During an interview with Fox Business’ Maria Bartiromo, Commerce Secretary Wilbur Ross notes that companies with headquarters in Hong Kong are likely to rethink those offices with China now taking control under Beijing’s sweeping new security law.
This is a significant statement and underpins the U.S. strategy that is dismantling the Chinese influence on global trade and manufacturing. As Secretary Ross noted: “I believe that there’s a good chance that all companies who have Hong Kong as their headquarters for Asia will begin rethink whether the new rules – the new relationship between Hong Kong and mainland China – whether those rules let Hong Kong be as favorable a place to have headquarters as it used to be.” WATCH (listen closely):
There is a deliberate and blunt focus in the statements by Ross that will have a significant impact. Globally the world needs to accept the future of Hong Kong as a communist state, and disavow the notion of any semblance of an autonomous region. Secretary Ross just threw a bucket of cold water in the face of those who refuse to accept the reality as it exists.
President Trump has been methodically advancing an economic position for several years that showcases a remarkable duality.
On one hand President Trump demands that China increase purchases from the U.S. to offset the trade imbalance; this approach is Trump using a deliberate panda mask and includes praise each time Beijing responds positively. China expected this approach.
However, on the other hand President Trump has been removing the tentacles of Chinese economic influence both in the U.S. and globally. This approach deconstructs the One Belt – One Road plan of Beijing; this approach is Trump using the dragon strategy. China did not see this part coming.
The duality of President Trump’s panda mask and the dragon strategy is very unique problem for Beijing to confront because it is the exact same strategy used by China. By expressing a public panda mask, yet concealing the underlying dragon moves, President Trump’s policy to China is a mirror of their own geopolitical scheme.