An announcement from China on Saturday, pledging a full economic war against the United States, will likely not come as a surprise for most CTH readers. However, it does serve as emphasis for our 2017 statement: “prepare your affairs accordingly“…
When we followed up a few months later with the warning:
“There is no upper limit to the level of economic pain Team U.S.A. (America First) is willing to inflict upon China. There is no ending perimeter of action too far for President Trump to travel. Trump will battle his adversary far beyond traditional horizons and will follow them in retreat if that’s what it takes to ensure the safety of the our economic nation.”
Those words were not written lightly. We accept Trump’s history; we accept three decades of his expressed intent on these issues; and we also accept the historic and cultural position of China which takes us into this conflict. From Beijing today:
China on Saturday said it would continue fighting the trade war with the US “until the end” after the two sides slapped further tariffs on each other’s goods.
The commerce ministry issued a statement calling on Washington not to “misjudge the situation and underestimate the determination of Chinese people” after US President Donald Trump announced new tariffs on Chinese imports. “The US should immediately stop its wrong action, or it will have to bear all consequences,” the statement said.
“China’s will to defend the core interests of the country and the fundamental interests of the people is indestructible, and will not fear any challenge,” the commentary said.
An earlier commentary from Taoran Notes, a social media account affiliated with official newspaper Economic Daily, said China’s countermeasures were akin to a “precision instrument”, targeting industries such as US soybeans, crude oil and cars. (read more)
President Donald J Trump is approaching this geopolitical issue from a perspective of stewardship. President Trump will intensely protect America with the ferocity the same Donald Trump protects his family.
Unfortunately, Beijing has no formative understanding of how intensely this American President views his role of national stewardship. This is not a typical American political adversary Chairman Xi Jinping has ever encountered within the body of U.S. politicians.
President Trump is not a typical western politician from the perspective of self-interest. This president would grind the bones in his own hand to make lady liberty a rib if that was what is necessary to generate a win for America. Believe it.
Adding to the dynamic, 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.
China accepts and believes 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. Flowing between these polar states is a natural dynamic to be used -with serious contemplation- in advancing objectives as needed.
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.
SIMPLY: 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.
Therefore, when you see China publicly use strong language – it indicates a level of internal disposition beyond the defined western angst. Big Panda becomes Red Dragon; there is no mid-status or evolutionary phase.
Every American associated with investment, economics and China would be well advised to accept the dynamic, and put their business affairs in order accordingly.
President Trump will not back down from his position; the U.S. holds all of the leverage and the issue must be addressed. President Trump has been waiting three decades for this moment. Middle-class America has waited decades for this moment. This President and his team are entirely prepared for this.
We are finally confronting the geopolitical Red Dragon, China!
President Trump hasn’t been talking about this for three decades only to put limits on his approach; including daring this economic adversary, China, to strike back by nationalizing U.S. private corporate assets. President Trump is the most accessible and transparent President in modern history… He also doesn’t bluff. Trump may modify or delay based on his oppositions’ counter-moves, but he doesn’t bluff.
President Trump doesn’t apply force, he simply creates outcomes where the best alternative for the adversary is to change their approach according to their own best interests. President Trump positions the location of the interests themselves, he does not need the direct application of force.
President Trump also doesn’t seek to apply force to the mouse running through the economic maze; he simply changes the location of the cheese, and the mouse’s travel responds accordingly.
There’s no limit to the economic squeeze President Trump is willing to apply toward China. The U.S. Treasury, the U.S. Dept of Commerce, the U.S. Dept of State, the U.S. Dept of Agriculture, these are all tools in the sequential approach that are far more powerful than bombs, planes and rockets….
President Trump will use the full measure of economic tools at his disposal.