U.S. -vs- China Tariff Impact Report: Chinese Producers Pay for Most of Tariff, U.S Consumers See Minimal Impact…

In June 2018 President Trump instructed U.S. Trade Representative Robert Lighthizer to initiate a 10% tariff on $200 billion of Chinese goods (Round #1).  After two months of China refusing to negotiate renewed trade deals in good faith President Trump instructed Lighthizer to increase the tariff rate to 25% in August (Round #2).  There is a third tranche of tariffs scheduled for January 1st, 2019.

With a full quarter of trade data to analyze the impacts, the results are now measurable.  A multinational group studying the outcome (full pdf below), identified that approximately 4.5% of the tariff is being carried by American consumers.  The overwhelming cost of the tariff is being paid (20.5% absorbed) by Chinese producers.

(Via Bloomberg) President Donald Trump is succeeding in making China pay most of the cost of his trade war.

That’s the conclusion of a new paper from EconPol Europe, a network of researchers in the European Union. U.S. companies and consumers will only pay 4.5 percent more after the nation imposed 25 percent tariffs on $250 billion of Chinese goods, and the other 20.5 percent toll will fall on Chinese producers, according to authors Benedikt Zoller-Rydzek and Gabriel Felbermayr.

[…] “Through its strategic choice of Chinese products, the U.S. government was not only able to minimize the negative effects on U.S. consumers and firms, but also to create substantial net welfare gains in the U.S.,” the researchers wrote.  (read more)

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In June and July last year it became obvious President Trump was going to initiate a full-frontal geopolitical confrontation with China based on their ambitions for economic conquest.  We labeled the confrontation: Eagle -vs- Red Dragon.

Specifically around: intellectual property theft; massive U.S. trade imbalances; imposed tariffs, and ridiculous non-tariff barriers put in place by China, we anticipated the conflict would eventually force Beijing to drop the Panda mask and expose their economic intentions.  Additionally there was clarity within President Trump’s approach for any observer who was willing to accept the history of Mr. Trump’s views on the larger issues. In short, POTUS Trump will not back down.

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.

Due to the severity of communist ideology, and the intransigence of China to make any modification to their global economic plans, Chairman Xi Jinping made the strategic decision to elevate the confrontation in full Red Dragon mode.  The May and June, 2018, negotiations between the U.S. and China provided no progress.  The 301 review of China was pulled back off the shelf in August 2018, and President Trump began executing his trade-war strategy.

When President Trump and Commerce Secretary Wilbur Ross announced tariffs on Steel and Aluminum, in combination with Round #1 tariffs on imported Chinese products, the Wall Street financial media went bananas with dire predictions of inflation.

However, in September and October the Bureau of Labor and Statistics (BLS) released the August and Sept measures of inflation in consumer goods.  Despite the doom-and-gloom predictions from the self-interested multinationals, the inflation rate is still below 0.2% the same result as July ’18.  Core inflation, which excludes volatile energy and food components, is hovering between 0.1% and 0.2% overall.

Total nonfarm payroll employment increased by 250,000 in October, following an average monthly gain of 211,000 over the prior 12 months. In October, job growth occurred in health care, in manufacturing, in construction, and in transportation and warehousing. (See table B-1.)

Low inflation; expanding employment opportunity; low unemployment; and rising wages.

These measures all have a cumulative impact on paycheck-to-paycheck Americans.  Prices for durable goods are stable and wage growth is exceeding inflation.  That means more disposable income in the middle-class…. which, when combined with the increased pay from lower middle-class tax rates, is exactly the intended outcome of MAGAnomics.

This creates a situation where the U.S. consumer can fuel the the U.S. economy while President Trump, Secretary Ross, Secretary Mnuchin and Ambassador Robert Lighthizer utilize the leverage within tariffs, to negotiate better America-First trade deals.

President Trump’s economic policy cabinet is the most effective group of individuals every assembled in modern U.S. history; arguably in all of U.S. history.   The economic policy plans are working exactly as projected; and, in combination with the domestic economic strength, this empowers President Trump’s international engagements with a stunning amount of influence and leverage.

Economic Security is National Security.  We are seeing this multidimensional truth being carried out for the first time in our lifetimes, thanks to a blue-collar billionaire.

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96 Responses to U.S. -vs- China Tariff Impact Report: Chinese Producers Pay for Most of Tariff, U.S Consumers See Minimal Impact…

  1. Monadnock says:

    THIS is one of the reasons I’m a glass half full kinda guy – LOVE PDJT!!!!!

    Liked by 24 people

    • budklatsch says:

      Well, this is a far better than American workers paying for China’s trade war against the US for decades. How can any american see otherwise

      Liked by 14 people

    • Carrie2 says:

      Monadnock, the Chinese people are living a better life now than ever before and love our clothing, shoes, you name products and Xi has to face this. Ever so often there are threats of the people turning against the government and the ending is not pretty for anyone but the threat still hangs out there. The Chinese want to live a better life everywhere and they are getting it and darn sure they won’t want to lose it. China needs our companies that are operating there, but also now have a huge number of Chinese entrepreneurs who would want their products sold to us. So, inny meanie which should happen.

      Liked by 2 people

    • fleporeblog says:

      Likewise!

      They are petrified that more and more Americans are realizing the truth that tariffs actually work and more importantly will help bring back a lot of the manufacturing we lost over the last 20+ years.

      From the article linked above:

      An interesting thing is happening right now in America’s industrial heartland. Manufacturers are adding new workers at a brisk pace. And it’s happening right in front of the very pundits and free-trade economists who predicted economic catastrophe over the past year.

      Simply put, President Donald Trump’s tariffs are working. U.S. manufacturing employment has now shown year-on-year growth of more than 250,000 employees for six consecutive months. That’s the largest and most sustained manufacturing job growth since 1998. In fact, the U.S. added 32,000 manufacturing jobs in October alone, for a total of 296,000 new factory jobs since October 2017. Overall, according to the Bureau of Labor Statistics, U.S. manufacturing employment now stands at nearly 12.8 million workers.

      While that’s below the 17 million jobs of the early 1990s, 2.4 percent year-on-year growth for the past eight months undoubtedly is a big step forward — especially considering the more than 5 million manufacturing jobs lost between 2000 and 2010.

      By cutting taxes and embarking on deregulation last year, the Trump administration gave a boost to the economy. This is helping consumer incomes rise. At the same time, the tariffs are stimulating domestic U.S. manufacturing. So all boats are rising.

      Tariffs work to deliver a boost to the U.S. economy in two ways. First, they make foreign goods more expensive, which shifts demand to American-made products. And second, they give industry a sense of confidence in the future. Indeed, the industrial CEOs who buy steel and aluminum every day report that they feel better about today’s market than they have in years.

      Liked by 8 people

  2. DT2020 says:

    I noticed Trump closing the border in an exercise that really woke Mexico up. He then threatened to close the whole border if “things get out of control in Mexico”. Now I hear reports that a deal is in the works for the invasion caravan will be housed in Mexico. He knows how to leverage economic leverage to get results. He knows how to deal and his team is a murderer’s row.

    Liked by 21 people

    • mr.piddles says:

      USMCA came right at the right moment, that’s for sure. If they were still futzing around, who knows what unsavory pill we’d have to swallow. Though I guess Team VSGPDJT always had a bit of an upper hand in the direction that was taking… but still…

      Liked by 3 people

    • Sunshine says:

      It’s called the WALL and MEXICO will pay for it.
      I remember him saying all he has to do is to close the border.
      And he did it.

      Like

  3. This is one of the reasons why Trump MUST get a second term. He is invaluable at this time and there are very few individuals who can deal with the EXISTENTIAL threats we are now facing. No Democrat would come even close to putting up a similar fight, and China would have a clear path towards world dominance. Next thing you know, their soldiers are burning copies of the Constitution and tearing down the Liberty Bell.

    Liked by 17 people

    • Kalbo says:

      Absolutely no one can manage and lead as President Trump does every day!

      Reigning in China is a global effort orchestrated masterfully by President Trump and his Team. ISIS, Korean Peninsula, Iran Nuke Agreement cancelled, TPP cancelled, Paris Climate Accord cancelled, stabilizing the Middle East, pipelines, tax cuts, regulation cutting, tightening up the border, two Supreme Court Justices, record Federal Judges confirmed, exposed the fraud of NAFTA and virtually all trade agreements of past few decades, USMCA, South Korea Trade Agreement, EU trade agreement coming as will be with Japan…

      And we are only 22 months into President Trump’s Presidency! Beyond amazing!

      Have never seen anyone manage so many facets of our government and economy is such a synchronized process. Clearly President Trump has a master plan and is executing dozens of complex supporting plans simultaneously. Sterling results every time.

      Surely hiccups appear along the way, but President Trump seemingly has or quickly develops alternate paths to achieve his vision. All docs and texts released without redaction by “leaker” in DOJ. Higher up. Sort of like other leaks that appeared without cause, purpose, reasoning. Whitaker or President Trump fire Mueller. DOJ pursue bad guys. PR campaign to educate all Americans / force feed MSM.

      President Trump is the greatest President of my lifetime!!!

      Liked by 21 people

      • Kalbo says:

        Wow. LOL at the moment. Next to last paragraph above should have been…

        Surely hiccups appear along the way, but President Trump seemingly has or quickly develops alternate paths to achieve his vision.

        Word Press magic I suppose.

        Liked by 2 people

      • Even more amazingly, President Trump invariably converts those hiccups to NEW WAYS to WIN!

        Liked by 3 people

      • Sunshine says:

        Just a wonderful post that summarizes the story very concisely.
        May I correct the last line: President Trump is the greatest President of all History because he’s not waging military war. He’s winning through brain power.

        Liked by 4 people

        • Dave says:

          I’m going to argue that. It isn’t that President Trump is a genius. I don’t think he is, or needs to be. He simply has detailed, real-world economic knowledge that the U.S. has always held the best cards, coupled with an ironclad belief that the government must stop selling out its own people NOW. The rest is just doing what should have been done all along, and I love him for it.

          Like

    • budklatsch says:

      Too many fraud votes in this election, but also too many ill-informed voters cost PDJT in the House and Senate. Blast!

      Liked by 4 people

      • Carrie2 says:

        budklatsch, I think Trump wanted the democrats to win the House and now we see them fighting nicely amongst themselves with the newbies coming and the oldies not wanting to allow them anything. War amongst them weakens them, plus having the vote in the Senate means a lot of what the House wants ain’t gonna happen. Even Pelosi is fighting to keep her position and even threatening the others to support her or else! This is a serous cat fight for the democrats in the House so I look forward to what they are truly able to do and accomplish. Their newcomers were chosen from the dregs and are not too swift but more like Kamala the dumber than rock and thinks she is great. WRONG! Ditto Cortez, and the others. Keep popcorn handy.

        Liked by 3 people

        • Popping Pop Corn at this time means that we will wear out the poppers… and Cortez choppers will be braying like a “”…(fill in blank)!!!

          Like

        • Sunshine says:

          Not that he wanted but it was a win-win. President Trump knew Ocasio aka Bronx and the other socialist would win and he also knew the two Muslim gals (under the guise of socialism/religous ideology) would win. Identity politics.

          Nancy Pelosi isn’t a happy camper. She, or whoever succeeds her, have to rein in these girls. And it won’t be easy.

          Liked by 1 person

          • G. Combs says:

            Nancy Pelosi sure is going to have her hands full with that bunch!

            I think they will make Maxine Waters look like an Einstein. 😆 AND will have an even worse case of foot in mouth.

            Like

        • WSB says:

          I am not sure Pelosi has ever held the gavel when her bro’s in the Senate were not in power.

          She may not realize what a rabbit hole she is in. And with regard to international trade or relations with China, the House will have very little power.

          Like

    • Orville R. Bacher says:

      China could be a friend if it was a democracy. Xi is a dictator leading the Communist Party.
      Way past time to FREE CHINA.

      Like

    • piper567 says:

      phil, and…its one reason why the L will up the ante on cheating, ying, fraud, and deception when it comes tme for 2020 Elections.
      All stops will be out if voter fraud is not addressed in a public fashion.

      Liked by 2 people

    • helix35 says:

      How about a third, fourth, fifth . . . term?

      Liked by 2 people

    • Will Hunt says:

      This seems so clear and obvious but only to those who support America and want it to succeed and prosper. Based on the disastrous mid-terms at least half of the populace wants none of this. Still baffled and disappointed.

      Liked by 1 person

      • I don’t think the midterms were “disastrous.” Typical for a cycle after a victory in the presidency. Democratic cheating gave them an extra margin in the House. I think the GOP had to invest a lot of resources in high-profile races in Florida and Georgia to fight off cheating, and they just lack the will/capital to focus on every single house race. But a lot of them were called on election night but somehow votes turned up, and these “found” votes always help the Democrats. Hey, in two years there will be another chance.

        Like

    • Trump Train says:

      Not sure he will even run…….no reason to cause he won’t be able to win. Why? Nothing is being done about the massive voter fraud that occurred in the mid terms. This wasn’t hidden, it was out in the open………

      Second, he is sitting on a moab and will not drop it. Not one arrest regarding the 2016 sedation, uranium 1, spygate ect. Muller still not shut down……… 2018 Mid Terms proved he cannot win on economic/ policy success. Very disheartening.

      Like

  4. mopar2016 says:

    Blue collar billionaire.
    Excellent!

    Liked by 8 people

    • grlangworth says:

      The obfuscation that so ravishes our intellectuals is seared away by PDJT’s plain-speak. They hate him.

      Liked by 6 people

    • G. Combs says:

      Blue collar billionaire….

      ” It is not enough to simply beat Trump. He must be destroyed thoroughly. HIS KIND must not rise again.” — David Plouffe June 13, 2016

      The enemy of Marxism (Neo-feudalism) is NOT the Aristocracy/elite but the MIDDLE CLASS! aka ‘the bourgeoisie.’

      “The bourgeoisie, wherever it has got the upper hand, has put an end to all feudal, patriarchal, idyllic relations. It has pitilessly torn asunder the motley feudal ties that bound man to his ‘natural superiors,’ and has left remaining no other nexus between man and man than naked self-interest, callous ‘cash payment.’ It has drowned the most heavenly ecstasies of religious fervor, of chivalrous enthusiasm, of philistine sentimentalism, in the icy water of egotistical calculation. It has resolved personal worth into exchange value, and in place of the numberless indefeasible chartered freedoms, has set up that single, unconscionable freedom—Free Trade. In one word, for exploitation, veiled by religious and political illusions, it has substituted naked, shameless, direct, brutal exploitation.

      The bourgeoisie has stripped of its halo every occupation hitherto honored and looked up to with reverent awe. It has converted the physician, the lawyer, the priest, the poet, the man of science, into its paid wage laborers.” [ <=== This is why academia is on board with Marxism, they want the 'halo' and worship back.]
      ― Karl Marx, The Communist Manifesto

      Liked by 3 people

  5. teeheeman says:

    L-E-V-E-R-A-G-E is a wonderful thing…..but only if you know how to use it. PDJT is using it BIGLY.

    Liked by 11 people

  6. thetrain2016 says:

    Of course the Chinese has to subsidize their exports. The price of goods in the United States is determined by supply and demand. Who the hell with the right mind want to pay more for the same Chinese crap?

    Liked by 7 people

    • Exactly! I like to think of Dollar Tree when dealing with Chinese tariffs. If a plastic trinket from China costs Dollar Tree $0.80 a piece and is now tariffed at 25% can China pass on the tariff to Dollar Tree by selling it for $1.00? No, because Dollar Tree won’t make money selling it for $1.00.

      Bottom line, people buy Chinese products because they’re cheap or because there are no other alternatives, not because they’re good. And I would wager that the 4% or so that has been passed on to American consumers was likely in the areas of no alternatives.

      Like

  7. oldschool says:

    What a dream team. IMO, no one could have put together a better team or policy than DJT.

    Liked by 9 people

    • Dutchman says:

      NO ONE. Absolutely NO ONE could have done what HE is doing, even IF they had all of d.c., and the mainstream media supporting them.
      And HE, despite having NO support, and active ‘resistance’from all quarters, gets it done.
      Words don’t suffice.

      Liked by 10 people

  8. Jason Ross says:

    We need a ‘Fireside Chat’ … 25 minutes of Trump speaking and perhaps a single chart. That’s all it would take to convince 100 million or so Americans that MAGA economics are beneficial for America and all Americans.

    Liked by 6 people

  9. railer says:

    There appears nothing on the horizon to make Trump change course. This is a solid strategy, platformed on firm data and economics, well communicated to all, flexible and adaptable to events but directionally stable. Everybody knows what’s happening and why. The terms of negotiation are not secret. Simple and well understood choices are available to bring about a successful resolution. This really is a brilliant bit of public policy we’re witnessing here. It is a pleasure to see it, especially as we’ve experienced a decades-long stretch without such.

    Liked by 11 people

    • GB Bari says:

      The horizon is not that far out unless you’re on a very tall ship. Things can happen rather suddenly. Remember how many thoroughly evil entities are plotting everyday to destroy our President and stop his agenda. They never sleep. But PDJT sleeps very little himself and has a very strategic mind, so I remain optimistic.

      Like

  10. The God Emperor doesn’t get enough credit for this, and it is well deserved. Now he needs to focus on immigration like a laser and become a top 3 president of all time.

    Like

  11. dufrst says:

    This should come as no surprise that Trump fully comprehends what he is doing with respect to China. The tariffs will not and can not be borne by US consumers because of the term elasticity. The items under tariff are highly elastic goods, which means, there are readily available substitutes and sources for those goods. The Chinese have had an advantage in manufacturing because they operate manufacturing as a government bureau, meant to keep people working, rather than profit making enterprises. The aim of their manufacturing industry was always to drive out the competition through high volume and that high volume had to come at almost any cost to keep Southeast Asia and India at bay.

    Labor costs in recent years have been rising in China but that was all a part of their plan to grow domestic demand to try to wean themselves off of dependence on sending cheap exports to the United States. The tariffs are an additional cost that the central planners did not anticipate and this comes at a time when the Chinese economy is slowing down.

    The Chinese can not countenance shifting the price burden of the tariffs to US consumers because the major retailers such as Walmart can simply source their goods away from China to places such as Vietnam, Indonesia, India, and Thailand among many others who are good at manufacturing and who are not under US tariffs. China cannot risk their jobs program because that has essentially put the lid on any unrest or discontent with the single party Communist rule in Beijing. Any major rise in unemployment, with a corresponding downturn in economic activity in China can threaten the viability of the regime.

    So why are US multinationals so wedded to the success of the Communist Party. Sundance has illuminated this so well. They cut deals with the Communist Party. They can set the prices for the goods almost however they wish (think Walmart), even sometimes below costs. Only a communist regime can manufacture the type of prices that we have seen in retailers such as Walmart and others that are impossible to compete against. But tariffs change the equation and so these interests in the US are unhappy, because they now will have to actually do the hard work of sourcing and investing in new technologies and/or running their domestic operations more efficiently.

    President Xi has to determine how much pain China can endure while trying to make Trump blink. Trump has some domestic pressure and is not in the strongest possible position that he could be since the GOP sabotage themselves to lose the House. However, Trump is not in the weakest position either, because he gained in the Senate and the Mueller probe is nearing the end (we’ll see). I think China realistically can only endure these tariffs for at most another year or two before they are in their weakest position. I don’t know if Trump will wait until then or will he simply look to make the best deal possible going into next year and revise after he’s reelected. I for one do not want to see a deal made because I believe a better deal can be made in a year. I think the only deal at this point that makes sense is if Trump is able to get North Korea to completely denuclearize and if he gets China to abandon the South China Sea or increase their imports of all of our raw material exports such as natural gas, coal, oil, beef, soybeans, etc. at massive volumes. And any and every deal with China must include provisions with real enforcement on the theft of intellectual property through joint ventures, forced technology transfers, and espionage. That all must end!

    My prediction is Trump pulls a Reykjavík ala Reagan and walks out on Xi to get a better deal down the road. In the meanwhile, that will signal to the EU, Japan and the UK that he means business and intends on getting a fair deal from each of those major partners in the coming year. When those deals are completed, Trump’s hand will be stronger the next time he sits down with Xi (whether at the G20 next year or some other summit) and then Trump can come up with a strong new comprehensive trading regime for the World that has at its heart reciprocity.

    We shall see but big week ahead! MAGA!!

    Liked by 17 people

    • Dutchman says:

      dfrst;
      Agree with everything you posted. I have ONE concern;
      For China to accede to POTUS’s demands, I believe would relegate CHINA to being a 3rd world country, with nukes.

      All POTUS is demanding, is that they ‘play fair’,and quit cheating. Problem for China is, on a ‘level playing field’, they lose.
      They CAN NOT compete, fairly. So, IF China agrees, the Chicoms will face revolts, as they will no longer be able to prop up their middle class. The Chicoms are not going to willingly commit suicide, or relinquish power.

      Thats the one concern I have. How this plays out is going to be FASCINATING to watch!

      Liked by 4 people

      • We should bear in mind that the Chinese people will ultimately have to remove or reform the CCP Regime, which IMO would occur far before they devolve into a third world country.

        Liked by 2 people

      • KittyKat says:

        “I have ONE concern; For China to accede to POTUS’s demands, I believe would relegate CHINA to being a 3rd world country, with nukes….All POTUS is demanding, is that they ‘play fair’,and quit cheating. Problem for China is, on a ‘level playing field’, they lose.”

        You’ve stated exactly what I don’t understand — what exactly is the plan? Millions of people starving in China doesn’t sound like a great idea. That is what I’d like to hear him explain in a fireside chat.

        I’ve been thinking that the development of a peaceful North Korea will present a huge trading market to fill the gaps and sustain China’s wealth. But China will have to play fair in that situation for it to work

        Like

    • TexasDude says:

      Mega like …. bigly

      Liked by 2 people

    • Kalbo says:

      Yes.

      Consider China 2025 vision. China is a Global menace. Clearly a threat to America If status quo prevails, which it won’t.

      President Trump commonly says China is not ready. I believe it has always been President Trump’s plan to seal the deal with China, after China feels enough pain. When China fully grasps all the other trade deals President Trump puts in play, China is at a disadvantage. China’s economy and ambitions throttled.

      Consider USMCA and South Korea trade deals. Coming soon, Japan, UK, and EU trade deals. Advantage America and those who sign new trade deals with U.S.

      Then and only then will China be ready to fairly deal. President Trump and America win again.

      Liked by 4 people

      • Before China cuts a RECIPROCAL Trade Deal with America (creating a template for America’s Allies as well), their leadership will ultimately need to believe that the world is disengaging from any trading AND partnerships AND ownership AND debt relationships with China, China’s State-owned Enterprises and Chinese Oligopoly.

        Liked by 2 people

    • Carrie2 says:

      dufurst, yep, there is always India.

      Liked by 1 person

    • Dufrst, that’s the POST of the MONTH!

      Brilliantly described in such clear terms.

      “The Chinese can not countenance shifting the price burden of the tariffs to US consumers because the major retailers such as Walmart can simply source their goods away from China to places such as Vietnam, Indonesia, India, and Thailand among many others who are good at manufacturing and who are not under US tariffs.”

      IMPLICATION: Those other sources … including Made-in-USA manufacturers … will be massively EXPANDING and thereby creating EXCESS CAPACITY, forcing ALL producers to drop prices (putting FURTHER price-pressure on China beyond their absorption of tariffs to sustain production and employment).

      RESULT: The higher the Tariffs, the bigger China’s problems.

      Liked by 3 people

    • Sunshine says:

      Xi is controlling the people through the new National Credit System of points allocated to good credit, good purchases, and good behavior (including social media).

      Even dating websites display their Good Behavior Credit Score. They’re allowed to use the train, a bus, and some even a flight.

      They went from being relatively free and semi-prosperous to quite a few on the verge of losing much. Everybody in China is now under some type of surveillance whereas two years ago, they were relatively free.

      What I see in all this is the Chinese government knows its economy is tittering and they have 1 Billion people to control should they become upset.

      Liked by 2 people

      • dufrst says:

        The immensity and scale of the responsibilities of the Chinese government to ensure the security and relative prosperity of 1.5 billion people is unreal.

        You can’t keep that many under that type of control for that long after they have had a taste of freedom! The only thing keeping these people willing subjugated is the prosperity the government has delivered over the years. But that prosperity has come at the expense of the US; in many cases with the willful partnership of major US multinational corporations. These corporations either offshore to China to escape higher labor costs in the US or sourced manufacturing products from Chinese manufacturers that delivered cheap products at great volume and in many cases below cost to retailers in the US who then profited greatly. Wall Street, as Sundance has written about, financed it all.

        Trump is an existential threat to this Chinese system and their arrangements to US MNCs partnered with the Chinese Communist Party. To those interests, the partnership is all well, since their bottom lines are growing. But to the workers in the US left behind, to the years of research and development work stolen away by the Chinese and to our national security being challenged by the Chinese in the South China Sea and around the work because of One Belt, One Road, this has been a growing disastrous situation.

        Thankfully Donald Trump is at the helm to bring the nefarious Chinese to heal. He called their 2025 plan an insult! He declared China will never supplant the US in the world. He announce the US is now on to China and will not willfully hand the world over to them. We built this world with blood, sweat and tears and we are not going to let the Chinese swoop in and steal it away using our free markets!

        Trump must get major league concessions from the Chinese or else he’ll continue to breakdown the Chinese system until they collapse!

        Like

  12. Lactantius says:

    Quoting Sundance above: Due to the severity of communist ideology, and the intransigence of China to make any modification to their global economic plans, Chairman Xi Jinping made the strategic decision to elevate the confrontation in full Red Dragon mode.

    I don’t have any quibble with “severity of communist ideology” or with “intransigence of China” — but — radical market-economy reforms were instituted by Deng Xiaoping who took over after Mao (1978) and reworked the economy through 1989. Nothing under Deng Xiaoping and now under Xi Jinping approaches either the communist Ideology terror or the Chinese intransigence of the last 20 years of Mao. President Richard M. Nixon truly did “open” China to the world economy and China is now a global player to be reckoned with.

    However, the population of China is a mystery. Officially, it stands at 1.3 billion people, but estimates range to as much as 1.8 billion. Half a billion people is a lot more than a rounding error. Intelligence sources believe that the true population is closer 1.6 billion – which leaves a “ghost” population of 300 million.

    Xi Jinping is carrying a cat by the tail. China can not withdraw and go back into the Mao days, but neither can it quite figure out how to control its two tiered population. The Entrepreneurs of China are fabulously wealthy, stealthy and threatening to Communist stability. But that class is relatively tiny as a portion of the Chinese population. The other tier is peasants. Dirt poor peasants. They are everywhere. Just supplying cabbage and a blanket to them takes enormous logistics and a lot of national wealth.

    There is a worker class above the peasant class and they are found in the enormous housing complexes of the cities or in factory and mining towns. But is a very small number of people relative to the total population of China. Private cars were not present in the 80’s and they are ubiquitous now. But in deeply rural the automobiles are few in number. China is awash with infrastructure problems and projects between the cities and their smaller towns are a mangled mess.

    Xi Jinping cannot possibly stop the tide of change the way Mao did. Every day he awakens to the challenge of finding ways to create millions of new employment opportunities while running the same rotten communist peasant program that has afflicted China since the early days of Mao.

    President Donald J. Trump and his team know how weak China is internally and where and how selected U.S. “leverage” can make Xi Jinping pay the tariff bills and assume greater responsibility for participating in the global market.

    But the greater story is the globalists who have been playing cheap labor and ignoring pollution problems against the manufacturing in the first world. That is where the profits are the greatest, next to the usual vigorish of money exchange. Soros would rather deal with Xi Jinping than President Donald J. Trump. Swindlers love a scheme they can fiddle.

    Xi Jinping has maneuvered the Chinese Yuan in myriad ways. Mostly, he has screwed his own people. But that is getting harder and harder for him to accomplish. Some people secretly admire dictatorship, but in actuality, a dictatorship requires the dictator to trust no one while depending upon his will to be carried out. A dictatorship with one foot in the market economy is a particularly vulnerable form of dictatorship. On the other hand, Xi Jinping looks at his far East neighbors and sees much weakness in both resolve and structure. Xi Jinping is no Panda.

    Liked by 4 people

    • Dutchman says:

      I THINK what POTUS is doing, at least a little bit, is ‘channeling’ Reagan; while it was CALLED an ‘arms race’, what Reagan relied on was that a Communist system simply can not compete, with a Capitalist free market system.
      Weapons systems was simply the vehicle.
      VSGDJT is doing the same thing, forcing China to compete, ‘on a level playing field’, KNOWING they can’t.

      Short of a hot war, the only way I can see this playing out, at a minimum, is the China dragon has its wings clipped, and its fire banked. And OBOR, is consigned to the realm of pipe dreams.

      Liked by 1 person

    • Orville R. Bacher says:

      A Chinese Democracy would be a blessing for the entire world. Let Xi be the last Emperor.

      Like

      • yucki says:

        Has China ever had a democracy?

        Like

      • GB Bari says:

        Ouch, No! A democracy of 1.6 billion people is doomed before it begins, although the one societal advantage that the Chinese have is that they don’t tolerate much diversity. Forced and radical diversity is what has torn this country apart (as it was designed to do by the Left). We could NEVER run a democracy here and we have only 1/5 their population. Thank God our founders created a representative Republic instead of a democracy.

        Like

  13. weirdflunky says:

    Imagine the hand Trump would have to play if he didn’t have virtually everybody in DC fighting his every move. He’s doing all this and fighting with an entirely useless GOP, an increasingly insane Dem party, an actively opposing deep state and rabidly anti Trump media.

    Just imagine how well we’d be doing if he had a little help.

    Liked by 3 people

    • Dutchman says:

      Firstly, he has said that he actually thrives in adversity. So, its possible that while VSG is ‘fueling’, or ‘triggering TDS, that HE is actually getting some fuel, from them as well.
      Secondly, he’s got AT LEAST 65 million (I would say its higher) supporters who wouldn’t mind at all if he shot someone, in broad daylight, on 5th avenue.
      He’s got US!

      Liked by 1 person

  14. stpaulchuck says:

    but wait! what about all the media claims of businesses crashing, people out of jobs and other chaos causing pain in America?? Could it be they exaggerated? Naw. Not our media. Right?

    Liked by 1 person

  15. CharterOakie says:

    Finally an AMERICAN POTUS, nearly 30 years after the Gipper left office.

    And this POTUS is a master negotiator and highly successful business leader.
    Not a moment too soon, either.

    Liked by 2 people

  16. motreehouse says:

    cripto says:
    November 22, 2018 at 6:55 pm
    A long read for those who need to digest the feast. Not for those wanting the Cliff notes either. However, if you wish to know what one of the sharpest minds in contemporary China has to say about China and the West in the era of globalisation read Qin Hui’s essay “Dilemmas’.

    Of course he is a socialist and is writing for a Chinese audience (and CCP officialdom who could make him disappear in a nano-second) so bear that in mind. It will give you a window into how the Chinese ‘think’, how they mentally maneuver around the restrictions imposed on thought, but also how they manage to poke holes in the great wall. This is not Xinhua, Ministry of Truth propaganda, but a subtle analysis of China’s path in a globalized world. One money quote:

    ““China, which pretends to be socialist, is destroying post-war Western prosperity through systematic exploitation of its own people.”

    The essay was translated here:

    https://www.readingthechinadream.com/qin-hui-dilemmas.html

    I guess I should insert a Sun Zi quote here….“If you know the enemy and know yourself, you need not fear the result of a hundred battles…… 😀

    Liked by 1 person

  17. motreehouse says:

    This is a very educational post made by Cripto

    cripto says:
    November 22, 2018 at 6:55 pm
    A long read for those who need to digest the feast. Not for those wanting the Cliff notes either. However, if you wish to know what one of the sharpest minds in contemporary China has to say about China and the West in the era of globalisation read Qin Hui’s essay “Dilemmas’.

    Of course he is a socialist and is writing for a Chinese audience (and CCP officialdom who could make him disappear in a nano-second) so bear that in mind. It will give you a window into how the Chinese ‘think’, how they mentally maneuver around the restrictions imposed on thought, but also how they manage to poke holes in the great wall. This is not Xinhua, Ministry of Truth propaganda, but a subtle analysis of China’s path in a globalized world. One money quote:

    ““China, which pretends to be socialist, is destroying post-war Western prosperity through systematic exploitation of its own people.”

    The essay was translated here:

    https://www.readingthechinadream.com/qin-hui-dilemmas.html

    I guess I should insert a Sun Zi quote here….“If you know the enemy and know yourself, you need not fear the result of a hundred battles…… 😀

    Like

  18. mr.piddles says:

    Is there something cheaper than “slave labor”? Don’t think so, but doesn’t hurt to ask.

    “President Trump’s economic policy cabinet is the most effective group of individuals every assembled in modern U.S. history; arguably in all of U.S. history.”

    Hey, looky there. Another promise made, another promise kept.

    Like

  19. Kris says:

    ….bwahahaha!

    Like

  20. Sunshine says:

    I always like seeing the photo of Trump and Jinping.
    I’m certain Jinping thought ”Hey, I’m the first invited and I’ll play the game and screw him real good later on”.

    Liked by 1 person

  21. jeans2nd says:

    The economy has most definitely been much better for the blue-collar workers. No doubt about it, and thank you Pres Trump.
    The news on who is paying for the tariffs is very good genius news, but hardly unexpected. Did we expect anything less?
    There is another upside which few seem to be noticing – the upward swing for white-collars.

    Wicked Son has had interviews and job offers from San Diego to Wilmington (NC) and places in between. WS has had his choice of positions, salaries, location, and culture.
    WS is far from unique. The upward and laterally-better positions now open for white-collars seems to be just as good as the blue-collars.
    All thanks to Pres Trump and the Trump Econ Team.

    May one say a kind word for the Attack Dog being left at home for the G20? Prof Peter Navarro is the kind of guy who is able to out-econ the best econ-nutters. What a guy to have on your side! Who cares if Prof Navarro fights with Sec Mnuchin? Prof Navarro could out-logic Pres-For-Life Dictator Xi and the Xi Econ Team on any day, at any time. Just the guy to keep in one’s econ bag of tricks for the last MOAB. imo

    Liked by 1 person

  22. bill says:

    Anyone else notice that the EUROPEANS were running the costs analysis!
    I guess they were determining the cost impact of NOT complying with future American tariffs….and found it to be costly to their side!

    Liked by 2 people

  23. Pyrthroes says:

    “Blue collar billionaire”– hell, we’re as old-line, stuffy white-shoe as they come, and far’s DJT’s concerned we’re the pisano to his El Excellente. Solidarity, bro… no reflection on Ronaldus Magnus (and we originally plumped for Cruz), but we’ve awaited this Ciceronian moment for well-nigh fifty years.

    Like

  24. Trump should assemble this crack team around a table to explain in laymen’s terms what they are attempting and the early positive results. Sort of Perot with better charts. Televise it. The American people can handle it. This valiant effort is not in the public consciousness. Less pugacity from POTUS. More Powerpoint!

    Like

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