China White Paper on National Defense: Separatists Are Top Threat (SupChina, 3 min read)

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China just released white paper on its global defence policy – a rare event, the first in four years. The paper’s stance is hostile towards US, claiming they undermine global peace, security and incentivize nuclear and missile defence efforts. The text claims that separatist forces in Taiwan and Tibet, pushing for independence are currently the biggest threats to peace and military force could be deployed. There is a worry about advancing military technology deployed by other forces. China’s defence spending as of 2017 was near a record low as a percentage of government spending – c. 5.1%. The paper highlights incoming efforts strengthening and mechanizing the People’s Liberation Army.

Why does this matter? We doubt it’s a consequence that China released the defence paper amid rows in the Western pacific and the raising pressure in the South China Sea. China’s growing closeness to Russia is also becoming an item – this week a joint Sino-Russian patrol flew bombers over airspace claimed by Japan and South Korea, causing a stir.

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(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)

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