology,

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and introduced its vast labor force to the global market, thus turning China into one

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of the world's fastest growing economies.

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In 2010, China overtook Japan as the world's second largest economy by nominal GDP, and

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in 2014 overtook the United States by becoming the world's largest economy by GDP.

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Posters of Mao still adorn buildings all over China, but sorry, it's Deng who deserves

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the credit, if that's what you call it.

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Journalists whose own credit rating doesn't allow them to belly up to the bar and add

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to their tab and therefore must pay their own way can accept this prevailing wiki wisdom

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or else must perform the full gumshoe themselves, which means trudging all the way back along

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the path of history to where the story of modern Chinese power truly begins, and that

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trail leads way past Chairman Mao and his band of renown.

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In fact, should you wish to compare the global economy today, where China acts as chief bartender

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and maintains control of the till, the real beginning of the story starts over 150 years

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ago with the opium wars of 1839 through 1860.

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That conflict paved the way for the destruction of the Chinese economy of the time, a scenario

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that is being reversed today as the Western world sends much of its money to Chinese factories

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to buy consumer goods on which the global economy is now precariously balanced.

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Not familiar with the opium wars?

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Let's back up the wheel of time even a bit further to provide full context.

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In the early years of the 1800s, inventor James Watt finally perfected and patented

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the steam engine, a device on which engineers had been working for many years.

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By the 1850s, the British Industrial Revolution had transformed Great Britain into the wealthiest

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country in the world.

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Fortunes were being made from factories cranking out products, transported by rail to ports

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and onto ships and around the world.

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The huge British naval fleet came in handy in several ways.

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However, massive amounts of pollution dumped into rivers from factories had the unpleasant

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side effect of poisoning England's waterways.

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Water was no longer safe to drink.

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The population at large turned to beer.

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Children as young as age six were drinking booze in the factories where they worked because

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only rich children went to school in those days.

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Great Britain became a nation of alcoholics.

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The British upper classes became alarmed, production was being affected, they had heard

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rumors of a strange but healthy beverage known as chai, or tea, found only in far away China.

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According to esteemed author Simon Winchester in his 1996 book The River at the Center

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of the World, the British East India Company sent a Scottish spy named Robert Fortune on

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a trip to China's interior on a mission to steal the secrets of tea horticulture.

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The Scotsman dawned to disguise and headed into the Wu sea shin hills in a bold act of

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corporate espionage risking his life.

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He brought back the word about chai and the British became immediately interested and

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have been addicted to tea ever since.

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Demand for tea soon became so high that the British actually ran out of ways to pay for

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it.

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The Chinese would accept only silver or gold as payment, sorry, no barter or trade.

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Any market for Western goods in China was not allowed and trade laws denied foreigners

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any access to China's markets.

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This created a severe silver crisis in Europe and a huge global trade imbalance.

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The problem was only alleviated when the British found a product that Chinese consumers badly

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wanted, the highly addictive opium grown in the British colony of India.

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The British harvested the drug, transported it to China, and ran the opium down Chinese

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throats by the use of gun boats on the Pearl and Yangtze rivers.

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As a result, the number of drug addicts in China greatly increased, but the global trade

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imbalance was resolved.

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The Chinese leaders were very upset.

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A war started.

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The subsequent British victory, thanks to its naval power, resulted in the Treaty of

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Nanking.

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The Chinese later denounced it as unequal, granted extra-territoriality to England including

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what soon became the colony of Hong Kong.

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The Chinese were embarrassed and have remained upset with the West ever since.

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Getting a little deeper into addictions, an op-ed I published in the Vancouver Sun

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reveals most addictions require policing or government attention because of the damage

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done to the health of the addict and subsequently to the economy.

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The effects of drug addiction can be devastating, as the current opioid crisis in North America

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attests.

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However, addiction to some safe drugs such as marijuana, now legal in Canada and some

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other countries, doesn't include the harsh, damaging physical side effects such as heroin,

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alcohol, fentanyl, and other hard drugs provide.

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Marijuana addicts don't even consider their addiction to the drug as an addiction.

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They think people who are not stoned are weird.

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In my own youth, I confess to such unbalanced, dope thinking myself in retrospect.

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My favorite bumper sticker at the time was, I'm not as think as you stoned I am.

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Right on, brother.

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Without a doubt, North Americans have become seriously addicted to mindless materialism,

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advertised continually in all media as a cure for depression.

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Since many North Americans have no meaning in their lives other than the forlorn hope

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for some obscure pursuit of happiness, they attempt to find some form of contentment through

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endless consumerism.

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Shopping has progressed from a necessity to a recreational activity to a passion to an

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addiction.

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For many, consumerism has become a way of life.

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The North American economy, formerly based on agriculture than manufacturing, is now

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structured around consumerism.

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Walmart once was Black Friday, has turned into a black hole, and a shopping season

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that runs from Thanksgiving to the middle of January, a patriotic activity needed to

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balance the books at year end.

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Walmart is the new church to be attended on a regular basis where made in China is worshipped

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in the form of cheap sneakers and t-shirts made in gulags by political prisoners.

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The CCP, thinking back to the opium wars, must be laughing their heads off.

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While Deng took power after the death of Mao in 1978, opening the door to controlled capitalism,

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one must look a tad further back to 1971, when Henry Kissinger, Secretary of State and

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National Security Advisor during the administration of the corrupt tricky Dick Nixon, made a secret

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flight from Pakistan to Beijing to whisper in the ear of communist officials.

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While America had been fighting communism for decades in Asia, first in Korea and then

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Vietnam, citing the domino theory that country after country would fall prey to the communists,

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if not stopped, Kissinger hinted that events might be changing.

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Although the CCP under Mao was ruthlessly communist, showing no concern for human rights

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whatsoever and killing tens of millions of its own people through its great leap forward

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and cultural revolution campaigns in order to maintain power, its economy had been destroyed

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in the process.

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Perhaps America might forget about fighting communism, whispered Kissinger.

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After all, there was money to be made, plus, the American people were tired of seeing their

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young boys coming home from Vietnam in body bags, and hey, communist USSR was the real

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enemy anyway.

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Maybe the United States and China could become buddies?

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Besides, tricky Dick Nixon badly needed an image improvement.

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This was all kept secret from the American public, of course.

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No one knew of Kissinger's flight to Beijing until much later.

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However, the seed had been planted and would grow.

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Due to an unending curiosity, I've traveled to nearly 50 countries around the world, either

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paying my own way or accepting invitations from various tourism bureaus in exchange for

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publishing travel articles in many Canadian newspapers and magazines, plus writing books

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and producing videos and documentaries.

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At first, I thought only my hometown of Vancouver was heavily affected by massive amounts of

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Chinese money poured into real estate.

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As you will discover in this book about Chinese wealth, right off the bat during trips to Los

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Angeles and Europe and even the South Seas, I was astounded to discover that the Chinese

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were literally buying up the planet.

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Billions of dollars have been invested in Vancouver alone.

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But that was chump change compared to what I discovered virtually every place I went.

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What could the total amount of Chinese wealth possibly be?

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Where in the world could these massive amounts of money have originated?

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Who made the investments?

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Who provided the seed money and designed the plan?

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I thought it might be a good idea to find out, so I put my nose to the trail.

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As a journalist, for me the story of modern Chinese power started quite accidentally on

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a strange little island off the Chinese coast where apparently the Cold War, which has no

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connection to the Opium War, was launched on a trip sponsored by the Taiwan Tourism Bureau.

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I had never heard of Kinmen Island, formerly known as Kimoi, nor had I any plans to go

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there.

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But I not visited the strange little sword factory of Maestro Wu on Kinmen, I might

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never have stuck my nose into the mystery.

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Every good story has a beginning, middle, and an end, although that ending is yet to

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come.

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Perhaps it's time to look a little deeper into modern China and how it has become a

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threat to start World War III.

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With regards to Mr. O'Rourke, that's certainly no joke at all.

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When plunder becomes a way of life for a group of men living together in a society, they

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create for themselves, in the course of time, a legal system that authorizes it and a moral

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code that glorifies it.

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Frederick Bastiat

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Kinmen Island, off the Chinese mainland, is a tourist attraction of a very different

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kind.

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Formerly known as Kimoi, there are no museums, beaches, hip restaurants, night clubs, ancient

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ruins, or that sort of typical tourist attraction.

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The island is known for its tunnels.

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And actually, Kinmen is neither famous nor exciting, but it should be.

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If you read this book and tell all your friends, it may well be.

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Kinmen has a fascinating past and an important future.

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It was on the cutting edge of the Cold War, and if or when the CCP attempts to invade

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Taiwan again, it may be the place where World War III erupts.

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For reasons best known to itself, Kinmen belongs to Taiwan, but the island is no more than

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a hop, skip, and jump from mainland China.

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In 1949, the Chinese Civil War ended with the victory of the Communist People's Republic

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of China, PRC.

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The government of the Republic of China, ROC, controlled by Chiang Kai-shek, and his Kumen

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Tong, KMT followers, along with 1.3 million anti-communist citizens fled from mainland

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China to Formosa, now known as Taiwan.

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Given the state of poverty in China after World War II, a lot of people joined the CCP, Chinese

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Communist Party, which formed the People's Liberation Army, PLA, and won a war against

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the Nationalists.

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Following Shek in grim pursuit, in 1954, Chairman Mao started an artillery barrage from the

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mainland aimed at destroying the General's troops based on Kinmen.

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Rather than get blown to bits, the Taiwanese dug tunnels.

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They dug an awful lot of tunnels.

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They built an entire city underground, complete with streets, barracks, hospitals, schools,

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and even a marina.

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The CCP bombardment went on for years, first with artillery, and then with propaganda leaflets.

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The communists only gave up the battle after the U.S. 7th Fleet showed up and Mao's invasion

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attempt ended.

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U.S. Secretary of State Christian Herter, 1959 to 1961, later referred to the conflict

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as the first serious nuclear crisis.

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The China Quarterly Volume 62, June 1975, Pages 263 to 270, contains mention of two volumes

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of Cultural Revolution Compilations by Mao Zedong.

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Although these documents cannot be authenticated as to accuracy of transcription and are obviously

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selective, they throw light on the 1958 Kimoy Crisis with surprisingly frank admissions

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of miscalculation on Mao's part, both in terms of his objective in the bombardment

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and his underestimation of the American response to it.

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However, the distinguished British historian Margaret McMillan believes that Mao may have

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concluded it was in the best interest of the PLA to leave Kimoy in the hands of the Nationalists.

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If the PLA were to seize the islands, or the Nationalists were to abandon them, the distance

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between the mainland and Taiwan would lengthen from a few miles to over a hundred, and lengthen

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perhaps in thought as well.

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Moreover, the acquisition of these offshore islands by the PLA and their separation from

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Nationalist control in Taipei would tend to validate acceptance of the two China's policy,

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to which both Mao and Shanghai Shhek were vehemently opposed, both claiming to be the real boss

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of China.

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The Taiwanese have maintained troops on Kinmen ever since.

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In time, they started to rebuild the town above ground.

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Some of the tunnels were discontinued, but then some genius eventually got the idea that

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there might be a chance to create a tourism business, someone like the tunnels dug by

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the Viet Cong in Vietnam that still draw many Western tourists keen to see where Charlie

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hid during the war, and ate rat meat while the Yankees stuffed themselves fat with fine

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French food in what was then known as Saigon, now Ho Chi Minh City.

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The Taiwan Tourism Bureau and I had become pleased by this time with our ongoing relationship.

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They had offered me complimentary trips to Taiwan several times, complete with drivers,

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guides, and translators, to explore their country and do whatever I wanted, in exchange

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for my writing and publishing articles in Canadian newspapers about my experiences.

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In all honesty, I had never heard of Kinmen Island and had not requested to go there.

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On this particular press trip, a Korean journalist wanted to visit Kinmen for an article he had

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been assigned to write.

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I had no idea whatsoever what we would find there.

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We were guided to the entrance of a tunnel, which was guarded by a teenage boy with a

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goofy grin who didn't look capable of winning a risk-wrestling contest.

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Never mind fighting a war.

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We ducked our heads and entered.

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After crawling through a series of tunnels and establishing the obvious fact that tall

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people should take care for their craniums, even when wearing a hard hat, we emerged to

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the surface somewhat dazed, but right around the corner from Maestro Wu's Sword Shop,

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a business that the Tourism Bureau also wished to promote.

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The front area of Maestro Wu's shop looked normal enough.

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There were shelves on the walls on which boxes were stacked, there was a cash register behind

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a counter, and several smiling sales ladies, although none spoke English.

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The lighting was bright and modern.

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It looked like a simple tea shop, although in this instance, the products on sale were

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not tea, but an array of glistening metal knives and swords in various sizes.

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Why anyone in this day and age would want a sword as a souvenir of a visit to Taiwan,

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I thought puzzling, but like with all good souvenirs, the value was found in the backstory,

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or the provenance as the word is named in regards to antiques.

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We were invited past the gift shop through a set of swinging doors into the rear of the

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building, which suddenly transformed itself into a factory.

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There was a brick oven burning red from fired coal, along with a row of half a dozen machines

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used to sand and polish metal.

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Throughout the room was a giant stack of what looked like old rusted metal milk bottles

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piled high.

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There were thousands of them, all loosely scattered one on top of the other in disarray.

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Some were standing upright, others lying on their sides all over the floor.

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These were, we were casually informed, bombs left over from the PLA's bombardment of the

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island during the Cold War.

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They'd been gathered where they'd fallen all over the island and brought to Maistro

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Wu's factory.

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It looked like he had access to enough ancient ammunition to blow up both Kinmen and the

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South China Sea.

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Being a captive audience to witness the procedure, Maistro Wu volunteered to take a bomb and

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shape it into a knife right in front of our eyes.

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I pointed to my watch to indicate we did not have all day, to stand inside a hot and smoky

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factory when there was still time to go find more tunnels in which we could smack our heads.

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But the translator responded that the Maistro could in fact create a fully finished product

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from scrap metal to knife in just over 18 minutes.

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The Maistros selected a bomb from the large, untidy pile.

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He brought it over to the furnace, picked up a pair of tongs, and placed the bomb inside

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where it immediately started to glow.

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He stepped over to a foot pump and blew air into the chamber and the coals glowed even

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redder.

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After a few minutes he started to give it a go to whacking with a rod.

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The bomb now looked like a blob.

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With various instruments and years of practice, within ten minutes the bomb had been reduced

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to the required width.

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He removed it from the furnace and took the blob over to a sink where he plunked it in

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cold water.

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In less than two minutes the blob was transformed and glistened in the eerie light of the factory

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like a knife.

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When it looked just right, the Maistro carried the carved steel over to the bench where he

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applied glue to a wooden handle and attached the steel to the handle.

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From start to finish, the entire process took less than twenty minutes.

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Since they retailed at fifty dollars U.S. a knife, I could see where Mr. Wu had acquired

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the name of Maistro.

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He had orchestrated a way to turn useless army refuse into a fortune.

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All this time I'd been holding my breath and biding my time waiting for the correct

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moment to ask the question that seemed to be the most appropriate under the conditions.

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Pointing to the huge stack of dusty bombs stacked on the floor, I asked the translator

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to inquire of the Maistro as to their condition.

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How does the Maistro know these bombs are all duds?

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How does he know they're all safe to use?

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The translator put the question to Mr. Wu.

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He replied swiftly, an indication that some smartass journalist had put this question

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to him before.

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They say they lay there on the island for many years, and after he picked them up, they

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stay here in factory many years.

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They are all duds.

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They don't go off.

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In the best spirit of contradiction, for which journalists are known, I had saved my best

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question for last.

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What happens if and when one actually explodes?

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This question was put to the Maistro.

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Until this time, he had not changed his facial expression or cracked a smile.

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He was a serious artist with a unique skill and a booming business.

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He turned to me and burst into a big smile and said a few words to the translator.

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He said, if that happened, reported the translator, then we will never know.

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Should the PLA decide to invade Taiwan at the bequest of the CCP's current leader Xi

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Jinping and nuclear weapons be used?

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Then none of us may ever know the outcome.

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For many years, the CCP has been playing a clever game now known as soft power, where

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it has surreptitiously extended its range of operations worldwide, infiltrating the global

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economy with made-in-China goods, along with an even quieter infiltration of the political

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and cultural apparatus of many countries.

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Following a series of well-designed five-year plans since 1950, first under Chairman Mao,

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the CCP under Jinping has now taken off its gloves and showed the world its fist, and

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a mighty instrument it is, the Chinese government has announced its plans to retake its place

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on the global stage, and that desire is to replace the United States as the world's

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most powerful country.

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Jinping has stated that the days of democratic states are over and communism is the future.

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Whoever coined the phrase domino theory back in the day may yet be proved to be right.

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According to a recent report in Al Jazeera, preparing for potential military action from

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China as a prospect that has hung over Taiwan since the KMT first fled to the island at

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the end of the Chinese Civil War in 1949.

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There were three close encounters between the 1950s and 1990s, and now there may be reason

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to worry once again, as China's People's Liberation Army completes an ambitious military

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modernization campaign.

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Taiwan's Ministry of National Defense said the PLA have developed the ability to blockade

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Taiwan's major airports and harbors, while the Pentagon said the PLA will have the capacity

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to compel Taiwan's leadership to the negotiation table as early as 2027.

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Since taking office in 2016, Taiwan President Tsai Ing-wen has focused on improving the armed

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forces' capabilities and gone on an extensive weapons buying campaign from the United States

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as her government's relationship with Beijing has darkened.

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The administration of U.S. President Joe Biden approved a sale of $750 million in weapons

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to Taiwan after Donald Trump approved $5.1 billion in sales in 2020.

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The Taiwanese Defense Ministry is now asking for an extra $9 billion in arms over the next

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few years.

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As Taiwan's horizon darkens, it needs to reckon with another big question of whether its army

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and the general public will be ready. Most male citizens are required to complete national

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service which should, in theory, prepare them to supplement the professional military,

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now kept at about $188,000 and rising to $215,000 if civilian contractors and trainees are

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factored into the equation. However, Taiwan faces serious questions about whether its

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reserves are capable of actually fighting successfully, like the heroic Ukrainians versus the Russians

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and if an adequate system is in place to oversee them if they are mobilized in a wartime scenario.

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Taiwan's defense strategy has long focused on asymmetric defense or that it would resist

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the enemy on the opposite shore, attack it at sea, destroy it in the literal area, and

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annihilate it on the beachhead, according to the Defense Ministry.

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In practice, this means that while badly outnumbered by the PLA, Taiwan aims to make itself an unattractive

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enough target for attack by being able to carry out a prolonged resistance.

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The military in Taiwan, however, has long been an unpopular career choice for young

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men due to low pay, poor benefits, and poor social status, as well as negative associations

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with Taiwan's previous martial law regime when the military played a vital role in suppressing

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human rights. Also, Taiwan must now contend with the increasing use of grey-zone psychological

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warfare and other confrontational tactics that could allow China to seize Taiwan without

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a fight. These range from cyber warfare and misinformation to ramming Taiwanese Coast Guard

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vessels, PLA patrols of the Taiwan Strait, and sending hundreds of PLA flights into

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Taiwan's Air Defense Identification Zone, a swath of land and sea monitored by the military.

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These patrols have multiple objectives, including testing Taiwan's responses, training PLA pilots,

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sending warning signals to Taiwan's government, and stoking nationalism at home. Whether the

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U.S. would come to its defense is deliberately unclear under America's continuing policy

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of strategic ambiguity that walks the line between defending Taiwan while not angering

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China.

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Under the Terms of the 1979 Taiwan Relations Act, the U.S. has pledged to make available

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to Taiwan such defense articles and defense services in such quantity as may be necessary

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to enable Taiwan to maintain sufficient self-defense capabilities. America's guarantees, however,

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stop short of promising military support.

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Our further media tour of Kinmen Island reveals several small villages worth having a quick

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look, lots of old, rusting military equipment, like anti-aircraft guns from the 1950s, and

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the Kinmen Kowliang Liquor Factory. The company is renowned for producing high-proof distilled

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liquor made from fermented sorghum, fiery liquor so famous and well-liked by consumers

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that it has become synonymous with Kinmen. The beverage is apparently 58 percent proof

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of liquor, similar in strength to brandy and whiskey. We reporters are told the liquor

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is so potent that it has killed more people than the PLA, and we're offered free tastings,

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but the time of day and busy schedule prevents any malingering. Should you go, I have taste

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for me. You might even bring a bottle back, I'll wait here for you.

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The Korean War

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The Korean police action began on June 25, 1950, when North Korea invaded South Korea.

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North Korea was supported by China and the Soviet Union, while South Korea was supported

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by the United Nations, principally the United States. Cold War assumptions governed the

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immediate reaction of U.S. leaders, who instantly concluded that Soviet Premier Joseph Stalin

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had ordered the invasion as the first step in his plan for world conquest.

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Communism, President Harrius Truman argued later in his memoirs, was acting in Korea

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just as Hitler, Mussolini, and the Japanese had acted 10, 15, and 20 years earlier.

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America wanted not just to contain communism, they also wanted to prevent the so-called

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domino effect. Truman was worried that if Korea fell, the next country to fall would

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be Japan, a country which was very important for American trade. This was probably the

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most important reason for America's involvement in the war. Almost 40,000 Americans died

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in action in Korea, and more than 100,000 were wounded. The U.S. still has nearly 30,000

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troops in South Korea. The domino theory is still in effect.

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Vietnam War timeline. 1946, the French Indochina War broke out with French forces largely

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supplied by the United States. 1950s, U.S. military advisors emerged in Vietnam in

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small numbers. 1954, the battle of Dien Bien Phu was a 57-day battle that was a complete

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route for the French army. The war ended for the French shortly afterward, and the 1954

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Geneva Accords were signed. 1955, President Eisenhower deploys an advisory group to train

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the Army of the Republic of Vietnam. 1961, U.S. troops introduced on a large scale.

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1965, active combat units were at full stage of war. 1969, more than 500,000 U.S. military

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personnel were stationed in Vietnam. 1970, Nixon announced the phased withdrawal of 150,000

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troops over the next year. 1973, U.S. combat units were withdrawn. 1975, South Vietnam

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fell to a full-scale invasion by the North. 1982, 57,939 members of U.S. armed forces

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who had died are listed on the Vietnam Veterans Memorial.

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This has been Follow the Money, How China Bought the World, written by Michael William

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McCarthy, narrated by Russell Newton. Copyright 2023, by Trinna Day. Production Copyright

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by Spoken Tome Media. You need to hear this.

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