China & Russia Are on a Collison Course in Asia

China and Russia are on a collision course in their competition to secure natural resources in the Asia-Pacific region.

Whether they realize it or not, China and Russia are on a collision course on the Asian continent that is bound to lead to bloodshed — or even a nuclear exchange in the worst-case scenario. At present, the two countries seem to be at peace, basking in the glow that accompanied recent announcements by U.S. officials that geopolitics was leaving the post-Cold War era of American uni-polarity and returning to an age of competing Great Powers, raising the ghosts of Metternich and Bismarck organizing diplomatic “concerts” in Europe 140 years ago.

Given the persistent drip of bad news confronting Russia and China, one can imagine the satisfaction the two nations take in such pronouncements. It seems their decision to work together over the past half decade paid off, but both nations face challenges that could spell trouble and bring them inexorably into conflict in the near future.

China and Russia face significant economic and security issues. China’s double-digit economic growth has not only declined, it has come to a screeching halt. Leading economic indicators suggest that China is in recession and experiencing negative real GDP growth. Party leaders and their families have already signaled their awareness of the economic fundamentals through their rapid transfer of personal wealth out of China.

It will not be long before the general population becomes sufficiently conscious of this capital flight to raise a protest. In an effort to head off this disturbance, the Chinese Communist Party has increasingly raised nationalist arguments to distract its citizens from the country’s real challenges.

Russia faces larger problems than its neighbor. Just as it appeared that rising prices for energy might be Russia’s salvation, the sudden precipitous drop has caught the nation ill-prepared. Vladimir Putin and his supporters had planned to finance vital investments in a rapidly degrading military as well as crumbling roads, bridges, and an electrical-power distribution system through fossil-fuel extraction, but — after the fracking revolution — $30-per-barrel oil threatens to stretch on forever. Putin’s fiscal cupboard is now decidedly bare.

China’s economic issues are combined with security concerns. The nation remains almost totally dependent on outside resources to supply its economy. Oil from the Middle East, as well as ores and rare-earth minerals imported from Africa and Australia, all have to come to China by sea, a sea that is controlled by the United States and its ten aircraft-carrier strike groups and 60 silent fast-attack submarines.

China also faces a far more basic shortfall: clean water. Its runaway industrial growth has come with a heavy price in polluted air and an increasingly toxic water supply. In fact, the former “Middle Kingdom” has taken to physically redirecting the Himalayan headwaters of major rivers to direct more fresh water into China, robbing South East Asian nations of their birthrights and sure to cause further discord.

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Source: China & Russia’s Coming Resource Conflict in Asia