Investment Exodus / Shifting Supply Chains – China Walks into Trump’s “Golden Ticket” Trap…

President Trump is executing one of the most brilliant geopolitical economic resets in the history of global trade. It really is stunningly remarkable how President Trump has controlled the entire landscape. The consequential phase now begins.

It is fascinating how the financial pundits didn’t see this coming. Perhaps one of the best indicators of where things are today comes from this quote within the South China Post:

“The Administration’s Section 301 tariffs and China’s retaliatory tariffs will now further disrupt – or even break – many thousands of supply chains in both countries.”

[Nelson Dong, a senior partner at Dorsey & Whitney]

The quote by Nelson Dong is stated *as if* shifting/breaking supply chains is a flaw in the approach. It’s not. Exactly the opposite is true; this is a feature of the strategic reset.  A specific and purposeful feature designed by President Trump.

What Dong is predicting is the deconstruction of “one-belt, one-road”.

As President Trump highlighted today, over time (and it won’t take long) there will be an exodus of multinational manufacturing away from China.  Corporations will shift their purchase agreements, manufacturing and assembly plans to ASEAN countries outside the investment ‘risk zone’ that is now China.

Notice some of the nuance (specific references) within President Trump’s tweets. Japan, Vietnam (President Trang Dai Quang), South Korea (KORUS), Philippines and India are positioned to pick-up business.

To counteract the predictable exodus the Chinese state-run enterprises (and banks) will offer incentives to retain the corporate manufacturing business. This process means China, in essence, subsidizes the tariffs:

China has no choice if they want to retain their economic model. Remember, China’s economy is deep (manufacturing) but also narrow. They are dependent on raw materials, customers and market access. {Go Deep}

Additionally, President Trump announces today he has not made any decision on the next phase of 25% tariffs on the remaining $350 billion in Chinese products.  He doesn’t need to.  Merely the possibility of additional tariffs will pause any further investment; and some companies not currently impacted will make decisions to avoid the possibility of impact.

President Trump has walked Chairman Xi into a trap.  There is only downside for China in the current dynamic.  In an effort to avoid the downside, China will bleed cash to retain their economic position…. However, this can only last so long.

President Trump knows the strength of our U.S. position is that our economy is deep and wide.  The U.S. is a self-sustaining economy.  Almost 80% of our internal production and manufacturing is purchased within our own market.

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

The reality of China as a dependent economic model; heck, they cannot even feed themselves; puts them at greater risk from the effects of global economic contraction.  However, more importantly it puts China at risk from President Trump’s strategic use of geopolitical economic leverage to weaken their economy.  Trump is exploiting that risk.

As things go forward, China cannot sustain a long-term economic conflict with the U.S.  As each day passes the ASEAN alliance will see their investment grow as companies pull-out of China and invest in S-Korea, Vietnam, Philippines, India etc.  The GDP of our allies (including Mexico) grows, and the controlled GDP of China, as an adversary, shrinks.

(LA Times) GoPro Inc. will move most of its U.S.-bound camera production out of China by summer, becoming one of the first brand-name electronics makers to take such action to minimize the impact of the U.S.-China trade war.

“Today’s geopolitical business environment requires agility,” GoPro Chief Financial Officer Brian McGee said in a statement Monday. “We’re proactively addressing tariff concerns.” The company is still deciding where to put the manufacturing operation. (more)

All of this was entirely predictable.  President Trump and Ambassador Lighthizer told the world what to expect in 2017:

Da Nang, Vietnam – United States Trade Representative Robert Lighthizer today released the following statement in response to President Trump’s speech on trade between the United States and the Indo-Pacific region, at the Asia Pacific Economic Cooperation (APEC) CEO Summit (emphasis mine):

“The President spoke loud and clear: the era of trade compromised by massive state intervention, subsidies, closed markets and mercantilism is ending. Free, fair and reciprocal trade that leads to market outcomes and greater prosperity is on the horizon.

“President Trump understands that too many nations talk about free trade abroad, only to shield their economies behind tariff and non-tariff barriers at home. The United States will no longer allow these actions to continue, and we are willing to use our economic leverage to pursue truly fair and balanced trade.

“I look forward to doing as the President instructed me and to pursue policies that will improve the lives of our workers, farmers and ranchers.” (link)

This entry was posted in ASEAN, Auto Sector, Big Government, China, Communist, Decepticons, Donald Trump, Economy, energy, India, Japan, Legislation, media bias, Mexico, NAFTA, President Trump, Trade Deal, Uncategorized, US dept of agriculture, US Treasury, USA, Vietnam Summit. Bookmark the permalink.

309 Responses to Investment Exodus / Shifting Supply Chains – China Walks into Trump’s “Golden Ticket” Trap…

  1. Ausonius says:

    ABC News with the equine-visaged David Muir claimed the president lied about China paying most of the tariffs. “FACT CHECK: JUST NOT TRUE!”

    “Those tariffs will be passed on to consumers!”

    “Farmer: “I won’t be able to sell my soybeans. I’ll have to plant a lot of hay.”

    Yawn! Typical bias: no mention of the subsidies paid by the Chinese to prop up their companies.

    Liked by 6 people

    • Publius2016 says:

      lordy…its like Pravda TV! More Fake News!!

      Market price is market price…its like they say there are no alternatives: Nike made in China or Addidas made Vietnam??? shoe price is based on marketing more than cost of production…Geez Lueez

      Liked by 8 people

    • Skippy says:

      Wait. We are to accept Soybean sales are less important than GOT? For our economy and well being. I’ll be happy to buy more USA soybean products! GOT was abysmal. Food is not. Let these farmers know (or are they democrat farmers crying ahead of the problem?).

      Liked by 5 people

      • David GERKEN says:

        We’re always told it’s a global market, right? The more China buys from Brazil, the more others buy from us. And, yes, a fewer soybeans planted this year in the USA.

        Liked by 1 person

      • Mrs. E says:

        Can’t stand soybeans. Let the farmers plant other foods that will sell. The president just said that he will pay them to plant food that we can give to other nations that are in need. I like that idea. After the dust settles, and we are on the new economic foot, the farmers can adjust and grow what sells again.

        Liked by 1 person

        • dayallaxeded says:

          Now you’re talking! Less soybeans, less corn! Greater range of grain crops would be great, but anathema to the current big corporate farming business model–oh, that’s good too! Maybe with all the flooding, farmers can put in a nice crop of high-margin “wild” and other rice and co-farm some crawfish while they’re at it.

          Liked by 1 person

        • rmramerica says:

          Is there a product on the shelves of a grocery store that doesn’t contain soy meal, oil or corn oil? Go into your pantry and look at any box of something pre-packaged. There’s likely a bean product in it.

          Also, to all you Ag-experts, this isn’t about bushels of beans or corn, but about acreage. Where you going to find the acreage to feed 1.5 billion people? The beaches of Rio? The Amazon rain forest? Sooner or later China’s got to eat. Welcome to the party.

          Liked by 1 person

    • MagaMia says:

      Ausonius says:
      May 13, 2019 at 6:41 pm
      “ABC News with the equine-visaged David Muir……….”

      LOL, what an eloquent way to say horse-faced….. Made me laugh.

      Liked by 7 people

    • “Those tariffs will be passed on to consumers!”

      So they do a “fact check” of the President’s statement and then declare a prediction as the “fact” they used to check it? LOL 😂 #LiberalLogic

      Liked by 4 people

  2. Publius2016 says:

    China is dependent on “raw materials, customers and market access” and most importantly, KNOWLEDGE!

    China steals our intellectual property!

    They also require that we accept 1 China…45 says, WHY?

    Taiwan is $600 billion GDP with $1 trillion by 2024!! Taiwan respects US Patents!!!

    Liked by 8 people

    • fred5678 says:

      Foxconn — owne by Nationalist China principals — has 12 huge factories in China, and many more OUTSIDE of China — relatively easy to move production??

      Hon Hai Precision Industry Co., Ltd., trading as Foxconn Technology Group and better known as Foxconn, is a Taiwanese multinational electronics contract manufacturing company with its headquarters in Tucheng, New Taipei, Taiwan. Today, it is the world’s largest provider of electronics manufacturing services[3] and the fourth-largest information technology company by revenue.[4] The company is the largest private employer in Taiwan[5] and one of the largest employers worldwide.[6][7] Its founder and chairman is Terry Gou.

      check the list of factories by country:

      Liked by 2 people

      • Imapop says:

        Two take aways from the wiki article.
        1) Foxconn is highly diversified nation-wise and Apple potentially can build phones in India soon to avoid tariffs, good.
        2) Did you read the crap about the hoops Foxconn is being required to jump through to build in Wisconsin? Understandable they are making noises about bailing.

        I was talking to the CFO of Radio Flyer over a decade ago on a cruise. They had recently diversified into a number of new toy lines for kids. He said that if they had to build new factories here, they simply wouldn’t as the time delays and environmental studies and litigation risks were simply too great. They would still just be making red wagons and nothing else. Liberals are clueless and are ruining this nation.

        Liked by 4 people

      • David GERKEN says:

        Seems like it would be easy for Taiwan to let the stuff come back in from China and then sell it like it was made in Taiwan. Hopefully, they won’t do that.


    • kenji says:

      Can someone please explain to me why MOST of these Chinese manufacturing jobs couldn’t be done in Central America? Wouldn’t that solve the assault on our Southern Border as the LYING LEFTISTS claim? That we need to “help” Central Americans have HOPE for their futures? Wouldn’t it be great if Apple Computers could be built in the jungles of Guatemala? Then all the hipsters working at Apple could SURF Costa Rica during their trips to the Assembly Floor.

      Liked by 5 people

    • Phil Bacon says:

      Yes, Publius, the core of the matter.

      China without a U.S. market, can’t make it.

      The culture is great at copy and imitate, but China has a genetic defect: it can’t innovate. That is why it needs to steal intellectual property from others, mainly the U.S.

      For a thousand years and more the Chinese have been conditioned to tradition. Even under Mao’s Communism everyone was to think the same way. That’s a horrible burden to carry into the future.

      It has a bleak future unless it curbs its parasitical instincts and works with, not against, the U.S.

      Liked by 4 people

      • I can’t imagine a thousand year old leopard changing its spots…I’m guessing they are looking ten years into the future and more, post Trump.

        Liked by 1 person

      • Beau Deste says:

        Not true – the chinese have come remarkably far since the horrendous “cultural revolution”. Their universities arenow very good. (please remember our universities were not technically excellent until the influx of “world class” scholars driven out of germany-europe prior to and during WWII.
        But other SE Asian countries have a citizenry that has high IQ and works hard, and can produce at lower cost than china. Even S Korae is moving production to Vietnam, and China is moving production to Sri Lanka, etc. We can do the same. Vietnamese, Thais, Sri Lankans, even NKoreans historically and now do not want to be dominated by the chinese. I think it is part of PDJT’s plan to partially disconnect chinese supply chains, and connect to surrounding countries which do not want to be chinese vassals

        Liked by 2 people

        • PS says:

          Thank you. Chinese citizens are like us, they just want food, shelter and security. And like all human beings, they are no more smart or dumb than the rest of us, per capita. There are just more of them, 4x the US population.

          We should look at their culture as the ultimate lesson of trading freedom for security, once gone, it is neigh impossible to get back. Whether it was the Mongols and the Great Wall, or their Red Communist Belt, those in charge always think they have a better vision than the commoner. God forbid you want to practice religion, or read what you want, or speak up…. the commoner will be crushed.

          Liked by 3 people

      • Eric French says:

        I was married to a Chinese woman for 6 years…I fully understand why they can’t innovate…it’s also the reason they are horrible drivers…they simply cannot make executive decisions. They must always “save face”…each and every big decision must be discussed and evaluated by friends, family, or peers.

        And it’s not because they want to come to the best decision, it’s because they don’t want to take the slings and arrows the will invariably come from a bad decision.

        You see, they don’t have any sayings like “if at first you don’t succeed, try try again”, “fall off the horse, get right back on”, “the old college try” in China, you don’t get a pat on the back for making a great effort if you fail…you get criticized, demeaned and worse depending on the nature of the failure.

        I’ve thought about it a lot, and have come to the conclusion, that what’s really beneath all of this is that they simply are not Christian. One of the fundamental underpinnings of Christianity is forgiveness. They don’t have this trait in their makeup. Think about it, won’t you take more risks if knowing that your failure will be forgiven, i.e people will say, “nice try! Try again!” instead of criticizing every move you make.

        In the end, the two cultures are different as night and day and we must always be wary of their intentions.

        Liked by 6 people

  3. OlderAndWiser says:

    Good observation that the President is totally changing the world trade order. He is also changing the world military order – the two are allied.
    The very first step in this strategy was the tax bill which allowed US companies to bring back money into the US, thus facilitating investments in any other jurisdiction, including the US.
    The next step was the escalation of tariffs. China has a trade surplus with the US of about $500B. If both sides enact tarriffs at the same rate (let’s say 25%), the US would be net tariff winner of .25*500 = $125B. PDJT can make a case for using the tariffs to make whole any industries that were impacted.
    The final step is to make sure that no one country can dominate the imports or exports of the US – so the risk is spread.
    In parallel, the US built up its military, and engaged in creating new allies. The alliance with Israel, India, some middle east countries, and the Eastern block were strengthened, while further isolating Russia, NK, Iran, and Venezuela.
    The net result will be a new world order – and the US and democracy will be at the center of it.

    Liked by 6 people

    • Publius2016 says:

      Notice: Russia NK Iran Venzuela Cuba Pakistan Nicaragua and CHINA! its like they already joined forces but 45 is unMasking the Alliance!

      Liked by 2 people

  4. Lou Zimmer says:

    Take care of our hemisphere. Manufacture in the Americas’.

    Liked by 5 people

    • Publius2016 says:

      infrastructure is terrible in Latin America! roads and rails are nearly non existent! water and electricity mostly rationed as well!

      Invest in USA every way everyday !

      Liked by 6 people

      • Skippy says:

        Very true. Latin America has not managed itself well over the century. We spent and spend some vacation time there, but since 2014 just stopped. I think we were not knowledgable as to the risks posed but have wisened up. Sad for South and Latin America.

        Liked by 2 people

        • Ausonius says:

          It is a long sad story, and not easily explained, but countries with Spain or Portugal as their ancestor are not on the same level as those with England. Spain and Portugal have monarchical-authoritarian-dictatorial heritages, whereas the British had weakened the monarchy after the Glorious Revolution in the 1600’s, and continued to whittle away power from the monarch and transfer it to Parliament throughout the 1700’s.

          As a result, the Iberian Heritage is one of not thinking on one’s own much in a civic fashion, of waiting to be allowed to do something, of expecting the “strong man” in charge to handle things, and of obedience to an autocrat.

          It is also an old theory of civilization that advanced civilizations have a temperate climate, rather than a hot and humid one, i.e. the energy level needed for advancement is depleted by the climate.

          Liked by 4 people

          • Publius2016 says:

            private property protections go a long way…

            Liked by 2 people

            • Madhatton says:

              That is the crux . Property ownership . Additionally the iberian conquest was done by the Catholic church . Brutal , unyielding theocracy . No creating independent creative

              Liked by 1 person

              • Dogstar_K9 says:

                You are half right with the Catholic Church as the foundation for South and Central America and Canada, to some degree. The French were generally Catholic but many were considered heretics but that’s for another time.
                The Iberian brutality of which you write is a direct result of throwing the Muslims out. The Inquisition was a response, not a stimuli. The “Latin Effect”, ie, Spain, Portugal, France, Rome influence with a suffering in this world for reward in the Heavenly. Not a great incentivisor.

                Liked by 1 person

          • Beau Geste says:

            Bingo !! Excellent observation and simple non-PC truth.
            It might be added that spanish and portuguese (who created the american slave business) cultures in S,Central America accept political corruption as normal or even desirable. The influx of people from these cultures are at least partially responsible for our current acceptance of much higher levels political corruption

            Liked by 1 person

          • Deplorable_Infidel says:

            “a temperate climate, rather than a hot and humid one”

            Regularly kills off insect pests and does not harbor insidious tropical diseases.

            Liked by 1 person

          • Imapop says:

            “Depleted by the climate”
            Live in Florida. Can confirm.

            Liked by 1 person

          • Eric French says:

            Basically, Spain pillaged the wealth of its colonies, England set up shop in its colonies. Setting up Shop means rules and regulations for running the colonies. So when colonialism reached its conclusion, English colonies were left with functioning well established civil societies, Spanish colonies were left with crap.

            Liked by 2 people

      • formerdem says:

        i live in ecuador and no rationing and lots of new infrastructure going up steadily. lots and lots…


  5. dan understahl says:

    I do not see the U.S. economy slowing. but increasing GDP
    Infastructure and momentum


  6. CountryDoc says:

    Can C explain more clearly the components of the “trap” that VSGPDJT set, and what it means that China walked into it


    • Dallavise says:

      Due to the prearranged trade agreements with our ASEAN allies, it’s actually better for us for China to not take the deal. China will bleed cash, and they cannot out wait PDJT if they dont want their economy to be hurt badly. The trap was that PDJT was ready for this exact move, and it’s nothing but WINNING from here.

      Liked by 1 person

    • PS says:

      While Wall Street is obsessing over tariffs and the inability to import goods from China, Trump’s team has been building alliances with Japan and India.

      So the answer is
      1) build in the US
      2) build in Mexico/Canada and use the USMCA to import
      3) build in an allied country that honors our IP laws and believes in a free society, like Japan and India

      So, China has much less leverage than they think. The US has Buyer Power, we can choose who we buy from, like Walmart or Amazon. They need to sell to us more than we need to buy from them.

      Liked by 3 people

    • Chimpy says:

      The longer that there is is uncertainty between China and the US, the higher the number of businesses that with no longer build or expand their supply chains from China. Instead, they will jump to India, SK, Japan or other countries that Trump has been working with. Eastern Europe also a possible region that will benefit. Maybe even Mexico. And, of course, the best outcome is for those companies to move back home to the US.

      So, the trap is time. The longer they take to conclude a deal, the better for the US.


      • CountryDoc says:

        So China walked into the trap by acting in the most selfish way, without regard to mutual benefit for trading partners, just as it always does. And in doing so not only do they get to pay 25% tariffs, they have allowed our president to level the playing field for other more ethical partners to do business with us

        Now I understand.

        Liked by 1 person

  7. Ken Maritch says:

    Imagine if NoKo made a deal with PDJT/USA, …. they could have won the lottery.

    Liked by 1 person

    • I can see why they held back, especially after what the manchurian lightbringer did to Khadafi.

      Liked by 1 person

      • dollops says:

        Regardless of whom we might blame, it was Khadafi who failed to liberate Libya, so he brought the civil war on himself and his unfortunate country. Giving up nukes had nothing to do with it. The Left’s getting leg tingles over “Arab Spring” abetted those revolutions but shurazell didn’t make them turn out better.


        • Marc says:

          Pretty sure we backed his opposition and ultimately a US/FR alliance of troops rooted him out and threw him to the wolves. If it weren’t for Obama/Clinton/Sarkozy and company, Kaddafi would still be around and not engaged in civil war.

          Liked by 1 person

        • spoogels says:

          I disagree.

          Hillary Emails Reveal NATO Killed Gaddafi to Stop Libyan Creation of Gold-Backed Currency

          Even though he was a dictator, Gadaffi was good to his people.

          Libya: Ten Things About Gaddafi They Don’t Want You to Know …

          1. In Libya a home is considered a natural human right
          In Gaddafi’s Green Book it states: ”The house is a basic need of both the individual and the family, therefore it should not be owned by others”. Gaddafi’s Green Book is the formal leader’s political philosophy, it was first published in 1975 and was intended reading for all Libyans even being included in the national curriculum.

          2. Education and medical treatment were all free
          Under Gaddafi, Libya could boast one of the best healthcare services in the Middle East and Africa. Also if a Libyan citizen could not access the desired educational course or correct medical treatment in Libya they were funded to go abroad.

          3. Gaddafi carried out the world’s largest irrigation project
          The largest irrigation system in the world also known as the great manmade river was designed to make water readily available to all Libyan’s across the entire country. It was funded by the Gaddafi government and it said that Gaddafi himself called it ”the eighth wonder of the world”.

          4. It was free to start a farming business
          If any Libyan wanted to start a farm they were given a house, farm land and live stock and seeds all free of charge.

          5. A bursary was given to mothers with newborn babies
          When a Libyan woman gave birth she was given 5000 (US dollars) for herself and the child.

          6. Electricity was free
          Electricity was free in Libya meaning absolutely no electric bills!

          7. Cheap petrol
          During Gaddafi’s reign the price of petrol in Libya was as low as 0.14 (US dollars) per litre.

          8. Gaddafi raised the level of education
          Before Gaddafi only 25% of Libyans were literate. This figure was brought up to 87% with 25% earning university degrees.

          9. Libya had It’s own state bank
          Libya had its own State bank, which provided loans to citizens at zero percent interest by law and they had no external debt.

          10. The gold dinar
          Before the fall of Tripoli and his untimely demise, Gaddafi was trying to introduce a single African currency linked to gold. Following in the foot steps of the late great pioneer Marcus Garvey who first coined the term ”United States of Africa”. Gaddafi wanted to introduce and only trade in the African gold Dinar – a move which would have thrown the world economy into chaos.

          The Dinar was widely opposed by the ‘elite’ of today’s society and who could blame them. African nations would have finally had the power to bring itself out of debt and poverty and only trade in this precious commodity. They would have been able to finally say ‘no’ to external exploitation and charge whatever they felt suitable for precious resources. It has been said that the gold Dinar was the real reason for the NATO led rebellion, in a bid to oust the outspoken leader.

          So, was Muammar Gaddafi a Terrorist?

          Few can answer this question fairly, but if anyone can, it’s a Libyan citizen who has lived under his reign? Whatever the case, it seems rather apparent that he did some positive things for his country despite the infamous notoriety surrounding his name. And that’s something you should try to remember when judging in future.


          • cali says:

            @spoogles: Nicely stated!

            “We came – we saw – we died” = hahahahaha!

            It needs to be added that Ghaddafi’s gold of 149 tons disappeared and left Libya!

            I’m sure beast HRC could tell us a bit about where it went although I’m sure Huber, the FBI together with their 470 investigative entities investigating the CF will answer that question together with the “Panama Papers’ where the Clinton were a big feature!


    • Eric French says:

      Still can happen. As China bleeds, NoKo will be shopping for a new sugar daddy.

      Liked by 2 people

  8. dallasdan says:

    “It is fascinating how the financial pundits didn’t see this coming.”

    IMO, they saw it coming, but dared not speak or write a word about it.

    During my tenure, albeit a short four years, as an economist at a Wall Street firm, I quickly learned that most of the financial pundits frame their dialogues with the intent of influencing the market in ways acceptable to the investor/trader “big cigars” who manipulate (I chose that word thoughtfully) markets to benefit themselves, and the mega-sized companies/conglomerates that dominate the marketplace.

    A reset with China, for all the reasons cogently explained by SD, is clearly not in the best financial interest of the aforementioned shot-callers.

    Their nightmare is becoming real, and the now frequently used cliche of “trillions are at stake” is money on the table in a high stakes poker game being played this very day. Moreover, every move the President makes is a raise to the pot, and the other players call, bitterly, only because they feel they must stay in the game and, somehow, win to survive. Removing the President via impeachment was their, and China’s, ace in the hole, but it disappeared.

    I anticipate that the President and his trade team will be increasingly abused by the msm, financial media, corrupted politicians, leftist economists, and the Chamber of Commerce, all because his trade policy is MAGA, which is antithetical to a genuine free-market trade philosophy. That is a despicable shame.

    Liked by 3 people

    • dallasdan says:

      ” antithetical to a genuine free-market trade philosophy.” should read…”antithetical to their embracing a genuine free-market trade philosophy.” My apology.

      Liked by 1 person

    • I worked at one of the largest brokerage firms on Broad & Wall…I was in Curaçao when I found out that ML had been bought by BofA!!!…Talk about a shocker. Even then I knew that Wall Street was not going to be the same…I got out just when the market(s) were doing flip-flops and walked out with everything…the others — not so much!!! Spent too much time in shit hole countries not to see the writing on the walls!!!


  9. Palmettoman says:

    According to some, POTUS can walk China right into a trap, but he’s being played by the Deep State cabal like a fiddle.


    He knows what he’s doing on all fronts.

    Liked by 1 person

  10. snellvillebob says:

    One has to wonder if obama, Kerry, Brennan and the gang has been in contact with President XI telling him to just wait out President Trump while $oros and his globalist gang try to crash our economy just in time for the next election. Their platform will be:
    He lied, there is no wall.
    He started a trade war with China with no end in sight.
    The economy is down so he is a failure.
    Oh, and he collided with the Russians


  11. Donzo says:

    Expect PRC to start flexing its military muscle. This loss of face will be need to be addressed. Taiwan is in the crosshairs.


  12. Scott says:

    Trump built up Xi and China in general. Praised him and still does to a degree. He had his granddaughter sing to Xi in Chinese.

    Now, Trump is making Xi look like an ungrateful friend. He is making Xi to be the bad guy when good friends were about to make a deal.

    He’s making Xi look like he has no honor. That’s got to sting.


    • JoeUser says:

      Gotta admit, I wholeheartedly agree. Good catch!

      The only worrying thing, is just how Xi is going to resolve the loss of face? Belligerence? Hopefully not… But, if so, that’ll just embolden the other countries to speed their quest for filling the trade gaps, hopefully.


  13. Perot Conservative says:

    I read an article which says China is in another bind; they need our US$$ to service debt to other countries.


    • thedoc00 says:

      This has been the case for nearly 2 years. The Chinese have been burning through their foreign reserves to prop up their stock market, prop up their financial sector, prop up product sectors of their economy as well as finance some of their foreign promises. Yes, they have a major problem.


  14. The Boss says:

    THIS is a BFD as Sleepy Joe would say. And the timing is nothing short of impeccable.

    Liked by 1 person

  15. From the linked article.

    “A battle on the China front is “the last thing” Apple and the tech sector need as investors “digest these threats from the White House and gauge retaliation impact from China over the coming days”, he said.”

    Sounds like job for their pals at the Clinton Foundation.


  16. spoogels says:

    The elephant missing in the room from the lefties, is China’s human rights abuses against Chinese workers who make all this crap China sells to the West.
    I have read accounts of workers for Apple, some clothing mnfrs, having to work themselves to the bone–long shifts, low pay, harsh taskmaster-SWEATSHOPS
    People who work in shops where they sell this stuff, on unpacking, have found handwritten notes telling of the dire conditions which these factory workers have to endure for a daily bowl of rice and a bicycle.

    Where are the squealing self righteous LEFT now?


  17. William Schneider says:

    I love the picture of Eagle defending the American flag from the dragon . Very great imagery as usual from Sundance. Sundance your analysis of trade game appears right on the money as usual. Wild man Trump appears sharper than his haters ever dreamed possible.


  18. dufrst says:

    Indonesia population 270 million
    India population 1.3 billion
    Brazil population 200 million
    Phillipines population 100 million

    These nations are democracies with growing populations whose labor costs are equal to that of China, if not lower in some instances. The total population of these 4 countries is 1.9 billion. If you threw in Vietnam with its 100 million people (not a democracy), you get 2 billion compared to China’s 1.4 billion. None of these nations individually or collectively have global supremacy ambitions like China does. None are building islands in the South China sea to threaten our Navy. None are coddling a dictatorial regime in North Korea. None are stealing our intellectual property and engaging in cyber espionage against us. So, why are we so wedded to China?

    Time to contain China and adopt a 21st century strategy that doesn’t come at the price of massive trade deficits to obtain allegiance from aligned nations. Trump is forming this new paradigm and while it’s likely he will close the deal with China, there is a small chance China may indeed remove the panda face permanently and formally unveil its global ambitions nakedly for all the world to see and demand nations take sides. It will be interesting how the nations do align in the great superpower rivalry of the 21st century.


  19. pacnwbel says:

    Thank you Sundance for elucidating the situation, which mainstream media seems like a stuck gramophone needle, parroting the same old arguments. I can sleep better tonight, thank you.


  20. seanbrady says:

    Bloomberg just starting to realize this:

    Trump’s Tariffs Start to Look Like Goal and Not Tool for Talks


  21. Bigly says:

    I recall Manning talk of the exact same outcome for Canada.

    Trump is genius.
    Free and Fair trade or death.


  22. A S K says:

    A British gentleman in England questioned me. He said, what is it with Trump no one understands him. I laughed and said, that’s the whole idea. The economically failing news media cannot fathom his knowledge and wisdom, Those that are in the mainstream media can not comprehend and are easily puzzled panicked and confused. They think they know more than the president, and that the American public are a stupid easily manipulated and lied to lot. A newscaster in NYC on nightly television news boasted, “I break down the news that you can understand it”. Ha. What an ignorant arrogant boaster. De Blasio goes inside Trump tower only to be drowned out by loud music and supporters shouting DeBlasio down with “WORST MAYOR EVER”. How true. Now the Brits want a leader like President Trump to lead the UK.


  23. Neo says:

    Well, this explains why Apple moved iPhone X production to Thailand


  24. john lott says:

    Mr Trump also warned them to make a deal before he’s reelected.


  25. Tired of Idiots says:

    As I read the comments by Trump naysayers, I shake my head at their inability to process the complexities of achieving trade balances with international trading partners who are hostile and militaristic in their political ideologies. Those who are critical of Trump do not have his negotiating acumen, nor his moral courage to play the asymmetrical warfare game. They lack the intellectual genius and battle courage that it takes to fight on two fronts, one of which is against your own single-dimensional team mates who really should just go home, hide in their closet, contemplate their navel, and leave the driving to the adults.


  26. Pyrthroes says:

    As aforesaid, our baseline for assessing Trump’s decades-overdue leveraging of U.S. economic potential –innovative, entrepreneurial, free-market risk/reward economies will always outperform ossified rentiers’ dirigiste zero-sum sinkholes– is Henry Clay’s powerful blueprint called “the American System”.

    This never was an over-hyped academic doctrine, but a supremely pragmatic combination of interim protective (not retaliatory) tariffs affecting commerce and industry, funding a National Bank financing low-rate infrastructure projects as investments while broad-based consumption (never income) taxes subsidized cyclical-seasonal food-producers (farmers, fishermen, ranchers) by effectively using futures-options techniques to ensure “ever-normal” supplies met compounding demand.

    Needless to say, 160 years past this ante bellum mix of flexible growth incentives mixed with reduced risk, today’s domestic and global markets differ radically in geopolitical-economic detail. But Clay’s libertarian principles remain intact; and per Trump’s pending discombobulation of Hsi & Co’s wily Oriental gentlemen our VSG may effectively re-institute the very system that set the stage for American peace, prosperity, as a force for good in 1917, 1941, withal in more subtle but no less all-determining contemporary circumstances.


  27. Since Reagan I have wondered why our leaders let this go on for so long. I find this article and trade developments very encouraging.


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