Beijing Begins Predictable Totalitarian Response…

All your interests are belong to us…. There was previous discussion of how Beijing would respond if/when their economic interests were challenged. In essence, the prediction was that China would drop the panda mask and revert back to their oppressive totalitarian tendencies.

It is an interesting dynamic because the more the communist state moves to punish and control western business interests, the less likely any western investment flows into China. It’s a simple question: Why would anyone want to engage a business relationship inside a totalitarian system that could move at any moment to control your business?

(South China Post) China will publish a list of “unreliable” foreign entities deemed to have damaged the interests of Chinese firms – a move set to ratchet up tensions in its escalating conflict with Washington, after the US government blacklisted Chinese telecoms giant Huawei.

The Ministry of Commerce said on Friday that it would blacklist foreign businesses or individuals that violated market rules and contractual obligations, or took “discriminatory measures” to hurt Chinese business rights and interests, as well as national security and interests.

Specific measures for those on the list would be revealed “in the near future”, said ministry spokesman Gao Feng.

Gao said the “unreliable” blacklist would be based on China’s foreign trade, anti-monopoly and national security laws, and it would target entities that had blocked Chinese businesses out of non-commercial concerns. (read more)

The Red Dragon is going to do what the Red Dragon does.  Thus begins the phase when corporate interests, particularly multinationals, recognize at its core China is a communist state-run, controlled-market, system.

The reaction from China is immensely predictable; and creates a downward spiral.  If any corporation is perceived as working against the interests of the state; the state will take control of the corporate interest.   What western business interest would want to do business within China when that reality is the landscape of every economic decision?

The willingness of China to self-immolate is the golden arrow in President Trump’s economic quiver.  The inability of China to modify itself based on downstream economic outcomes is the inherent weakness… Overlay that weakness with the zero-sum outlook and you get this quote from Chinese State-Run broadcast:

…“If the US wants to negotiate, our door is open. If you want to fight, we will fight to the end.”…

Think about the logical reality of this statement as expressed.  Put another way: ‘if you agree to our terms we will work with you; however, if you don’t agree to our terms, we will self destruct.’  That’s the economic reality of the zero-sum dragon mindset.  This inevitable position is what CTH has been outlining for several years.

China has no cultural or political space between peace and war; they are a historic nation based on two points of polarity.  They see peace and war as coexisting with each other.

Chinese engagement stems from a belief that opposite or contrary forces may actually be complementary, interconnected, and interdependent in the natural world, and they may give rise to each other as they interrelate to one another.  However, it must benefit China. 

Peace or war. Win or lose. Yin and Yang. Culturally there is no middle position in dealings with China; they are not constitutionally capable of understanding or valuing the western philosophy of mutual benefit where concession of terms gains a larger outcome.  If it does not benefit China, it is not done. The outlook is simply, a polarity of peace or war.  In politics or economics the same perspective is true.  It is a zero-sum outlook.

As soon as an internal business interest, or an affiliated business relationship, is considered to be a compromise or loss to Beijing, the enterprise is destroyed.

Who decides? The communist regime.

Thus President Trump only has to position U.S. policy to benefit non-engagement with China (see Huawei); and China will respond by destroying any affiliated business they view as participating in, or supporting, the adverse policy. Beijing cannot help itself. The dragon will act as a dragon will act.

President Trump has positioned this geopolitical trade reset perfectly.  Trump is applying Chairman Xi’s own “us -vs them approach” toward confronting China. The supply chain investment Beijing needs to sustain itself is now being controlled by elements outside China.  Beijing responds by attacking those in the international community who control the investment.

This will not end well for China.

Watch as time goes along and more companies, and nations, slowly walk toward the exits with China.  There is just too much inherent financial risk.

This entry was posted in Auto Sector, Big Government, China, Communist, Decepticons, Deep State, Donald Trump, Economy, media bias, President Trump, Trade Deal, Uncategorized. Bookmark the permalink.

280 Responses to Beijing Begins Predictable Totalitarian Response…

  1. livefreeordieguy says:

    “This will not end well for China.” … I would agree, Sundance, presuming President Trump wins a second term. If not, I am not so sure…

    Liked by 2 people

    • 🍺Gunny66 says:

      I would assume also, that any political individuals on China’s payroll, and now not providing benefits to China, will soon, if not already, loose their Chinese pay check.

      Just listen to the ones that scream the loudest. They’re in China’s pocket

      Liked by 11 people

    • Carrie2 says:

      SD, in other words China is at war with itself and something to that effect only leads to losses and no gains.


    • Jake says:

      China just issued a statement threatening Canada to stop cooperating with the USA or else.
      With the opposition attacking Trudeau for doing nothing while China punks him.

      Liked by 3 people

      • TheLastDemocrat says:

        I believe China has been pulling their strings all along.

        The SJW and PC was to make all government actions be unopposed, due to their apparent “virtue.”

        Liked by 2 people

      • Mom4Trump2020 says:

        Isn’t that extremely dangerous for us on their southern border? If China has the run of Canada, that’s awful close.


        • Dekester says:

          Millions of everyday Canadians have witnessed the Chinese takeover of Canada for decades.
          Google the City of Richmond B.C. if you do not already know of it. The City is the home of YVR Vancouver B.Cs International airport.
          Richmond is essentially a Chinese enclave.

          As is often stated on this site, it is always about the money. Many of us have done fabulously well financially as a result of astronomical rises in real estate values.

          All because of successive governments, regardless of party. Being bribed, and bribed Bigly..By foreign entities. It must be remembered that our PM Trudeau was aided by Obama,David Axelrod and Soros in his election.

          The party is likely over for a while and this will not end well for us in Canada.

          God bless PDJT

          Liked by 6 people

      • Mark McQueen says:

        “Or else”… Canada will have to “save” itself by choosing better long term trading pardners.


      • mike says:

        British Columbia has a huge Chinese immigrant, new citizen population, so there’s that too.
        Even if the Canadian Chinese don’t like Xi et al, mainland China is adept at extortion of families. One can even posit individual Falang Gong immigrants being coerced by threats of organ donation from family members still there.


      • sturmudgeon says:

        jake.. are you in Canada? If so, what sort of mood is becoming apparent in the Province of Ontario” Does it look feasible that ‘socks’ will be ousted?


    • Rob says:

      Unless the election is totally rigged (it won’t be) there is nearly a 0 chance that Trump isn’t reelected. this Impeachment crap is going to WRECK the Dem party. Even a CNN poll shows that 61% of Americans polled are AGAINST impeachment. That means that the real number is probably closer to 80%

      Liked by 2 people

      • genjake says:

        Remember the Hillary polls… Don’t get cocky just yet.


        • kathyca says:

          The polls are unreliable in opposite directions for progs and conservatives. You can always add +10-15 to the conservative side or subtract the same from the prog side. Never the other way around. The pollsters are like the media. They will never show a pro conservative result unless there is no avoiding it.

          Liked by 1 person

      • Supertalk says:

        What will we do when millions of illegal aliens that have been strategically located in red States show up to vote in our national election next year? AFAIK, Nothing. We are NOT prepared to stop them. They can and will vote in the ‘Swing States’ that Trump barely won in 2016. Dems only need 100,000 vote shift over 4 key states if we look at the numbers.


    • Apple now has $225.4 billion cash on hand. Perhaps they out use it to tool up outside of China.


  2. George says:

    Remember in the 80s when all companies had to divest of any investment in South Africa due to Apartheid? Why doesn’t the same standard apply to China which kills baby girls and families with more than one child? I don’t care to buy one more thing from that horrible country, and I will pay more for items which are made in this country. I am sick of all things being decided on the “cost to the American people.” They wouldn’t have to spend so much re-buying the same items if they were of the quality of Made in USA products that we had in the 60s.

    Liked by 16 people

    • Austin Holdout says:

      I agree George.

      There is another issue with our dependence on cheap Chinese goods that I feel like that does not get any press. Why aren’t the tree hugging, global warming hoaxers screaming about ACTUAL, CURRENT AND MEASURABLE environmental impact and long-term insustainability of the wealthiest countries in the world having more than half of their consumables being shipped across our oceans powered by combustion engines burning fossil fuels? If we’re really worried about our planet (apparently we aren’t), why aren’t we striving to have consumables made as close as possible to the consumers? Obviously, some countries can’t grow pineapples or soybeans, but the cheap Chinese “Happy Birthday” banners and plastic toys that break after one use can be made anywhere.

      Liked by 1 person

    • Stephen Gordy says:

      Gee, I remember way back when we had to walk on egg shells because of our concerns over the ‘Arab Street’ reaction…


    • Larry Charles says:

      The standard doesn’t apply to China because no blacks are involved.


  3. A2 says:

    Anyone reading here have business in China. Read this.

    “Want to Keep Your Business in China? Do These Things NOW”

    China lawblog: “We discuss the practical aspects of Chinese law and how it impacts business there. We tell you what works and what does not and what you as a businessperson can do to use the law to your advantage. Our aim is to assist businesses already in China or planning to go into China, not to break new ground in legal theory or policy.”

    Liked by 1 person

  4. citizen817 says:

    Liked by 1 person

  5. I heard from a friend coming back from Communist China that corporations that move out are not allowed to take their machinery with them. Does anyone have more on this? Seems it is a non starter for business to even invest in Communist China.

    Liked by 4 people

    • SSI01 says:

      It would make sense since all truly important industry is nationalized in China. They make a show of “privatizing” it. An example is COSCO (China Overseas Shipping Company), which also does ship repair and construction. Technically it’s got a president and board of directors like any western business; in reality every single one of these guys is either a part of the Chinese Communist Politburo or a relative of someone who is. The company sends its profits right back to the party, after those running it take what’s needed to fund their opulent lifestyle for foreign news consumption. But it’s all nationalized. Most American businesses doing business over there are too stupid or naive to believe the ChiCom govt would actually seize their plant and at the same time evict all American or other foreign staff. I guarantee you they would, they already have.

      Liked by 10 people

  6. SSI01 says:

    I don’t know why this is such a shocker to people. We don’t study or teach history in this country any more. They were talking like this in the late 40s after kicking Chiang Kai Shek onto Formosa and they’ve never really let up. We were in a hot war with these guys when I was born in ’53 and it’s waxed hot and cold since then. One thing about Trump – he forces nations, national leaders, politicians in both parties here in the US – to show us exactly what they are behind their carefully crafted facade. He’s doing a national service for us. Too many ignorant people running around here.

    Liked by 17 people

    • Dekester says:

      Great post SSIo1,

      A Canadian Chinese guy I am friendly with. Whose 100 year old mother stil lives in Shanghai.
      Owns property on a resort island that is located somewhere between the Mainland and Taiwan.
      He told me just last week that he is selling some of the said property. Tension are a building. One of the sad things about your MSM and their obsession with PDJT hating, is their lack of interest in International news. There is some serious sh*t going on.

      Your President is truly one for the ages.I am blessed to be alive to witness all he is doing.

      God bless PDJT

      Liked by 11 people

  7. zaq123 says:

    If what is being written in the article is true, this is a good thing. Some of the multinationals, that have heavy, heavy investment from Wall St will realize that it’s time to clean up the pack the tents, clean up the campsite and move someplace else. They might realize that, although they’ve been making money for years with these frauds, they’ve been puppets to the communists for quite some time. Useful idiots, as they say.

    Liked by 2 people

  8. J says:

    Sundance has an understanding that seems to elude most people…and yet explains it in such a way that one can see what is presented as clearly as seeing a photograph…even I get it and most of this kind of thing just escapes me. The important thing is that President Trump knows the game and how to play it to America’s advantage. Our allies would be wise to stay close and learn from the master because it will take all of us together to deal with China, Russia, North Korea to start with and have it carryover to the Middle East and South America. And each freedom loving independent country must be strong in its own right…not cowed down by globalists.

    Liked by 4 people

  9. dallasdan says:

    SD’s masterful integration of political and economic constructs makes reading his business-related articles equally educational and enjoyable. The quality of his scholarship and the pragmatic application of it in the real world ought to be the basis for numerous international business cases at leading business schools, but to do so would be highly complimentary to the President. Hence, I suspect that a great educational opportunity is squandered as a result of academia’s resentment of all things MAGA.

    Fortunately, TCTH is an intellectual oasis for us.

    Liked by 6 people

    • USTerminator says:

      I am not sure about “Fortunately, TCTH is an intellectual oasis for us”. This site seems to get high profile lately by mention on the Press. I would not be surprise if President Trump himself reading this site.You never know.


  10. signreader says:

    America is between rock n hard place, half of America’s i.e., the socialist Bernie crowd on left is Chinese communist sympathizers philosophically. Americans need to cleanup the house here too.
    Just look Trump is fighting on so many fronts, Mexican communist president, the Dimms, Congress, Iran, Markel freeloaders a long list! Hope he gets to make the case to at least majority..

    Liked by 1 person

    • M. B. Lamar says:

      Sympathizers, true. On the Chinese Communist payroll, likely if not outright known, as is the case with the Bidens, McConnells, Feinsteins.

      Liked by 3 people

    • JoAnn Leichliter says:

      Mexico has a very long Communist history. Starting early in the 20th Century, Mexico was a Communist country in which the Catholic Church was quite ruthlessly suppressed (for an idea of what that was like, read Graham Greene’s powerful novel, The Power and the Glory). The vestiges of that time remained well into the second half of the 20th Century, legally speaking.


  11. Pyrthroes says:

    In the intermediate term, say through 2022 – ’24, we expect a post-Postwar transitional phase from ruling Statists’ “zero-sum” dirigiste Grand Theft manipulations to classic liberal (Locke and Milton, Adam Smith and J.S. Mill et al.) “efficient markets” reconciling supply-and-demand to mutual benefit via competitive risk/reward incentives, comparative advantage, marginal utility, as determined not by muling, puking Commissars but by consumers’ qualitative preference.

    All politics is economics, but not all economics is politics. Over some 250 years from the Enlightenment, these efficacious principles have proven out in practice to the point of becoming virtual cliches. Governments produce nothing, but critically stabilize anarchic domestic sectors while keeping barbarians at the gates of City/State. Alas for liberty, this peace-keeping/national security function tends inherently to despotism, devolving light-handed but necessary societal defenses to destabilizing, sordid special-interests empowered by brute force.

    In context of Hsi’s “5,000 years”, this New World’s brief but entertaining run from 1620 – 1787, then 1788 – 2019, is lookin’ good “If (we) can keep it.” “Better fifty years of Europe than a cycle of Cathay” (Tennyson, “Locksley Hall”, pub. 1842).

    Liked by 2 people

  12. Father of 3 Gen Zers says:

    President Trump took the high ground with China. At first showing respect and alignment with them as coequals on the world stage. He then asked to be treated fairly after years of China’s unfair treatment to America and her companies. China appeared to negotiate in good faith. Then at the eleventh hour pulled all agreements off the table expecting capitulation (past presidents). Not this President. They now are exposed and the world saw their true nature. POTUS owns the high ground. Complete loss from China.

    Liked by 7 people

    • apotheosisfail says:

      Agreed. I would add that It appears the Chinese strategy was predicated on the successful nullification of POTUS by the Mueller Report, or at least a weakening of POTUS’s America First agenda with the prospect of looming impeachment based upon said report. This was never a Chinese long-game, but a very short one, which once implemented, was intractably committed to. It could not be backed out of. There was no Yin/Yang in this. It was a Western style scheme that failed. It can be added to the list of Great Uncovering of facades POTUS is currently doing on all fronts.


  13. TradeBait says:

    When leaders of nations become fearful, they can react poorly and dangerously. In this case, Chinese military will cause damage to neighbors as well as strategically implement tactical events throughout the world through the traitorous Chi-Coms. Our military will have countermeasures in place with programmed responses and attacks of their own. As freedom loving citizens we have to always remember that others may not think and act the way we do. We know freedom comes with a price of blood, just as it did for eternal freedom on the Cross. So the crumbling of China from within will likely bring a chain of events that pushes them to take rash actions to preserve power. There needs to be a large consolidation of opponents to communism developed within the beast to swiftly assume control when the time comes.

    Liked by 3 people

  14. Ausonius says:

    Two points of emphasis: China is not – and has not been – a free country. Religion is constantly under attack, whether Catholic, Protestant, or Moslem. Freedom of Speech does not exist, along with other basic freedoms.

    The investment made in China by supposedly American companies in the past decades has been incomprehensible to me, because, given that China is not a free country, confiscation of all private property has always been a possibility..

    So if Apple or General Motors or any other idiotic company loses control over their billions in China, two words: NO BAILOUTS! As they told Super Chicken: “You knew the job was dangerous when you took it!” 😉

    And have we been doing anything to support an anti-government revolution? I can guarantee that such forces exist, at least among the dissident underground churches. I would hope that we are supporting anti-Communist forces in China, but I can imagine that under MAObama any such activity was either reduced or stopped completely.

    Liked by 1 person

  15. litlbit2 says:

    Another fine article by our mentor. I am impressed how Sundance described the China mindset as he also gave the perfect description of the DNC, MSM, GOPe and labor unions.

    Without President Trump/MAGA these exposures would still be hidden and the forty years of rinse and repeat would continue with “the boot on the neck of the Forgotten Man.

    2020 get’em out!

    Liked by 2 people

  16. litlbit2 says:

    Another fine article by our mentor. I am impressed how Sundance described the China mindset as he also gave the perfect description of the DNC, MSM, GOPe and labor unions.

    Without President Trump/MAGA these exposures would still be hidden and the forty years of rinse and repeat would continue with “the boot on the neck of the Forgotten Man.

    2020 get’em out!


  17. omyword says:

    China plays the game it all or none at all. Thus the dragoon has donned its blinders and walks in the inevitable path of rhe dodo bird.


  18. omyword says:

    China plays the game it all or none at all. Thus the dragoon has donned its blinders and walks in the inevitable path of the dodo bird.


  19. ATheoK says:

    Excellent summation of China’s business view, Sundance.

    “All your interests are belong to us”

    What is missing in this context is how China’s machismo honor system comes into play.

    Like every communist organization, goals are assigned top down.
    Goals, economic, business, production, revenue,etc. are all top down assignments and bound to the honor of the communist responsible.

    Remember the Melamine/milk Chinese debacle? Where to meet increased production targets and for the men in charge to maintain their ‘face’ in the communist party, they started adding waste melamine from plastics manufacture to the raw milk.
    Higher goals? More melamine added.
    Why not!? Otherwise, they were just dumping the melamine wastes into the local streams/rivers/lakes.

    All of China’s business goals are assigned from the top down.
    China’s politburo will use failures to meet production or revenue goals by cleaning house of supervisors/managers they dislike, while Premiere Xi Jinping will rearrange the politburo at the same time.

    If this becomes a multi-year trade battle between USA and China, (with other countries joining over time); China will not take their declining profits well.
    Top down management has a very harsh view business declines over quarters or worse, years. Their responses within their business chains will be draconian.
    Keep in mind, that when business gross profits decline, costs within the system are throttled, e.g. wages, output per person, component quality, etc. until a semblance of profit returns.
    All while year over year goals are increased, never reduced.

    Communists have a hard time allowing anything to leave their control.
    Any business, manufacturer, whatever that even considers leaving China is likely to lose everything. Machinery and intellectual property will be seized.

    Like so many issues, the last Western companies under China’s control will be hit the hardest. As Western companies first begin to slip their experts and expertise out of the country they will meet some success.
    The remaining companies will likely see their experts held until China extracts every last bit of knowledge.
    They’ll also learn that many of their Chinese workers have been carefully observing and documenting company staff, knowledge resources, communications and behavior.

    Liked by 3 people

  20. Graham Pink says:

    The Chicoms would happily murder every last Chinaman to retain power.



    It is galling that so many of the talking heads on MSM are willing to take China’s side in this dispute even though it is an adverse position to US interest. They are willing to back ANY position so long as it is ANTI-TRUMP.
    We are in a “trade war” with China primarily because they would not agree to stop stealing from us!!
    They ANTI-TRUMP position therefore is “let them continue to hack and steal so long as we keep getting cheap consumables”. This is INSANE.

    Two Chinese Hackers Associated With the Ministry of State Security Charged with Global Computer Intrusion Campaigns Targeting Intellectual Property and Confidential Business Information
    Defendants Were Members of the APT 10 Hacking Group Who Acted in Association with the Tianjin State Security Bureau and Engaged in Global Computer Intrusions for More Than a Decade, Continuing into 2018, Including Thefts from Managed Service Providers and


  22. Vince says:

    We need a different kind of corrupt polititian, who is in the back pocket of India.or Vietnam.


  23. Monticello says:

    Japan in the 1930s comes to mind. Economically President Trump has set us and the world up for a big win. How will China respond when they realize their own system is their downfall? Escalation? If they delay then they become North Korea.


  24. Leon Berton says:

    The evils and injustices the brutal tyrannical regime in China has done to the United States and many other countries almost pale in comparison to the evils it imposes on the peoples subjected to it.


  25. “Globalism,” in a great many ways, has always meant “China.” Communist control over the labor force in every way. Smiling as though they really were friends. How did the world forget that this is the nation that WROTE “The Art of War?”

    “What FOOLS these Western Mortals be!” – Chiang Chi Puck


  26. Rick Myles says:

    China is playing for time hoping Trump loses re-election in 18 months. They will give him nothing unless he is re-elected. Then China will have to make a deal on Trump’s terms. But the massive vote tabulation fraud that will be employed by the Dems (with globalist GOPe backing) will make it very hard for Trump to win re-election despite what the majority of voters may want. Let’s be real in acknowledging this. I don’t see any effort by the RNC to fight vote manufacturing/tabulation fraud. Notice 2 days after election day how the Dem election officials were still “finding” 10-90,000 “uncounted” absentee and provisional ballots that “must be counted” in various districts. Fraudulent ballots. Did GOP scream? Nope.


  27. mtnforge says:

    It’s pretty funny. Back in the 70’s when China began to open to western economic activity, they where not much of a 1st world State, then since those early days, investment flooded in by the trillions.

    Sounds pretty obvious right?
    Like without this influx of capitol they would not be an economic player of the 1st order internationally.
    So far so good right?

    Now just where do the Chinese think all that wonderful Western White Hemisphere money is going to go once they have alienated that White Western Hemisphere?
    I mean, it ain’t rocket science.

    I know I know, totalitarian’s, they have to save face or their illusion of power and legitimacy is replaced with reality.
    Hey! Kind of like the deep state. In order to hold power it must project an illusion it is legitimate. And in order to maintain that illusion of legitimacy it must control economic activity with an iron fist, even if it means destroying that economic activity.

    Mr. Trump is a brilliant strategist. Without fail or fear he has gone after the jugular of the worlds elitist tyrants, right where it hurts them and exposes their evil against us dirt people. Followv the money and hit them in the Swiss and offshore bank accounts by denying their take of the organized crime syndicate posing as governments.
    Eliminate the wealth strip mining operations they created to steal the wealth dirt people create, the only source of wealth creation, hard work which creates something tangible where no wealth existed till somebody used elbow grease and sweat to make it. The only place wealth comes from. Everything else is an act or rule that takes from the productive.
    It is really that simple.
    Don’t let any one BS you about it. Ask them to prove otherwise. Guarantee you they can not.
    But they sure will come up with a lot of chin music.
    Like the Chinese here in this article.
    Or the deep state and their swamp ilk about immigration and open borders.
    Funny how that works isn’t it.
    The last thing any of these actors wants is unfettered free economic activity where they can not reach into our wallet and steal our wealth we create.
    Gold standard, ie tangible backed specie and currency.

    It is why they invented the Fed Reserve, which is neither, along with the IRS to get its greasy meathooks on your paycheck before you do. The root of all wealth transfer schemes and operations. Including off shoring everything.

    Bravo Mr. Trump!


  28. Jan PT says:

    I think a brief reference to Ju-Jitsu vs 3D chess might hsve been in order; the Chinese can not play chess, as it often involves sscrifices. Presidrnt Trump was born on a chess board, and has since never stopped learning.
    Ju-Jitsu is about using the opponent’s inertia against him, like Judo, but also kicking him where it hurts…which brings us back to chess.
    Nobody can convince me that the President does not both instantly intuitively see the solutions in these multidimensional quandaries, but also plots and plans his responses flexibly with his like-minded team.
    I am a field archaeologist, it is similar, plannjng the site campaigns.


  29. Jan PT says:

    *forgibe typos, late night in Como, Italy, and a skanky keyboard…


  30. SwampRatTerrier says:

    Silicon Valley is going to take a Huge Hit from this.


    • SwampRatTerrier says:

      Those are some of the 300 HQ employees Ebay had to let go last year.

      How many special visa employees (slaves) does Ebay have?


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