1. China vs. the United States As we “build down”, China builds up.

2. Goals of Chinese Strategy China’s primary national goal is to become a strong, modernized, unified and wealthy nation. China plans to become the preeminent power in Asia by generating enough strength so that no major action will be taken by any other country in Asia without fear of China. China also plans on being a major player or power in the Western Hemisphere, and be able to control events in North and South America if necessary should they consider any Western power a threat or obstacle to their goals.

9. Hutchinson-Whampoa The company is owned by Li Ka Shing, the richest man in Hong Kong and as of March 9, 2006 - the 10th richest man in the world. According to a declassified U.S. Intelligence report, "Li is directly connected to Beijing and is willing to use his business influence to further the aims of the [Communist] Chinese Government. He has positioned his son, Victor Li, to replace him in certain Cheung Kong Holdings and Hutchison Whampoa operations such as HW’s Hong Kong International Terminals (HIT). ... Li’s interest in the Panama canal is not only strategic, but also as a means for outside financial opportunities for the Chinese government.”

11. Panama Canal--Cristobal Port of Cristobal on Panama Canal. Capable of berthing large transports and container ships. Cristobal is located at the entrance to the Gulf of Mexico/Caribbean side.

12. Panama Canal--Balboa Balboa, on south (Pacific) side of Canal is being developed into a mega port with 18 Super Lift Post-Panar cranes capable of accommodating five Panamax and two feeder ships simultaneously.

13. China Ocean Shipping Company This “civilian” corporation is owned by the People’s Liberation Army Navy (PLAN). It is geared to be a military asset for transocean shipment of troops and equipment on massive scales if needed. China believes, like we do, that prepositioning logistical assets in areas of contention or possible strategic concern is paramount to victory. By establishing deep water ports abroad, China is creating an infrastructure capable of handling massive movements of military and logistical supplies.

14. A Well Known Military Fact It is easy to transport troops long distances. It is difficult to transport supplies. You say “Get on the ship (or plane)” and the troops march aboard. You cannot do this with supplies. Troops do not require cranes or forklifts. Supplies and equipment do. By pre-positioning your logistical base in the zone of concern, it eases the time factor to react in that zone with significant force.

19. China’s Forces are Modern China’s military is making great strides to modernize and use the latest technology. Chinese Special Forces (above), as one example, are trained and equipped for 21 st Century missions.

23. What the Chinese Do Fear The Chinese military fears an armed citizenry more than a predictable military whose numbers can be counted. Chinese military leadership has voiced a concern during “war game planning” about the unknown number of American citizens who own and can use firearms. Learning from the Vietnamese (Viet Cong) and the teachings of Mao, a huge indigenous guerrilla force is an unknown factor that cannot be predicted or controlled. With millions of armed Americans, who have proved through history to be able to use the arms they possess, China is fearful of an occupation that would not be sustainable. They also fear the number of combat experienced veterans in our population. Such a base of experience can produce a leadership cadre for a huge guerrilla army.

24. We Can Never Let Our Guard Down

25. The End?