US Imposes Sanctions on China for Buying Russian Weapons: Waging War on All Fronts

Donate

Written by Alex Gorka; Originally appeared on strategic-culture.org

On Sept. 20 the US imposed punitive measures against China’s military under the 2017 Countering America’s Adversaries Through Sanctions Act (CAATSA), in retaliation for its purchases of Russian military equipment. The move is meant to “punish” Moscow for what American officials call “malign activities.” The State Department slapped sanctions on China’s Equipment Development Department (EDD) for having purchased the S-400 air-defense system and Su-35 combat planes. This is the first time anyone has been sanctioned for doing business with Russia in violation of CAATSA.

US Imposes Sanctions on China for Buying Russian Weapons: Waging War on All Fronts

The announcement came a few days after Chinese troops participated in Russia’s largest war games since 1981, which demonstrated that Russia and China are now working more closely with each other. The announcement of sanctions seriously angered Chinese authorities, who threatened to respond in kind. And they will.

Washington’s move changes little in regard to its relationship with Beijing, as it had already launched a war of tariffs against it. This is all at a time when the tensions in regard to the disputes in the South China Sea over islands and maritime claims are running high.

The sanctions war is pouring even more fuel on the fire. It raises the prospect of the US sanctioning its friends and allies who purchase Russian military equipment. The penalties imposed on Sept. 20 are a warning shot intended for other states on the list of clients, including India, Egypt, Turkey, Saudi Arabia, Morocco, Algeria, the United Arab Emirates, Qatar, and the Philippines, among other nations that are willing to sign contracts. India, the largest buyer of Russian-made weapons, and Turkey, a US NATO ally, have already been admonished against doing business with Russian arms exporters. Russian President Vladimir Putin is going to visit Saudi Arabia soon. The planned signing of an S-400 deal would deal a major blow to the United States. Washington hopes that now that sanctions have been imposed on Beijing, Riyadh will change its mind.

Obviously, the sanctions are intended to ”poison” Russia’s entire economy, in order to scare off existing and potential partners . The hope is that they’ll be hesitant to make any deals because “with Russia, you never know.”

It’s important to get rid of one’s rival. Russia is the second-largest arms exporter in the world, with a 23% share of the global arms market. By comparison, the US controls 33% , then there is China with only 6.2% and France with 6%. Last year Russia exported $15 billion worth of weapons to customers in 53 countries. Arms sales are a lucrative business and it’s crucially important for Washington to hold on to its leadership in that area, in the face of challenges. Any move can be rationalized if it will weaken the positions of one’s biggest competitor. Added to that is the fact that Russia’s defense programs are much more efficient that those of the United States.

Some countries, such as China, India and Iran, are standing up to this pressure, but other potential buyers of Russian equipment might back down. So far, the policy has seen widespread resistance, triggering a pushback against the US use of its enormous financial power. Even the Philippines is vowing not to change its plans to buy Russian weapons.

There is another consequence the US administration does not appear to be thinking about. Last year, 15% of US liquefied natural gas (LNG) exports went to China. That area of trade has a promising future. China is set to top Japan as the world’s biggest natural-gas importer next year. With demand set to grow, China has already started to curtail LNG imports from the United States, opening up a new front in the ongoing trade war. The largest energy consumer is reducing imports at a time when the United States has several large-scale LNG export facilities under construction. This is a serious blow to America’s ambitions to become a global energy superpower. Cheniere Energy, Sempra, and Kinder Morgan will suffer. A major market will be lost and it’s hard to see how such a policy is in keeping with the goals of the “America First” strategy.

Russia will not waste this opportunity. In July, a ship from Russia’s Novatek natural-gas producer delivered the first-ever liquefied natural gas (LNG) cargo from the Yamal LNG project to China via the Northern Sea Route (NSR), a route that makes it possible to drastically cut delivery time to Asian consumers.

Can the European market make up for this loss? Not a chance. US LNG is at least 20% more expensive than Russian pipeline gas. Because of many factors, the prices continue to fluctuate. Last year the price of Russian gas piped to the German border was $183 per thousand cubic meters. The average spot price at TTF, a European gas-trading platform, was $188, without factoring in transportation costs. The price of US LNG that is shipped to Spain, Portugal, and Turkey is about $245. Europeans are pushing back against the US policy of arms-twisting. Besides, the infrastructure for substantially increasing LNG supplies is not there. The existing capacity is insufficient.

Here is another consequence worth mentioning. This month, a new US cyber-strategy was made public. Unlike the previous strategy issued in 2013, this document authorizes the use of “offensive cyber operations.” In reality, it just confirms the fact that cyberspace has become a new domain of warfare. Although the guns are silent, a world war is being waged. The US policy leaves other nations with no choice but to form alliances to counter America’s offensive operations. Russia and China are just another example of how countries are joining together to repel the common threat coming from North America. Nobody wanted this war but the US attacked first.

Donate

SouthFront

Do you like this content? Consider helping us!

  • Ivan Freely

    Washington is getting desperate as they’re running out of options against Beijing.

    • telemetrie

      I can wait when China already starts selling US debt and stop all payments in USD.
      I think that those “nice US markets” as Trump the Dotard calls them will fall apart few moments later.

    • Nigel Maund

      Absolutely correct! The time has come for a change at the World’s top table and the US is gearing up to be so unlilateraly unpopular as a global bully that it will be dethroned. Great if that happens!!

  • Cheryl Brandon
    • Nigel Maund

      Excellent and thanks for posting! appreciated!

  • d’Artagnan

    China and Russia need to grow a pair. US is trying to kill off the $20 billion Russian arms industry and turn into another Bantustan.

    • telemetrie

      Well, they are not good partners. China is cunning and diligent. Russia is lazy and slow. Chinese have stolen too much Russian high technology to be trusted by Russia.
      But they can both cooperate against USA well as USA is their common enemy.

      • Sinbad2

        The Chinese steal rhetoric, is to hide the fact that it is the US that steals.

        The US invented the transistor, a great invention, but it’s the only thing invented by an American, everything else has been stolen.
        The Chinese are happy to pay, unlike the US which prefers to steal than pay.

        The war in Afghanistan need never have happened, if the US had paid Afghanistan for TAPI transit rights, but the US thought it would be more profitable to invade?

        Meanwhile China churns out S300 systems like iPhones, and pays Russia for the privilege.

        Like most thieves, America is not very smart.

    • Nigel Maund

      That’s precisely what it’s trying to do!!

  • telemetrie

    USA is true descendant of Nazi Germany. Many SS staff escaped from Europe to US to avoid punishment and made good careers there. And it seems USA likes to fight on many fronts simultaneously as Nazis did. And US ppl consider themselves to be superior and indispensable.
    It seems to be very close to Nazi Ubermensch concept, indeed.

    • You can call me Al

      The Nazis were not this stupid when it came to economics.

      • Nigel Maund

        Oh yes they were. Sorry Al, there is a very good recent book out on this very subject; search Amazon. Despite the resistance of the highly experienced and respected Hjalmar Schacht, Hitler’s Central Banker, of the Reichsbank, the Reich printed money in an identical manner to the present US Fed without the “Global Seigneur Status” of the post WW2 US dollar, hence the enormous German Industrial Expansion between 1934 to 1939. However, by 1940 it was clearly apparent that inflation was taking off in a very big way, and the system was, as Schacht had warned, doomed. Hiter shot the messenger and Schacht was fired. A combination of the costs and impact of the war, blockades and a runaway money supply meant that Germany went straight down an economic vortex. Even had Hiter not gone to war, Germany would have been bankrupt by 1945.

        • You can call me Al

          Nigel, if it still on Amazon, it really cannot be that good or is total government propaganda. The difference between Germany printing money then vs the US, is that the German bank was government owned, so no, not in the same league at all as US.

          I was talking about the time before the war by the way.

          • Nigel Maund
          • You can call me Al

            Nice one, I shall look at Amazon tomorrow.

          • You can call me Al

            The ticks are there for a reason, uptick or down tick, either, but get your finger out of your ear and tick people, What is it with people nowadays ?,

          • Nigel Maund

            Excuse me? I’m not sure what you mean?

          • You can call me Al

            1. Nigel – Amazon is banning all books/ film etc. that relates to anything against the US government’s views. Basically censorship.

            2. However, I did find the book at $ 59 …. what, for a book ?.

          • Nigel Maund

            Al it’s getting very bad now, especially in the US. We now have Nazi or Communist (Stalinist) style of censorship and repression. This is because the Anglo – American Zionist Bankster – Corporatist – Globalist Cabal is now running scared as they’re being utterly exposed in the alt media and alt press. This has never happened before, and people are, at long last, waking up to their enormous crimes and warmongering for profit and control. This really scares the shit out of them becuase once exposed they can be destroyed.

    • Promitheas Apollonious

      and million khazars just before the fall of USSR and the years after, they are all there, doing to you worst they did to the russians.

    • Nigel Maund

      Totally correct: see on Wikipedia and Google the following: “CIA Operation Paperclip” and “CIA Operation Ratlines” where all Nazi scientists involved in military research were urgently shipped across to the US to work for US Defence contractors and NASA (Dr Wernher Von Braun), and 10,000 top Nazi’s were spirited out of Germany at the end of the war to Argentina, Peru, Chile, Uraguay and Paraguay, including Dr Josef Mengele and Martin Bormann (Operation Ratlines). The head of the OSS (eventually the CIA), Alan Welsh Dulles was a Nazi as was his brother John Foster Dullles as well as other prominent Americans including: Henry Ford, Avirell Harriman, Prescott Walker Bush (ESSO) and many others of note at the top of US Industry. These people rapidly backpeddled their secret Nazi positions in 1943 after the Battles of Stalingrad and El Alamein.

  • Merijn

    Yeah More Sanctions….U.S. Sanction Everyone…Go GoO…GoOO…U.S.A… U.S.AA…. U.S.AAA…

    • TiredOfBsToo

      I can easily make many points that the Deep State running the US, does not care about America or Americans. I’m not referring to military offensive operations, but the financial operation. Without a US Deep State, the credit extended to the US from the entire world through the dollar reserve currency, could’ve provided every American with his/her wildest wet dream without concern of any repayment (the whole thing being based on air anyway). Instead, that credit has been used to target the creditors with military aggression, tariffs, sanctions and the overthrowing of governments.

      As I often state, the US Deep State is run by psychopaths whose only trajectory is what they currently have in mind. They are incapable of understanding cause and effect, empathy towards their fellows or even thinking one move ahead. Targeting the largest holder of dollar treasuries just bears that out.

      • Merijn

        It’s only One Percent…One Percent owns 50% of all the Wealth & Landmass While at the same time everyone in the World could have had a Home with streaming Clean Drinking water….That is the Problem….either this One Percent starts thinking very very Long & Deep about the road they want to follow and the vision the have in mind…. because sooner or later man with Pitchforks will come to their Mansions….

        • Tommy Jensen

          We are down at 0,1% now. From 360 families to only 60 families. The worlds money are centralised and in very few people´s hands today.

          Thats why all stock and commodity markets are manipulated through algoritms and out of touch with any reality.

          • Merijn

            0.1% that even makes it easier to take it all back…

  • Tommy Jensen

    The Yamal LNG project and the Northern Sea Route (NSR) will also be sanctioned, and if this dont work we will bomb the cyberspace with Stuxnet to delay delivery time.
    Europe will be forced to pay +25% more to freedom voluntary and they will love it.
    Sorry folks, America is a winner nation and we always win no matter what you do……………………..LOL.

  • leon mc pilibin

    This is turning into a Farce.Who the hell are Zionists to say that a country cannot do business with another??These so called decision makers would be declared insane under normal circumstances,but unfortunately the lunatics have taken over the asylum.

  • Bob

    Current US foreign policy is driven by tiny US Neo-Con clique, and their previous track record shows they are ideologues with little grasp, or concern, for the real world consequences of their aggressive drive for foriegn intervention. Interestingly, psychological studies show that individuals with extreme Narcissistic traits – into the Narcissistic Personality Disorder territory – have complete lack of concern for consequences of their actions, and no insight into the mass of problems they subsequently create. Coincidence?! Err, no… LOL.

  • Sinbad2

    For China this is a much bigger deal than the tariffs, this is an attack on Chinese sovereignty.
    Expect a major response from China.

  • Nigel Maund

    The US Military Industrial and Information Complex (MIIC) is now on the ropes. The Russians are actually winning the technological war for next generation weapons; especially missies, ECM’s, hypersonic weapons, new high velocity and accurate torpoedoes and super quiet submarines. The Russians also lead the US in many other areas too. If Russian and Chinese defence contractors combine their intellectual and engineering know how, then the US and UK’s MIIC’s are in real trouble and will inevitably lose the competitive and technological lead (if indeed they have not already lost it). This could have serious consequences for them, and their masters the hyper – evil “Anglo – American Zionist Bankster – Corporatist Cabal” led by the European Rothschild clan.

  • Davki

    More precisely, the ‘sanctions’ through the Countering America’s Adversaries Through Sanctions Act (CAATSA), having come into effect in January 2018 were inacted because the aforementioned systems were now delivered. To state ‘The Diplomat’: “China is being sanctioned for taking delivery of these systems and not
    for the conclusion of the sales contracts with Russia as both countries
    signed the $2 billion contract for 24 Su-35 fighter aircraft already in
    November 2015 and the $3 billion S-400 deal in March or April 2015.” (Although their own title is misleading, stating “the purchase” as a reason). The distinction is relevant because India too is set to buy S-400 systems but will probably not face sanctions for the time being. However, this might change once the system are actually delivered. The US administration has the descrectionary power to allow purchases of ‘legacy’ system worth up to $15 million.