China Announces $3b Tariffs on U.S. Imports – Pork, Scrap Aluminum, Wine and Fruits…

In retaliation for $50 billion in U.S. trade tariffs against Chinese imports, China laughably hits back with $3 their own billion tariffs against the U.S.  According to most reporting Beijing has selected U.S. pork and scrap aluminum as targets for a 25% tariff, along with wine and fruit tariffs around 15%.

It should be emphasized the approach by China is rather ridiculous considering the Chinese government purchased the largest U.S. pork manufacturer Smithfield in 2013 for $5 billion; at the time the purchase price was 30% more than the company was worth.  Smithfield, now a Chinese company, represents 25% of all U.S. pork products.

Do you really think China is going to not import it’s own pork products… or subject them to a domestic tax?  Think about it.  It’s ridiculous.  China knows they have ZERO leverage in a trade-dispute with the U.S., they cannot afford to lose access to the U.S. market.

The example of Smithfield foods is exactly what we have outlined in how China cannot sustain itself and needs to control the assets of foreign countries.  Hence, their one-road/one-belt program for securing products and raw materials.  China is a dependent economy, they need to exploit global trade to survive.  China cannot feed itself. This is the inherent flaw within their short-sighted authoritarian government-controlled economic model.

Again, for emphasis, the Chinese government underwrote the purchase of Smithfield foods in 2013.  They paid 30% more than the company was worth because they were securing access to food just like they would any other raw material (uranium, minerals, etc).  China also purchases U.S. politicians to retain their ability in this regard.

Now look at the cartoon from the unofficial Chinese state-run media today:

Remember THIS is the position of the Chinese Government:

[…]  China’s latest countermeasures target fruit, pork and other US goods totaling some $3 billion, the equivalent of China’s losses caused by US tariffs. The list indicates China will never compromise and will always retaliate against unreasonable tariffs.

For every single move against Chinese interests, the US can expect retaliation. It is time for Washington to bid farewell to the delusional, make-believe world whereby it imagines China an unresponsive, over-tolerant nation.

China does not want a trade war, but it will not retreat should one emerge. Monday’s announcement is hardly a subtle hint. China will show its strength through action.

Recent White House statements have revealed a tough stance on Sino-US trade disparities while some have even shown a level of optimism at resolving trade conflicts through negotiation. But it is not hard to realize that such self-contradictory behavior reveals that the US knows its actions are unjustifiable. China’s attitude toward a trade conflict has been consistent and Beijing will carefully handle all challenges from the US.

There are always a few Western politicians who think China might step back and concede. But they are wrong. The Chinese government only cares about what is in the best interest of its people rather than elections.

Washington must be reasonable dealing with China. Threats will fail as China is not afraid of the US, plus the Chinese have zero tolerance for political weakness.  (read more)

Nuance and subtlety is everything in China. Culturally harsh tones are seen as a sign of weakness and considered intensely impolite in public displays between officials; especially within approved and released statements by officials representing the government.

There is no doubt in my mind that President Trump has a very well thought out long-term strategy regarding China. President Trump takes strategic messaging toward the people of china very importantly. President Trump has, very publicly, complimented the friendship he feels toward President Xi Jinping; and praises Chairman Xi for his character, strength and purposeful leadership.

To build upon that projected and strategic message – President Trump seeded the background by appointing Ambassador Terry Branstad, a 30-year personal friend of President Xi Jinping.

To enhance and amplify the message – and broadcast cultural respect – U.S. President Trump used Mar-a-Lago as the venue for their visit, not the White House. And President Trump’s beautiful granddaughter, Arabella, sweetly serenaded the Chinese First Family twice in Mandarin Chinese song showing the utmost respect for the guests and later for the hosts.

Why the constant warm messaging?

What is the purpose?

What does all this have to do with a trade confrontation?

Historic Chinese geopolitical policy, vis-a-vis their totalitarian control over political sentiment (action) and diplomacy through silence, is evident in the strategic use of the space between carefully chosen words, not just the words themselves.

Each time China takes aggressive action (red dragon) China projects a panda face through silence and non-response to opinion of that action;…. and the action continues. The red dragon has a tendency to say one necessary thing publicly, while manipulating another necessary thing privately. The Art of War.

President Trump is the first U.S. President to understand how the red dragon hides behind the panda mask.

It is specifically because he understands that Panda is a mask that President Trump messages warmth toward the Chinese people, and pours vociferous praise upon Xi Jinping, while simultaneously confronting the geopolitical doctrine of the Xi regime.

In essence Trump is mirroring the behavior of China while confronting their economic duplicity.

China has no cultural or political space between peace and war; they are a historic nation based on two points of polarity. They see peace and war as coexisting with each other.

China accepts and believes opposite or contrary forces may actually be complementary, interconnected, and interdependent in the natural world, and they may give rise to each other as they interrelate to one another. Flowing between these polar states is a natural dynamic to be used -with serious contemplation- in advancing objectives as needed.

Peace or war. Win or lose. Yin and Yang. Culturally there is no middle position in dealings with China; they are not constitutionally capable of understanding or valuing the western philosophy of mutual benefit where concession of terms gains a larger outcome. If it does not benefit China, it is not done. The outlook is simply, a polarity of peace or war. In politics or economics the same perspective is true. It is a zero-sum outlook.

Therefore, when you see China publicly use strong language – it indicates a level of internal disposition beyond the defined western angst. Big Panda becomes Red Dragon; there is no mid-status or evolutionary phase. Every American associated with investment, economics and China would be well advised to put their business affairs in order accordingly.

President Trump will not back down from his position; the U.S. holds all of the leverage and the issue must be addressed. President Trump has waiting three decades for this moment. This President and his team are entirely prepared for this.

We are finally confronting the geopolitical Red Dragon, China!

The Olive branch and arrows denote the power of peace and war. The symbol in any figure’s right hand has more significance than one in its left hand. Also important is the direction faced by the symbols central figure. The emphasis on the eagles stare signifies the preferred disposition. An eagle holding an arrow also symbolizes the war for freedom, and its use is commonly referred to the liberation fight of righteous people from abusive influence. The eagle on the original seal created for the Office of the President showed the gaze upon the arrows.

The Eagle and the Arrow – An Aesop’s Fable

An Eagle was soaring through the air. Suddenly it heard the whizz of an Arrow, and felt the dart pierce its breast. Slowly it fluttered down to earth. Its lifeblood pouring out. Looking at the Arrow with which it had been shot, the Eagle realized that the deadly shaft had been feathered with one of its own plumes.

Moral: We often give our enemies the means for our own destruction.

RELATED:

Leverage… We have it, China doesn’t.

China is no longer hiding their alignment with their proxy province of North Korea.  Meanwhile President Trump has cultivated a very close relationship with Shinzo Abe of Japan, and to a lesser extent Prime Minister Modi of India.

Two teams preparing for the economic conflict:

China/North-Korea/Russia and Pakistan.

-VS-

U.S./South-Korea/Japan and India.

.

That’s the big picture.  The rest is chaff and countermeasures.

Advertisements
This entry was posted in ASEAN, Big Government, Big Stupid Government, China, Communist, Dem Hypocrisy, Donald Trump, Economy, History, India, Japan, media bias, N Korea, NAFTA, Notorious Liars, President Trump, propaganda, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

233 Responses to China Announces $3b Tariffs on U.S. Imports – Pork, Scrap Aluminum, Wine and Fruits…

  1. As I have posted before, my brother has worked for Smithfield for well over 20 years. Not sure but he may be the CFO, at least for his division – he lives in Kentucky. When the sale went through, I sent out an e-mail decrying the sale. He promptly requested that I remove him from my e-mail list. It is so discouraging to see so very many people so blind to what is really happening. I do NOT understand why the United States allows foreign countries to purchase American businesses, indeed, land – so very much of our farm land is owned by other countries, such as Saudi Arabia. All for the almighty dollar……

    https://www.cnbc.com/2016/01/15/saudi-arabia-buying-up-farmland-in-us-southwest.html
    http://www.nptelegraph.com/opinion/letters_to_the_editor/foreign-control-of-land-worrisome/article_e43f60ca-e1db-11e7-8726-bf454e5b049b.html

    Liked by 3 people

    • booger71 says:

      I often wondered why China can’t raise their own hogs.

      Liked by 3 people

      • Good question. Same applies, IMO, to alfalfa.

        Liked by 1 person

      • G. Willikers says:

        They do raise their own hogs – more in fact than the US. Part of the problem is that the Chinese don’t trust their domestic food supply. There have been so many food scandals in recent years there – anybody hear of the melamine in the baby formula and dog food? US food is considered “safer”. So China wants to tariff US pork? We in the west would call that “Cutting off your nose to spite your face”. Let them eat more of their domestic pork – if it really is pork.

        Liked by 3 people

        • Chris Four says:

          Buying companies outside of China provides the Chinese government a revenue source that is not affected by their national economy. When you buy products from these companies you are subsidizing the Chinese economy. The US is the stupid one for example we let Apple move its production to China. National security should be a major concern with allowing companies to relocate abroad. Instead we have people like Warren Buffett and Jeff Bezos who only destroy companies to squeeze the last dollar out of them. Trump at least is thinking about this problem. He axed the Broadcom takeover of Qualcomm

          Like

  2. jeans2nd says:

    We just went through this on 22 Mar, when China “warned” the U.S.. Why the panic now? Are the people on Wall Street really this stupid? There was plenty of time to prepare.

    One might think Fake News is creating a panic just to rile the markets…

    Liked by 4 people

  3. tonyE says:

    The local TV “news” here in SoCal ran a lengthy “news item” about vineyards in Napa being impacted. Oh really? Lemme see, on the one hand we got wineries that hire illegals at low wages and are mostly agricultural and on the other hand we got industries that employ thousands of Americans.

    Oh, no… Don’t Cry for us Napa…

    Besides, do Chinese really drink that much wine? What next? They will put a tariff on milk products, Maytag Blue Cheese? (Hint: most East Asians are lactose intolerant).

    MAGA.

    Liked by 1 person

  4. Jeff says:

    As an aside, ya gotta love those political cartoonists, all over the world. It’s an uncomplimentary take, sure, but that’s a pretty good rendition of PDJT with just a few strokes of the pen. Nicely done.

    Like

  5. Everett Miller says:

    A little perspective is in order. Why are the talking head financial ‘experts’ continuing to blather on and on about the scary Trade War? Driving down the stock market with fears when China announces $3 Billion dollars in Tariffs — oohh — compared the the GDP of the largest and most vibrant economy in the History of the planet; the USA’s GDP in 2016 was over $18.5Trillion. These tariffs cannot be reasonably calculated in the range of a thousandth of one percent of our economy.
    I heard one say that it could grow to $30 Billion easily. Well, the Chamber of Commerce and their toadies on the Hill are disgusting in their display of naked desire for more Crony Capitalism, instead of Fair/Free Trade.
    Thank God for the Great Donald J Trump.

    Liked by 2 people

  6. IrredeemableDeplorable says:

    Sundance…does get your affairs in order mean get the heck out of the stock market? Sorry…I’m not good at reading between the lines. Thx.

    Like

    • maiingankwe says:

      I almost gave you a partly incorrect answer; thank goodness I looked it back up:

      American associated with investment, economics and China would be well advised to put their business affairs in order accordingly.

      Sundance has mentioned this before when he goes over our trade dealings with China. I had always summed it up that if one is doing business within China, it might be best for them look over different countries, particularly ours to replace their business dealings in china. Now that I’ve read and copied it, I would think if anyone has investments with China to change it. If anyone owns stocks with companies that have their businesses in China I would seriously consider changing that as well.

      I am by no means a financial guru like Fleporeblog or others here, so feel free to take mine with a grain of salt. This is just my opinion.

      If you do have stocks with companies who do not do business with China, I believe you will be just fine. If there are small hits, they will easily recover.
      Be well,
      Ma’iingankwe

      Like

  7. jmclever says:

    Noticed in the cartoon that Magnanimous Panda is the one beating President Trump.

    Like

  8. Bull Durham says:

    The Chinese intend to negotiate. They did not tariff soybeans. That’s the really big commodity.

    Face is everything in this “negotiation”. They are signaling that with actions, not words. Words are always cover. It’s what they do or don’t do that matters.

    They’ll do 25-30 Billion ‘adjustment’ this year. Then 40-50 Billion next year.

    Don’t forget, they agreed to a big Alaskan LNG contract and development with Trump.
    They’ll also take oil if that’s what US indicates.

    The way the Chinese will accommodate the trade imbalance is by using all their overseas purchasing power.

    What they are waiting for is to see what the US will do about “past sins” they are accused of.

    Like

  9. Maquis says:

    Bring it.

    Like

  10. Dimbulbz says:

    After reading this I realize that we are a nation of fools. This is much ado about nothing. The Chinese save face by imposing a tariff on what likely turns out to be a Chinese owned company (At least the Pork tariff anyway). When it comes to Trump Derangement syndrome any kind of minimal impact sends the presidents enemies into a crazed rage that makes little to no sense. We have a commander in Chief who understands how things work. Apparently we have a lot of people who consider themselves experts who do not. I would include some of his own team in that observation. We have been frightened of China for decades and it turns out they have far more to lose than we do. If you do not feed your nation, it becomes difficult to maintain control. I dont think trump is doing anything unreasonable, its just that we have let China kick us around for so long, the experts don’t think we can behave any other way. Any change is an opportunity to cry wolf and say PDJT is an imbecile. Me thinks they doth protest too much.

    Liked by 1 person

  11. Patriot 1 says:

    China has a lot more to lose than the US in more ways than money.

    Like

  12. Patriot 1 says:

    Glad I stopped eating pork.

    Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s