 Good evening everyone. Thank you for joining me. I know this is going out Directly after my live stream this evening. So thanks for staying around. I won't talk to you about something very serious. It is a book review as promised the book review of Stealth War how China took over while America's elite slept by Robert Spalding He is formerly of the US Air Force and has also worked at the very heart of Washington and one of the alarming things that he reveals in this book is the either ignorance or complicity of many in Washington with China and with China's aim to Not not to to be fanciful or hype it up China's aim to take over the world and I kid you not It is an extremely Extremely dangerous era that we are living in with regard to China and this week Thursday night Don't miss my speech on China. I've been doing a lot of research on this country lately And the more I learn the more alarmed I become We all know that it's a communist country That it is entirely at lawless It obeys its own rules and only its own rules and in reading this book You'll understand just how bad it is one example is copyright There are examples in this book of American businesses who set up Patent their product only to find it Forgery of it being sold online much cheaper than their product and and American businesses Have been put out of business because of this and yet the American government Continues or Congress at least continues to facilitate China's dominance of American business. It seems so Wrong and and and the opposite of what it ought to be and just to give you another example the there is a the postal service in the United States Transits things cheaper From outside so if you buy something from China It will cost you less To have it shipped to you than it would if you had it shipped to you from America And the reason for that is that the Americans are paying to deliver for China. They are Outpricing their own businesses in terms of delivery. There are some startling stories in here too about how China is how its tentacles are deep within the United States and how it It is enforcing its own rules inside the United States There are people for example who have been fired from their jobs for criticizing China in America or for doing something as simple as liking a tweet about Tibetan freedom Fired from the job. I I spoke on my live stream last week about a woman who runs. She's a She works for the voice of America, which was a radio station set up for Libertarian for liberty to speak to speak to Americans freely That's the entire point of it and of course given the first the First Amendment to the US Constitution Which guarantees freedom of speech one would assume that the voice of America was able to speak freely in America not so if they are going to interview someone the Chinese government deems problematic Not only does the interview get canceled, but the person who arranged the interview is fired fired from an American radio station determined to speak freely Pretending obviously to be determined to speak freely The entire ethos of the radio station is for freedom of speech And yet one of its people was fired for setting up an interview with somebody that China Didn't approve of and she had to jump through some hoops to get this interview But it was canceled and suddenly she found herself out of a job. This is China's influence already in the United States It buys its way into power. It has stolen and Cheated its way into large amounts of money by stealing other people's ideas And it's using that money that it stole to buy influence all over the world It has very few regulations But in but still in order to dupe people for example with environmental concerns one thing that China will do often is build in other countries So that it avoids criticism for environmental for example or human rights Contraventions in its own society. I cannot recommend this book enough. It's not a very long read It's quite a short book a couple of hundred pages the information contained within it is absolutely Explosive and more and more pertinent as time goes on So I want to read you just a couple of pieces from it the opening chapter is called Unrestricted warfare and it gives you an idea of how China views the world How we how China views its position in the world and that it's not fanciful to say that it it aims to to be a Unlimited global power it aims to have its tentacles Absolutely everywhere and to make the world bow down to its requirements So let's have a look at unrestricted warfare. I'll read a small part from this It reads the Chinese Communist Party's ultimate goal Which even the most powerful and well connected are clueless of or complicit in is to strengthen itself at every time The CCP believes that its biggest obstacle and indeed its greatest threat is the United States of America in as much as it Remains the global economic and military leader the party's goal and biggest challenge is to displace America's position on the world stage the CCP's own Documents state as much perhaps the most important and revealing of these documents is a 1999 work called Unrestricted warfare written by two senior colonels in China's People's Liberation Army It outlined a number of strategies to tilt the balance of power throughout the globe in China's favor It should be required reading for all branches of the US government and for business leaders Because it outlines in no uncertain terms the strategy behind China's policies in the world Here is a short chilling passage. This is from the Chinese document The new principles of war are no longer using armed force to compel the enemy to submit to one's will But rather using all means including armed force or non armed force military and non military and lethal and non lethal means to compel the enemy to accept one's interest the book continues a Slightly further down it becomes clear Viewed from the calculating perspective of unrestricted warfare that our leaders failed to understand that CCP leaders were merely paying lip service to free trade and globalization while blatantly ignoring the laws Governance free trade China welcomes investment, but it won't let investors take their profits out of the country Chinese companies set up shop all around the world But the totalitarian CCP puts all kinds of limits on foreign companies growing in China Since the end of the Cold War leaders in the West have operated under an economic theory that free markets lead to greater wealth This concept has merged with something called the theory of modernization a Sociological idea asserting that democracy is the direct result of economic growth Now this is interesting because that is what we assumed We assumed that China China was saying all the right things We assumed that given greater market freedom and the fact that China was going to sign up At least it said it was going to sign up or at least it was partially going to sign up to global trade and the rules That govern it that it would in the end lead to Democracy the greater wealth people had the greater demands they would make for liberty This is simply not the case with China China is very very insular They see themselves quite uniquely among peoples in the world and they don't allow others to Become China if you let's become Chinese. Let me give you an example in a further book I've read which I also recommend which is called poorly made in China This is a look at how the factory the industrial complex in China And it's an alarming read You will hear about things Where the Chinese factory will Post contract simply change the terms of the contract without telling anybody and they will be simple things Which seem to go over the Chinese manufacturers heads of the culture is so different For example a bottle of shampoo manufactured in China. It will have a certain Amount there will be a certain amount within a certain amount of shampoo within the bottle advertised. So whatever Millilitres whatever it may be 100 mils a half a liter whatever it may be and They would not have this amount the the products coming back didn't have the amount in them that it said on the bottle and You know American firms would would get into arguments with with manufacturers and said which you've got to put The amount in the bottle that it says on the bottle and and according to the author of this There's simply no understanding of that But but why I mean we can get away with putting a little bit less in why wouldn't we get away with it? There's no rules, you know, and and you have American Importers arguing with manufacturers in China saying but we have Standards here if it says 50 mils it has to have 50 mils what is written on the ingredients inside the Ingredients on the label for what it tells you is inside the bottle must be inside the bottle Whereas the Chinese manufacturers would change the ingredients for cheaper after the contract had been made Without telling anyone. So there's absolutely no Concern for international law even the basics of international law and no concern for the Requirements of their customer, which is the importer of the manufactured goods Absolutely absolutely a law on to themselves But this book goes on to talk about how they say all the right things And just to give you another short example from this from the 2017 World Economic Forum in Davos in Switzerland Chinese President Xi Jinping spoke so let's let's read from the book a part of what he said in Davos The audience heard the words coming out of Xi's mouth, but they did not hear or understand his ultimate intent They believe that these words meant that he agreed to the underlying principles of globalization and that is what he wanted Them to hear but when one passes what he actually said and what he left on said often much more Important than what is said it becomes clear Xi offered no firm commitment to anything There is no mention of adhering to international law No mention of changing monetary policy to allow for the free flow of earnings out of China To whom is the saying no to economic protectionism? That's part of what he said Everything about economic policy in China is protectionist He's saying the West should not be protectionist because that serves the CCP's goals So in fact the leader of China was subtly undermining the laws of free trade and globalization While appearing to agree with them Xi and the CCP have crafted a shrewd Strategy and they have had the perfect unwitting allies in this scheme America's elites by now you've probably guessed what happens in aerial combat when the team doesn't share the correct mental model Chaos the same can be said for the world order that exists today chaos What Xi was actually saying at Davos was that he needed the West to stay open for business While he was professing agreement with prevailing Western economic and social theory He was actually operating on CCP theory instead of free trade leading to wealth and wealth leading to democracy His mental model said that globalization and the internet enable the CCP to gain power at the West's expense By accessing Western money to fund China's economic military and technological growth and thereby increasing its global power It is very very clear Throughout this throughout this book. What exactly the intention of China is and he's not Picking it out of thin air. He provides evidence for all of this. There is an exceptional chapter Or section rather than chapter in here, which must must be read It's too long to read it all to you now, but I'll read the first couple of paragraphs It's called corporate espionage 2.0. I'll read just a small part of it corporate espionage and Intellectual profit property theft really get talked about if a jewelry store or a museum is robbed The cops are called the newspapers report on the heist and talk about the value of what was stolen It becomes a quantifiable event a two million dollar haul or a ten million dollar painting Everyone talks about the crime on Twitter on late night TV when suspects are identified a manhunt ensues But with corporate espionage and IP theft there is usually a cone of silence Done. Well corporate theft is invisible. It involves copying documents Engineering plans chemical formulas computer codes raw data. That's different from stealing a Picasso off a museum wall Imagine stealing the plate the painting and replacing it with an excellent forgery The one not so good that it takes a whole year for an expert to notice the original has that one so good that it Takes the an expert to notice that it has vanished This kind of delayed we've been robbed reaction happens all too often in the corporate world But the reaction is muted Reporting the theft can lower investor confidence hurt company morale and tip off Competitors and this is this is crucial in other words throughout this book What he tells you is that American companies are being robbed left right and center by China But they don't say anything and they don't say anything because they don't want their Image in the world to be affected. They don't want their stock prices Affected they don't in fact not want anyone to know that they were Don't I don't know what the word is A bit they were it was you were able to steal so easily from them So I give them a great reputation So when China does steal outright steal from companies in the West, they don't say anything There's also no legal recourse here because if you have an issue for example with a manufacturer in China And it's what would in a Western country be something you could sue for For example breach of contract There's nowhere to go in China China owns all these companies the Chinese government owns all the companies and it also owns all the courts So you have no legal recourse. This is literally a snippet a tiny tiny snippet of what China Does around the world it is alarming and shocking and I cannot recommend this book enough I also highly recommend poorly made in China, which will show you where are Exactly how our products are made Chinese factories consistently opt for cheaper Manufacturing materials after they've contracted for higher quality ones. We had there are stories of Workers with open wounds dealing with medical products hygiene standards absolutely appalling Workers rights absolutely appalling. There's a in poorly made in China Made a separate review of that one in poorly made in China He talks about an American importer coming to look at at the factories and the factory work and I'm expressing concern For factory workers and asking the person showing them around and that's another thing by the way And when the when the importers go to the manufacturer visit the factories They will be shown a Facet a whole new setup will be made just for them to come in and look but it doesn't reflect Overwhelmingly doesn't reflect the reality. So when a an American importer went to observe the factory and asked about the workers and Sort of hours did they work what? Their rights essentially which is what a civilized, you know The an American was civilized and asked about the the pressure on the workers He was told they get two days off and this is how China works And this person who wrote that book is has lived in China for years and he will tell you this is how it works It's smoke and mirrors all around they said oh the workers get two days off Which the employer said oh the importer said great. That's that's that's that sounds perfectly reasonable And to which the writer of the book said But they didn't follow up with two days per month. They get two days per month off So that's that's how things operate. It is smoke and mirrors. It is breach of contract It is a complete lack of concern for the the quality of the product they produce They build relationships within porters tie them into these relationships And and you know fuss over them until the relationship is tied And then everything starts to reduce such that the importer would have to go through months of Tedious sourcing of another manufacturer or stay with the manufacturer They've got and keep fighting and arguing over quality and quantity and and contract sticking to your contract So does that this sort of business smoke and mirror side of China and how it has made itself so wealthy and so powerful Is essentially through theft, but why is it threatening the western world in the way it does well because of its own philosophy It's it is a it seeks world domination But also because and this goes without saying the weakness of our leaders Leaders donald trump is the only western leader to so much as mention the truth About the threat that china poses both to america and to the world Just imagine a world dominated by china It would be as this book points out chaos arbitrary Everything would be smoke and mirrors the whole world would be a deception All business western businesses run on the concept of trust We have we are a work so used to be a trust based society. That's how it works That's how you can get things like credit We trust that people are going to do the right thing and if they don't We have recourse to the courts to oblige them to all of that is out the window where china is concerned Our entire economic model is built upon the concept of trust and resolution China doesn't recognize these things and that from that's from there that it has gotten its great wealth But let's talk about its deception in other ways to the world. The coronavirus could not be a better example or pertinent example We know that they knew about this disease. We know that there are others We know that Diseases come out of china with regularity and we know that they lie and deceive And we know also that they owe the world hundreds of billions Of dollars in compensation for coronavirus And we know also that none of our leaders are holding them to account for it The united nations effectively defended them. The world health organization Defended them even knowing that this is their behavior Even knowing that they could have stopped the coronavirus pandemic in its tracks I don't think it suited china to stop the coronavirus pandemic because they've made a Fortune from it that is how weak the west has become in the face of china And we must go start right now going in the opposite direction Let me read you just a little bit more from the corporate espionage section of this because it it truly is It truly is terribly disturbing in 2014 the chairman of a large hedge fund Sent me a privately commissioned briefing about illicit chinese activity in u.s corporations So getting inside of corporations getting inside of businesses and reporting back To the chinese government is actually quite common and i mentioned earlier that they have a very specific view of themselves And even you know chinese the chinese people in in various parts of the world are still expected to exercise a supreme loyalty to china There's a story of a man on a on an airplane flying from the west to china And he lived in china he lived in china for many years And he's referred to china as home to to someone that he was speaking to And a chinese person overheard him and took great offence at this The guy was white And the chinese person took great offence and said i'm sorry, but china's not your home You're not chinese you're a visitor and you'll only ever be a visitor Quite quite extraordinary. Can you imagine if any if anyone in the west was to behave in that way? i'll say so back to the book back to the privately commissioned briefing about illicit chinese activity in u.s corporations The briefing was stunning in scope and detail and the information it contained Shook my view of the world to its very foundations The most disturbing slides detailed an assault to gain control of a propriety proprietary technology That a fledgling firm had developed The method of attack reminded me of the sophistication of an air campaign This is an x for sky It was perfectly choreographed to create subtle misdirection and open up a target for blitzkrieg The operation highlights the enormous amount of resources the ccp will dedicate to sabotaging corporate rivals To obtain control over coveted technology This is something else that china is absolutely desperate for is technology and even students Who study in for example the united states are expected to report back to china with any technology they discover We go on so he says here's what happens Here's what happened an american chemical company owned by a private equity firm had patented some groundbreaking green technology And was growing at a steady clip Its owner began developing a five-year plan to take the company public But suddenly the company started missing its earnings targets. The problem appeared to be in sales Orders were down and in logistics the division that handled the flow of products The sales guy was fired, but the bleeding continued The owners met with the leadership team and wanted to fix the issues But continued because continued shortfalls Would put the planned IPO in jeopardy not long after that the company received an unsolicited offer From a chinese company the offer shocked the owners. It was a 30 percent below the value of what it should have been Had it not been for the shortfalls So the chinese made an offer for this company 30 percent below the value that it would have been had it not been for recent shortfalls The management was stunned. How did these suitors make such an accurate valuation about company data? It seemed like they knew about the recent losses So to to summarize so far Company is down in sales Really really down in sales and companies don't like to advertise when they're down in sales They then receive an offer from china at What Essentially at the value of the reduced and they wonder How do they know that our sales have gone down so much? To offer to make such a low offer it continued the owners hired investigators They discovered that not only had the chemical company been hacked But so had the private equity firm that owned it The hackers knew the company's earning targets and red lines in terms of what was acceptable to the owners The level of sabotage was on a spy craft level Brilliant the email servers were selectively hacked so that when the company would send out solicitations for orders Hackers would delete them before they were sent It was interfering in the company's order processes To sabotage its business. This is an american business Sabotaged by china who then makes an offer for the weakened business This is how china is operating and this is what the u.s Government of u.s congress is complicit in we are hearing nothing better coming out of europe either And believe me if it's happening to america it's happening to europe We must stand up to china. We must take back some of its power The only way we can well we i've said many many times we need to sue china for the hundreds of billions That it owes us that goes for the western world in general And we have got to start manufacturing elsewhere Some people go as far as to say boyk are ban chinese imports We would be banning a hell of a lot of stuff if we do that as much as i would love to say let's do it But there are ways we can do this. Let's stop stop putting all of our eggs in china's basket We have got to source manufacturing from elsewhere And we don't we need to bring manufacturing home certainly But we don't need to bring all manufacturing home and there are plenty plenty of countries that will manufacture as cheaply as china And perhaps even have some respect for contract for quality For trust for the law Just some just some respect china has absolutely none Read this book. It will stun you read poorly made in china as well I am continuing to read about china I'm trying my best to learn as much as i possibly can about this country As much as you can about a country without ever Seeing it or visiting it But i i think we have a duty as free westerners at this time in our history To understand china understand what it is understand its philosophy understand its insular Nature and its almost view of the rest of the world if not as an enemy But as at best a rival China is china It doesn't obey other people's rules. It doesn't play the game fairly It is stealing its wealth It has stolen most of the wealth that it has from us Now it is using that wealth to buy our Countries and our governments and it has made itself so powerful by manufacturing so much that we are in a perilously difficult situation now But it is not one that we cannot turn around let us stop handing All this power to china. Let us take some of our own power back Let us enforce the law where we can and even better Stop this trade with china. Stop giving them our money. Stop giving them all this power This thursday night i'll be making a speech which will cover this and many other aspects of china and exactly what we as great britain can do To change our relationship with this Thoroughly dangerous dangerous communist country join me then at this thursday night at half past seven i'll see you then