Understanding Phase II of the U.S. -vs- China Trade Confrontation….

President Trump has moved into Phase II of the U.S./China confrontation.  Part of that confrontation is to use the inherent weakness of the Chinese economy against them.  To understand the weakness is to understand the China ‘One-Belt / ‘One-World‘ economic trade strategy.  Here’s an outline of the economic battle-space we are witnessing.

People often talk about the ‘strength’ of China’s economic model; and indeed within a specific part of their economy –manufacturing– they do have economic strength.

However, the underlying critical architecture of the Chinese economic model is structurally flawed and President Trump with his current economic team understand the weakness better than all international adversaries.

Lets take a stroll and discuss.

China is a central planning economy. Meaning it never was an outcropping of natural economic conditions. China was/is controlled as a communist style central-planning government; As such, it is important to reference the basic structural reality that China’s economy was created from the top down.

This construct of government creation is a key big picture distinction that sets the backdrop to understand how weak the economy really is.

Any nations’ economic model is only as stable (or strong) as the underlying architecture or infrastructure of the country’s economic balance.

Think about economic strength and stability this way: If a nation was economically walled off from all other nations, can it survive? …can it sustain itself? …can it grow?

In the big picture – economic strength is an outcome of the ability of a nation, any nation, to support itself first and foremost. If a nations’ economy is dependent on other nation for itself to survive it is less strong than a nation whose economy is more independent.

Most Americans don’t realize it, but China is an extremely dependent nation.

When the central planning for the 21st century Chinese Economy was constructed, there were several critical cultural flaws, dynamics exclusive to China, that needed to be overcome in order to build their economic model. It took China several decades to map out a way to economic growth that could overcome the inherent critical flaws.

Critical Flaws To Exploit:

♦Because of the oppressive nature of the Chinese compliant culture, the citizens within China do not innovate or create. The “Compliance Mindset” is part of the intellectual DNA strain of a Chinese citizen.

Broadly speaking, the modern era Chinese are not able to think outside the box per se’; because the reference of all civil activity has been a history of box control by government, and compliance to stay (think) only within the approved box. The lack of intellectual thought-mapping needed for innovation is why China relies on intellectual theft of innovation created by others.

American culture specifically is based around freedom of thought and severe disdain of government telling us what to do; THAT freedom is necessary for innovation. That freedom actually creates innovation.

Again, broadly speaking Chinese are better students in American schools and universities because the Chinese are culturally compliant. They work well with academics and established formulas, and within established systems, but they cannot create the formula or system themselves.

The Chinese Planning Authority skipped the economic cornerstone. When China planned out their economic entry, they did so from a top-down perspective. They immediately wanted to be manufacturers of stuff. They saw their worker population as a strategic advantage, but they never put the source origination infrastructure into place in order to supply their manufacturing needs. China has no infrastructure for raw material extraction or exploitation.

China relies on: importing raw material, applying their economic skill set (manufacturing), and then exporting finished goods. This is the basic economic structure of the Chinese economy.

See the flaw?

Cut off the raw material, and the China economy slows, contracts, and if nations react severely enough with export material boycotts the entire Chinese economy implodes.

Insert big flashy sign for: “One-Belt / One-Road” HERE   The Chinese economic model requires them to have a strategy for sustainability.  That is why they have the One-Belt, One Road plan.

Again, we reference the earlier point: Economic strength is the ability of a nation to sustain itself. [Think about an economy during conflict or war] China cannot independently sustain itself, therefore China is necessarily vulnerable.

China is dependent on Imports (raw materials) AND Exports (finished goods).

♦The 800lb Panda in the room is that China is arguably the least balanced economy in the modern world. Hence, China has to take extraordinary measures to secure their supply chain. This economic dependency is also why China has recently spent so much on military expansion etc., they must protect their vulnerable interests.

Everything important to the Chinese Economy surrounds their critical need to secure a strong global supply chain of raw material to import, and leveraged trade agreements for export.

China’s economy is deep (manufacturing), but China’s economy is also narrow.

China could have spent the time to create a broad-based economy, but the lack of early 1900’s foresight, in conjunction with their communist top-down totalitarian system and a massive population, led to central government decisions to subvert the bottom-up building-out and take short-cuts. Their population controls only worsened their long term ability to ever broaden their economic model.

It takes a population of young avg-skilled workers to do the hard work of building a raw material infrastructure. Mine workers, dredge builders, roads and railways, bridges and tunnels etc. All of these require young strong bodies. The Chinese cultural/population decisions amid the economic builders precluded this proactive outlook; now they have an aging population and are incapable of doing it.

This is why China has now positioned their economic system as dependent on them being an economic bully. They must retain their supply chain: import raw materials – export finished goods, at all costs.

This inherent economic structure is a weakness China must continually address through policies toward other nations. Hence, “One-Belt / One-Road” is essentially their ‘bully plan’ to ensure their supply chain and long-term economic viability.

This economic structure, and the reality of China as a dependent economic model, also puts China at risk from the effects of global economic contraction. But more importantly it puts them at risk from President Trump’s strategic use of geopolitical economic leverage to weaken their economy.

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.

Historic Chinese cultural policy, the totalitarian control over expressed political sentiment and diplomacy through silence, is evident in the strategic use of the space between carefully chosen words, not just the words themselves.

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.

The Chinese objective is to win, to dominate, using economic power.

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 within Beijing beyond the defined western angst. Big Panda becomes Red Dragon; there is no mid-status or evolutionary phase.

U.S. President Donald Trump and the U.S. economic team fully understand this dynamic and fully understand the inherent needs of China.

When you are economically dependent, the ‘bully plan’ only works until you encounter a ‘stronger opponent’.

A stronger opponent is an economic opponent with a more broad-based stable economy, that’s US.

President Trump, Commerce Secretary Ross, Treasury Secretary Mnuchin and U.S. Trade Representative Lighthizer, Economic Adviser Peter Navarro and NEC Chairman Larry Kudlow represent the first broad-based national team of economic negotiators who know how to leverage the inherent Chinese economic vulnerability.

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

President Trump will not back down from his position; the U.S. holds all of the leverage and the geopolitical economics must be addressed. President Donald Trump and his team are entirely prepared for this.

Donald Trump has been discussing this for more than three decades. We are going into economic combat with China!

China’s objective is conquest. China’s tool for conquest is economics. President Trump’s entire geopolitical strategy, using economics in a similar way, is an existential threat to China’s endeavor. Communist Beijing calls the proverbial DPRK shots.

President Trump is putting on a MASSIVE economic squeeze.

♦Squeeze #1. President Trump and Treasury Secretary Mnuchin sanctioned Venezuela and cut off their access to expanded state owned oil revenue. Venezuela needs more money. China and Russia are already leveraged to the gills in Venezuela and hold 49% of Citgo as collateral for loans outstanding.  China and Russia now need to loan more, directly.

♦Squeeze #2. China’s geopolitical ally, Russia, is already squeezed with losses in energy revenue because of President Trump’s approach toward oil, LNG and coal. Trump, through allies including Saudi Arabia, EU, France (North Africa energy), and domestic production has influenced global energy prices. Meanwhile Russia is bleeding out financially in Syria. Iran is the financial reserve, but they too are energy price dependent and President Trump is now putting pressure on Iran vis-a-vis new sanctions.

♦Squeeze #3. In 2017 Trump and Secretary Tillerson, now Secretary Pompeo, put Pakistan on notice they need to get involved in bringing their enabled tribal “extremists” (Taliban) to the table in Afghanistan. Pakistan’s primary investor and economic partner is China. If U.S. pulls or reduces financial support to pressure Pakistan toward a political solution in Afghanistan, China has to fill void.  [NOTE: Last month the World Bank began discussions about a financial bailout for Pakistan.]

♦Squeeze #4. China’s primary economic threat (competition) is next door in India. President Trump has embraced India as leverage over China in trade and pledged ongoing favorable trade deals. The key play is MFN (Most Favored Nation) trade status might flip from China to India. That’s a big play.  It would have massive ramifications.

♦Squeeze #5. President Trump launched a USTR Section 301 Trade Investigation into China’s theft of intellectual property. This encompasses every U.S. entity that does manufacturing business with China, particularly aeronautics and technology, and also reaches into the financial services sector.

In March of 2018 U.S. Trade Representative Robert Lighthizer completed a section 301 review of China’s trade practices.  [SEE HERE] Section 301 of the U.S. Trade Act of 1974 authorizes the President to take all appropriate action, including retaliation, to obtain the removal of any act, policy, or practice of a foreign government that violates an international trade agreement or is unjustified, unreasonable, or discriminatory, and that burdens or restricts U.S. commerce.  However, as talks with China progressed, President Trump shelved the 301 action to see where negotiations would end-up. The May and June, 2018, negotiations between the U.S. and China provided no progress.  The 301 review of China is now pulled back off the shelf, and President Trump assembles his trade-war strategy.  The 301 tariffs/sanctions are currently being worked out with U.S.T.R Robert Lighthizer.

♦Squeeze #6. President Trump, Secretary Ross, Secretary Mnuchin and USTR Robert Lighthizer are renegotiating NAFTA. One of the primary objectives of team U.S.A. is to close the 3rd party loopholes, including dumping and origination, that China uses to gain backdoor access to the U.S. market and avoid trade/tariff restrictions. [China sends parts to Mexico and Canada for assembly and then back-door entry into the U.S. via NAFTA.]

♦Squeeze #7. President Trump has been open, visible and vocal about his intention to shift to bilateral trade renegotiation with China and Southeast Asia immediately after Team U.S.A. conclude with NAFTA renegotiation.  [Current discussions with Japan are ongoing]

♦Squeeze #8. President Trump has positioned ASEAN (Association of Southeast Asian Nations) as trade benefactors for assistance with North Korea. Last year the KORUS (South Korea and U.S.) trade deal was renegotiated. The relationship between ASEAN nations and the Trump administration is very strong, and getting stronger. Which leads to…

♦Squeeze #9. President Trump has formed an economic and national security alliance with Shinzo Abe of Japan. It is not accidental that North Korea’s Kim Jong-un fired his last missile over the Northern part of Japan. Quite simply, Beijing told him to.  However, President Trump engaged directly with Kim Jong-un and has removed much of the ability of Beijing to leverage the DPRK nuclear threat for economic benefit.

Add all of this up and you can see the cumulative impact of President Trump’s geopolitical economic strategy toward China. The best part of all of it – is the likelihood China never saw it, meaning the sum totality of “all of it”, coming…. at first.  Now they do, and they are not quite sure how to respond.

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.

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.

 

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.

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This entry was posted in ASEAN, Big Government, Big Stupid Government, Canada, China, Donald Trump, Economy, Election 2018, European Union, India, Japan, media bias, Mexico, N Korea, NAFTA, President Trump, Secretary Pompeo, Trade Deal, Uncategorized, United Kingdom (UK) and Great Britain, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

165 Responses to Understanding Phase II of the U.S. -vs- China Trade Confrontation….

  1. sundance says:

    Secretary Ross explains in this radio interview today with Laura Ingraham:

    Liked by 21 people

    • fleporeblog says:

      I recently spoke with a Superintendent that returned from a trip to China 🇨🇳 with 15 principals that have very large Chinese populations. What stuck out to me was when she said their host allowed them to go off in a town on their own. It was the only time it happened during the 17 day visit.

      She was informed by town folks that the Chinese Government pays families to send their children to America at the age of 6 or 7 based on an aptitude exam that the child takes. Only if they get a certain score they go. The family is compensated approximately $5K a month. Some of that money pays for their child’s stay in the USA 🇺🇸. Those students attend school all the way through college before returning back to China 🇨🇳.

      That same Superintendent had to call Children’s Service and the NYC Department of Housing because 25 Chinese students provided the same home address. The city cleared the home owner because the children were well taken care of and the sleeping arrangements worked. These are the children that I described above. They live with surrogates while in our country. The Councilman is Chinese and doesn’t want to be bothered with the situation.

      Seems Xi and his Communist Commrades have a plan. Can’t wait for the EAGLE 🦅 to destroy it and their damn country!

      Liked by 20 people

      • Ausonius says:

        Concerning the Chinese dependence on intellectual theft:

        My son briefly attended the medical school at USC in Los Angeles about 10 years ago. The Chinese students openly, blatantly, flagrantly, and constantly cheated on everything. They were organized in groups and each group was responsible for cheating in certain classes.

        The professors, undoubtedly told to look the other way so that the administration could pocket the Chinese government’s money for tuition, did absolutely nothing.

        How many Americans – honest, diligent Americans – were denied a spot for these cheating schmucks?

        My son left, completely disgusted by the situation and the atmosphere of accepting cheating as “the Chinese way of studying,” and came back to Ohio.

        Liked by 17 people

        • Jenny R. says:

          This is endemic with Chinese students — they are allowed, one might say encouraged, to do this in China. It’s all memorizing test material and nothing else. So, by the time they get to college in the U.S. they are incapable of critical thinking; it’s a new skill they have to learn…IF they can because they have also been taught that they are the superior students.
          So, it isn’t just a thinking skill they have to learn but an entire mindset that has to be readjusted.
          A lot of them don’t succeed, almost refuse to. The ones that do, don’t want to go back — freedom of thought is a heady intoxicant.
          This is one of the areas where the Chinese government went horribly wrong: they have operated from the centrally controlled platform and from the mindset that they really did know what was best (this was a societal thing that should not have been encouraged, yet it was encouraged — we get to see the implications of this on top of the consequences of their one child policy — the country is a psychological basket case in many regards)….this has effected their domestic and foreign policies in all areas…and they will most likely reap what they have sowed (for they do not appear to know how to change).
          This was explained to me by my Chinese immigrant aunt, 40 odd years ago — she always said if they would change, become more open (in all ways) that they would do well…and that China would not be such a threat (for the internal fissures which drive the external aggression and other issues could be mitigated). But if they did not, then China would ultimately destroy itself — and it would be a matter of protecting the rest of the world from their implosion.

          I think we will find out shortly.

          Liked by 13 people

          • Orville R. Bacher says:

            China is not a “competitor”. They are an enemy. Think of today’s China as 1920’s and 1930’s Japan. Better to wind their necks in now. Later means a much, much higher cost.
            Essentially, there is hardly anything that the U.S.A. can’t make for the home market. And it is way past time to outsource the U.S. Chamber of Foreign Commerce.

            Liked by 13 people

            • jmclever says:

              Thankfully, President Trump knows how to wage and win a war using dollars instead of our sons and daughters and bullets!

              Thank you, Lord, for President Trump!

              Liked by 13 people

            • Jenny R. says:

              Where did I say they weren’t? I said: IF the Chinese government had gone a different route, one of more freedom — socially and economically — then 1) they would not be in the impending mess they will be in; 2) they would have been much more easy to deal with.

              Liked by 3 people

              • Esperanza says:

                China has said many times, it is copying our industrial revolution to develop. (It’s their excuse for pollution). However, they missed a major point, our industrial revolution powered a good standard of living for our own people, we sold our stuff to ourselves. See high point Madison Ave etc. They are not doing that. I don’t know why? Could be T will force them to.

                I disagree to some extent with Sundance. Obviously broad brush personal experience here therefore mileage may vary. They are NOT good students. They appear hard working at first glance, but in actuality don’t. I teach post grads and they are incapable of working for themselves. I had one student asking for exercises, I gave her ideas to extend material I had already given her, (my devise is, “It’s not the English you have, it’s what you do with it that counts”), she did nothing, not even the ready made exercises. I’ve had two good Chinese students, both French and products of the FRENCH system. One was considered useless by his family because too French.

                Also not sure about the young strong guy thing. Corruption and cutting corners seems to be very important here also.

                A big problem with China is bureaucracy. Famously they lost the Opium War because the canons were bolted to the floor towards the people and they never got the order to turn them round. The cultural revolution killed, literally, Chinese high culture, all that’s left is bureaucracy, as we all know, planned economies LOVE bureaucracy. I worked for a Chinese, highly intelligent boss. The bureaucracy was mind blowing. I had to fill in and print out a four page form to order any books the students needed (one was included in their tuition), which I then had to submit to the office. The previous iteration was I would stand in front of the computer screen with the teaching head and we’d order it together. Took 5 minutes if he didn’t know the book, less if he did. Zero paper. Zero mistakes.

                After work classes sometimes spread out. After a long day, both student and teacher would sit and talk after class because there were tired and wanted a breather before rushing home. The boss couldn’t understand this, he thought we were charging them. He would openly say, I don’t get the point of culture.

                None of this is bad of course, China and it’s culture is its business. However, this we are useless and should be phased out thing is a crock.

                The reason we are successful is our culture. We should never forget it. Our capacity for self criticism is unique. No other culture does this.

                Back in the day people wanted to be like us. They aspired to have what we have, in my opinion most importantly, freedom. Today, they want to take what we have away and have it for themselves. What they don’t realise is the MATERIAL things we have are just emanations of the intangibles. Freedom, Graeco- Judeo-Christian philosophy and morality. You cannot have one without the other.

                Make California Mexico again and you will just get more Mexico. And don’t get me wrong love Mexico and they have great people, but no-one wants to live there, especially Mexicans.

                Liked by 5 people

                • This was sublime. I have not the experience that you have as an academic, but I have worked for VERY Chinese companies in California and can recognize much of what you describe from my time with them.

                  I hope that you are able to educate beyond these comments, marvelous a teaching aid as this place is.

                  Thank you.

                  Liked by 2 people

            • Bud Klatsch says:

              Like

              Liked by 1 person

            • farrier105 says:

              We should not have built them up in the first place. We did the same for the Bolsheviks in Russia and continued that policy past the Vietnam era, supplying their military-industrial complex with production facilities that turned out war materials, including gun powders to kill our own men in Korea and Vietnam.

              China’s supply chain is in raw materials while ours is in finished goods, mostly from China. Like with the build up of the Soviet Union by our corporations, both nations have REDUCED SOVEREIGNTY as a result of the economic model imposed on them by the elites that control the corporations building the models. The same corporations and their “law firms” helped Hitler set up shop, too. They don’t do this just for profit, either.

              Liked by 2 people

            • cattastrophe says:

              We really don’t know what winding it in now will end up costing. The problem is, even not knowing that, it must be done. Waiting is not an option or President Trump wouldn’t be doing it now. This is just one more reason President Trump signed the Omnibus. It was imperative we get immediate funding for our military the debt and downsizing could all wait for later actions. The build up of jobs and manufacturing all play into our strength of being able to confront whatever comes from the fallout that could occur with China over the economic war. Who knows what other means they might employ when they see their economic structure collapsing.

              Liked by 2 people

            • Mongoose says:

              Orville, I hear you. I have had the same realization as I look at the similarities between China today, it’s moves and those of pre-WW2 Japan. It was the ban on exports of oil and rubber and such that pushed the Japanese to full out war even though they were already at war in China, Korea, Manchuria. OBOR is at least pro-active in working to get raw materials, cheap labor and markets for exporting it’s products.

              As for the USCoC, that needs to be taken over by real Americans who have not sold out our country to globalists.

              Liked by 1 person

          • mj_inOC says:

            So sad, parents ‘selling’ their 6-7 year olds…
            Father, forgive them.

            Liked by 4 people

          • Mongoose says:

            I find this very true in other Asian countries as well. If anything, you get one person who is the smart one bringing along a group of mediocre students who become the bureaucrats who are the BEST at taking orders and implementing them. No thinking required. After all, they just copied from the smartest in the group, passed and went along with the flow. Educators didn’t care. And if you had that “diploma” you might be lucky to get a decent job if you have the right family connections.

            Liked by 1 person

          • Tired Mom says:

            Jenny, a Chinese acquaintance of my daughter was one such “free thinker” and did not want to go back to China. What’s more, her parents expected her to stay in the U.S. and “live the American dream.” How sad that there is no “dream” in China.

            Like

        • Mary Wilson says:

          The exact same thing happens in the engineering colleges.

          Liked by 6 people

          • truthseeker39525 says:

            I was in mechanical engineering at George Washington University (in DC) in the 1970’s.
            At that time, at that school, it was many of the Iranians who were the blatant cheaters.
            (If those students had put the same effort into studying instead of cheating, they would have aced the tests on the merits.)
            After one exam in a Materials Science class, some of us American students were grumbling to the professor about all the cheating.
            He told us “Boys, don’t worry, I’ve got ’em outsmarted.”
            We were dumbfounded. “How did you outsmart those slick SOB’s?” we wanted to know.
            The professor replied “I just give ’em all “A’s” and send ’em home.”
            Then it sunk in….. not understanding basic Materials Science and Strength of Materials, the things they design are likely to break, bridges fail, etc.
            Let them reap what they sow.

            Liked by 4 people

            • It’s funny, I WORK with engineers from China and those who I admire the most are the most culturally balanced and good hearted and so in demand..but they actually are not chomping at the bit to advance, but want some balance.

              On the OTHER hand, there are some who come here and their…hygiene…has caused us to have to actually tutor them on how it is NOT inappropriate to wash your face AND YOUR FEET in the kitchen sink or spit in it. Their tendency to dismiss this as just silly because the water stream is more powerful and therefore they prefer it – and then to just leave it at that, is mind blowing. Culturally they are remedial. And at work I cannot say that these are those that excel.

              The comment that without the VALUES, with the tendency to view human beings as mere statistics and to view the family as a source of productivity potential, China can never emulate our success, is absolutely spot on.

              Interestingly, Mary Kay Ash of Mary KAy, saw how her business model was studied in schools and even copied, but the ONE thing that was dismissed as optional was the thing that Mary Kay valued above all else and to which she attributed her gob smacking success:

              The Golden Rule.

              Mary Kay is having a bit of a challenge now as those who have been faithful to her 60+ year model, understanding the importance of carrying on her priority of faith, family, career, are confronting younger women trained now for decades in short cuts, self-gratification and with social media…a glaring deficiency in observing those around them.

              Ironically, Mary Kay is a newer model in China and it is exceeding all expectations..and those who are doing the best are actually successful by CHina’s standards of productivity, but they are getting a taste for Mary Kay’s deep and profound respect for human life, which is NOT China’s favorite frame of mind. They are actually considered a threat to the country’s mindset and are not allowed to gather in the larger forums for awards and recognition as they are in the U.S. , for fear of having too much influence on the culture.

              Liked by 2 people

        • Bill says:

          This may or may not help, but when group of Chinese or Chinese American students collaborate, there are always leaders and followers. The Chinese born Americans who were follows typically fail by their Junior year, and I am referring to Electrical Engineering specifically. I had a Chinese American roommate who was fiercely independent and refused to adhere to group think. He did outstanding his Senior year.

          Liked by 3 people

          • nofreelunch says:

            ” I had a Chinese American roommate who was fiercely independent and refused to adhere to group think. He did outstanding his Senior year.”
            I think the ability to think for oneself and be independent leads to a rewarding life in about any culture.

            Like

        • abel able says:

          In one of my accounting classes a Chinese girl was cheating on a computerized exam. The professor, being a derelict, would walk out periodically. She would bring down her browser and search for answers. I took out my phone and took a picture of her cheating and showed it to the professor. He said that he would lower her grade a “whole” letter. I had a 4.0 before that term. I stopped caring so much after that. Chinese do not have Christian ethics. They have Chinese values. Google the scorpion and the frog. Its just the way it is.

          Like

      • Ozzytrumpster says:

        One of China’s biggest problems is the one child rule that existed for many years. Due to their extremely strong familial sense of duty the children are responsible for their parents in old age. The older generation are living longer. Result 1:2:4. Each kid has 2 parents and 4 grandparents as dependants. The one child rule is now history but it’s too late. Due to the skewed sex imbalance with 5 million missing women men must now have enormous amounts to offer prospective wives. Like a good job, an apartment car etc. parents now work to make their sons educationally and materially attractive, neglecting saving for their own old age, ensuring dependence on their (usually) son.Young couples are now being encouraged by the govt to have more children but they won’t. The cost of raising and equipping one child is so prohibitively high that they are choosing to only have one, usually a son. This skews the sex balance even further and makes the job of their son getting a wife even harder. Classic example of red queen, ie running to stand still. Except even running they are falling behind. It’s like the dowry system has been reversed. Kidnappings are happening as families get desperate.

        Liked by 1 person

        • Kidnappings, enforced prostitution, inability to communicate with women and now, with the sex robots, an invitation to real women being even more objectified and abused if they are not as completely submissive and obedient to sexualized men as are these robot sex partners. SExual addiction to the bots by the men AND suicide among women is pervasive.

          Like

      • The Demon Slick says:

        The West coast has an entire industry devoted to pregnant women from China who come to the US to give birth. The American citizen children are then brought to China to become good communists. Most Chinese intelligence agents are US citizens.

        Liked by 5 people

      • Jedi9 says:

        While a former teacher in China I learned that after grade 7, Education is no longer free as many have to forgo their High school education because some families can not afford to pay for their children’s tuition fees. This is something in America we take for granted!

        I wonder as you mention of such programs how much are the Tax payers on the hook for? Are we supplementing the Chinese for their lack of access to public schooling? If so, why isn’t anyone calling out the Chinese Government for all their wanton for power by spending in other countries to influence politics, stealing IP, and real estate acquisitions instead of focusing on meaningful reforms such as better education in their homeland? They collect enough taxes from Chinese citizens to be able to afford it, instead they choose to be parasites in other foreign lands in order to save money to educate their citizens! This is another aspect of Chinese exploitation as they seek any means necessary to not spend money. The Chinese government is too cheap to care for their own people when it comes to providing public education!

        Liked by 4 people

        • fleporeblog says:

          In NYC each students education costs about $18K per year at the taxpayers expense!

          Liked by 3 people

        • No wonder they had such a great bond with the Clintons. The parasite behavior is spot on…and Obama is certainly a willing student of the same.

          They are not human beings to government. AS only bureaucracy people are mere statistics…as our own big government (and unfortunately our public education system, welfare plantation, local governments and media) also thinks

          Like

    • David says:

      there are tremendously strong players in the cabinet…Pompeo, Mattis, others…but I for one am thrilled with Wilbur Ross. I hope he lives another 30 years.

      Liked by 9 people

    • CharterOakie says:

      Sundance / Ad Rem: apologies, grammar cop on patrol.

      Penultimate sentence above the partial image of the US one-dollar bill: need to either insert “been” between “has” and “waiting” or change “waiting” to “waited.”

      —> “President Trump has *been* waiting [or has *waited*] three decades for this moment.”

      I point it out only because I’ve seen in in at least two separate posts recently and thought that you might like to fix it.

      Thanks for all of your faithful dedication.

      Like

    • Howie says:

      The Chi-Coms are ‘Tariffied”.

      Liked by 3 people

    • Rachel Guess says:

      President Trump is the first POTUS in my lifetime to appropriately leverage access to the US market via trade policies. As you have stated previously they need us a LOT more than we need them. The US market is the golden egg at the end of the rainbow for all countries that have an economy based on the supply of durable goods.

      When China finally sits down to ‘talk turkey’ with POTUS, and they will, POTUS will be able to incorporate US debt repayment into the negotiations as well, making new US-Chinese trade deals even more mutually beneficial.

      #MAGA!
      #WINNING!

      Like

  2. L4grasshopper says:

    My history from school reminds me that pre-war Japan was a raw resource dependent economy as well. And that they basically went to war to secure the sources of the raw materials their economy required: oil and iron ore primarilly.

    China’s situation as described by SD is similar. The difference is that they are trying to secure their raw materials for their manufacturing based economy through trade and economic partnerships.

    Thus the vulnerability. Thus the risks.

    Liked by 13 people

    • TarsTarkas says:

      And FDR was fully aware of Japan’s raw material dependency. He used it to force Japan into either withdrawing from their Chinese conquests or going to war with the US and the other Western colonial powers. Rather than capitulate Tojo & Co. chose war. I think FDR did it to get the US fully involved in WW II because he feared Hitler might win (remember at the time the Germans were at the gates of Moscow) if we did not. One can argue about the morality, the methods, the goals, and the results, but IMO that was his reasoning.

      Unlike FDR Trump is a businessman and thus would rather make deal than achieve total victory, and he is faced with a different situation in that China has not yet been forced into a corner. Hopefully Xi won’t back himself into one. My biggest fear is that he does and rather than lose power starts a hot war that leads to the deaths of millions. Taiwan, the Spratleys, and the Korean DMZ I consider to be the most dangerous flash points.

      Liked by 2 people

      • Steve Herman says:

        My father went to his grave in 2001 confident that FDR not only knew Japan would retaliate militarily but would do so in a single strike. FDR knew Japan had spies everywhere from Hawaii to the Rockies.

        Liked by 1 person

        • Esperanza says:

          Hence internment. I learnt about Italian internment in the UK recently. It was eye opening. UK Italians were totally infiltrated by fascists. Nice people as T would say were sent home.

          Like

    • rmramerica says:

      Pre – WWII Japan was my first thought as well. But, since we are the greatest consumers of finished products in the world and the largest producer of grain…., China has serious problems and has little room, if any, to move. It will just be time waiting for China to concede. BUT, will the political environment of DC allow the strategy to play itself out?

      Liked by 1 person

      • Esperanza says:

        What I don’t get is China’s position. What’s the end game for them, apart from total capitulation? The only cards they are holding as far as I can see is US Sea Island globalists.

        Like

      • I hope and pray that the gleeful anticipation of our learning more about the deep state, by Judge Pirro, by Sean Hannity, by Jay Sekulow, by SAra Carter, by GReg Jarrett, truly is because it’s as game changing as they imply.

        Like

    • DonK31 says:

      Beat me to it. I was wondering whether this piece was about current day China or pre-WWII Japan.

      Like

      • Reloader says:

        It could easily be about Japan in the ’60s, ’70s and ’80s. Japan taught China how to use tariffs, non-tariff barriers to their own markets, currency manipulation and product dumping at below-market, gov’t subsidized pricing. There seems to be a blind spot for many, with the thinking that Japan was a threat to the U.S. only up until 1945. This is not the case– post-war Japan entered into “economic warfare” with the U.S., even said so at times. And Japan won that war, getting Americans to pay for their socialist nation which spends 200% of its GDP. Many think that defeat in WWII made Japan our friends. It did not.

        Liked by 1 person

        • Esperanza says:

          Maybe we are seeing, like with Germany and Europe, the Japanese cultural traits that make them inimical to the US?

          Current events have been eye opening to me about Germany. They are wrecking Europe AGAIN. And you can see them taking a nice idea to extremes. AGAIN.

          Liked by 1 person

        • Twinsonic says:

          True, and they (the Japanese) due to their high off the hog power and money back in the 70’s and 80’s are now mired in a deep recession/depression since 1990. Of that add the declining population rates which mirror China. Believe or not, you are now seeing quite a few homes out in the country are now abandoned when the elders passed away and the population shrinks due to a myriad of other factors.

          Like

  3. FL_GUY says:

    To me, it looks like President Trump and his team understand the Chinese situation better than the Chinese centralized bureaucrats. The Chinese are outclassed in this trade battle.

    Capitalism works because smart people can do their thing; they are encouraged to do so and rewarded for it. Socialism and communism fail because a small group of bureaucrats keep smart people from doing their thing and thus, it fails because stupid is as stupid does. We’ve seen that with the D-Rat and Rino destruction of the USA economy over the last 30 years. Can you imagine Maxine Waters and Nancy Pelosi dictating to the business community how to do business? Well, they have been, making a super mess of it and President Trump has fired them from that job. I hope soon, We the People fire them from DC.

    Liked by 19 people

  4. DanO64 says:

    Thanks SD.

    Liked by 9 people

  5. 6x47 says:

    It’s so strange … this seems like an important story, but all I get from the mainstream outlets is porn stars, Playmates, and Russians, oh my!

    Liked by 18 people

    • Malatrope says:

      Remember that even beyond their basic mandate to wave the propaganda, the media plays to the average consumer. Quite frankly, these discussions are way over the heads of those. The Treehouse is a tiny, tiny, self-selected group of bright folks.

      Liked by 2 people

      • 6x47 says:

        This is why it is so important for Treepers to share CTH across social media and to your friends.

        Like

      • Esperanza says:

        I disagree. Many ordinary people have been saying this for years.

        Like

      • Please do not forget that some of the worst actors in the globalist realm have fully infiltrated our media and so the pedophilia, the debauchery, the leaking…this is THEIR modus operandi . Some of this may well be over their heads, but many likely are totally involved in it, even if they don’t grasp the full scope.

        narcissism is rife and that is fuel to the globalist elitism.

        Liked by 1 person

    • Santiago1314 says:

      You mean Lying Media LIONS and Porn TIGERS and Russian BEARS, Oh My!?!?!…”Auntie M, Auntie M, It’s a Twister.!!!”

      Like

  6. jmclever says:

    With respect to Squeeze #3
    Although U.S. aid to Pakistan has been cut drastically, they still receive billions from American tax payers.

    This article is from February 2018, and I realize much has probably changed since then.

    https://www.hindustantimes.com/world-news/in-trump-s-new-budget-pakistan-faces-more-us-aid-cuts-after-snub-over-terror-safe-havens/story-pa6g9yKNGNLTZSLHNDNffI.html

    Liked by 1 person

    • TheLastDemocrat says:

      Congressmen and CIA like these types of arrangements. This is where they get their ungovernable, un-auditable power. They share, and their cronies in Pah Kee Stahn, and UK, and wherever, play along because they are playing the same game.

      This is why (R) are so aligned against Trump, and can do so, even though the “voters” for the congresspeople are supposed to be the source of their power. The voters cannot look behind the curtain. They cannot know how Afghanistan sustains opium production and sales/distribution.

      Liked by 5 people

      • oncefiredbrass says:

        Everybody has to realize also that the opium production is also a source of money for the CIA’s Black Projects. Opium production has never been higher since the US invaded! One interesting fact about Afghanistan that most people don’t know is they used to grow the best grapes in the world, since alcohol is a no no for Muslims, when the Taliban took over they eradicated all the grape plants. They allowed opium in controlled quantity just to fund their endeavors. Since the invasion it has exploded! We have had boots on the ground in varying numbers since after 9/11 – a lot of opium can be grown in 17-18 years! Time to pull out and tell the Air Force to clear that Country of opium! Nation Building will not work when 95% of the population is basically living in the 15th Century!

        Liked by 4 people

      • Exactly. And also likely another reason why Bush family has such animus toward Trump. Saudis AND China are favored by the Bush dynasty.

        Like

  7. amwick says:

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

    I wish I understood this better. It is not leaving me warm and fuzzy, but I suppose that is exactly the point.

    Liked by 2 people

    • Ventura Highway says:

      amwick, see my post below and you can see it from my angle, should give some insight.

      Liked by 2 people

    • Jenny R. says:

      Short answer: might be a good time to pull out of some of that China investment, diversify that China laden portfolio….a better time would have been before now (the returns are going down swiftly) but sometimes you just have to roll that hard six and make it out with your skin intact.

      Liked by 3 people

    • AceODale says:

      I work in the transportation and tourism industry. For the past decade(?) we have benefited immensely from Chinese tourism. This summer we experienced a significant decline in Chinese charters.
      If your company is dependent on Chinese business, you could have some rough sailing ahead.

      Liked by 1 person

    • mj_inOC says:

      Minimize any China investments ASAP…

      Like

    • My company has been doubling down lately and it’s been making me feel as if it’s time to go elsewhere. I am not one of the crony companies in Silicon Valley, but we are #1 in our industry worldwide and our links to China and S. Korea would make Trump a very unnerving president.

      This article gives me another reason why my ‘spidey sense’ has been tingling lately at my job. I thought it was just HR doing its usual role of sinking a company with stifling policy, but I see that instead it’s likely this that has been causing all the frenzied meetings. We have MANY Chinese in our company and we do business there .

      Like

      • clarification. I DO work in Silicon Valley but I am not Google, Linked In, Apple, Yahoo, FAcebook or any of those who want open borders and one world order.

        Like

      • amwick says:

        Good luck to you..and thank you. First person examples are priceless, absolutely. Follow your gut,,, Me? I am going to have a talk with my financial adviser. I use their services because I find managing my IRAs stressful, I just don’t feel like I have the know how… but I don’t like some of the international funds that they are pushing…

        Like

        • I am going to take a second run at the Online Trading Academy which can help short term to grow just a little bit if one has nothing to invest yet or can help those who can start the path toward income generated after retirement.

          It is learning how, if a market still exists, up, down or sideways is opportunity.

          Like

  8. jmclever says:

    With respect to squeeze #5

    DoJ is on it! Note the “New York man” has a very Asian name. The indictment does not say if he is a naturalized citizen or a national and to whom he was selling those trade secrets.

    https://www.justice.gov/opa/pr/new-york-man-charged-theft-trade-secrets

    Liked by 4 people

  9. amwick says:

    BTW, Ty SD for an article that explained this so clearly. Top down, dependent, got it…

    Liked by 2 people

  10. Zippy says:

    You missed two MAJOR weaknesses of China in a trade war – if they devalue the yuan to compensate for tariffs there will be massive capital flight from China. Also, the negative effects against ALL of their trading partners caused by that devaluation will be the same thus making it more likely that the EU and others will ally with the US against China.

    Plus, DEBT:

    Trade war with US could be the tipping point for China’s $14 trillion debt-ridden economy
    24 Apr 2018

    https://www.cnbc.com/2018/04/24/trade-war-with-us-may-be-tipping-point-for-chinas-debt-ridden-economy.html

    Cracks Are Showing in China’s Shadow Banking Industry
    23 Jan 2018

    https://www.bloomberg.com/news/articles/2018-01-23/china-s-15-trillion-shadow-banking-edifice-showing-more-cracks

    Liked by 4 people

    • Zippy says:

      BTW, THIS is an overgeneralization which will cause an underestimation of a very capable enemy: “Because of the oppressive nature of the Chinese compliant culture, the citizens within China do not innovate or create. The ‘Compliance Mindset’ is part of the intellectual DNA strain of a Chinese citizen.”

      Liked by 2 people

      • Ventura Highway says:

        yes

        Liked by 2 people

      • My wife is Chinese.. I have spent many months on and off living in China.. I have seen it for years.. Chinese are great at theft.. they make deals with large companies and then squeeze them out and end up owning the innovations and the profit..

        Chinese are great at computer tech.. they will hack all of the world if left unchecked..

        The point of the article is right however.. Chinese citizens are basically passive.. they are not innovators.. while managing a factory in China I was always amazed how the employees could build the crap out of something, AS LONG as you first showed them how to do it..

        The average Small Businessman in America will innovate circles around the average businessman in China..

        Bottom line.. Communism is designed to control men, not make them free.. Innovation is a word not synonymous Chinese top-down control. Theft is a much more approved one..

        Liked by 9 people

        • Zippy says:

          “The point of the article is right however. Chinese citizens are basically passive. they are not innovators.”

          ONCE AGAIN, anecdotal data and too-broad generalizations can lead to underestimation of a very capable enemy. Out of a population nearly four times ours with an average national IQ 7 points higher than ours, there are plenty of brilliant, innovative people in China. Take my word for it, in the technological things that count most for the future and which I know a lot about, they are not to be underestimated. Not even… Just one example of many of the sort of things I read about on a regular basis:

          Chinese scientists have built the first quantum satellite network
          ‘This proves the feasibility of quantum communications from space’

          https://www.theverge.com/2017/6/15/15808436/china-satellite-quantum-network-encryption-entanglement-micius

          Liked by 3 people

          • TheLastDemocrat says:

            IQ does not measure “creativity,” “ingenuity,” or “enterprise.”

            Liked by 3 people

          • Esperanza says:

            Is this true though? A lot of the wonderful breakthroughs we’ve heard about turn out to be fraudulent.

            Can anyone here cite any actual incident of innovative people they have met?

            Like

          • Newhere says:

            Thank you. Much valuable perspective in this post, but have to guard against believing our own mythologies. SD at its best when arguing on the basis of structural incentives/disincentives, material strengths/weaknesses, and demonstrable biases/blindspots; arguing on the basis of inherent dispositional superiority/deficit risks the folly of #3.

            Like

        • Zippy says:

          Another example:

          The Future of Nuclear Power in China
          May 14, 2018

          https://carnegieendowment.org/files/Hibbs_ChinaNuclear_Final.pdf

          SUMMARY – China is on course to lead the world in the deployment of nuclear power technology by 2030. Should it succeed, China will assume global leadership in nuclear technology development, industrial capacity, and nuclear energy governance. The impacts will be strategic and broad, affecting nuclear safety, nuclear security, nonproliferation, energy production, international trade, and climate mitigation.

          Liked by 2 people

          • GB Bari says:

            I read that a Chinese building just fell over the other day. That’s surely the way to global leadership (Not). They claim they can build a world class nuke reactor but they cannot construct a building that stays up. God help those who live around one of their “world class” power plants. It’ll be Fukushima x100.

            Liked by 1 person

          • Esperanza says:

            Really? Have you been to Beijing? I couldn’t breathe when I went 20 years ago. Safety? We’ve just had a warning in France about thousands of people expected to get cancer because of a bad Chinese drug lab.

            Like

          • G. Willikers says:

            These two examples – a quantum satellite network and nuclear power deployment – are not examples of individual initiative, an important requirement for creativity. No one denies China has competent scientists and engineers. So did the Soviet Union. But for all that ability to master a math equation, none of those scientists or engineers or any of the other billion people in the country came up with the idea for Facebook or Google. The satellite and nuke developments are evolutionary, not revolutionary disruptive technologies.

            Socialists and Communists like to push revolution to establish themselves into power. Once in power, “revolution” is a four letter word and must be suppressed for “social stability” so any revolutionary thought is discouraged and individual initiative is punished. In this type of top-down society, you wait for orders from above. PDJT and team are taking advantage of this “waiting” to run circles around the Beijing decision makers.

            Like

      • Reloader says:

        You’re referring to China as a “very capable enemy”? So you know for sure that the quality of their weapons and their combat leadership has increased that much since they lost their last war … in 1975 against Vietnam? Or is it just that their propaganda has gotten better?

        Like

        • Twinsonic says:

          Oooooh, Oooooh, Oooooh, I can answer that Mr. Kotter…….: ) If China’s army every goes to battle, they will suffer massive casualties. Remember the “One Child Rule”, If the Chinese mother loses it’s first and only son in war, there will be hell to pay. Their tactics and weapons technology are behind us and the Gulf Cooperation Council members (Saudi Arabia and the 42-44 member nations. Wouldn’t be surprised that the Chinese army met a few GCC members with U.S. help in North Korea and came out major butthurt in the bargain, just prior to giving up North Korea and its nukes.

          Like

      • …you could say as easily it is the hallmark of someone indoctrinated into communism. Comply and do not innovate or aspire to unique excellence.

        Like

        • …which coincidentally is what U.S. HR policy boils down to…the reason that so many companies that start out innovative and self-reliant implode.

          BEen researching for a book on this now for 20+ years. About ready to take pen to paper.

          Like

    • permiejack says:

      They can’t even sell off American bonds to retaliate because it will strengthen the yuan and they certainly don’t want that.

      Liked by 1 person

      • Zippy says:

        Yep, they’re trapped in so many ways and we will most certainly win -IF- “we” don’t blink first under the globalist “free trade” myth propaganda onslaught coming from our corporate media.

        Liked by 4 people

      • Rob says:

        What’s to stop them from printing enough yuan to offset the increased value?

        Like

  11. Adam says:

    Excellant piece SD! The education that you lay upon us is priceless, keep it up. I find that after two years of religously reading everyday I am one of the most informed in any circle that I participate in. At only 34 to be explaining these concepts to two generations ahead of me and those younger, is a blessing and I will never forget the lessons that you have taught. Thank You!

    Liked by 16 people

  12. Deplore Able says:

    China’s economy can’t survive without exporting all of the goods it manufactures. The people of China are not wealthy enough to consume what China is able to produce. They need markets outside China to survive.

    The USA is by far the largest market in the world. China needs to sell into the USA market. On the other hand, the USA doesn’t really need to import goods from China. We can manufacture goods domestically if we need to, or we can have the goods manufactured in India or Mexico. We don’t need Chinese technology. We don’t need Chinese raw materials.

    If USA gets into a trade war with China, what big threat can China make? “If you don’t allow us to steal USA technology and dump cheap stuff in your market, then we won’t sell into your market the products that we absolutely need to sell in order to keep the Chinese economy afloat.” That isn’t a very good threat.

    Liked by 5 people

    • Jenny R. says:

      The only thing they’ve got is the investments they have made into our economy and the investments some of our companies (and individual investors) have made into theirs — they are hoping (and possibly praying, as there are no atheists in foxholes) the Chamber of Commerce and the lobbyists will see it through for them.
      Otherwise, they’re sunk.
      That One Belt/One Road initiative was a stupid idea — it’s already causing them major problems…and the situation with Dijbouti could wind up backfiring immensely for them (for I do believe that certain terrorist groups are gaining succor from the Chinese…this will likely become an issue for them later). I think they are playing by some old strategy here, and it is a new world after all.
      This is an old article, but if one thinks that situation has changed, well, I would beg to differ:
      http://www.darkgovernment.com/news/chinese-bank-sued-for-financing-terrorism/

      Liked by 1 person

      • WSB says:

        I am still scratching my head over Smithfield and Chinese Pork tariffs. Anyone?

        Like

        • Deplore Able says:

          We can sell pork anywhere. The 20 Trillion dollar USA market for phones, TVs, appliances, furniture, textiles, and anything plastic, is the USA and only the USA. The loss of a $200 million in pork sales to China can be offset by USA sales to the rest of the world. The loss of $500 Billion in sales deficit to USA can not be made up. No other country has a 20 Trillion dollar economy.

          China can’t survive the loss of USA market. USA economy can survive the loss of pork sales to China. Loss of China pork market is like a mosquito bite to USA. Loss of USA market for Chinese goods is a bullet to the brain for China.

          Liked by 2 people

  13. Ventura Highway says:

    I sure hope PDJT wins this thing. I built a small business playing by the rules of the day. The current 25% tarrifs are taking the wind out of our sails. I understand the necessity of it, and the Chinese deserve all they get. I am currently sourcing more in the US, but it takes time to develop suppliers, develop and validate, new molds, processes, and fixtures. Lead time for castings here in the US is longer now than buying from China and including shipping time. The enviros here have driven so many foundries and plating facilities out of business that the ones left are severely overburdened and are raising prices because of it.

    I took years to develop these supply lines and the tarrifs hit virtually overnight.

    Liked by 3 people

    • I own a small factory in Southern Arizona.. I have used Chinese supply lines for years.. but lately I have decided to bite the bullet and buy just about all my raw materials from the US and Canada.. sure, my costs went up.. but the greatest thing happened.. MY products improved in quality and my customers are telling me such.. most are willing to pay the 15 to 20% prices increase to get a better product that last longer and does the job better.. Innovation is the key.. there are many great suppliers in the United States.. finding them is often difficult.. keep trying.. KEEP AMERICA GREAT.. screw the Chinese.. I am sick of them.. [don’t tell my wife that.. she is Chinese]

      To answer your first question.. Trump is a born winner.. once our economy kicks into even higher gear a lot of the problems you are having will go away.. a thriving economy wants all the new foundries, suppliers and developers it can get.. hang in there.. Blessings to you for being an American manufacturer..

      Liked by 15 people

      • Ventura Highway says:

        Thanks Bob, good luck to you, sounds like you are rolling with it, as we all must.

        Liked by 2 people

      • tonyE says:

        Once upon a time, 40 years ago, I used to buy polo shirts that cost me $30 bucks. I was poor then, so I couldn’t afford so many polo shirts. But, dang it, those shirts were well made, held their color and shape and buttons for many, many, many washes.

        I didn’t need many polo shirts. I think I had like seven or eight. That was all I needed.

        Today, I can get polo shirts made in China for 15 bucks. They last about a year, at most.

        Around my house, I got some very expensive stuff… some of it electronic components made in the US, UK and Japan and 30+ years old. They still work today. Sure, I paid a pretty penny for them, but they’ve lasted 30+ years and in some cases are worth as much today as the day I bought them! Some are worth more!

        Liked by 4 people

      • My wife is Chinese too friend. The trouble is not with the people per se, just that many are allowed and even encouraged to act without morals. Most are atheists or agnostics. That affects everything about their country, culture and values. I believe the only thing holding their country together is tribalism and their long history as a civilization, because in matters of justice they are lost. And I don’t think that cohesion from a shared history is going to be enough to weather what’s coming especially given the youth don’t care for it and do not understand its importance. When I go to China I can see first-hand how the social fabric is basically going to go to hell if their economic model hits a brick wall. It’s going to get really bad. Might be quite a few years coming where it won’t be safe for my family to travel there.

        Liked by 1 person

      • Esperanza says:

        This. I’m betting you can sell seconds and even thirds better no?

        Chinese stuff is already seconds. Plus you have no guarantee it won’t give you cancer.

        Like

    • Paul Killinger says:

      Yes, on Nov 9, 2016.

      Like

  14. Quest says:

    I’d like to quote SD:
    Again, broadly speaking Chinese are better students in American schools and universities because the Chinese are culturally compliant. They work well with academics and established formulas, and within established systems, but they cannot create the formula or system themselves.

    This is why in many Asian countries this type of Socialist economic system seems to work. The culture has been created and modified from keeping citizens in line for the King/Emperor to know the Central/Federal governments. They have based their economy on a population of automatons.

    Though slightly OT, this is one of the reasons why that Sarah Jeong (NYT thing) gets created. Though she may have been born here, her need for compliance has her living and breathing progressivism because that is what her teachers, heroes, and peers have told her to think.

    The US, and parts of Western Culture have created and nutured the Capitalistic system, other cultures have hijacked the mass production and financial parts of it through scheming, and playing by their own rules which are not based on Capitalism. Because of this lack of understanding, they can not creae or innovate within this system. However, with pliable group-think populations, they have the ability to take great advantage of minor weaknesses of the system.

    Like

  15. tunis says:

    I would like to add to Sundance’s excellent thesis with a financial perspective.

    First, when the UniParty gave China Most Favored Nation Status in 1994, two things happened. First, China seduced western businesses that if they wanted access to the billion people Chinese market they MUST establish plants in China in joint-ventures with Chinese partners. Second, they convinced western politicians that for China to purchase western goods their purchasing power needs to be increased by employing them.

    Wall St and the corporatists backing the UniParty saw a fantastic opportunity to make a double-hit. One, issue massive amounts of credit on which they can clip a coupon and use that credit to fund Foreign Direct Investment (FDI) in China. The corporatists then dismantled the US industrial base and shipped it overseas to China, with a much smaller extent into Mexico and other low wage nations. This is how the initial decades of China’s growth took place. Western FDI and technology playing the wage arbitrage to benefit Wall St and the corporatists and their political allies (Bush & Clinton dynasty, etc).

    Fast forward to post-2008. Chinese “growth” in GDP has been driven by the most gargantuan issuance of credit in human history. This credit went to finance unprecedented Fixed Asset Investment – Infrastructure, manufacturing capacity, real estate. The scale of this credit issuance and investment always results in mal-investment. China has reportedly tens of millions of vacant apartments. China produces 800 million tons of steel – more than the rest of the world combined. This excess steel is dumped on world markets at a loss. Chinese solar panel manufacturers produce at a loss and have essentially wiped out panel manufacturing elsewhere. All these losses are subsidized as the debt never gets paid back. They have built so many ports, thousands of miles of high-speed rail, airports, highways and other infrastructure. Some with very limited use and no financial payback. There isn’t sufficient cash-flow to service the debt. So this credit has to keep being rolled forward with even more credit. In China since they don’t have a well developed bond market, all this credit is issued by the banking system and shadow banking system, which are implicitly backed by the government.

    This leveraged financial structure is the weakest element in the Chinese economic edifice. If this weak structure is pressured sufficiently, the financial and resultant economic crisis could destabilize their authoritarian political structure.

    Think of our credit crisis in 2008, where Americans got the greed going in flipping houses and began taking on mortgage credit with less and less equity as home prices escalated. Banks, insurance companies, mortgage lenders, hedge funds, mutual funds, pension funds all got in the game. When the last marginal buyer could no longer buy a house at a higher price, the mortgage credit edifice began to totter with sub-prime credit blowing up and then it slowly took down the banking system. Of course instead of clearing out all this unproductive debt, the UniParty (Bush, Obama, Goldman Sachs, etc) decided to bail out Wall Street. We know what happened after. Bernanke reflating another credit boom.

    The big question is can the Chinese government bail-out the trillions of dollars of credit issued since 2008 to fund the biggest fixed asset investment in human history? This is credit edifice is their Achilles Heel.

    Liked by 13 people

    • jmarshs says:

      Wonderful post.

      Liked by 4 people

    • Ventura Highway says:

      Good post. I noticed when I was over there in May that the real estate market is out of control. $750,000 to 1MM for a small apartment in the older parts of Shanghai, same in Chonqing. I asked my agent over there if he was afraid of losing his investment if the market takes a crash because of overleveraging. He hadn’t considered it much and said, “if it doesn’t work out, I will just be back where I was.

      Liked by 3 people

    • USTerminator says:

      One day all the debts will be absorbed by Bank of China and the government can just decree to disappear the debts. The only debts with USD that need to repay which government wants them to convert to equity or corporate bonds in Renminbi. China tries to reset financial debts to Renminbi denomination so they can issue unlimited and dispose as will

      Like

      • That will be the same day the fiat RMB returns to its intrinsic value (0).

        Like

        • USTerminator says:

          Renminbi is mostly used in China, so the value is what government wants it to be. It is not floating currency. Only problem with foreign investment but that would be the last thing to worry since China would kick out the foreigners out of China market eventually

          Like

    • TheLastDemocrat says:

      U.S. manufacturing jobs data, at Bureau of Labor and Statistics, follow what tunis says. We had steady manufacturing jobs through 1994. Then, at 1998, the numbers drop off a cliff. They are trending back up now.

      Oprabama people will show you a couple years before his reign, through today, and it looks like things were generally trending well after the dip corresponding with the 2008 crash. Since that trend carries on into 2017 and 2018, they have data to say that is Oprabama’s influence.

      Maybe maybe not. If you look at manufacturing jobs with start point of 1990, you see what a very poor position we are in now. Despite population growth, manufacturing jobs are drastically lower. I am not sure how to put a link to these “interactive charts” on here. just put “bureau of labor and statistics,” “manufacturing jobs,” in a search engine, and start looking.

      Liked by 1 person

    • abdiesus says:

      Well said! As I posted yesterday on a related thread: if anyone takes the time to view the video below about 3-year old Chinese properties literally falling apart because of poor workmanship and cheap materials. How much do you want to bet, that Trump, as a real estate developer himself, knows all of this already – all about the weakness of the Chinese economy, being driven by a real estate bubble that is (for the time being, but not forever) artificially propped up by the government, while at the same time the actual physical properties are literally falling down from such extremely poor workmanship and cheap materials? What happens to the Chinese economy when Trump, with one or a series of well-placed tweets, reveals what the financial media has been hiding from the world about the physical state of the collapsing properties which on paper drive the Chinese economy? Real estate developments which carry such high and ever-increasing paper value, merely because the government is (temporarily) artificially propping up the real estate bubble to prevent it from bursting?

      Liked by 6 people

    • USTerminator says:

      Remember Bank of China is government controlled entity and have unlimited balance sheet. Therefore, it can absorb all the bad loans without worrying of bankruptcy. As long as China can convert all their loans to Renminbi denomination then there is no problem. So the push of convert foreign debts to equities so China can off load all the foreign denomination debts to Renminbi debts. Renminbi is controlled currency so it can be any value the government wants it to be

      Like

  16. SwampRatTerrier says:

    RE: Chinese college students doing better in U. S. colleges

    Report from source “document” person – college exchange instructor who taught a year in Communist China.

    Their students don’t hesitate to cheat. Cheating in school is their cultural norm. This teacher caught a student cheating on an exam and flunked them. Upon finding out this, her entire class surrounded her demanding she not flunk the student for cheating.

    Liked by 3 people

  17. jmarshs says:

    It’s important to keep in mind that the Chinese Communist Leadership has no intention of ever allowing a wealthy, vested, middle class to emerge in China. If that happened, the middle class would wonder, “What the heck do we need these obscenely rich, obscenely corrupt, criminal, Communist Leaders for?”

    This too is a fatal flaw of China’s “economic model”. Wages are kept artificially low so as to continue attracting foreign manufacturing AND keep workers relatively poor so that the Communist Leadership can maintain power.

    Liked by 4 people

    • jmclever says:

      The “Cultural Revolution” (aka Communist takeover) is a relatively recent thing in China (My mother’s ophthalmologist survived it.) Just like the Islamic revolution in Iran, POTUS’ economic policies have the added benefit of returning the people to their preferred form of government.

      Liked by 1 person

    • Esperanza says:

      And why “they” want to break ours.

      Like

  18. Mr_Henry says:

    Another critical weakness is that China doesn’t produce all of its own food. Putting tariffs on our farm products raises has to raise food prices, while our tariffs reduce demand on their products.

    Lower demand = less shifts = less money to purchase higher priced food.

    Maybe they have enough reserves saved to keep people floating, but this seems like a recipe for social unrest to begin in China.

    Liked by 5 people

  19. V.I.G. says:

    Because of the oppressive nature of the Chinese compliant culture, the citizens within China do not innovate or create. The “Compliance Mindset” is part of the intellectual DNA strain of a Chinese citizen.

    While I typically agree with the CTH. The above misunderstanding, completely ruins the rest of the points.

    China simply steals or bribes their way to innovation and creation. Look at their military and you will notice the silhouettes, look like a carbon copy of American and Soviet, military equipment.

    Liked by 1 person

  20. Paul B. says:

    Excellent analysis. Wouldn’t it be amazing if Kim saw his best interest in being under the American umbrella, and flipped? Xi would lose much of his ability to nettle the US and bully the ASEAN nations, even as his own economy heads for the tank.

    Liked by 1 person

  21. jmclever says:

    With respect to squeeze #9

    How does Canada’s Chrystia Freeland courting ASEAN nations for trade affect NAFTA? Will Canada attempt to keep a type of back door to the US market via ASEAN now that they have set up their economy to fail just so they can blame Donald Trump?

    Like

  22. TarsTarkas says:

    The Compliance Mindset is still alive and well in Japan too. For a time we represented a line of equipment owned by Toyota. They even sent a crew of their own men to study how we installed the gear on domestic vehicles in order to copy and streamline our mounting procedures for their factory installation assembly line. Superb product, excellent workmanship, but if there was a hiccup or a change to the chassis their mechanics had difficulty adjusting. They also had utterly no idea how to market their wonderful machines to American customers. They took a bath and got entirely out of the US market.

    Liked by 1 person

  23. scott467 says:

    “The lack of intellectual thought-mapping needed for innovation is why China relies on intellectual theft of innovation created by others.”

    __________________

    And moral turpitude.

    A thief can justify his thievin’ any number of ways… but he’s still a thief and a robber.

    To the extent that China is dependent on thievery, how is theirs not a nation of piracy, and of pirates?

    Liked by 3 people

  24. jmclever says:

    Where the Spirit of the Lord is, there is freedom (2 Corinthians 3:17).

    Freedom of Speech = Freedom of thought

    Freedom of thought = innovation and creativity = hence American exceptionalism

    Communism = atheism = no freedom of speech = no freedom of thought = no innovation or creativity.

    This is China’s (and every communist nation’s) problem. It is also the problem of the Western progressive left and why Hollywood hasn’t made a decent movie since the 1980s.

    Liked by 1 person

  25. Zippy says:

    AND right in line with something I mentioned in a post yesterday about a parallel economic operation we’re conducting against Iran that is getting even less attention than PDJT’s brilliant game against the Cheating Chicoms:

    New Iran Protests, Clashes With Police Gaining Steam After Week Of Plummeting Rial
    2 Aug 2018

    https://www.zerohedge.com/news/2018-08-02/new-protests-clashes-police-break-out-iran-after-week-plummeting-rial

    Iran’s state-run media briefly acknowledged the pockets of unrest in scant reports noting the protests were “without official permission” and isolated, but a series of social media videos emerged Wednesday and early Thursday which appear to show protests and clashes with police gaining steam across multiple cities.

    The Iranian rial dropped to an historic low this week just ahead of a new round of renewed US sanctions set to begin Monday, August 6.

    Liked by 1 person

  26. CNN_sucks says:

    Koch brothers love the corporate tax cut but love cheap foreign workers. Slaving them up until their eye balls turn white.

    Like

  27. Akindole says:

    All good points outlined by SD.

    Crazy personal observations:
    My Norinco SKS (no import mark; pickup) shoots better and has better fitment than my pure Yugo SKS.
    My Norinco Type 53 (no import mark; pickup) shoots better and has better fitment than my Ishy M38.
    My Norinco Tokarev 9mm shoots waaaaaay better than my Czech ČZ vz. 52 7.62x25mm Tok.

    All of those Norincos are Chinese “clones” made during the 50’s & 60’s using the Russian/Eastern bloc equipment and probably a whole bunch of the Soviet barrel blanks, castings, springs, etc. Historically, the Soviets assisted the developing People’s movement of China by providing a means to tool up and produce weapons that were essentially being phased out or outright obsolete in the Eastern Bloc. So, the Reds gave them what they thought was the “crappy stuff.” But, they actually worked well in places like Vietnam.

    It tells me that the Chinese workers were damn good at following instructions, as SD and others above mentioned, relative to the Eastern bloc dudes, and were locked in, so to speak, to super tight quality controls.

    Every now and then I wonder what the new CN stuff (non C&R) would do relative to the Russian stuff.

    Like

  28. truthbomb says:

    Chinese actually enjoy eating dogs that have been tortured, because the meat tastes better. Think about that for a moment. They know dogs have an emotional life, but they still torture them for more flavor. This is who the US is up against.

    Like

  29. Dutchman says:

    Is it possible there are parralels in what we are seeing, VSG- vs. China, and Reagan vs. Soviet Union?

    Reagan engaged S.U. economically more than militarily. Weapons systems was just the vehicle. He proceeded with confidence, knowing that a centrally controlled communist econonomy simply can not compete with free enterprise Capitalism.

    And, is it possible we will see China implode, much like S.U.?

    I know there are MANY ethnic minorities in China, who must feel similar to former Warsaw pact countries, i.e. oppressed, longing to be out from under China’s thumb.

    Could such an implosion occur peacefully, as it did when cold war ended?

    Liked by 1 person

    • railer says:

      The Chinese warlords will never let their people free. Everybody is under surveillance and subject to instantaneous punishment.

      Like

      • wondering999 says:

        Don’t ordinarily link to the NYT, but came across an interesting article about someone who would like to take care of poor people in China before delivering foreign aid, Sun Wenguang, an economics professor who was taken by the police in Jinan for voicing his opinion:

        Like

      • Dutchman says:

        Could have said the SAME thing, about the Soviets, before the collapse. Just sayin,…

        Like

        • railer says:

          The Sovs’ tyranny required the people to report on their neighbors, and as the economic system broke down, the people were not willing to do this (and they stopped outright murdering their own people in the last 1/4 century of the Sov regime, or at least slowed it way down). China has the technological means to bypass the people’s reporting and surveil them in real time, and take action the moment the situation is untoward for the warlords. And they will kill as necessary. The Sovs and today’s Chicoms are not analogous situations.

          Like

          • G. Willikers says:

            Hence one of the reasons the Chicoms are so interested in artificial intelligence computing – an exponential increase in mass surveillance capability on their own population. All dissenting thought must be squashed. The Chicoms are more afraid of their own people than any external threat.

            Like

  30. Suzebeez says:

    Just thinking even farther out…
    China, with less money to throw around, stops funding it’s propaganda arm (Hollywood). Actors and actresses high-priced salaries are replaced with lower-cost computer-generated characters and voice-overs. Sets and on-scene filming costs replaced with computer-generated images.
    No more “red carpet” events with over-paid morons pontificating to the rest of us.
    …THANKS VSGDJT!

    Like

  31. Ghost says:

    Maybe we should add another factor to this equation, currency manipulation.
    Twice with in the few months China has devalued there currency. This was done with the idea of lowering the prices of their goods in foreign markets. It also came after the President criticized them for doing this. They showed us.

    The effect however was not what they thought it would be, or VSG President Trump laid a very nice trap. Oil is bought and sold in dollars therefor the cost of their imported oil went up in equal amounts to their devaluation. Costing them a larger proportion of their reverses to purchase the needed oil.

    Then add the flight of capital from their markets which many astute investors have already done. Therefor their stock markets are falling badly. Put simply if you invested $100.00 and they reduced their monetary value 10% you just lost 10% the second the decision was announced if you sell now. Once again they need to use their reserve capital to replace the fleeing capital.

    A couple of weeks before the the meeting with Putin, Russia dump half of their US dollar reserves in the open market. The markets shrugged it off without much notice. Those in the currency markets made note that if it was an attempt to strengthen Putin’s position it had no effect.

    I mention this because fears of China doing this are often used in predictions from so called experts of disastrous consequences of taking on China in a trade war. Bull@%&!, they need U.S. Dollars to buy oil and many of the things required for their economic plans. As the US economy continues to strengthen so will the $. Thus, so will the cost to import oil and raw materials.

    If their revenue stream of the $ is reduced then cash flows will quickly dissipate much of their of the reserves they spent years accumulating.

    MAGA

    Liked by 3 people

  32. mj_inOC says:

    Thank God for President Trump’s 30+ years of strategic economic wisdom and planning
    [and coordinating a great team to implement and foresee roadblocks and option opportunities].

    And thank you, sundance, for making it easy to perceive and understand!

    Liked by 1 person

  33. Arthur says:

    Excellent analysis and very good comments over here.

    Another strategy DT clearly wants to implement: triangulate with Russia, get Russia out of the Chinese dependency.
    The Russians would like nothing more than not to depend on China. They would much rather prefer a relation with US.
    Russia took large territories from China in the 19th century, when China was very weak. Now they’re very much afraid that China wants those back, which of course they do.

    Problem is, DT cannot implement his Russia strategy because of the demented Trump haters who are ready to destroy America’s fundamental national interests just out of Trump hate.

    Liked by 1 person

    • Dutchman says:

      Or, is THAT bas-akwards? The demented Trump haters are ‘in the pocket’ of China, and this whole muh Russia b.s. is INTENDED, from the outset, to thwart VSG plan?

      Liked by 1 person

      • Arthur says:

        Good point. It might very well be not just blind hate but their wallets too.
        One analyst said recently that half of DC is in the pocket of China.
        Look no further than Mitch McConnell – him & his wife made tons of money from China through a shipping company.

        Like

  34. Dutchman says:

    Yup, I’m convinced. We are in a ‘cold’ war with China.
    And, like Reagan, our VSG- recognised this, and how to win it.
    China’s whole modus operandi is corruption, and with the Clintons as their agents, they corrupted first the dems, then the rinos.

    The whole global warming scam was from China, to Rob the west of energy production, etc.

    Our Glorious BASTARD sees it all, and is ON it!

    Like

  35. Big Jake says:

    Don’t tell Mark Levin. Old Yeller’s Head will ‘splode.

    Like

  36. tunis says:

    Here’s a video about China’s ghost cities. An example of the scale of malinvestment.

    Liked by 1 person

  37. David B says:

    Um, no. China makes these products for south Korean companies. So it’s at least half south korea too.

    Like

  38. 4430lacey says:

    I’m so glad I found this site years ago. Sundance, your ability to put it into perspective has no equal.

    Liked by 1 person

  39. weirdflunky says:

    Along with importation of raw materials, the big problem the Chinese face is the importation of food.

    There is literally no way China can produce enough food to feed itself.

    Economic stagnation caused by a protracted fight with PDT is one thing, not being able to feed that vast population is another problem entirely.

    Food is the true Achilles heel of the Dragon.

    Liked by 1 person

  40. Zippy says:

    Don’t tell me the Chinese aren’t a threat because they NEED to steal technology because they can’t innovate on their own due to a hive mind culture. That claim was the very same one made against Japan after WWII and is now made by people who apparently don’t know what China has already done:

    China completes 22nd launch this year with Gaofen-11, matches national record
    July 31, 2018

    https://spacenews.com/china-completes-22nd-launch-this-year-with-gaofen-11-matches-national-record/

    Excerpts:

    Gaofen-11, a sub-meter resolution optical satellite [that is military spy satellite resolution – Zippy], will become part of the China High-resolution Earth Observation System (CHEOS), initiated in 2010 to provide all-weather, all-day coverage by 2020 with optical and synthetic aperture radar satellites, and could also include airborne and near-space systems such as stratospheric balloons.

    The satellite is the sixth in the Gaofen series launched this year, following a triplet of Gaofen-1 satellites, and the larger Gaofen-5 and -6, all placed in Sun-synchronous orbits. The series, which means “high resolution” in Chinese, also includes one geosynchronous satellite, Gaofen-4, launched in 2015. Gaofen-7 could also be launched to SSO before the end of the year.

    The launch followed a weekend mission which saw two Beidou satellites successfully sent into medium Earth orbits as part of the Beidou global navigation and positioning system, a Chinese answer to the GPS, GLONASS and Galileo systems developed by the U.S., Russia and Europe respectively.

    The satellites — the eighth and ninth Beidou system satellites launched in 2018 — are the 33rd and 34th overall. The first Beidou satellite was sent into orbit in 2000.

    Further Beidou launches are expected from Xichang in the coming months as China seeks to complete the system of 35 active satellites by 2020.

    CASC is aiming to launch around 35 times in 2018 and appears on course to get close to this number with five months to go, having succeeded with all 22 of its missions so far.

    Dependent on the success of the launch are two major 2019 missions: the Chang’e-5 lunar sample return on the fourth Long March 5 and the test flight of the Long March 5B variant, which is designed for lofting the 20-metric-ton modules of the planned Chinese Space Station into low Earth orbit.

    Late 2018 will see the Long March 3B launch of the Chang’e-4 lunar mission which will attempt the first-ever soft-landing on the far side of the Moon which, due to tidal locking, never faces the Earth. A relay satellite named Queqiao was launched to the second Earth-Moon Lagrange point beyond the Moon in May and will facilitate communications between the Chang’e-4 lunar lander, rover and ground stations on Earth.

    ———-

    Chinese lunar lander and rover – their very first attempt was a success. Landed in December 2013:

    https://www.popsci.com/sites/popsci.com/files/styles/655_1x_/public/images/2016/02/1_pcaml-c-005_sci_n_20140113190450_0008_a_2a.png?itok=TqeW61EU

    https://www.popsci.com/sites/popsci.com/files/styles/655_1x_/public/images/2016/02/2_tcam-i-051_sci_p_20131220164405_0007_a_2a.png?itok=n38cRBzB

    Like

  41. BHliberty says:

    Great read on the China economic composition & mindset! I too hope that the Fed Res doesn’t raise rates too quickly and it was comforting to know that the Commerce Sec. reiterated that! Thanks!

    Like

  42. Jonesy says:

    Thanks Sundance

    Like

  43. Donna in Oregon says:

    When I was a kid I remember folks using the term “shanghai’d”. Looks like it still applies, eh?

    The Urban dictionary is a more up-to-date term: Shanghai’d. Using false means or coercion to achieve a desired outcome from an individual……

    Like

  44. qzy says:

    I have actually lived in China. These comments are retarded.

    Don’t conflate the policies of the Chinese government with the Will of the Chinese People. Did President Barack Hussein Obama represent YOUR ideals? No, he didn’t.

    Most Chinese people I talked to don’t like their government. They wished they could choose their leaders, but it’s hard to argue when the current leaders have produced double-digit growth for three decades.

    Two decades ago, rural Chinese were living in mud-brick homes with dirt floors and a communal outhouse. Now, they’re living in, single family, 5 story houses with 65″ TV’s, a couple of cars, and the latest iPhone.

    Don’t try to start a revolution when the people are prospering. Che Guevara learned that the hard way.

    Once again, I have lived in China. Chinese are more similar to Americans than you imagine. At least, Americans who grew up in the 70’s/80’s. Chinese love barbecue and they love beer. They smoke cigarettes wherever they want, and when driving take U-turns wherever they want.

    Like

  45. This has been so enlightening and all I can contribute is what it is like to work with Chinese nationals who have come to America.

    By and large, the friendly smile that is worn while behaving dismissively or disdainfully has often been confusing.

    Also though is evidence of that compliant in order to get what needs to be done, studious in order to see what is the path to success…but scary omission of rage or reproach when corruption or injustice by government or more local authority is enacted.

    It IS a different mindset. There is such polite attention and delightful conversations, but faith, actions for liberty and reproach of government are non-starters.

    Some DO come here and understand and appreciate the fight for freedom, but that does not translate to any radical proactivity. They rely upon having the great freedoms to offer a better outcome for them, but are cynical and do not act when something that is reminiscent of their more authoritarian regime happens.

    Much of the time they think that America and China are essentially the same and that cynicism is so very difficult to pierce.

    The hospitality and the gratitude are real, but there does exist a void in understanding how this country was formed…and this leads me back to assimilation – or lack thereof.

    We have dependents who come here and never assimilate because it is in deep state interest to make them believe that ours is a socialist paradise with free giveaways and entitlement through bullying use of social media, judiciary and attorney activism and acceptance of the tactics used by departments like HR to foster a communist mediocrity AND an oppressive intimidation against traditional American values.

    On the other hand are those brought in for the corporate world who also do not assimilate, not in order to make them dependent, but to bring in their productive mindset which is already programmed to be compliant with corrupt government.

    Chinese nationals in the college world on the other hand are jaded about the higher demands placed upon them and they overcome those.

    However when a Chinese national goes to college and the liberal extremism penetrates them, they are as compliant towards the extremism as they were towards authoritarianism.

    It is true, they are not innovative and just as with the nation, the people, delightful personalities, intelligent, grateful…are imbalanced and not generally the authors of innovation and change.

    It is a TREMENDOUS waste that has been made of an ancient culture that before this age of technological theft, had much to give to history.

    But back to the article…..this was a MaRVELOUS read and I’ve passed it along to many who are prone to knuckle biting and armchair theorizing. I hope it educates and assuages their fears.

    THANK YOU

    Like

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