China’s rapaciousness in the South China Sea, trouble on the Indo-Bhutanese border and loans of pandas at $1 million per animal per year to zoos should force nations to take the blinders off their eyes about China’s intentions.
To understand how China is using British colonization as a blueprint, we need to first understand what led to colonization of India, and how China will use similar strategies to colonize various countries. Briefly, this is how it happened.
What Led to British Colonization of India
The British came to India to trade, to buy Indian spices and textiles and sell them in Europe. They paid for what they purchased in gold, silver and copper bullion, which Indian rulers needed to monetize their economies. The export trade also improved India’s economy, providing more jobs for Indians, and greater revenues for Indian rulers. However, payment in bullion could not go on forever. That’s why the world is no longer on the precious metals standard. If the world had remained on the precious metals standard global commerce would not have grown to the level it has. The British had to deal with payments for exports to and imports from India, which forced them to become creative financiers, leading to the development of the modern financial system. That’s why London is still the leading finance capital of the world.
India is a large country and different parts of the country had their own economies, and different ruling dynasties. No large Indian merchants who had complete knowledge of the trade and commerce throughout all parts of the country existed. But since the British traded all over the country, they became knowledgeable about different products and prices throughout India. This enabled them to get involved in intra-country trade which proved to be lucrative. China will also get into intra-country trade because of its superior ability to finance such trade and drive indigenous competitors out of the market.
The British traded not only in India but in other parts of Asia as well. Other Asian countries such as present-day Malaysia and Indonesia did not want to be paid in gold or silver bullion but in Indian textiles or other products. Knowledge of these markets and such trade further helped expand British trade and profits in Asia.
The few British traders lived very well in India because of the profits made by trading on their own account. Their ostentatious living that rivaled the ruling local nawabs, who were always strapped for cash to fight their wars to stay in power, often invited envy and plunder of British factories (which were compounds containing warehouses and residences of British traders). Local rulers often capriciously imposed duties and taxes and made demands for money as shakedowns. If the British did not pay up, their factories were subjected to plunder and imprisonment of factors. The British suffered these perils for nearly 150 years. The same scenario is likely to be repeated with large Chinese presence in a country.
Then a Frenchman named Joseph-Francois Dupleix who was appointed governor of the French trading company in India sought to drive the British out of India and monopolize Indian trade and possibly establish a French Empire in India. To do so, he made alliances with Indian rulers. To protect themselves and their trade from the French and Indian rulers, the British were forced to enter into alliances with other Indian rulers. At that time, India was in constant turmoil with 8-9 major ruling dynasties trying to expand their territories at the expense of others, leading to continuous wars. China will also be forced to interfere in domestic politics, ostensibly to protect its trade and investments.
Dupleix developed a playbook to realize his dream in India which included many innovations such as the following:
1. Dupleix was the first to make treaties with Indian rulers such as Muzaffar Jung, the nizam of Hyderabad; and Chanda Sahib, the nawab of Carnatic; in which he vowed to help them gain or maintain their thrones.
2. He was the first to embed a resident French military officer and soldiers with an Indian ruler to support him and effectively control him, as he did by appointing de Bussy as resident with Salabat Jung, the nizam of Hyderabad. The nizam was required to govern according to the wishes of the French resident, who would in turn protect the nizam with French forces.
3. He was the first to systematically recruit Indian sepoys (meaning Indian soldiers employed by the French or the English) to fight his battles. China could do the same, and use the British divide and rule strategy in India. The English had recruited Indians to work as guards in their factories and forts, but not as soldiers in their armies.
4. Dupleix was the first to negotiate payment for the expenses of his troops from the Indian rulers whom he helped militarily.
5. When the Indian rulers could not pay the expenses of the French troops who protected them, Dupleix was the first to negotiate for the revenues of an Indian territory called the northers sarkars to help maintain French troops and sepoys. If a country is unable to pay back Chinese loans taken to finance its portion of the One Belt One Road project, China will likely demand real estate as compensation, and set up agricultural farms managed by Chinese, exclusively for exports to China.
6. He was the first to accept rewards from Indian rulers for helping them gain a throne and maintain it. He is said to have received £200,000 in cash and valuable jewels, as well as a jagir worth Rs 100,000 for helping Muzaffar Jung to become subahdar of the Deccan.
7. Because of the superiority of European weapons as demonstrated by the French in their victory over Anwar-ud-din (in which 300 Frenchmen defeated a 10,000-strong Anwar-ud-din’s army), Indian rulers often asked for French or English support to maintain their rule, thus in effect becoming their vassals.
Dupleix was unsuccessful in his dreams in India, but he provided a blueprint for the English to follow in their conquests in India. In less than two years after Dupleix’s departure, the British were forced to fight another war to defend their possessions, this time against the young, impetuous Indian nawab Siraj-ud-daula. In June 1756, he plundered the English factories at Kasimbazar and took Calcutta. At that time, there was common talk in his capital Murshidabad that English treasure could be easily captured. The British, were rounded up and the prisoners, numbering around 146, were shut up in a military prison known as ‘the black hole’—a space eighteen feet by less than fifteen feet—designed to hold at most six prisoners. The temperature reached 104 degrees Fahrenheit (about 40 degrees Celsius) in the hot June summer of Bengal. The next day, only twenty-one to twenty-three emerged alive, the rest having been trampled to death or suffocated.
The atrocity had to be avenged. Robert Clive was sent from Madras with Admiral Watson to retake Calcutta. With eight hundred Europeans and one thousand Indian sepoys, he retook Calcutta on January 2, 1757. Further events led to war with Siraj-ud-daula, resulting in the defeat of his 50,000-strong army at the hands of 950 British and other European and 2100 Indian sepoys on the British side in the Battle of Plassey.
The British took compensation for the plunder of their goods, and following Dupleix’s playbook, negotiated for the revenues of the 24 Parganas district of Bengal. Thus, began the establishment of the British Empire in India. The British then went on to conquer more territories and in less than a century ruled over the whole of India. Thus, the main reason the British had to get involved in Indian politics was to defend its investments in the lucrative trade with India.
China’s Motivations for its OBOR Initiative
It is also very important to understand China’s motivations for its One Belt One Road (OBOR) initiative. Soon after World War II in the late 1950s Germans made a major technological breakthrough. They developed the technical capability of electronically communicating directly with individuals. They have been using this technical capability to force people with threats to do things against their will to benefit Germans so that they can loot and rule the world. They have the help of German masqueraders (A German masquerader is a person of German origin living in another country and assuming a name common among the citizens of that country so that he is indistinguishable from its citizens. But he knows his German ancestry and works in Germany’s interests, and against the interests of the country he or she lives in by undermining its economy and often taking actions to allow Germany to loot the wealth of his country by buying and promoting German products and services. This is the fifth column Winston Churchill and others were very familiar with) in doing so. That’s what they have been doing since the late 1950s, and looting America and British Commonwealth nations.
China has been a German ally since that time. They have also helped China loot American wealth. Much of China’s manufacturing was not based on any indigenously developed technology but with American technology looted with the use of threats.
Because of the looting of America, Chinese and the Germans hold trillions of American dollars as reserves. This is all ill-gotten wealth. Just like mobsters, tax cheats or drug-dealers need to launder their wealth, China and Germany need to launder this wealth. They need to do so because these reserves are just a computer entry which can be deleted by one push of the delete button and the world informed that the USA will no longer allow transfer of dollars by China and Germany to any nation. That means China and Germany will not be able to pay for their imports with American dollars.
Since the time I pointed this out a few years ago, the Germans and the Chinese have been wracking their brains to come up with a solution to launder their ill-gotten wealth. China’s big “One Belt One Road” or OBOR initiative is an attempt by China and Germany to do so. Do not be deceived by the project.
China will loan out these dollars to nations for this project which the nations will have to pay back to China in any foreign currency. This way many of China’s dollar holdings can be converted into other currencies such as the Euro.
The nations that allow this investment by China will be burdened with the debt which many will not be able to repay. The nation will have to have sufficient exports to earn foreign exchange to pay back Chinese loans. But which nations will have a sufficient trade surplus to earn enough foreign exchange to service all this debt? Not many will, especially when China will be flooding their markets with Chinese products and destroying their economies. The only products China will need to import from them are raw materials and minerals. That is China’s goal. To garner the natural, agricultural, raw material and mineral resources of the earth to raise the standard of the 1.4 billion Chinese to that of the USA. Nations will be forced to supply China with all the resources it needs with the threat of military intervention if they don’t, even if they want to supply them to other nations at higher profit margins. This occurred for a brief period in India during British colonial rule.