ChemChina's bid for Syngenta is merely the latest move on the 'Go' puzzleboard by China. Beijing's carefully mapped strategy has been to first, reach technological equivalence with the West using its well versed "copy/steal and improve" knowhow. This is now being coupled with Western process and invention talent via the acquisition of globally significant Western manufacturers and industrial process leaders. These are being strapped to vast Chinese government resources being made available to key sectors. In turn, the plan is for China to emerge a decade from now as the undisputed economic leader of the World.
China's carefully crafted plan is almost exquisite in its simplicity - apply ‘low’ Chinese labour costs to goods and processes ever higher up global value chains, thereby shifting ever higher earning work from Western economy labour pools, to China.
"Made in China 2025" is entirely about establishing a sustained global Blitzkrieg of Chinese technical and industrial might. Each move, such as the proposed acquisition of Syngenta, is just a piece of the puzzle toward that goal. Alongside ‘hard tech’ areas like lasers and semi-conductors, China seeks technologies that have underpinned ‘soft power’ elements of US and Western hegemony, such as 'feed the world' capabilities. "Beijing" craves these, and Syngenta 'ticks all the boxes'.
Acquisition of tier-1 Western industrial/technology enterprises such as KraussMaffei, Pirelli and Syngenta represent the crucial "third leg" of China's journey to global primacy. It is critical to see the bid for Syngenta and other Western process and technology leaders in their true context. In order for "Made in China 2025" to succeed, theft of Western IP isn't enough in itself; key "global enablers" are now required to be assimilated, to provide the platforms to leverage the coalition of China's stratagems.
A redefinition of the term 'national security threat' is required in The West when considering Chinese acquisitions, be it 'purchase by stealth' deals like the pending Aritex Cading (described below), or a game-change purchase such as Syngenta. The ‘China Paradigm’ requires a paradigm shift in response. The West needs to apply mosaic theory when assessing each Chinese move, however small. The current lack of focus on ‘long term industrial/economic outcomes’ will have disastrous consequences for Western economies if China remains unchecked. The West needs a comprehensive joint response matrix to match China's global plan of action, and to recognise what has been clear for some time - that China is engaged in 'total economic war' with the West.