IMPORTANT – Michael Pillsbury: China Has “New Respect” For U.S. Trade Strategy…

Sad Panda increasingly frustrated as disruptor Trump heaps vociferous praise on Chairman Xi, while simultaneously out maneuvering Beijing’s geopolitical economic strategy.

China expert Michael Pillsbury discusses the current environment around the Beijing leadership with Fox host Tucker Carlson.  This is really important. WATCH:


What Pillsbury outlines is exactly what CTH predicted last year when we shared how the Red Dragon would be caught entirely off-guard.  They’ve never seen this approach before.

NOTE: The upcoming Chinese trade delegation is not showing up at the end of this month as a matter of scheduling happenstance.  What no-one in the financial/trade/economic media is connecting is the timing of their visit with USTR Lighthizers’ Section 301 Tariff hearings –SEE HERE.  August 20th through August 27th, you can guarantee the Chinese delegations will be all over those hearings; including dispatching their paid lobbyists to provide input on their behalf.

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 Chairman 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 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.

However, China cannot engage in economic commerce with Venezuela or they risk losing access to the U.S. banking system.  Therefore all current Chinese aid to Maduro comes in the form of IOUs.  These ongoing loans are likely impossible to be repaid.

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.  Additionally, President Trump is demanding NATO countries, specifically Germany, stop supporting financial dependence on Russia.

Meanwhile, and directly connected, 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 and new demands on allies.

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. The U.S. removed $900 million in 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.]  Again, more one-way bleed for China.

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 dissolving NAFTA in favor of two bilateral agreements; one with Mexico and one with Canada.  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. concludes with NAFTA. [Current discussions with Japan are ongoing]

Squeeze #8. President Trump positioned the U.S. relationship with the E.U. as a massive potential loss for Europe (via Steel, Aluminum, and Auto tariffs) if they did not: (A) shift their trade relationship toward greater reciprocity; and (B) reconsider the size of their trade relationship with China.  After initially trying to push-back, Europe acquiesced.

Squeeze #9. 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, and announced in March. The relationship between ASEAN nations and the Trump administration is very strong, and getting stronger. Which leads to…

Squeeze #10. 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…

Squeeze #11. President Trump cut-off the duplicitous Beijing influence over North Korea by engaging directly with Kim Jong-un.  The open exchange and ongoing dialogue has removed much of the ability of Beijing to leverage the DPRK nuclear threat for their own economic benefit.  This dialogue was as much, if not more, about dismantling the Beijing geopolitical influence as it was about denuclearizing the Korean peninsula.  However, no-one caught on to that part of the strategy.

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 –as we previously stated– is the likelihood China never saw it, meaning the sum totality of “all of it”, coming…. at first.

Now they do, and, as Mr. Pillsbury notes from his travel and engagement, China is not quite sure how to respond.

Only President Trump could use economic leverage with such incredible insight and strategy toward achieving dual results benefiting the U.S. economy and U.S. national security position.  It really is stunning when you stand back and look at how it has all played out…. in the open…. and yet seemingly no-one saw what he was doing.

Just brilliant.

This entry was posted in Auto Sector, Canada, China, Donald Trump, Economy, Election 2018, European Union, France, India, Japan, media bias, N Korea, NAFTA, President Trump, Russia, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA, Venezuela. Bookmark the permalink.

255 Responses to IMPORTANT – Michael Pillsbury: China Has “New Respect” For U.S. Trade Strategy…

  1. finchy74 says:

    Excellent article (as always), Sundance. Another important takeaway from this article is the absurdity of the continued “Trump is Putin’s puppet” meme that’s still embraced by so many fools. Trump has been no friend to the Russians from an economic perspective, but most people are so illiterate when it comes to basic financials, trade and diplomacy that they can’t (or refuse) to see it.

    Liked by 10 people

    • Daniel M. Camac says:

      Finch, You and Sundance laying it out for all to see. We’ve got a relative visiting and just found out she and her hubby are for #MAGA but never heard of TCT. They are from upper PA and just got WIFI. We fixed that tonight and now we need another branch or two because THE TRUTH is slowly making it’s way into mainstream AMERICA. #MAGA

      Liked by 2 people

    • wrd9 says:

      The US has always had some of the best financial/strategic minds but they were located in the private sector, using their ruthlessness and guile for themselves. They know all the tricks to trip up people/companies/countries. Now some of them have shifted to the public sector and it’s glorious to see the difference.


  2. sundance says:

    Liked by 24 people

  3. Mick the Mick says:

    I have no idea how to post a link to it, but this past Sunday evening on Mark Levin’s “Life, Liberty, and Levin,” Mark spent the entire hour interviewing Michael Pillsbury. I’d never heard of him but was fascinated by his knowledge of China. Highly recommend searching it out and watching, or perhaps a smart person can find the link and post it here.

    Liked by 2 people

  4. itsarickthing says:

    Did I hear this correctly-?

    Just past the 3:45 mark, did Mr. Pillsbury say “Drunker” when he was referencing the EU commish?

    Liked by 4 people

  5. yy4u says:

    What POTUS is doing to China is like having dental implants. Everybody I know who’s had them in the middle of them wouldn’t do them again if you pointed a gun to their head. BUT when it’s all over and the new implants are in place, they forget all about the year long ordeal and LOVE them.

    So while we’re dancing around with China and the media is threatening this and that and the other is going to happen to us, it’s semi painful. But Trump has the long term result in mind, and like dental implants one has to choose between no tooth in the gap FOREVER vs. a new tooth (permanent fix). What POTUS is doing now would eventually have to be done (get the initial implant surgery) or forever go without the tooth (China controls world’s economy).

    Liked by 8 people

  6. Brian P.T. Blake says:

    President Trump declares that his goal is “peace in the world.” The Communist Party USA (CPUSA) appropriated this slogan from the foolish “counter-culture hippy” adolescents in 1968 as a cover for the Party’s seditious program of appeasement and surrender in the Cold War with Russia and in Vietnam against China. But there was no peace. Led by tyrannical dictators, the enemies of Western civilization sought dominion, not co-existence. For fifty years, the unwashed Left’s fatuous sign waving, violent mobs demonstrating for their “cause de jour” have spread nothing but mindless disunity and hate. By whatever name, these genocidal, racist gangsters promote only anarchy and the destruction of civil society: the peace of the grave.

    By “peace in the world,” President Trump is saying that he means to destroy the tyrannies which oppress humanity and threaten nuclear holocaust. Through the proven, enlightened self-interest of the free market’s “invisible hand”, America’s historic President is forcefully spreading Freedom, Democracy, and the Rule of Law to the rest of the world. As these fundamentals of good government take hold after the convulsions which must precede them—the tyrants’ ‘Mussolini moment’—the 21st Century could witness the beginning of a new Pax Romana, the Pax Americana.

    Freedom to the Left is like sunlight to Count Dracula. For those with eyes to see, however, Mr. Trump’s hand-writing is on the wall. The slave masters have panicked and dropped their mask, putting the truth of their sociopathic derangement on full display.

    Liked by 9 people

  7. I literally just started reading Mr. Pillsbury’s book a week ago – Highly Recommend.

    Liked by 6 people

  8. Stillwater says:

    Florida University Latest to Cut Ties With China’s Confucius Institute

    I was just listening to another interview with Michael Pillsbury where he talked about how China uses these Confucius institutes in our Universities.

    Liked by 8 people

    • wolfmoon1776 says:

      Notice that RUBIO is pushing this in Florida. Rubio knows EXACTLY what he’s doing. As more and more ChiCom students (particularly graduate students, already well-trained in communist doctrine) flood in, they are being less careful in covering their tracks on American universities, and details of their work in radicalizing campuses are getting out. We should have known better.

      Not sure if there is a Chinese Communist Subversion Confucius Institute at FIU, but they HAVE interacted with FIU before. See this link.

      The Americommies on campus are bad enough. We don’t need Gorbachev Institutes and Confucius Institutes bringing in international-grade spies. Never know what kinds of LEVERAGE OPERATIONS they might engage in, or ASSIST.

      Liked by 4 people

      • Stillwater says:

        It will be interesting to see how Trump decides to deal with these issues and the timing. The Chinese theft is on such a massive scale that it will be quite the challenge to greatly diminish or stop it.

        Reminds me of the info Guo Wengui gave in an interview in 2017 about Chinese intelligence gathering activities in the US. I’ve read mixed things about this guy but it’s an interesting read nonetheless.

        Liked by 2 people

        • wolfmoon1776 says:

          Great link! That was extremely helpful. Got a really important confirmation out of that.

          Liked by 1 person

          • Stillwater says:

            Guo Wengui is also the guy that Bannon was in communication with (possible funding) after leaving the White House.
            (On a side note, I’m still not sure exactly what to make of the Bannon exit, whether the Trump/Bannon rift was real or whether it was all a show for the media.)

            Also, I think Guo was the guy that China wanted back as one of the things China wanted in exchange for their “help” with NK. I don’t remember what the conclusion of that situation was though. Trump instead may have used his other forms of leverage to convince China to help.

            Liked by 1 person

  9. zephyrbreeze says:

    Epic times. When the news says “Look here,” we should ‘look there.’

    Liked by 3 people

    • Daniel M. Camac says:

      Z, Ahh, what news? Is there really any real news reported these days? I briefly looked at the NYT headlines while getting my large capp at BrewHaHa in good old Northern Wilmington, DE (Don’t worry, it’s 10 miles N of Murder Capital Wilmington, DE) and the headline read “Trump Desecrates Another Black person (Omarosa) Calling her a Dog”.
      Free Speech is an absolute but framing it as being racist is NOT. These networks need to held accountable. The MSM hasn’t had any useful purpose for me in the last 30 years. I remember Gunner Back(sp), Huntley and Brinkley and of course, Walter Cronkite. I was younger then so maybe I was a bit naive but it felt like they were at least trying to tell the truth.


  10. sundance says:

    I like Charles Payne. He’s one of the few who “get it”. However, why can’t anyone see the connection between the Chinese trade visit and the USTR hearings on China?

    Liked by 10 people

  11. SW Richmond says:

    So the Communist Chinese have been executing their master plan unopposed for decades, thinking themselves brilliant for being able to easily buy off consecutive generations of American politicians, and now they meet resistance and think we’re being obstinate and unreasonable?

    Did I miss anything?

    Liked by 7 people

    • Stillwater says:

      To paraphrase Wilbur Ross, it’s like if someone’s been taking money out of your back pocket for years and you finally decide to stop them, they’re going to get mad at you.

      Liked by 5 people

    • 335blues says:

      Communist china WILL fight back.
      They have out-manuvered by our great President at every turn thus far.
      Their economy is a house of cards, and the cards are starting to fall.
      When they are backed into a corner, and they will be soon, the PLA
      will recommend war before capitulation.

      Liked by 1 person

    • wolfmoon1776 says:

      We’re being quite reasonable, IMO. We’re not giving China a THOUSANDTH of the grief or punishment that they deserve.

      We could seek restitution. Ask Wolf Moon if he thinks “TRILLIONS” are adequate. China won’t like his answer, which starts with a “Q”.

      Occupation, subjugation and bitter taxation are reasonable. We are being unreasonably nice to these CROOKS. But Trump is a nice guy – a softy – and is letting China off easy. I simply have to trust him on this.

      Liked by 1 person

  12. dufrst says:

    Trump is being respected because he doesn’t care about the approval and sensibilities of the Europeans and Chinese as other president had for some reason. He’s a bottomline president and has made clear that he will not tolerate the US being taken advantage of by friend or foe. He will call out friends like Canada on tariffs, the Europeans on NATO and their reliance on Russian oil, the Japanese for not footing more of the bill on our defense umbrella and not buying US autos, and Turkey on keeping an American pastor hostage. He will call out foes like China on trade and NK, Russia on Ukraine and Syria, and Iran on it’s terrorist activities despite receiving the deal of a lifetime from Obama. Trump is an equal opportunity demander of better terms and that’s why he’s being respected.

    The Chinese have to see Trump as the president they will not be able to simply ignore or outlast. Trump is a relentless operator. He is constantly pushing the agenda with vim and vigor. It would be absolutely foolish for anyone to think Trump is captive to donors, political pressure, or the cares of the opinions and sensibilities of foreigners. He simply doesn’t give a shit about anything but the bottomline. When he’s satisfied with the bottomline, then he can get along with everyone. In fact, the greatest strength of Trump is that he can put himself in a position where even if the opposing side doesn’t acquiesce to his terms, he will still come out on top as in the case of the tariff revenue and the sanctions effects which are hammering the economies of Turkey, North Korea, Iran, and even China to an extent.

    Trump quite simply is masterful. He has positioned the US as the strongest economy in the world by far (who is doing better than the US right now?). He is commanding the world stage with his strong stances back up with strong economic actions. The other nations are praying for a political change in November, but they along with the Democratic Party better forget about it! The impossible is where Trump begins his work. The challenge of defying history is what Trump is all about. He defied history in becoming president to begin with and he will defy history again with a resounding victory this November in the midterms (the American people will soundly reject Socialism). After that is accomplished, Trump will have strong leverage to accomplish everything he started prior to the midterms, from trade, immigration, taxes, budget, etc. It will be something to behold and by 2020, it will be clear that Trump has no opponent that will dare to think they will be able to prevail. Not tired of winning! MAGA!! KAG!!!

    Liked by 13 people

    • joby17 says:

      Excellent summary. Thank you!

      Liked by 4 people

    • sat0422 says:

      And yet, we have a two year of resistance to Trump within the USA. It is time for those who believe the progressive left to look right. They might see that Trump isn’t what he is being protrayed by the LEFT……

      Liked by 1 person

      • piper567 says:

        sato, so far, I cannot see what two years of resistance have accomplished.
        I know the Courts have thwarted some actions that should go forward faster, but other than that, ???
        And the President is really coming into his own.
        He is relaxed and in control in the face of our pathetic compromised marxist msm, and he loves the Deplorables, gaining even more strength from his many rallies.
        Let them resist.
        I do not believe the Progressive Left will change.
        Campaigns such as Candace Owens, Kanye and Brandon are putting forth will siphon off those who truly wish to see.
        The blind will remain blind.


    • piper567 says:

      durfst, another Boffo post.
      You have The Muse today!

      Liked by 1 person

  13. Elwood Earl "Sandy" Sanders, Jr. says:

    I just LOVE your meme with the growling animals named after various Trump officials! Brilliant and I see you added Kudlow but he’s not growling – is he meant to be the nice guy so to speak?

    Sandy Sanders

    Liked by 2 people

    • wendy forward says:

      Aren’t they just precious? So cute!

      Liked by 3 people

    • cattastrophe says:

      I think the dark glasses say I’m behind him (President Trump) 100% but I talk like a teddy bear. Which he does. Loved his interview CTH had on a little while ago. Poor guy still had to try and excuse his Democrat creds but I liked the fact he’s on board and a great addition to the Trump team. Very few can make the transition which says a lot about his integrity.


  14. Doppler says:

    Excellent context and analysis on President Trump’s negotiations with China.

    As to his dealings with media, I believe he’s following Roy Cohn’s Adage, “I bring out the worst in my enemies, and this is how I get them to defeat themselves.” They can’t help but take every insult, exaggeration, example of political incorrectness, and pillory him for proving for the 500th time why he is unfit for office and we the media are right to devote full time to castigating him. It never occurs to them that he’s just getting them to show themselves as the enemy of the people.

    I predict a number of journalists will start to just walk away, especially as they see how effective he’s being and how lame the Democrat party is, struggling to find anything credible to stand for, as the scope of their crimes in the last election emerge.

    Liked by 3 people

    • cattastrophe says:

      Their are so few with intelligence I doubt there will be much walking away. Some are real ideologues who are in it for a fight to the death most of the others are like puppets who only know how to mouth what they’ve been told.

      Liked by 1 person

  15. 1guitarman says:

    Brilliant strategy by our brilliant President, and a most brilliant analysis and presentation by CTH. Thanks for the education!

    Liked by 4 people

  16. 335blues says:

    Communist china is the world’s greatest threat.
    They have 5, 10, and 20 year plans that envision PLA control
    of much of the world in the 2040’s.
    The world must either fight back, or exist as virtual slaves under threat
    of attack by the communists.
    Communist china has been allowed to assume the #2 position
    in the world by a series of weak, ineffective, complacent and
    co-conspiring leaders.
    Now they have their sight set on pushing America out of the way
    to the #1 position.
    Make no mistake, if allowed to, they will kill any person, or destroy
    any country to control the world.
    The world should be making preparations for war with communist china.
    War is coming, IMO.

    Liked by 2 people

    • Marygrace Powers says:

      Our Intentionally, “weak, ineffective, complacent
      and co-conspiring leaders” – in other words TREASONOUS.

      Liked by 2 people

    • wolfmoon1776 says:

      I agree there is a threat of war by standing up to China, but the alternative of guaranteed peace and guaranteed slavery is worse. FAR worse.

      Anybody who wants to do a valid determination of which is worse, need only look up the term “black jails” (黑監獄). It’s where the Chinese communists put people who complain about injustice, because there are too many.

      If the ChiComs want to make a big mistake, let them. We don’t own their choices. They do. It is entirely possible that communism will make the same mistake fascism did.

      Liked by 1 person

  17. Firefly says:

    The video was great. Wow! We really are winning. America has gone from China looking down at past administrations as not being too bright – to paranoia that PTrump is play 3D chess and out foxed them. Now China is warning the Europeans who suddenly want to work free trade deals its a trap.

    China just needs a face saving way out – soon they’ll be at least talking about a new trade deal.


  18. Cheri Lawrence says:

    Wow! Excellent article, just excellent!! Knocking out funding for terrorism along the way. A true geopolitical strategy. Fun interview with Tucker, have you noticed all the levity amongst the unfettered optimism as joy and pride returns to our nation once again. As I scroll down on my phone and review my favorite team wolverine, the ending is now complete as the sun shines once again on the sweetness of this great nation. Thank you POTUS, we love your genius, your spirit and most of all your lion heart!! 💗

    Liked by 1 person

  19. lee says:

    My Aunt told me something over 40 years ago that I never understood. Well educated and never married, Could hold her own in conversation with any man. One day I asked her which group of people she considered the most untrustworthy. Her reply was to never trust a chinaman. I found that odd because she lived in rural Nova Scotia and never knew her to have had any dealings with chinese people, unless it was WW2 when she spent time in the RCAF and was stationed in western Canada. True story

    Liked by 2 people

  20. sterling1776 says:

    Pure, unadulterated, VSGPDJT. I’m proud of this man and our country. Methinks he lets the Russia story play out otherwise the media would ultimately tip his hand to the globalists he fights. Über sleight of hand.


  21. TimesUp says:

    I am sure this development is in no way connected to the squeeze China is experiencing. Purely a coincidence.


  22. DiogeneseVindicated says:

    “The upcoming Chinese trade delegation is not showing up at the end of this month as a matter of scheduling happenstance. What no-one in the financial/trade/economic media is connecting is the timing of their visit with USTR Lighthizers’ Section 301 Tariff hearings –SEE HERE. August 20th through August 27th, you can guarantee the Chinese delegations will be all over those hearings; including dispatching their paid lobbyists to provide input on their behalf”

    I say let them commit to the date and then delay the hearings so they`ll need to bring towels to mop up the sweat.

    Liked by 1 person

  23. Stillwater says:

    Here is another interview Michael Pillsbury gave in China.

    Aug 2, 2018What’s Trump’s trade strategy for China after the tariff war? – (Video: CGTN) – (23:42) – “Analysts in China are concerned that US President Donald Trump is connecting trade issues to other issues such as the Korean Peninsula, Taiwan, or even the South China Sea as leverage to force China to make concessions. Is that what Trump is up to? How would a full-blown trade war between China and the US play out?”


  24. positron1352 says:

    Absolutely superb article!


  25. talker2u says:

    Awesome, Terrifying Thought:

    Communist China’s disintegration will be from within.

    Evil kills itself.


  26. GweninKC says:

    Sundanc, Not only is this trade strategy brilliant, so is your explanation of it! Thank you once again for laying this complex issue out so beautifully, in detailed chunks that are easy to understand. Your understanding of this situation goes beyond most “economsts” and so-called “experts.”


  27. thedoc00 says:

    On a related topic that will require some watching. It appears the Chinese Government (China Inc.) is poised to launch Bit Coin related IPO’s to raise badly needed Foreign Currency to prop up their dwindling reserves as well as attempt to open another run on attacking the US Dollar as the base currency in the world economy. This comment may seem premature but the Chinese are desperate to open a new front in the economic war they are fighting and displacing the US Dollar is one of their strategic objectives.


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