Keating is stupid…and right

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As usual, the truth is lost in Australian undebate and irrationality:

Speaking to the ABC’s 7.30 program last week, Mr Keating described the self-governing island of Taiwan as “Chinese real estate”, in remarks Taiwanese officials called “incorrect and dangerously misleading”.

The former prime minister characterised the United States as an “aggressive power” which was “trying to superintend from the Atlantic the largest Asian power, which is China”. Mr Keating argued that, instead of allying with the US, Australia was “better left alone”.

“What this is all about is the Chinese laying claim to Taiwan. And the Americans are going to say ‘No, we’re going to keep these Taiwanese people protected,’ even though they’re sitting on Chinese real estate,” he said.

…Host Sarah Ferguson subsequently said Mr Keating’s words had “shocked” her.

Addressing the remarks in a separate 7.30 interview, which aired on Tuesday night, Ms Pelosi called them “stupid”.

“That’s ridiculous. It is not Chinese real estate, and he should know that. Taiwan is Taiwan, and it’s the people of Taiwan who have a democracy there.

Keating is stupid. He is utterly biased towards China and refuses to recognise how the region has moved on from his “engagement” glory days.

But he is also right about Taiwan. There is no obligation nor upside to Western powers defending that island.

Its strategic position makes it almost impossible to do so if China is determined and its conflict with the mainland is a historic civil war.

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That is not to say that Western powers should abandon Taiwan. They should not. Nor is it a criticism of AUKUS, which has so delivered all kinds of tech.

But neither should Western powers put boots anywhere near Taiwan, lest that provoke a Great Power conflict.

Only an economically desperate Beijing will choose forcible annexation, which will make it an immense blunder.

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Western powers should take advantage of that by booting China out of the global economy and sending its economy back to the dark ages.

A Taiwan war is the end, not the beginning, of any Chinese empire and might even deliver Beijing regime change if managed right.

About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.