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China threatens economic warfare against U.S.

February 12, 2010

Martha R Gore
Examiner (Canada)
February 10, 2010

Military leaders in China called for the sale of
U.S. debt securities on Monday, February 8, 2010
in response to arms sales recently made to Taiwan.

China's state-controlled media interviewed a
group of senior Chinese military officers who are
also telling Beijing's leaders to boost defense
spending and expand force deployments.  This is
in retaliation for the Pentagon's announcement in
January 2010 of the new $6.4 million arms package for Taiwan.

Some observers view any dumping of U.S. bonds as
economic warfare.  China presently holds nearly
$800 billion worth of Treasury debt securities.
The result would be to drive up interest rates
and disrupt any U.S. economic recovery efforts.

The U.S. State Department has responded by
dismissing the economic threat as self-defeating
for China. Nevertheless it has added to the
tension between the two countries which includes
the upcoming meeting between President Obama and
the exiled Tibetan Buddhist leader, the Dalai Lama.

According to the Washington Times, China's
military spending has increased sharply over the
last decade as part of a semi-secret buildup with
the deployment of advanced ballistic and cruise
missiles, large numbers of new warships and
submarines, new advanced fighter bombers and
various high-tech weapons.  Added to this now is
the recommendation from its military for China to
use economic warfare by selling off debt
securities to disrupt the U.S. economic recovery.

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