China vs. the US: shipbuilding, subsidies, and the Jones Act

Hypocrisy thrives where double standards prevail.

Earlier, I stupidly tweeted out an article about the Jones Act and shipbuilding and Colin Grabow, from the Cato Institute, liked it (he was quoted in the article). I looked him up and decided to listen to this video on the shipbuilding competition between China and the US, where he and a lawyer for United Steelworkers were on the panel. China is eating their lunch, and it’s the ruling elites’ own fault, yet they scapegoat China for it. The double standards over China’s “unfair economic practices” AKA the subsidizing of their shipbuilding industry irritates me (liars irritate me even more). States give subsidies, grants, and tax breaks to corporations, all the time. Fincantieri Marinette Marine is just one example, but Wisconsin had done the same for Foxconn. Foxconn received tax breaks and $3B in subsidies, which was “the largest ever subsidy provided by a state to a foreign company”, despite not living up to their promises.

Rumble

Colin Grabow wants to end the Jones Act. I’ve made at least three video clips regarding the Jones Act, two with Sal Mercogliano from What’s Going On With Shipping and one from the government-funded CSIS (I’ve posted them, below). Spoiler alert: Sal says that the problem isn’t the Jones Act. Meanwhile, both CSIS and the Cato Institute (part of the Atlas Network) blame the Jones Act. Deregulation is a wet dream of big corporations (which fund both the Cato Institute and CSIS).

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China gathers naval leaders worldwide to discuss maritime security while US conducts drills to ‘destabilize S. China Sea’

US and Philippines launch Balikatan joint military drills in South China Sea

This year’s staging of Balikatan, the allies’ largest annual military drill, will include a joint sail in the disputed South China Sea outside the Philippines’ territorial waters. The French navy, a first-time Balikatan participant, and the Australian navy will also join the manoeuvres.

While the US and the Philippines resumed joint naval patrols in the area last year, and the US has in the past sailed there with other allies and partners, it will be the first time that the Balikatan drills have extended beyond 12 nautical miles off the Philippine coast and into waters claimed by China.

Six Philippine coast guard vessels will also participate in the drill, the first time the service — which has been at the forefront of frequent clashes with China over the past year — has been included in a military exercise.

Another closely watched component of the drills will be the Strategic Mid-Range Fires missile system, known as Typhon, which has a range of up to 2,500km. The US Army airlifted the system to the Philippines this month, the first such deployment in the Indo-Pacific. Intermediate-range ground-launched missiles had been banned under the Intermediate-Range Nuclear Forces Treaty, but the pact collapsed in 2019 after both the US and Russia left it.

Troops will also practise tracking and targeting air and missile threats, retaking enemy-occupied islands in the Philippines’ far north, just south of Taiwan, and sinking a ship off the coast facing the South China Sea, expanding on drills last year.

The exercise coincides with an annual conference by China’s Navy, which will be attended by senior military officers including from the US. It also comes as US secretary of state Antony Blinken is heading to China on Wednesday in the two countries’ latest effort to manage tense relations.

Related:

China gathers naval leaders worldwide to discuss maritime security while US conducts drills to ‘destabilize S. China Sea

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The Growing Weakness of Western Artillery Capabilities

After decades of waging war against impoverished nations with destitute armies, or no standing armies at all, the US has suddenly found itself in a rapidly changing world where peer and near-peer competitors are outpacing it in military capabilities. Many of these capabilities are showing up on the battlefield in places the US has until recently enjoyed relative military superiority.

The Growing Weakness of Western Artillery Capabilities