MCViewPoint

Opinion from a Libertarian ViewPoint

Posts Tagged ‘China’

The Collapse of the Once Most Technologically Advanced Country in the World | Thomas Sowell

Posted by M. C. on April 8, 2025

Never underestimate the other guy.

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Only Pathetic Bootlickers Spend Their Energy Criticizing China

Posted by M. C. on January 29, 2025

Caitlin Johnstone

China hasn’t spent the 21st century killing people by the millions in wars of aggression. China isn’t circling the planet with hundreds of military bases while working to destroy any nation or group anywhere in the world who disobeys it. China isn’t strangling nations around the globe with starvation sanctions for refusing to bow to its dictates. China didn’t just spend 15 months lighting the middle east on fire and backing a live-streamed genocide. China hasn’t spent the last three years endangering the world in frequently terrifying acts of nuclear brinkmanship with a rival nuclear superpower.

https://www.caitlinjohnst.one/p/only-pathetic-bootlickers-spend-their

The buzz around Xiaohongshu and then DeepSeek has had an unusually high volume of westerners speaking positively about China for the last couple of weeks, which of course means we’re also seeing many westerners falling all over themselves to say “Well actually China is actually quite bad actually” in response.

Western liberals who fancy themselves enlightened and critical of power tend to get very squirmy and uncomfortable in their skin when they hear people saying positive things about the PRC, and love nothing more than to tell you that China is just as evil and tyrannical as the western power alliance, if not worse.

This is objectively, measurably false. China hasn’t spent the 21st century killing people by the millions in wars of aggression. China isn’t circling the planet with hundreds of military bases while working to destroy any nation or group anywhere in the world who disobeys it. China isn’t strangling nations around the globe with starvation sanctions for refusing to bow to its dictates. China didn’t just spend 15 months lighting the middle east on fire and backing a live-streamed genocide. China hasn’t spent the last three years endangering the world in frequently terrifying acts of nuclear brinkmanship with a rival nuclear superpower. Only the US-centralized empire has done this.

Whenever I point this out I get empire apologists going “Well yeah, SO FAR! We haven’t seen China doing all that evil foreign policy shit YET because they’re still not powerful enough!” Which is just silly. China absolutely is powerful enough to be a whole lot more abusive and murderous abroad, and it simply isn’t. Westerners love to claim that China has secret agendas to conquer the world someday (hilariously implying that these hypothetical future abuses make China morally comparable to the US empire’s current known abuses), but if you actually dig into the evidence for these claims what you’ll find every time is that all they provide evidence for is China’s openly stated goal of a multi-polar world that isn’t ruled by Washington.

Our ancestors set sail to conquer the world; their ancestors built a wall. This notion that China has an interest in ruling over a bunch of white foreigners has as much rational basis as old racist superstitions that black and brown people wanted equal rights so that they could come and steal white men’s wives and have sex with their daughters.

They’re just a better civilization than ours — not because theirs is miraculous or perfect, but because ours is just that murderous and dystopian. They simply do the normal thing while we do the freakish thing: they make the lives of their citizens better and better and avoid unnecessary wars, while western governments make the lives of their citizens worse and worse while plunging into new acts of mass military slaughter every few years.

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The Danger Is Not China But the ‘Fake China Threat’

Posted by M. C. on May 31, 2024

Either China is very strong, he says, “in which case antagonizing China over issues directly in its backyard is stupid; or actually China is quite weak in which case antagonizing China in its backyard is unnecessary and counterproductive.” He continues, “In any event is hard to hard to imagine how the life of the average American would be improved by courting conflict with China, while it is quite easy to imagine countless ways in which it could be made worse.”

by John V. Walsh

https://libertarianinstitute.org/articles/the-danger-is-not-china-but-the-fake-china-threat/

tfct ebook cover 600w

At times a book is convincing not only because its arguments are sound but also because of the author’s identity. It would be no surprise to encounter a book penned by a socialist or Sinophile that takes on the false portrait of China that graces the U.S. media. But Joseph Solis-Mullen, the author of The Fake China Threat And Its Very Real Danger, is neither socialist nor Sinophile.

Solis-Mullen is a libertarian in the mold of Randolph Bourne and Justin Raimondo. Hence, he is classified as a conservative in our impoverished political taxonomy. But his book is not written to appeal to people of any single political outlook. It is written with only one thing in mind, the interest of the American people and, dare I say, of humanity in general, China included. Hence it is of great utility for people across the political spectrum who sense that our people are being hoodwinked by fake China threats. It may answer your questions on China or those of your friends in ways understandable to the average American.

The Fake China Threat is Ubiquitous—and Dangerous

Solis-Mullens explains the purpose and scope of the fake China Threat as follows:

“On the one hand, (the fake China Threat) serves as a legitimating device, a new reason for continually climbing defense budgets…and for the continued meddling…in the affairs of other states…

“On the other hand, the fake China Threat serves as a convenient scapegoat for the end results of the bad policies that Washington has itself authored and for decades pursued. America deindustrialized? China’ fault. Millions of Americans hooked on drugs? China’s fault. The Saudis and Iranians don’t want the Americans around anymore? China’s fault. Et cetera.”

“There is one element of truth to the fake China Threat, however; the existence of an independent China (or Russia) is a threat to Washington’s accustomed ability to do more or less whatever it wants, wherever it wants. But the existence of an independent China is already a fact. Refusal on the part of Washington to accept it will cause more than theoretical problems, and therein lies the real danger.” [Emphasis Added]

To remedy that “real danger” is the purpose of this book as the author explains in these words:

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A Multipolar World Order

Posted by M. C. on February 27, 2024

by Nick Giambruno

Instead, Russia, China, and their allies want to transform the current world order from unipolar to multipolar and give themselves a bigger seat at the table in the process.

The US and its allies want the unipolar status quo to prevail.

This is World War 3. It’s happening right now and rapidly escalating.

In fact, World War 3 has been going on for over ten years.

Russia, China, and Iran are the primary geopolitical challengers to the US-led world order.

While they resent US dominance, Russia and China have a seat at the table in the current US-led world order as junior members. They have permanent seats at the UN Security Council and are members of core international organizations like the IMF, the World Bank, the WTO, etc.

Further, China and Russia are the only countries with sophisticated enough nuclear arsenals to go toe-to-toe with the US up to the top of the military escalation ladder, a concept to describe how the severity of a military conflict can increase.

In other words, the US military can’t attack Russia and China with impunity because they can match each move up to all-out nuclear war—the very top of the military escalation ladder.

For this reason, Russia, China, and the US are deterred from entering a direct military conflict with each other. They all understand that “The only winning move is not to play.”

That’s also why, at this point, it doesn’t seem that Russia and China want to flip the board and create their own new world order—as Germany and Japan tried to do during World War 2. Doing so could invite nuclear Armageddon.

Instead, Russia, China, and their allies want to transform the current world order from unipolar to multipolar and give themselves a bigger seat at the table in the process.

The US and its allies want the unipolar status quo to prevail.

The conflict is being played out below the threshold of direct kinetic warfare—proxy wars, economic wars, financial wars, cyber wars, biological wars, deniable sabotage, information wars, and other domains.

This is World War 3. It’s happening right now and rapidly escalating.

In fact, World War 3 has been going on for over ten years.

While World War 3 doesn’t have a precise starting date, we can point to two key events in 2013 and 2014 that signified a conflict had started among Russia, China, and the US—the largest world powers—to reshape the world order.

The first was the rise to power of Xi Jinping in March 2013, after which it was clear that China was no longer content with being a mere junior member in the US-led world order. Beijing wanted a bigger role commensurate with its size. That means, at a minimum, being equal to the US or even becoming the world’s dominant power.

The second was the US-backed coup in Kiev in February 2014, which culminated in the violent overthrow of Ukraine’s corrupt pro-Russia government, which a corrupt pro-US government replaced.

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Two Years On… Ukraine Conflict a Historic Watershed Exposing Western Imperialism’s Dead-End

Posted by M. C. on February 27, 2024

The emerging multipolar world order led by Russia, China, and the Global South is pushing the old Western arrogant order into historical oblivion

The upshot is that Ukraine has been callously devastated by the United States and its imperialist partners in a proxy war against Russia – a war that the Western powers have all but lost.

But this epoch-making conflict has significance way beyond the disaster of Ukraine.

This week marks the second anniversary of Russia’s special military operation in Ukraine that began on February 24, 2022. President Vladimir Putin ordered the intervention of Russian forces for two reasons: to protect the Russian-speaking population of the Donbass region which had endured eight years of NATO-backed aggression; and, secondly, to denazify the regime that the Western powers had illegally installed with a coup d’état in Kiev in 2014. The tenth anniversary of that coup on February 22 was also marked this week.

Two years on, the first objective has been substantially achieved. Russian forces control most of the Donbass region, as well as Kherson, Zaporozhye, and Crimea. These regions are now legally part of the Russian Federation following historic referenda. In sum, Ukraine has lost about 20 percent of its pre-conflict territory to Russia. The concerned populations contend that they have rejoined Mother Russia.

The military victory last week for Russian forces in the key city of Avdeevka portends the imminent full taking of the Donbass along its historic provincial lines. That breakthrough also speaks of the near collapse of the Kiev regime forces. Two years on, the cities and towns of Donetsk and Lugansk have been rebuilt after suffering the vandalism and war crimes of the Kiev regime. The NATO-backed regime still attacks communities but the Russian-speaking regions of Ukraine are appreciably safer and better off than they were two years ago.

As for the second objective, the denazification of the Kiev regime has still not yet been achieved. However, the regime is but a shell of its former incarnation when with the help of NATO weapons and military advisers it was waging a brutal aggression against ethnic Russian communities.

Moscow has stated that it will continue its military operation in Ukraine until the neo-nazi regime is eliminated. There seems to be little doubt that that objective will be met given the superior firepower on the Russian side and the rapidly deteriorating condition of the NATO-backed forces.

The Russian achievement is quite remarkable given that the U.S.-led NATO bloc (30 nations) has flooded Ukraine with a vast array of heavy weapons. The United States and its European allies have spent – wasted – up to $200 billion in supporting the Kiev regime over the past two years. Despite the inordinate flow of weaponry and mercenaries, Russia has secured the territory it set out to obtain, and the NATO-backed side is facing collapse.

The course of the war is on Russia’s side. From the outset, Moscow said it had no intention to occupy all of Ukraine. But the collapse of the regime in a rump state is no doubt something that Russia wants, and the betting odds point to that eventuality as the cabal in Kiev descends into corruption, backstabbing, and infighting.

But, importantly, the military situation in Ukraine is only part of a much bigger picture of global confrontation and one that speaks to an existential crisis for Western imperialism.

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A History of Sino-American Relations

Posted by M. C. on November 30, 2023

by Joseph Solis-Mullen

Apart from considerations of possible war or human extinction, as an advocate of constitutional, republican government, it is a fact that such a limited government is incompatible with a state powerful enough to engage in overseas adventurism and militarism as the United States does. It is economically and morally bankrupting us. In the words of Pat Buchannan, we are meant to be a republic not an empire, an example, not an enforcer.

https://libertarianinstitute.org/articles/a-history-of-sino-american-relations/

The following lecture was delivered at Spring Arbor University, October 2023.

There is hardly anything more important to the future of the world than Sino-American relations. And that’s quite a thing to say when looking at the state of the world these days. But over the long-haul these, the two largest economies, militaries, and navies on earth must find some way to coexist, or else there is going to be trouble for everyone. The aim of this talk is to outline the course of Sino-American relations.

As I presume most everyone here is generally familiar with the history of the United States, my talk will follow Chinese history and I will be introducing the relevant intersections between the U.S. and China as we go along. The United States being less than three hundred years old, and the first recorded ruling dynasties of China dating back to the second millennia BCE, I will be beginning my narrative of Chinese history rather abruptly, and quite late. Fascinating though its antecedents are, considerations of the time allotted to us today demand that we start with the last of the several foreign dynasties that ruled the area we associate today with the Chinese state. This was the ethnically Manchu Qing Dynasty (1644-1911). These were the descendants of an earlier northern “barbarian,” that is non-Han Chinese, people who had conquered northeast China in the early twelfth century, establishing the Jin Dynasty (1115-1234), which was subsequently destroyed by the Mongol Yuan Dynasty a hundred odd years later (1271-1368).

Like their conquering predecessors, the Manchus had been effectively Sinicized. That is, in a manner not dissimilar to the case of the Normans of Europe during the Middle Ages, the ruling Manchus merged with and in important ways adopted Han Chinese culture, Confucianism, Taoism and Legalism. There were pragmatic reasons for this, and the reasons are in some ways central to the story of China in the nineteenth century, when it had its first sustained conflict with the newly industrialized states of Western Europe and the United States. You see, China is very large, the terrain is very challenging, and then as now it was extraordinarily populous. The Confucian bureaucratic elites and the existing governing structures were critical to anyone who wanted to effectively govern China, and prevent it from disintegrating into warring states, which happened at several points during Chinese history, most recently in the early twentieth century.

Marshalling the considerable resources of the Chinese state, scholars estimate that at the time China accounted for fully forty percent of global output, the Qing thereafter brought the Chinese Empire to its greatest territorial extent, adding new territories in central Asia, such as the province of Xinjiang and in the adjoining seas, such as Formosa, that is Taiwan. The centrifugal forces that would fatally weaken, undermine, and ultimately destroy the Qing dynasty were already at work, however, and these are what you see up on the screen here.

Obviously, any one of these problems is going to pose a severe challenge to any regime. Population growth strained the capacity of China’s non-industrialized agricultural sector at the same time a series of severe weather events put additional stresses on the ability of Chinese society to feed itself. Economically, local elites dominated markets that were in theory unified internally and without barriers. However, these markets were relatively limited by the vast distances involved and by the low level of urbanization and industrialization that had occurred. With regards to corruption, the problem was two-fold: on the one hand you had local elites who were resistant to obeying the central government, who were willing, for example, to let the British and Americans run opium into China in exchange for a cut of the action; while on the other hand, you have the more basic kinds of corruption like preferential treatment, bribery, et cetera. As for foreign interventions and rebellions, we’ll have plenty to say about those on the next slide.

Though internally there was relatively free movement of goods, as well as networks of finance, outwardly it was protectionist and, by the standards of the time, heavily bureaucratized. This hadn’t really mattered because for centuries there had been little the few visiting Europeans had to offer that the Chinese wanted, or that the Chinese government had wanted them to have. That last is, of course, a reference to opium. Because there was one thing the primarily British, but also American, sailors were increasingly bringing that millions of Chinese increasingly wanted and that was opium. Poppies were being run from India and later the Ottoman empire, processed into opium on a couple of offshore locations, and then smuggled into the country. This was as lucrative for the British East India Company and other traders as it was destructive to Chinese society, and so the British government was loath to put a stop to the flow when asked by the Qing. When diplomacy failed to stop the incoming opium, the Qing administration under the Emperor Daoguang took steps to try and block off and interrupt the illicit trade—going so far as to destroy British owned stocks of opium in Canton, at that time the only trading outpost open to the Europeans. A little pressure by the East India Company in London, and with that the First Opium War had begun.

Like the Second Opium War, which as you can see was fought just over a decade after the conclusion of the First, and was primarily concerned with enforcing the terms of the treaty of Nanjing, the military operations of the western powers concerned were primarily naval. That is, they primarily involved the blockading and shelling of ports. As for their aims, the wars were concerned with the expansion of the Europeans, and Americans’, privileges in China: these were things like extraterritoriality, the rights of citizens of, say, Great Britain, to not be subjected to Chinese authorities but rather to locally based British ones. The cession of so-called Treaty Ports, additional enclaves for foreign traders to do business, Shanghai perhaps being the most significant. And, lastly, the rights of Christian missionaries operating in China were protected. I’ll have more to say on Christianity in China later.

So as we can see from the conditions imposed on the Qing by the Europeans in the various treaties we see listed on the slide, neither the Opium Wars, nor any of the subsequent interventions we’re going to talk about by the European powers or the United States in China, had as their goal replacing the existing Chinese imperial system. In fact, several of the most important interventions in China by the other powers were operations conducted in order to protect the Qing from domestic opponents to its regime. Why did they do this? Well, essentially for the same reason conquering invaders like the Manchu or Mongols had allowed themselves to be incorporated into existing structures. The Europeans couldn’t possibly have occupied China, and after the experience of India few, particularly in England, at this point by far the strongest power, wanted to try. Leading intellectuals and politicians, people like William Cobden, believed colonizing India had been a mistake, and they wanted the British presence in China to be all the benefits of commerce with none of the expense and baggage of direct rule.

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Here’s Why the Renewable Energy Agenda Won’t Work… And What It Means For Investors

Posted by M. C. on November 13, 2023

Apart from the obvious (the US for all intents and purposes has no strategic oil reserve), there is a hell of a lot of buying that has to occur to build those reserves up. In other words, we aren’t going to see any selling pressure hereon in from the strategic reserve but rather a whole lot of buying. We suspect that Vlad Putin is well aware of this.

Let’s cut to the chase: the next 10 years will see a repeat of 2000-2010. The outperformance may well last for a lot longer than this. The essence is that we don’t have to be concerned at all about energy related stocks underperforming the general stock market for a very long time.

by Chris MacIntosh

We are reminded of the below words of wisdom…

We noticed lately an uptick in analysis and commentary that is questioning the climate change narrative. Pieces like this one:

Clearly this climate change narrative/ideology too shall pass like every fad, but it will take time. This is ok. It just means that we will see the fossil fuel sector (oil, gas, coal, and related services) continually outperform the S&P 500 over the next 10+ years.

Take China… It Doesn’t Care…

I assure you, China doesn’t care about the ESG nonsense. What’s interesting is China’s dependency on coal – some 64% of their electricity comes from coal.

China produces (from domestic sources) about 85% of the coal it consumes (granted, this includes both coking and thermal coal).

With respect to coal, China has two big problems, and few appreciate the magnitude of the problems.

Firstly, China only has 35 years of coal reserves at today’s consumption levels, and secondly, the grade of those reserves is deteriorating. In other words, it is taking more coal to produce the same amount of heat.

Not only this but China wants to increase coal-fired power stations by 20-30% over the next 10 years or so. Where is all this coal going to come from if the volume and quality of China’s reserves are deteriorating?

This Bloomberg article highlights the deterioration in China’s coal grades.

From the article:

China’s coal imports, including low-grade lignite, climbed to an all-time high of 44 million tons in August, while domestic production of 382 million tons was also a record for the time of year. Imports over the first eight months have nearly doubled to 306 million tons, more than the country usually takes in a whole year.

The increases in supply come as the government seeks to avoid the power shortages that have crippled the economy in recent years. China’s rush to extract more coal has also degraded the quality of its domestic output so that more fuel is needed to generate the same amount of heat.

When energy security is discussed, few pay second thought to coal (particularly in light of today’s climate change ideology). China is going to have to source an increasing amount of coal from other countries, and there is only a few they can source it from (unlike oil).

How about the US? Only 17 days left ?!

While US government shutdowns make the headlines, quietly in the background the US only has 17 days of supply left in its strategic reserve.

Apart from the obvious (the US for all intents and purposes has no strategic oil reserve), there is a hell of a lot of buying that has to occur to build those reserves up. In other words, we aren’t going to see any selling pressure hereon in from the strategic reserve but rather a whole lot of buying. We suspect that Vlad Putin is well aware of this.

Would this be an opportune time to hit back at the US? Rockets, bombs, tanks — that is the way old fashioned wars were played. Yeah, it is still how regional conflicts are played, but wars on a global scale are likely to be fought using energy as the weapon of choice.

What is going on here?

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Peace with China Is the Only Way to Protect Taiwan

Posted by M. C. on October 5, 2023

Our rulers, like they forgot how to negotiate and how to rule generally, also seem to have forgotten the “carrot” part of the trite but true “carrot and stick” metaphor for managing relationships with other countries. In the case of Taiwan, it simply isn’t possible to defend militarily from mainland China, nor is it possible to inflict economic pain on China without hurting ourselves as much or more than China.

https://libertarianinstitute.org/articles/peace-with-china-is-the-only-way-to-protect-taiwan/

by Brad Pearce

chinese vice premier arrives in washington for economic, trade consultations

–FILE–National flags of China and the United States are seen in Ji’nan city, east China’s Shandong province, 14 June 2018. Chinese Vice Premier Liu He arrived in Washington D.C. on Monday afternoon for the upcoming high-level economic and trade consultations with the U.S. Liu, also a member of the Political Bureau of the Communist Party of China Central Committee and chief of the Chinese side of the China-U.S. comprehensive economic dialogue, leads a delegation with members from the major economic sectors of the Chinese government.

It has been observed by many that the main foreign policy difference between the American political parties is a disagreement over which other super power to hate more. For the Democrats, it has been a deranged obsession with Russia for several years now. For the Republicans, of course, it is the Chinese whom we must hate and fear.

To the extent that some Republican candidates are better on Russia-Ukraine than the Biden Administration, it is almost entirely driven by their stated desire to instead use those military resources against China. I will concede that as long as one insists on viewing the world as a “global chessboard,” the obvious move is to draw closer to Russia as a hedge against a rising China, but that is both a reductionist view that downplays the real benefits of cooperation and, perhaps more importantly, that ship has long since sailed.

Overall, Republican politicians—and the American right generally—want us to fear China in every sphere where one could fear a country, from silly video sharing apps to drugs to world military domination. Most of all, we are told we must have an antagonistic policy towards China to protect the unrecognized state of Taiwan from Chinese aggression. However, a U.S. policy of antagonism towards Beijing only puts Taiwan at greater threat from the government of the People’s Republic of China. The truth is that it is not possible for the United States to militarily defend Taiwan against China. Taiwan can only be protected through maintaining good relations with China so that any benefits of China invading Taiwan are outweighed by the economic and diplomatic costs.

Since Richard Nixon adopted the “One China” policy 50 years ago, U.S.-China policy has been based on an inherent contradiction. The United States views the People’s Republic of China as the sole government of China, including Taiwan. However, it has given what amounts to a security guarantee to the so-called “Republic of China,” the government of Taiwan, which itself claims all of China. This system has held surprisingly well given the weight of its own ridiculousness, but in an era where American power is fading while China takes its place among the leaders of the world, it has become ever more fragile. All of this would be hard enough to manage under competent, steady leadership. Instead, the United States is ruled by irresponsible, foolish people who should not be trusted to be in charge of anything, least of all to guide a nuclear superpower through changing times.

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Why Mitch McConnell Is One Sick F**k

Posted by M. C. on September 27, 2023

By David Stockman

David Stockman’s Contra Corner

Rarely has the imperial arrogance of the Washington political class been so succinctly expressed. We are talking about Mitch McConnell’s recent triple bank-shot rationale for inflicting still more misery and death on the god-forsaken peoples of Ukraine.

American support for Ukraine is not charity. It’s in our own direct interests – not least because degrading Russia helps to deter China.

What kind of sick fuck would demolish an entire nation and slaughter tens of thousands of its citizens in order to weaken its neighbor and historic suzerain—all for the purpose of sending a carom shot across the bow of rulers 3,600 miles away. And rulers, at that, who are no boon to their own citizens but also pose no threat to the liberty and safety of the people of Kentucky or any other part of the United States?

Indeed, even when President Truman and War Secretary Stimson ordered the cold-blooded killing of 214,000 Japanese civilians in Hiroshima and Nagasaki their rulers actually did mean America harm and had already killed thousands of its soldiers from Pearl Harbor to Iwo Jima. But exactly where is the evidence that Beijing is assembling a massive armada of air, sea and land forces to invade the coast of California or is standing up a devastating first nuclear strike capacity to leave American cities in cinders before the awful nuclear retaliatory forces of the US could strike back?

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US-Saudi Arms ‘Megadeal’ Collapses Over Russia, China Links

Posted by M. C. on September 16, 2023

RTX, one of the largest weapons firms in the US, is currently being sued alongside Lockheed Martin and General Dynamics for “aiding and abetting war crimes and extrajudicial killings” by selling weapons to the Saudi-led coalition waging war in Yemen. The lawsuit was filed on behalf of the victims of two coalition bombings in Yemen — one for a wedding in 2015 and another for a funeral in 2016.

According to Human Rights Watch (HRW), in October 2015, the Al-Sanabani family was readying to celebrate a relative’s wedding when a coalition jet bombed the area, killing 43 Yemenis, including 13 women and 16 children. A year later, coalition jets dropped a US-manufactured GBU-12 Paveway II laser-guided bomb on a crowded funeral, killing over 100.

The lawsuit alleges that western-manufactured bombs have killed over 25,000 civilians since the beginning of the NATO-backed war nearly eight years ago.

https://www.zerohedge.com/geopolitical/us-saudi-arms-megadeal-collapses-over-russia-china-links

Tyler Durden's Photo

by Tyler Durden

Friday, Sep 15, 2023 – 07:40 PM

Via The Cradle, 

US weapons maker RTX, formerly known as Raytheon Technologies, scrubbed a multibillion deal with Saudi firm Scopa Defense earlier this year over “concerns” that the latter was pursuing business with sanctioned Russian and Chinese companies, according to people familiar with the deal that spoke with the Wall Street Journal (WSJ).

In 2022, RTX and Scopa signed a memorandum of understanding to build a factory in the kingdom for air defense systems to protect Riyadh from airstrikes. The plan reportedly called for installing radars and multiple air defense systems with an investment of $25 billion in the kingdom and $17 worth of sales.

Image source: Breaking Defense

The owner of Scopa, Mohamed Alajlan, told the WSJ that his company has no deals with sanctioned Russian companies and that any deals with Chinese firms “are limited to securing raw materials such as copper or rubber for use in producing ammunition and armored vehicles.”

“We don’t work with any companies that have international sanctions,” Alajlan told the WSJ, adding that the decision by RTX to scrub the deal was “rushed, illogical, and even irrational.”

Alajlan, who also chairs the Saudi-Chinese Business Council, is the heir of a prominent Saudi family that for decades has imported Chinese textiles to the kingdom.

According to the WSJ, the “unease” over Scopa’s alleged ties to sanctioned Russian and Chinese companies “was a deciding factor for an advisory board of retired US military officers to resign from the Saudi company.” Furthermore, the daily claims Scopa fired its chief executive “who had raised the sanctions concerns with his company’s owner and US officials.”

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