Panda Played the Dragon Game – Now Trump Targets the Bamboo Forest…

Well, it looks like all suspicions are now confirmed. The dragon dance of 2017 and 2018 has extended into 2019. DPRK Chairman Kim fires rockets, Trump smacks Chinese Chairman Xi. Yes, we can officially put the remaining bits of skepticism to rest…

The meeting last week between Treasury Secretary Steven Mnuchin, U.S. Trade Representative Robert Lighthizer and their Chinese counterparts including Vice-Chairman Liu, was especially important.  Mnuchin and Lighthizer said they would debrief President Trump on the likelihood of whether a successful trade deal with a communist regime was structurally possible; or whether Beijing was playing a game of delay.

The ongoing dance with the dragon has been a series of cunning manuevers between the Panda mask and the Dragon face. At the conclusion of the Beijing visit by Mnuchin and Lighthizer, Chinese Chairman Xi sent a proactive response using his familiar proxy North Korean Chairman Kim. The DPRK test-fired three missiles.

Today President Trump responds:

The increase of the Round-1 tariffs from 10% to 25%, previously delayed after discussions between Xi and Trump in Argentina, will now be triggered. Additionally, the Round-2 tariffs (25% on $325 billion of different goods), originally scheduled for March 1, also postponed after the Argentina dinner, will now be implemented.

WASHINGTON (Reuters) – President Donald Trump dramatically increased pressure on China to reach a trade deal by announcing on Sunday he would hike U.S. tariffs on $200 billion worth of Chinese goods this week and target hundreds of billions more soon.

The move marked a major escalation in trade tensions between the world’s two largest economies and a shift in tone from Trump, who cited progress in talks as recently as Friday.

But a less than rosy update from United States Trade Representative Robert Lighthizer, including details that China was pulling back from some commitments it made previously, prompted Trump’s decision and jab on Twitter at Beijing.

“The Trade Deal with China continues, but too slowly, as they attempt to renegotiate. No!” Trump said in a tweet.

Financial markets reacted negatively. S&P 500 e-minis fell 1.6%, while Dow futures were down 420 points or 1.6%.  The move could be a negotiating tactic ahead of a new round of talks this week.  [It’s not, /SD]

Chinese officials are scheduled to meet their U.S. counterparts in Washington on Wednesday after meeting in Beijing last week for a round that Treasury Secretary Steven Mnuchin described as “productive.”

New fines will now hang over those talks, assuming they take place as planned. Trump said tariffs on $200 billion of goods would increase to 25 percent on Friday from 10 percent, reversing a decision he made in February to keep them at the 10 percent rate after progress between the two sides.

The president also said he would target a further $325 billion of Chinese goods with 25 percent tariffs “shortly,” essentially targeting all products imported to the United States from China. (read more)

Inflation in the U.S. remains low at 1.4%…. now is the perfect time to hit Beijing with expanded tariffs. I’m surprised China didn’t evaluate that aspect, perhaps they did; but they are also running out of time due to negotiation pressure from Trump.

Beijing referring back to the DPRK blackmail reflects a certain desperation on the part of the communist regime.  A dual display of bad form, and a visible *tell* for President Trump.

Knowing China has just indicated a weak hand, now Trump calls their bluff.

Chairman Xi played a cunning Panda-face game between the Argentina dinner (G20), the manipulation of the Hanoi summit with Chairman Kim, and the extended trade negotiation talks.  Xi stopped the immediate tariff threat, and simultaneously retained the DPRK leverage over Trump.

However, given the scale of China’s dependence on access to the U.S. market, it was only a matter of Trump allowing the appearance of diplomatic time to pass before he could counter with a more forceful response of his own.  I have no doubt Lighthizer dropped a strategic ultimatum on Beijing last week, triggering them to drop the panda mask.

Team U.S.A. came out of these negotiations exactly where President Trump always seemed to be heading; he wants full frontal tariffs on Chinese imports because he knows China will never genuinely negotiate terms until they are defeated.

Chairman Xi and Vice-Chairman Liu now have only a few days to rethink their approach. Now they have exhausted the delay strategy; and simultaneously any immediate increase in DPRK hostilities will be transparent and of no further trade benefit.

Fully acquiesce to Trump trade terms, or purchase some extended trade benefit with full retreat from North Korea manipulation.

…..Keep watching; this is the part where Wilbur Ross reemerges to close the deal.

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This entry was posted in Big Government, China, Communist, Donald Trump, Economy, Election 2020, energy, G20, media bias, N Korea, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA. Bookmark the permalink.

262 Responses to Panda Played the Dragon Game – Now Trump Targets the Bamboo Forest…

  1. Piggy says:

    Our geopolitical rivals should fund our military through tariffs. This includes countries attempting or going around our trade deals.

    If we are going to do business with any Communist country. Tariffs have to be in place. Their economic model is not compatible with any sort of fair trade.

    Tariffs will keep them in check and protect Americans.

    S. Korea and Japan could end the N.Korea/China rocket games if they would be willing to defend themselves…

    But nah why would they do that?

    Liked by 3 people

  2. Dutchman says:

    This is going where I thought it would.
    Its Reagan vs. USSR, 2.0.
    TRUMP vs. Chicoms.
    Fighting a trade war, where we have all the advantage sure seems preferable to fighting a shooting war.

    And, instead of depleting our country of treasure (patriots) and money in our treasury, building up the treasury, without costing lives.

    I LIKE it. Economic Security = National Security.
    Hell of a Doctrine,……makes you wonder why DJT’s predecessors didn’t think of it,…….

    Oh, yeah! I FORGOT,…They were WORKING for Chicoms, ……

    Liked by 21 people

    • Frank says:

      You remember how Reagan dealt with the communists: he didn’t trade at all with them, and punished others for doing so. This choked the communist economy to death because they NEED other people’s money to keep such a government going. Trump is going to do something similar here, I believe. The problem is different, though, because the globalists have already established heavy trade links with the commies. So now it’s up to the Trump administration to correct those mistakes. I like what they’ve done so far, and what’s about to happen this Friday!

      Liked by 4 people

      • Guyski says:

        Yep, the image of China and the reality of China are two seperate things. China is like one of those guys that spends 3 – 4 hours a day at the gym. Looks impressive (intimidating), but try to get 6 hours of manual labor out of them. 🙄

        Liked by 3 people

      • budklatsch says:

        Let’s remember the basics. China has led the outrageous imbalance of trade that has caused America to lose 1000’s of good jobs and billions of lost dollars. This MUST stop. Oh and the second greatest culprit, the American CofC.

        Liked by 4 people

      • Squeeze the chicoms – directly squeezes the major players in this play…The players are the multi-nationals (anything) that picked the American Consumer pockets for the last 40 yrs…Let the Pain Begin!!!

        Everything comes down to MONEY and it is OUR money that is being brought back on-shore…

        Outstanding JOB by Sundance, once again.

        Liked by 3 people

    • Orville R. Bacher says:

      China is a Totalitarian country, whose objective is to weaken the USA, while stealing our technology, or strong-arming Globalist (American?) corporations out of the technology that the Chinese government can’t steal.
      NO TRADE WITH CHINA, is the only trade deal.
      China does not have the financial strength to maintain the Yuan/U.S. dollar peg. And that peg is the foundation of all of China’s apparent, not real, economy. No one is going to send raw materials to China without immediate direct payment in U.S. dollars, or instant conversion of Yuan to U.S. dollars.

      Like

  3. Bill says:

    Not sure if it was reported here in the US, but Kim Jung Un had a brief but unpleasant meeting with Valdamir Putin last week (heavily reported in the Japanese news and my wife translated.) Kim got told ‘No’ by Putin (on whatever request he made) and went stomping back to North Korea the next day. Canceled all additional planned pleasantries in Moscow, took his armored train back to North Korea.

    Liked by 19 people

  4. spren says:

    The thing I don’t understand about tariffs is that it is American consumers who pay them for the increased costs on the products they are purchasing. The costs incurred by the foreign competitors is that their products will cost more and therefore Americans will be encouraged to buy American made products instead, or from others on whom tariffs have not yet been applied. I fully support what President Trump is doing, but I’m just puzzled regarding the reference that China, or whomever, is paying the tariffs. They’re not! We will all pay it when Walmart increases their prices. I won’t be the least bit surprised to see Walmart stock diminish significantly as this entire thing comes to a head. The end consumer foots the bill, so please, someone, tell me where my reasoning is incorrect.

    Like

    • Mo says:

      citizen817 says:
      May 5, 2019 at 11:36 pm
      Trump puts China on Notice & Chamber of Horrors attack #POTUS: Wall Street & Koch Bros want you to ignore this study of ⁦@realDonaldTrump⁩ Tariffs: China Is Paying for Most of Trump’s Trade War, Research Says #MAGA #AmericaFirst #Dobbs https://t.co/ovZXPO6NTK

      — Lou Dobbs (@LouDobbs) May 6, 2019

      https://www.bloomberg.com/news/articles/2018-11-19/china-is-paying-for-most-of-trump

      Liked by 2 people

    • Piggy says:

      Don’t have to buy their products.

      What can’t be made in America? When a country has a tariff on us does it get passed to the US consumer or to the country passing the tariff? Or maybe just to the US producer who either has to outsource jobs or close shop?Why do so many countries impose tariffs on us if it’s bad for them?

      Our entire government was funded by tariffs until the progressive movement polluted people’s minds and created the IRS and the Fed.

      Tariffs are good when countries don’t reciprocate fair trade or pose geopolitical threats.

      Liked by 3 people

      • Ollie Hadfield says:

        Exactly

        Like

      • Shark24 says:

        Agree, buy American as much as possible. If you do need some cheap Chinese stuff, go buy it used at Goodwill! 🙂

        Liked by 2 people

        • If Then says:

          Seems like a good idea, but I don’t think many of their products last long enough to make it to goodwill! Hence, spend more money up front and save the money (and hassle) of replacing it over and over.

          Like

        • nbkilgore says:

          The truth is Americans buy China’s cheep products that will end up in the landfill within less than a month and this process gets repeated over and over again. The positivity is Americans will be more selective in their purchases, thus the beginning of responsible spending when the price goes up on China’s products. POTUS Trump is slowly transitioning US citizens into financial managers, wants vs needs. Looking at this perspective view, you can see what an impact it will have if it were to be multiplied into the millions of household earners/budgets and reduction to bloating landfills.

          Like

      • CC says:

        We are the biggest consumer market in the world. There’s no way in hell China wants to lose that. That is our only edge at this stage of the game.
        China wants to continue having their cake and eating it at our table, and Trump is using the only leverage, at this point, after decades of globalist buffoonery, that’s available to him.
        After the clown parade since Reagan, it’s sure nice to have a real American as president.

        Like

    • TCG says:

      china has to either lower their costs or subsidize their exports, in order to stay competitive. The consumer doesn’t pay the full cost of the tariff, they merely switch to a different supplier, who is cheaper than China+tarrif. That means paying more, but not 25 percent more.

      The claim that “the consumers pay for the tariffs” is mostly false.

      Liked by 5 people

      • sharon goodson says:

        we can switch easily to India made goods – in essence we are just changing vendors. We have lots of our items made in Viet Nam and India.

        Like

    • bunky says:

      US built products become more competitive.
      More US jobs, less China for a few bucks more.
      BTW, official inflation is 1.4%.

      Liked by 1 person

      • cali says:

        @bunky: ^^^^^^^This!

        I make it a mission to buy only products manufactured by American workers. Durability and quality far supersedes the cheap junk out of China.

        I’ve also noticed an increased availability of “Made in USA” products thse days.

        Like

    • Orygun says:

      The real hit is going to be Amazon=China. Amazon has been swamping the world with cheap throw away chinese goods. Expect the WaPo to really come out with a hit piece and the Federal Reserve to try to raise interest rates again to stifle the economy.

      This is nothing compared to just before the election.

      Liked by 1 person

    • Orville R. Bacher says:

      @spren
      Supply and Demand curves mean a portion is paid by the consumer, some gets absorbed by the producer.
      Nonetheless, it is the United States, as a nation that is getting impoverished, and the U.S. Middle Class that has paid the price of the U.S. Chamber of Foreign Commerce slogan “Free Trade”.
      Stripping this Nation bare of jobs, incomes, and stable family platforms is a far greater cost than what the cost of some Chinese Communist made trinket is worth.
      The United States has seeded and created a monster that makes the old Soviet Union look like a school boy bully. China has infiltrated everywhere, all riding the tide of the U.S. dollar peg.
      And that Yuan/U.S. dollar peg is financed by China exporting their crap into the United States.

      Like

    • Justanelectrician says:

      Round one was easily substituted products with high price elasticity, so Team Trump was able to force most of the cost onto the Chinese producers, according to this Bloomberg article. China retaliated by targeting food and capital equipment, targeting Trump’s base. In other words, Trump chose products on an economic basis, while China chose theirs based on politics.

      Like

    • drlou007 says:

      The first round of tariffs costs was born almost totally by the Chinese because Trump was very careful as which products the tariffs were placed on. Those product’s prices were what the economists call ‘inelastic’, meaning that raising prices on them would lower the amount sold and therefore would not help in the end. I’m not sure how the new round of tariffs will work. Perhaps sundance will write an article explaining it.

      Like

    • Dennis Leonard says:

      spren,first read back articles by Sundance,second in a nutshell the china men are eating the added cost of the tariffs,so prices stay the same.

      Like

  5. Perot Conservative says:

    Liked by 4 people

  6. Perot Conservative says:

    Maybe China should stop stealing trade secrets and rigging trade channels.

    Liked by 8 people

  7. Perot Conservative says:

    MarketWatch ASIA MARKETS
    China stocks drop 6%, other Asia markets tumble as U.S.-China trade deal appears in jeopardy

    Liked by 3 people

  8. Pyrthroes says:

    Surprising, to what extent these “matters of great pith-and-moment” not only go awry, but crucially depend on personalities of no more than 3 – 5+ major principals. Great global cultures, the safety and well-being of some 1,500 million people (!) essentially hang by a contingent thread.

    ‘Twas ever thus, but still… you’d think that today’s almighty political-economic institutions, buttressed by forces capable of incinerating the entire planet, might reflect a more substantive reality than what Chairman Hsi’s back-alley kleptarchs casually deem opportune.

    Like

  9. Hanuman says:

    Sir: what is the end game and benefits to North Korea to give up nukes? I’m a little unclear.

    Like

    • David A says:

      Economic prosperity and potential healing of a fractured people.

      Liked by 5 people

    • Hanuman; DRPK is kept alive by China. China will play the game (negotiate, bluff and try to continue the trade imbalance that benefits them) til the end, but in the end they will have to admit defeat in this trade war. One of the last things they will throw, before they give up, is instructing the DPRK to give up their nukes to hopefully placate Trump.
      He might take that, or he might go for their throats, only he knows how this is going to play out. Up until now, China has not played their hand well.

      Liked by 1 person

  10. Melinda Wolfe says:

    All hail higher taxes on Americans!!!

    Like

  11. DiogeneseVindicated says:

    Communist News Network is nonstop US consumers pay the tariff ‘taxes’. Anyone have good link to counter this?

    Like

  12. askandgettruth says:

    i think it is about time we wean ourself off the junk and poison that china sends us. do we really need all that crap ? the worst is we are trading with the enemy [ make no mistake about it they are not our friends ].all that money is being used to some day wage war on us. just like hitler in WW2, who was helping him ?? research it. it was american company’s to name 1 FORD. never mind the BANKS.people do your research

    Liked by 4 people

  13. Jake says:

    It’s been too quiet after the Meuller report. I’m betting that the China kerfuffle will be closely followed by something long planned like the OIG report or Declass of the FISA docs. The Trumpster always gets the lefts panties in a wad before dropping another turd in the pool that puts them back on their heels. Just sitting here enjoying the show…..

    Liked by 1 person

  14. donnyvee says:

    Why we are trading with an enemy is beyond me. China is as much our enemy as Japan was in the late 1930’s and early 1940’s. China is already in cold war with us. China just hasn’t turned their cold war hot yet.

    Like

  15. Doppler says:

    One can look at what Reagan did to the Soviets from the perspective of Marxism vs the blessings of liberty, including free markets. Marxism in Russia was wholly defeated, and it appears the Marxists decided to fold their tent and leave. While the West celebrated, the Marxists came here and to Europe. They’ve been secure here, because red-baiting has been taboo since the fifties, and because they strengthened their infiltration of our establishment many fold, to the point where one of their own could occupy the White House while another donned the Directorship of the CIA. Marxists in academia laid siege to American history, while covering up Soviet history – the true story of Communist influence in the US from FDR forward – while the Neo-cons (Trotsky’s descendants) took over the Republican Party. Foreign policy in the US has been focused on occupying and de-stabilizing the Muslim countries of the world, stirring jihad and mass migration of embittered religious zealots into Western democracies, the better to subvert their establishments. Domestic policy, until Trump, has been focused on creation of mass debt, identity politics, elevating mass migrants to affirmative-action-deserving minorities entitled to preference over legacy Americans. Not to mention climate change as requiring surrender of our sovereignty to an International authority (always Marxism’s goal), and trade policy designed to enrich the world at the US’s expense.

    The Deep State remains largely hidden from us, and there are likely many in it who fit the description of useful idiots. But I would wager than a true draining of the swamp and of the globalist enterprise will uncover Marxist cadres at their core. Ideologies, social justice, economic models, academic sophistries are all just cover for the cadre’s true motive, to gain international control over the means of production and political control over the peoples of the world. World War II left them in control of Russia and Eastern Europe, where they proved only their brutal abuse of political power and economic incompetence. Having ridden that horse to its death, the bigger prize, Europe and the USA, are now its focus.

    I’ve never heard Trump speak about Marxism, but I think its cadre here and in the West are 100% aligned against him, and he’d better understand their deceitful methods as he seeks to lay bare the eco-system of the swamp he’s now attacking. Nellie Ohr’s “terror and excitement” of teaching new students of Marxism about the period of Stalin’s consolidation of power be damned.

    Like

    • Lactantius says:

      Marxism is, like fascism, an ill defined concept. That said, there is no question that Leninist and Stalinist methods were seeded by the KGB all over the world and those planned methods have taken root and grown.

      Marx wrote about government withering and becoming needless in the Communist Utopia. That has never happened and never will. State socialism is a cancer which enslaves the people and curbs free will. Religious fervor is necessarily required for the whole mass of socialists to forego opportunity in preference for “equality.”

      All socialists are on the track to a state controlled form such as Marxism. Socialists in the European Union foolishly did not account for the mass immigration of those whose life style rose by huge amounts just by getting onto minimal European welfare.

      Jeremy Bentham wrote about the greatest good for the greatest number. Mathematically you can not maximize the greatest good and the greatest number simultaneously. (We can’t both maximize the number of people and satisfy every desire or “good” of everyone.)

      The peasant’s dream quality of Marxism is powerful. Marxism’s first method for implementation is always coercion. Take from the unwilling rich and redistribute to the willing-to-accept poor. Shut up those who oppose. Regulate the flow of ideas. Disarm the opposition. Round up the dissidents.

      Globalists live above mere national regulation. There is always some small nation in which globalists can buy money transfers and be free to operate for a relatively small (to them) contribution. President Clinton sold favors to a vast number of globalists. Hillary Clinton’s Uranium One business was not about the United States, it was about the Clinton bank account.

      Globalists have no particular concern about Marxism, because socialism never intrudes upon them. But, they favor socialism, because a coercive government is always for sale and globalist money talks among corruptocrats. Globalists also love to weep for those “in need.” It makes them feel good.

      Like

  16. Lactantius says:

    President Trump – President Putin – Chairman Kim – Chairman XI – President el-Sisi – Israel – PLO – Iranian Mullahs: Agenda posturing and some saber rattling. Dynamic tension. It is ever thus.

    What do some Chairman Kim missile shots portend? Did the USS Donald J. Trump just take one across the bow? Or are Chairman Kim and Chairman Xi throwing firecrackers just to be noticed?

    In the grand scheme of things, Iran has the power for a couple of serious disruptions at hand and then little more to sustain the threat. The PLO keeps making itself known, but it has little more bite than a nest of hornets. That nest is targeted and subject to evaporation. The PLO is without allies, because Iran will calculate its odds and sit on its hands. Chairman Xi holds Chairman Kim on a chain. At the same time, Chairman Kim is holding a tiger on a cobweb leash. In the final analysis, Chairman Xi will lock the North Koreans in. Chairman Xi prefers that if the North Koreans break out that they head south into South Korea. All of this muscle flexing is meant to rattle President Donald J. Trump. The Trump “empire” was built while dealing with all manner of forces working to undermine and sidetrack the project. President Donald J. Trump has the stamina and the patience necessary to sit back and await the favorable opportunity to move forward.

    This NOT geo-politics. The U.S. has no critical interest in any resources or vital waterways in any of this current stand-off. That is all old school stuff which threatens the globalists, but not America Made Great Again. Treaties are now a net sum game. Everything is based on a new form of Dollar Diplomacy. The new measure is pure dollar quid pro quo. Its not rocket science. Granted, if China suddenly cut off flat screen TVs, we would be in big trouble until the “invisible hand” causes manufacturing to return to the U.S.

    Chicken Littles will proliferate and all sorts of lamentations will rise. But President Donald J. Trump will not be distracted.

    Like

  17. jbrickley says:

    DPRK Launches missiles, rockets, projectiles and Trump hits China with tariff’s thus turning the thumb screws and ratcheting up the pressure.. All they have to do is meet us half way and all this pain stops. But apparently, we need to do things the hard way. At the rate the Chinese seem to be bumbling about, we should regain all that lost financial ground in record time.

    Liked by 1 person

  18. David says:

    As I’ve said before when the trade deal comes up. There will be no deal. China can’t make a deal without collapsing their economy and we intend to drive our supply chain out of China. Some manufacturing will come home but much of it will move to the countries surrounding China. India and Vietnam in particular. This will have the double benefit of tying the countries surrounding China to use and building up the natural enemies of China. China made its imperial designs known way too soon.
    Those worried about the Congress and the US Chamber of Commerce need to understand that China’s policy of barring US financial institutions has made China worthless to Wall Street. Mainstreet USA has the voters and Wall Steet will do better if production moves to countries that they can operate in. The only constituency for China is multinational manufacturers and they don’t measure up without Wall Street behind them.

    Like

  19. Bill Henslee says:

    The allusion to the “bamboo forest” was apt, but not enough attention paid to this as a reference to what we export to China that they can put a tariff on—FOOD! Our farmers are the most productive in the world and China chose to go for manufactures for their economic leap. As a consequence they import a lot of foodstuffs such as soybeans for their basic diet and who is the largest producer of soybeans in the world? The good ol USA farmer.

    Theoretically, they can charge tariffs on soybeans and make food more expensive for their billions of workers, or they can eat phones and tvs. Which side can best endure a trade war? We can take the money from tariffs and spread it over our farmers prices on foodstuffs as well as buy our phones from nations who don’t put spying devices built-in them.

    However, Pandas gotta eat and there is no substitute Chinese bamboo forest internally nor enough supply worldwide to supply them.

    Like

  20. swimologist says:

    The trade deal has enforcement mechanisms that hold all the corrupt state-run Chinese industries to account. That means no more corrupt generals and bureaucrats riding their gravy train in their protected little businesses. In the past, 20% of the total affected industries were able to bluff and bluster their way around it. Not anymore with Trump. And the Chinese are msd

    Like

  21. CC says:

    Gee, Wally, how long would it take 25% tariffs to offset a $124.8 billion trade deficit?
    Well, Beev, it depends on how long the reds want to screw around….

    Like

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