machichi
The word "that" is used to refer to a concept--in this case, it feels like it would actually refer to "strategic proximity".
"I love him." That is what I said. That refers to the phrase. I can't say for sure that it is ALWAYS this way, but generally that replaces a phrase or a concept, not an object.
Thanks for your response but does not look like that it is always true. I just found below defination for that and it as pronoun. I know OG author won't be wrong but would like to understand that can we generalize this idea or it is just applicable in few instances
Pronoun that :1.(used to indicate a person, thing, idea, state, event, time, remark, etc., as pointed out or present, mentioned before, supposed to be understood, or by way of emphasis): That is her mother. After that we saw each other.
2.(used to indicate one of two or more persons, things, etc., already mentioned, referring to the one more remote in place, time, or thought; opposed to this ): This is my sister and that's my cousin.
3.(used to indicate one of two or more persons, things, etc., already mentioned, implying a contrast or contradistinction; opposed to this ): This suit fits better than that.
4.(used as the subject or object of a relative clause, especially one defining or restricting the antecedent, sometimes replaceable by who, whom, or which ): the horse that he bought.
5.(used as the object of a preposition, with the preposition standing at the end of a relative clause): the farm that I spoke of.
Pronoun IT1.(used to represent an inanimate thing understood, previously mentioned, about to be mentioned, or present in the immediate context): It has whitewall tires and red upholstery. You can't tell a book by its cover.
2.(used to represent a person or animal understood, previously mentioned, or about to be mentioned whose gender is unknown or disregarded): It was the largest ever caught off the Florida coast. Who was it? It was John. The horse had its saddle on.
3.(used to represent a group understood or previously mentioned): The judge told the jury it must decide two issues.
4.(used to represent a concept or abstract idea understood or previously stated): It all started with Adam and Eve. He has been taught to believe it all his life.
5.(used to represent an action or activity understood, previously mentioned, or about to be mentioned): Since you don't like it, you don't have to go skiing.