President Trump Steps In To Stop Treasury Sanctions Against China During Trade Negotiations…

Yesterday the U.S. Treasury announced sanctions against two Chinese shipping firms for violating ongoing sanctions against North Korea [TREASURY HERE].

With USTR Robert Lighthizer and Secretary Mnuchin set to travel this weekend to Beijing for ongoing trade discussion, the sanction timing complicates the dance with the dragon. Subsequently President Trump sends the following tweet:

Slamming China with sanctions (over DPRK dragon activity) while Beijing is showing the Panda mask (during Beijing trade negotiations) is not wise. If the Panda mask drops during trade negotiations to reveal the Dragon face, then ok. However, the majority of the West, driven by a misunderstanding of the China-DPRK relationship, does not know how directly a manipulative Beijing controls Pyongyang.

Taking aggressive sanction action against China could backfire with Beijing ordering those around Chairman Kim to test a missile.

President Trump and USTR Lighthizer know the nuance and subtlety needed in the dance with the dragon.  The larger issue of DPRK denuclearization, the bottom-line reason for the North Korea sanctions, will be solved within the U.S.-China trade discussion.

Of course the media, who have no concept of the dance with the dragon/panda; and no concept of Chairman Xi’s control over Chairman Kim; will jump in to say President Trump is only exhibiting short sighted egoism toward a relationship with Chinese Chairman Xi Jinping.  President Trump is doing exactly the opposite of being short-sighted; in fact he’s looking at the much larger picture.

The White House puts out a statement: “President Trump likes Chairman Kim and he doesn’t think these sanctions will be necessary.”  Again, President Trump is playing to the current Panda mask position of Chairman Xi, and positioning U.S.T.R Lighthizer’s upcoming trip to China without the controversy of recent sanctions looming over the negotiations.

In the dance with the dragon, all action must take place toward the face that is currently visible.  Beijing is currently showing the Panda face.  The U.S. Team know the Panda mask is just that, a mask.  This is one of the nuances in dealing with China.

It would be poor form, and ultimately result in little progress, to approach the Panda mask using dragon hostility.  This is not how successful outcomes against the Chinese are reached.

The dragon weapons, in this case brutal sanctions, are saved for when the Panda mask is visibly removed; and/or when the Chinese opponent knows you are aware of their duplicity.  Deploy countermeasures too early, and your give an excuse for the Panda to drop the mask.

When dealing with China all negotiations must come from a place where China gains something.  From the Chinese position if it does not benefit China; if it does not gain them value; it is not done.  If there is nothing positive to gain from negotiations, then no action is taken.

The outcome of negotiating to ‘lose less’ is not a position that China accepts.

President Trump already has the Chinese government controlled economy in a state of worry.  That worry keeps companies away from engaging with China.  That worry is a negative position for Beijing.  The elimination of that worry is a positive outcome.  China will negotiate terms if they can gain the value of eliminating economic worry.

Thus, the dance with the dragon.

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This entry was posted in Auto Sector, Big Government, China, Donald Trump, Economy, media bias, N Korea, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

58 Responses to President Trump Steps In To Stop Treasury Sanctions Against China During Trade Negotiations…

  1. JonS says:

    Thank you! I was wondering what that tweet meant …

    Liked by 6 people

  2. sundance says:

    This is a more subtle way to confront the Dragon while the Panda mask is present.

    Liked by 25 people

  3. Sue Fowler says:

    Another kushner move. Stop playing chess with legal American citizens lives. Your word has NO credibility. Do you seriously think Xi is “negotiating? God help us all.

    Like

  4. TreeClimber says:

    Isn’t “removing economic worry” by definition “losing less”? Or am I not grasping nuances well enough?

    Liked by 1 person

    • sundance says:

      “Removing economic worry” is forward investment.

      investment that China does not currently have, but will have in the future.

      Liked by 12 people

      • TreeClimber says:

        So boiled down (sorry, I’ve been scatterbrained recently) removing loss is gain. Am I understanding this correctly? Not net gain, per se, but building a foundation for net gain?

        Like

        • Ray Runge says:

          USA, as the preeminent economic engine on the face of the earth, and the influence this provides in the international world of finance, USA can employ tariffs and sanction international trade activity between China and the world.

          1) Think of your best customer, (USA as China’s largest) that is placing an extra burden before consumers can purchase your goods.

          2) USA is able to slow down many other countries commerce with China. Financial centers of New York, London and Frankfurt are involved. Specific financial levers and gadgets are employed. This arena is responsible for the creative people to prejudicially groove the conditions money exchanges hands. Trade arrangements with the USA and foreign countries is a major league club impress foreign countries for reducing trade with China. Many other countries have to get along with the USA to get along in the international trade arena.

          So, Trump is selling the relief tthe Chi-coms receive after a comprehensive trade deal is reached.

          Liked by 3 people

          • RJ says:

            President Trump made a comment recently that really rang true: “The United States has rebuilt China via our one sided trade deals.” (Or words to that effect.)

            China knows we rebuilt their economy by buying so many of their products and through our companies going there to open factories where the Chinese stole our methods, etc.

            The game from the get go was to have China experience the “wealth of Capitalism” as opposed to the poverty of communism.

            See anyone in China going about wearing a “Chairman Mao” set of clothes recently?

            Liked by 4 people

        • Chinese wants multiple economic outcomes:
          • Secure low-cost food imports to fill the domestic shortfall in feeding its population.
          • Secure soybean imports to fill the domestic shortfall in feeding its hogs and people.
          • Sustain its manufacturing base that employs its workforce and their “happiness”.
          • Sustain its economic growth that expands its military and lines Communist pockets.
          • Attract foreign investment that entangles globalists’ wealth in the Chinese Economy.
          • Own and control other countries’ infrastructure for trade, telecommunications & finance.
          • Substitute a Chinese Replacement for the Dollar as the Global Reserve Currency.

          President Trump is matching China’s Panda Face as he multiplies the holes for every one of these outcomes in China’s Economic Hourglass.

          POTUS has the “free world” on high alert, and the prospect of future tariffs has Investors, Manufacturers and Globalists seeking safer pastures.

          The more time passes, the faster the sand drains from their Economic Prosperity.

          Liked by 8 people

      • progpoker says:

        I’ll bet Xi had no idea Trump has a “Panda Face” of his own. Hope Xi realizes Trump has a bigger Dragon than China does! I love winning!! Who could possibly tire of it?? 🙂

        Liked by 2 people

  5. TreeClimber says:

    Excellent post as always!

    Liked by 4 people

  6. bertdilbert says:

    Of course if current negotiations do not move forward, the sanctions go in effect. Save the stick to be used for negotiations.

    Liked by 3 people

  7. Publius2016 says:

    the treasury sanction “delay” is also more “LEVERAGE” for 45…the key is for Congress to stay far away and let 45 and his Team of Patriots work!

    Venezuela and Cuba are on tap for this weekend…

    Liked by 4 people

  8. stablesort says:

    Was it Mnuchin who imposed those sanctions without Trump’s knowledge?

    Liked by 1 person

    • bertdilbert says:

      Very doubtful.

      Liked by 6 people

    • Piblius2016 says:

      we don’t know but think SD is right about strategy…for me, it gives Mnuchin more heft, 45 more leverage, and the rest of the world notice that “sanctions” may be placed on anyone at any time and anywhere!

      Liked by 3 people

    • GB Bari says:

      This could very well have all been staged to make PDJT look like he was blindsided and then exhibited his power to prevent harm to China…. It boosts his stature (as seen by the ChiComs) a bit in the negotiations…. If in fact this was the case I’m ok with it especially if it works.

      However If Treasury was acting on a previouly-established set of procedures / timeline, and PDJT was merely caught off guard and acted to stop the move then kudos to him anyway.

      Liked by 7 people

    • patrickhenrycensored says:

      There are those times when two different things need to be said or done simultaneously.
      Better to have separate conduits as the couriers………………………

      Like

  9. chojun says:

    I have a feeling that China is going to potentially take this thing up to and over the cliff. Their economic underpinnings are what currently props up the Communist apparatus. For them, this must be preserved at all cost. Theirs is a zero-sum game, and elimination of the status-quo presents an existential risk.

    Reports are today that global economic output has significantly cooled and I have a feeling this is because, more than likely, the Chinese economic situation has become dire. Fortunately Trump has to a certain extent decoupled our economy from the globalist one but we are still dependent on exports to keep our GDP above board.

    China very clearly now has over-estimated the worth of a denuclearized North Korea and is demanding US capitulation in trade negotiations for this. I don’t think Trump will take the bait. There are trillions of US dollars at stake. Either way, if the Chinese state collapses, the DPRK will collapse with it, resulting in denuclearization no matter what.

    Liked by 8 people

    • Amy2 says:

      “Fortunately Trump has to a certain extent decoupled our economy from the globalist one but we are still dependent on exports to keep our GDP above board.” Amen chojun. VSGPDT

      Liked by 3 people

  10. Bob says:

    It makes it look like he is capitulating to China. Enforce the sanctions. Stop letting them get away with circumventing. Go ahead and raise the tariffs to 25 percent. Then add the other 200b into the mix. Let Beijing know you mean what you say about tariffs or deal, ether way. This removing sanctions it makes Beijing think he is bluffing. Makes me think he is bluffing.

    Like

  11. William Schneider says:

    In some ways it may be a plus that Trump needed to step in to stop sanctions from going into effect. It lets China know we could work to hurt your friend NK but we will hold off to reach a deal with you -for benefit of all. Trump is the master negotiator-and Sundance gives very plausible commentary on it all. Always exciting. I am betting with my money that a deal with China is reached within next few months.

    Liked by 2 people

  12. Zippy says:

    BY FAR the most likely use of an NK ~300kt thermonuclear weapon against the US would be to use one or more of them in a High Altitude Electromagnetic Pulse (HEMP) attack. Why? Because it would kill no one in the US directly, but would destroy essential electronics in our technologically advanced country and make any IN KIND nuclear response by us ineffective due to the technologically backwards nature of the vast majority of the NK.

    NOTE that there were only two NK missiles formerly UNDER DEVELOPMENT that would have been able to reach any further into and over the US than Alaska to carry out a HEMP attack. Thus, Kim knew damn well that any further development of those two missiles would almost certainly be met with US military strikes against at least their missile production facilities and that is why he stopped missile tests and agreed to (pretend to) negotiate to save face for doing so. PDJT’s visit gave him that way to save face and the HEMP threat was avoided. Everything will be fine UNLESS Kim decides to continue development of one or both of those two missile types, but I seriously doubt he will.

    Like

    • tonyE says:

      The US C&C and most military facilities and resources are nuclear hardened. EMP hardening has been required by mil-spec since the 70s.

      Then, look up the D5 missile. The American Political and Military command would have no difficulties in ordering the launch of a D5 or a number of cruise missiles. ( IMHO, we’d go with cruise missiles as an MIRV’d D5 would be seen as a watershed.)

      NK knows this.
      China knows this.

      Those NK missiles were saber rattling. They got our attention and now we’re doing real negotiations. NK can win mightily by getting rid of those missiles, the question now is strictly China.

      Like

    • Arrest Soros says:

      The US has numerous nuclear subs with multiple warhead ballistic missiles patroling the World’s oceans.
      A US response doesn’t have to come from US soil. Your worry about not being able to retaliate is unwarranted.

      Liked by 1 person

  13. Bubby says:

    Look I’ll be honest I don’t understand all that is going on between us and China. All I do know is that I feel blessed that President Trump is confronting China like no other politician in either party would even attempt! Godspeed President Trump our own VSG!

    Liked by 6 people

  14. GB Bari says:

    Question regarding this statement:
    When dealing with China all negotiations must come from a place where China gains something. From the Chinese position if it does not benefit China; if it does not gain them value; it is not done. If there is nothing positive to gain from negotiations, then no action is taken.

    I understand and fully accept that. It seems logical as well as being proven by history.

    But….isn’t that almost exactly how PDJT is negotiating, as if almost the same statement applies to us?

    Such as:
    When dealing with President Trump and the U.S., all negotiations must come from a place where the U.S. gains something. From the Administration’s position if it does not benefit U.S; if it does not gain the U.S. value; it is not done.

    But here lies the “almost” (difference) –
    If there is nothing positive to gain from negotiations, then either no action is taken, or other measures may be taken to bring the other party to the table…

    Sound accurate?

    Liked by 1 person

  15. dan understahl says:

    My opinion, the panda mask has been dropped for 10 plus years, Its war. Realize that and you can dance all you want but its all a facade. Again my opinion, Trump is out to get China, but on his terms, not much mutual interest.

    Liked by 1 person

  16. trapper says:

    Interesting set up for the negotiations. The Chinese know that the wolverine sitting across the table from them is the one who ordered the sanctions Trump just stopped, and if they jerk him around too much all it takes is a phone call home to tell The Boss and BAM…. the sanctions will be a GO. Say hello to my little friend indeed. Nice.

    Liked by 3 people

    • MILupper says:

      Appears to me to be a variation of the good cop/bad cop strategy. China can take the easy way and make a deal that benefits both countries or take the hard way and endure these new sanctions and the higher tariffs being reinstated.

      Liked by 1 person

  17. WSB says:

    Is this good cop/bad cop and a message to Mitch McConnell and wife?

    Liked by 1 person

  18. ristvan says:

    This is a brilliant gambit. Treasury acts, Trump stays. IMO says several additional useful secondary things to the other side in addition to what Sundance has explained:
    1. China, we got rules and bureaucrats who follow them. But for the grace of PDJT, you break them you are autohosed. So change.
    2. NoKo, deal or things get worse, but PDJT won’t tighten screws unless you act in bad faith.
    3. Both, pay close attention to what PDJT says and does. Act accordingly. He can allow things to get worse, or he can prevent worsening and eventually make things better. Ball is in your court.

    Liked by 15 people

  19. Doug Amos says:

    The art of the deal indeed!

    Like

  20. The Chinese follow our domestic politics very closely; t is likely they have handicapped P Trump’s re-election as almost a certainty. The Mueller report, the economy, the meltdown of the Democrat Party and their crazy fringe candidates, is all positive for Trump 2020.

    I suspect what Trump did today was showing his Panda side; expecting that China will move the negotiation process forward much more quickly now that a 2nd term is looking good.

    And P Trump always has tariffs and sanctions at his call. There is no rush to get a deal done with China now that Trump 2020 is looking better. America and MAGA is in the driver seat………China knows it, we know it, P Trump and his team know it.

    As P Trump would say, “don’t worry I got this”……………..

    Liked by 1 person

  21. Brant says:

    I wonder if this could be a planned good cop/bad cop sort of show. Treasury does this and Trump swoops in to relieve.

    Like

  22. Troublemaker10 says:

    Liked by 1 person

  23. Troublemaker10 says:

    Like

  24. CMDCMRET says:

    I already knew. Wonder how?!

    Like

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