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“A bunch of Islamic fanatics holding hostages could ruin the super dragon image they have been carefully building up over the past decade. “

On the other hand, it would give them the perfect excuse to test their military abilities and gain a foothold on the African continent. They would likely succeed in freeing them and showing the world just how nasty they can be towards an enemy. It would also be good for domestic patriotism.

I think the problem for China is this came too early. They don't have any carriers yet. They have one old Russian one fitting out, and another being built from the keel up. Given a couple of years they would be able to send a CVBG over to explain things to the Libyans. But right now they just don't have the reach. And their amphibious capabilities are limited in range. Enough to cross the Taiwan straight with total air supremacy, but not a capability to land troops on the other side of the world. And unlike the US they don't have bases in Italy where they can launch fighters to cover their landings. They have no fleet bases in the Med, in fact they don't even do show the flag cruises there.

Of course that is only a further conviction against the Obama regime. Despite all of the limitations on China's ability to project power they have improvised a way to get their people out. The US with the entire power projection apparatus provided by USAFE, the U.S. 6th Fleet, and our European Allies, Obama has been unable to get our people out.