War Without Rules: China's Playbook for Global Domination
A Summary of the Book by Gen. Robert Spalding (2022) - Article #44
In this 14-minute article, The X Project will answer these ten questions:
I. Why this book, and what’s it about?
II. Who is the author?
III. How popular is the book?
IV - VII. What are four top takeaways from the book?
VIII. What does The X Project Guy have to say?
IX. What is a fifth top takeaway from the book?
X. Why should you care?
Reminder for readers and listeners: nothing The X Project writes or says should be considered investment advice or recommendations to buy or sell securities or investment products. Everything written and said is for informational purposes only, and you should do your own research and due diligence. It would be best to discuss with an investment advisor before making any investments or changes to your investments based on any information provided by The X Project.
I. Why this book, and what’s it about?
In an era where geopolitical tensions simmer beneath the surface of global diplomacy, War Without Rules: China's Playbook for Global Domination by Gen. Robert Spalding emerges as a stark wake-up call to the international community. This isn't just another book on military strategy or international relations. Instead, it plunges deep into the undercurrents of China's ambitions to reshape the global order on its terms. Spalding, leveraging his extensive experience and insider knowledge, paints a compelling picture of a world under attack in a new kind of war—one that transcends traditional battlefields and is fought in technology, the economy, and information.
Why should you care about this book? Because it's about more than just military maneuvers and geopolitical chess games. It's about understanding our current world where conflicts are increasingly invisible, yet every nation and individual profoundly feels their impacts. Spalding argues that China's strategy isn't confined to expanding its territorial waters or borders. It's a comprehensive approach that involves infiltrating global markets, manipulating international institutions, and pioneering the next wave of technological advancements. This book explains how China sees the battlegrounds of the war it's waging, as are our economies, our technology, and our very way of life.
At its core, War Without Rules is a deep-dive analysis and interpretation of China's strategic playbook— an actual Chinese book published in 1999 by two People’s Liberation Army (PLA) colonels whose title is translated as Unrestricted Warfare: Two Air Force Senior Colonels on Scenarios for War and the Operational Art in an Era of Globalization.
Here is the Website link to a translation of Unrestricted Warfare on the Internet Archive, and here is another translation available on Amazon:
Unrestricted Warfare is a set of tactics designed to elevate the nation to global supremacy without firing a single shot. According to Spalding, China's leaders follow this playbook and employ strategies that exploit the open systems of democratic nations. Through detailed analysis and real-world examples, Spalding reveals how China aims to secure its position as the dominant global power by leveraging economic coercion, technological theft, and information warfare.
I learned of Rob Spalding and this book in early February of this year from my subscription to The Grant Williams Podcast, in which he has a series called Kaos Theory that is co-hosted by
.II. Who is the author?
According to Wikipedia, Robert S. Spalding III (born 1966) is a retired United States Air Force brigadier general. He currently serves as a senior fellow at the Hudson Institute. He focuses on U.S.–China relations, economic and national security, and the Asia-Pacific military balance.
Spalding earned a B.Sc. and M.Sc. degrees in Agricultural Business from Fresno State University, Fresno, California, in 1987 and 1993, followed by a Ph.D. in Economics and Mathematics from the University of Missouri, Kansas City, in 2007 and a second M.Sc. in Strategic Studies from the Maxwell Air Force Base, Alabama, in 2008.
He was promoted to brigadier general in November 2016. From December 2016 to May 2017, he was a U.S. Senior Defense Official and Defense Attaché to China, Beijing. From May 2017 to January 2018, Senior Director for Strategic Planning, National Security Council, White House, Washington D.C.
While at the National Security Council, Spalding notably wrote a memo calling for nationalizing the development of the 5G wireless network. Spalding's advocacy was reportedly deemed outside his authority, and he was subsequently asked to leave the NSC. He has since been notable as a critic of the Chinese Communist Party, and in 2019, published the book Stealth War: How China Took Over While America’s Elite Slept.
III. How popular is the book?
This is the 21st book that The X Project is covering, and I have always used Amazon’s rankings to illustrate the book’s popularity. I should have noticed this before, but there are different category rankings depending on whether you look at the book, Kindle, or Audible versions. All three use the same “Customer Reviews,” which note the number of ratings. But I suspect the Kindle and Audible versions are selling more than the printed book versions, and so I will highlight all three rankings now and in the future.
Here are the printed book’s rankings on Amazon:
Here are the Kindle version’s rankings on Amazon:
Here are the Audible version’s rankings on Amazon:
IV. What is one of the top takeaways from the book?
The Invisible Warfare
One of the book's most striking conclusions is the concept of invisible warfare. Spalding doesn't just talk about cyber-attacks or espionage in the traditional sense. He delves into how China uses these tools as a broader strategy to weaken its adversaries without open conflict. This invisible warfare targets the very heart of democratic societies—our financial markets, political institutions, and social fabric—exploiting vulnerabilities and creating divisions. It's a war that goes unnoticed by the majority, yet its effects are devastatingly effective.
This form of warfare leverages technology in unprecedented ways. From 5G networks to social media platforms, China's strategy involves controlling the digital infrastructure that powers the modern world. This control isn't just about economic dominance; it's about shaping narratives, influencing political outcomes, and undermining the societal values of its adversaries. Spalding's insights into how these technologies are used as weapons in this invisible war are fascinating and terrifying.
The most unsettling aspect of this invisible warfare is its deniability. Attacks on financial systems, elections, and public opinion can often be carried out without leaving a trace back to their orchestrator. This allows China to maintain a veneer of international cooperation while simultaneously undermining global stability. Spalding's analysis clarifies that recognizing and countering this form of warfare requires a fundamental shift in how nations perceive and prepare for threats in the 21st century.
V. What is another top takeaway?
Economic Coercion as a Tool of Statecraft
Another central theme in War Without Rules is the use of economic coercion. China's approach to global domination includes leveraging its economic might to bend other nations to its will. Spalding outlines how trade, investment, and financial aid are not merely components of China's foreign policy but weapons designed to create dependency and compliance. This economic stranglehold allows China to achieve its geopolitical objectives without resorting to military force.
The Belt and Road Initiative (BRI) is a prime example of this strategy. By offering infrastructure loans to developing countries, China binds these nations into a web of economic dependency and political leverage. Spalding points out that these projects often have strings attached, including access to strategic ports, resources, and political influence. The BRI isn't just about building roads and bridges; it's about constructing a new global hierarchy with China at the top.
The repercussions of this economic coercion are profound. Nations find themselves in a precarious position, caught between the benefits of Chinese investment and the loss of their sovereign decision-making. This dilemma is particularly acute for smaller countries, which may have no choice but to acquiesce to China's demands. Spalding's analysis raises critical questions about the future of international relations and the balance of power in a world where economic might translates directly into geopolitical influence.
VI. What is a third top takeaway?
The Assault on International Norms
Spalding delves into China's concerted effort to undermine and reshape international norms and institutions. By positioning itself within key organizations such as the United Nations, the World Health Organization, and the International Telecommunication Union, China aims to rewrite the rules of global governance. This strategic insertion is not about participating in the international community's efforts to address global challenges but about shifting the balance of power in favor of authoritarian regimes.
This assault on international norms is particularly evident in human rights and freedom of expression. China's model of internet governance, characterized by censorship and surveillance, is being exported globally as an alternative to the open, democratic model. This not only threatens individual freedoms but also challenges the very foundation of democratic societies. Spalding's examination of these efforts highlights a crucial battleground in the fight for the future of global governance.
The implications of this strategy are far-reaching. As China continues to gain influence in international institutions, the potential for these bodies to act as unbiased arbiters of global issues diminishes. This could lead to a fracturing of the international community, where countries are forced to choose sides in a new Cold War-like divide. Spalding's insights into this dynamic underscore the urgency of bolstering democratic norms and institutions as a counterweight to authoritarian influence.
VII. What is a fourth top takeaway?
The New Cold War
Spalding posits that we are entering a new kind of Cold War, not defined by nuclear brinkmanship but by technological supremacy, economic might, and the battle for the ideological soul of the global order. This Cold War is fought in boardrooms, through fiber-optic cables, and within the halls of international institutions. Victories are not marked by territory gained but by the sway of global narratives and the alignment of economic policies.
The stakes of this new Cold War are incredibly high. The outcome will determine whether the future global order is characterized by openness, democracy, and individual freedom or by authoritarianism, surveillance, and state control. Spalding's call to action is clear: democratic nations must recognize the multifaceted nature of this threat and come together to defend the values that have underpinned global stability and prosperity for decades.
However, Spalding's analysis also notes optimism. He believes that by understanding China's playbook, democratic societies can adapt and counter these strategies. This involves not only strengthening cyber defenses and protecting intellectual property but also investing in the economic resilience and technological innovation of democratic nations. By doing so, we can ensure that the global order remains one where freedom, transparency, and cooperation prevail.
XIII. What does The X Project Guy have to say?
This is the twenty-first book that I consider to be highly influential and that I have summarized, and I summarize these books so you can know what you need to know without reading the books yourself. This is a book however that everyone should read. At a minimum, go to Amazon’s page and scroll down to read the exerpt from Chapter 1.
Why should everyone read it? Spalding very convincingly argues that we are at war, and we don’t even realize it. The Chinese have been waging war against us for nearly twenty years. Spalding repeatedly tells us the two key realizations that he learned from his experiences:
“First, the number one goal of the Chinese Communist Party is the survival of the Chinese Communist Party. And second, the number one threat to achieving that goal is American democracy. We may not see them as our enemy, but they surely see us as their enemy. An existential one.”
Spalding is clearly and obviously a “China-hawk,” and even if you approach his arguments as suspect given his bias, discount his arguments accordingly, and try to approach what he says objectively, I think you’ll find that a lot if not most of what he tells us is true given the basis of the original Chinese text of Unrestricted Warfare, and re-evaluating for yourself recent and past events along with how things have progressed more generally in the past twenty plus years.
I covered Ray Dalio’s book in Article #24: “Principles for Dealing with The Changing World Order: Why Nations Succeed and Fail - A summary of the book written by Ray Dalio (2021).” Dalio provided an extensive historical and present day analysis of the “World Order,” and the overall conclusion was the United States is in decline and China is ascendant and likely to become the next dominant global super-power before too long.
As strong as Dalio’s analysis and arguments were, I mostly discounted them and wasn’t too overly concerned because of my extensive reading, listening and following of Peter Zeihan, who is unequivocally and unapologetically super-bullish on the United States in all four of his books. But Zeihan is also super-bearish China, primarily due to demographics as I covered in Article #25: “The Dragon's Descent: China's Demographic Disaster and Imminent Collapse - A Peter Zeihan Perspective.”
So where do I stand now? I agree with Zeihan that China has an immense, globally and historically unprecedented problem with its demographic implosion. Having said that, I don’t think it is wise to just assume China will be a non-entity within a decade, as Zeihan seems to think. After reading War Without Rules, I think China and Xi are probably very much aware of their demographic problem. Given the CCP’s #1 priority to stay in power (which I believe is true), then a demographically weaker China could make the CCP feel even more threatened which potentially creates a far more dangerous, volatile, and unpredictable situation.
In the next section, I will explain a fifth top takeaway. And then in the final section why you should care and, more importantly, what more you can do about it. However, I have just hit a new paid subscriber threshold, and so you now have to be paid subscriber to view the last two sections. The X Project’s articles always have ten sections. Soon, after a few more articles, the paywall will move up again within the article so that only paid subscribers will see the last three sections, or rather, free subscribers will only see the first seven sections. I will be moving the paywall up every few weeks, so ultimately, free subscribers will only see the first four or five sections of each article. Please consider a paid subscription.
All paid subscriptions come with a free 14-day trial; you can cancel anytime. Every month, for the cost of two cups of coffee, The X Project will deliver two articles per week ($1.15 per article), helping you know in 1-2 hours of your time per month what you need to know about our changing world at the interseXion of commodities, demographics, economics, energy, geopolitics, government debt & deficits, interest rates, markets, and money.
You can also earn free paid subscription months by referring your friends. If your referrals sign up for a FREE subscription, you get one month of free paid subscription for one referral, six months of free paid subscription for three referrals, and twelve months of free paid subscription for five referrals. Please refer your friends!
IX. What if a fifth top takeaway from the book?
Technology: The Battleground of the Future
The final takeaway from War Without Rules revolves around technology as the primary battleground for global supremacy. Spalding argues that the race for technological innovation—artificial intelligence, quantum computing, and biotechnology—is not just about economic advantage but also securing political and military dominance. China's relentless pursuit of technological leadership, often through controversial means such as intellectual property theft and forced technology transfers, is a central pillar of its strategy to dominate the 21st century.
This technological battleground extends into the digital realm, where the control of information ecosystems becomes a tool for influencing populations and shaping global narratives. The implications of this are profound, as the nation that leads in technology will have the capacity to shape the future of warfare, economics, and even society itself. Spalding underscores the need for democratic nations to prioritize innovation and secure their technological infrastructure against espionage and sabotage.
X. Why should you care?
Unlike past wars that had little impact on our day to day lives (unless an immediate family member was away fighting those wars), this war has everything to do with our daily lives. And if it escalates, which I believe there is a high probability that it will, then the impact on our daily lives might be extreme, chaotic, and dangerous. I think too many people have become complacent and are not aware of the risks and potential dangers.
As I pointed out in Section X of the last article, I see a perfect storm forming where several risk factors are converging that include inflation, debt, social/political, and geopolitics. These factors reinforce each other creating powerful feedback loops. Spalding argues that China had a hand in creating or at least in helping exacerbate these factors. If that is true, then they are not likely to go away or diminish anyime soon.
In addition to the financial protections that I have continuously outlined in this section, I think everyone should stop for a moment and consider some potential consequences of escalation of this war. How would you be impacted and what would you do under the following scenarios if they lasted for more than a day:
a prolonged power outage?
a prolonged Internet outage?
a prolonged mobile carrier outage?
a prolonged credit card outage?
a prolonged banking outage?
a prolonged pharmacy outage?
a prolonged shortage or unavailability of gasoline?
I can come up with more, but you get the idea. I am not saying we all need to become hardcore doomsday preppers, at least not yet. But I am saying the risks of these potential outcomes is rising, and maybe - just completely guessing here from my perspective - it was 0-1% before and now perhaps it is 2-5% .
I am saying you should at least start thinking about how you would be impacted and what you might do. And if the perceived probability of realizing these risks rises further to 5-10%, or 10-20%, or more, at what point might you do something and what might that be?
I have said before that I live my life hoping for the best and preparing for the worst. And so, I have thought about these potential outcomes before, I do think about them fairly often, and I have taken some precautions already. But after reading War Without Rules, I now think the risk is higher than I thought before, and I for one am thinking about what additional precautions I should take.
The X Project expects a lot of volatility in various markets as we head toward increasingly frequent and intense crises and as our policymakers do everything possible to keep the system functioning, serving the status quo and responding to emergencies as they erupt. There will be tremendous opportunities to capitalize on the volatility if you can anticipate certain market reactions and be positioned accordingly.
The continuation and acceleration of inflation, indebtedness, fiat currency devaluation, social and political divisions domestically, and geopolitical wars internationally are the core foundational reasoning for the following investment theses to which The X Project subscribes:
Overweight cash and short-term U.S. T-bills for optionality, given expected volatility related to the remaining list below.
Bullish gold and gold miner equities
Bullish Bitcoin
Bullish oil and oil-related equities
Bullish natural gas and related equities
Bullish uranium and related equities
Bullish industrial-associated commodities and equities
Bullish agricultural-associated commodities and equities
Bullish industrial and primarily electrical infrastructure equities
Bearish long-dated U.S. and other Western sovereign bonds
These are long-term investments with at least a 5-10 year time horizon.
Lastly, thank you for your paid subscription. Your support is everything to The X Project and is greatly appreciated. If you agree, please do me the favor of hitting the like button and posting positive comments about my articles - assuming you have positive things to say - especially about these final sections (soon to be more sections) that only you as a paid subscriber get to see.