This is the funniest thing in months.  Take the time to enjoy and laugh folks… Really, take the time.

French President Emmanuel Macron is in Beijing for an official state visit and his geopolitical priority is to break, or at least weaken, the China-Russia alliance. Yes, the western alliance sent diminutive Macron for this task.  That is funny enough… but what comes next is buckets funnier.

In order to give power to their position, the brilliant NATO minds decided that President Macron should take European Commission President Ursula von der Leyen, as a way to express the united ‘western alliance’ message that Macron was intended to leverage in his efforts.  Obviously cunning Panda knew the intent, and the way China literally diminished the effort is not only funny in diplomatic action, but also in the optics they present.  LOOK:

Upon arrival in Beijing, and customary with keeping good panda face, Macron “was given the full red-carpet treatment this week in Beijing, fêted at a state banquet, and greeted by military parades and firing cannons on Tiananmen Square. When Macron’s plane touched down, China’s foreign minister personally welcomed him.”  However, “when European Commission President Ursula von der Leyen arrived, she got the ecology minister — at the regular passenger exit.” [link]

Big Panda is subtle like a brick through a window. lolol.

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The relationship between Beijing and Pyongyang has been obvious since President Trump took office in 2017 and began a series of sunlight diplomacy drops.  What President Trump exposed was the level of control China holds over North Korea.  Essentially, Kim Jong-Un is a hostage to Chairman Xi Jinping with little control over the military aspects of the DPRK.

When this baseline forms the forward analysis, the paradigm of historic western engagement with North Korea takes on an entire new dimension.

If China controls North Korea, specifically the functional leadership within the military, then all military action is essentially not from North Korea’s leader Kim Jong-un, but rather controlled and positioned by Chairman Xi.

As a downstream consequence the issue of North Korean nuclear weapons is essentially moot.  Of course the DPRK has nuclear weapon capability, those weapons would come from China and be controlled by Beijing.

Accept the DPRK as a proxy province to China and the issues look completely different.  We can debate the level of Beijing’s control, but it is certainly evident the military -which is essentially the important part of the DPRK government- receives instructions from China, not from Kim.  Chairman Kim Jong-un is essentially riding a dragon he does not control.  That was the subtle diplomacy visible inside the relationship as expressed between President Trump and Chairman Kim.

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Donald J Trump was the only candidate in 2016 who knew how to use China’s panda playbook against them.  Thus, when you plant your tree in another man’s orchard, don’t be surprised when he charges you to harvest your own apples…

BEIJING (Reuters) – China will lower import tariffs on over 850 products from Jan. 1, including frozen pork and frozen avocado, the finance ministry said.
It will also further lower import tariffs on some information technology products from July 1 next year, said the ministry, in a statement on its website. (link)

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For the past several weeks China has been hoping to divide the trade dispute into two tracks thereby separating trade issues related to U.S. national security.  Beijing wants, heck needs, the simple agricultural trade because they are food dependent and need that uninterrupted.  However, they are strongly opposed to a comprehensive trade reset.
Beijing wants to wait-out President Trump on the more substantive issues surrounding: intellectual property rights; forced transfer of IP and manufacturing secrets; non tariff barriers including limited access to China’s controlled markets; and state run company subsidies that lead to market dumping and saturation.
Along with avoiding legal compliance issues, China wants to carve-out the complex stuff from a simple trade agreement.
However, when asked today about the possibility of carving out a partial deal President Trump emphatically said: “NO”.  During a press conference with Australian Prime Minister Scott Morrison, President Trump said:

“We’re looking for a complete deal, I’m not looking for a partial deal.  China has been starting to buy our agricultural product; if you noticed over the last week, and actually some very big purchases. But that’s not what I’m looking for, we’re looking for the big deal.

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In a quiet admission of food dependency, China purchased 600,000 tonnes of soybeans yesterday (link), and simultaneously announced that U.S. pork and soybean imports would be exempt from further tariff increases.
The surface message Beijing is selling, surrounds their magnanimous panda narrative of reaching out to diminish trade friction.  However, below the surface everyone knows China cannot feed itself,and if food prices keep rising they could likely have growing unrest.

Beijing’s decision to not enhance tariffs of pork and soybeans is very self serving; particularly because China owns Smithfield foods, the largest producer of U.S. pork.  In essence China has lessened tariffs against their own company.

(SCMP) China has announced that it will exclude imports of US soybeans, pork and other farm goods from additional trade war tariffs, opening the door for significant purchases of agricultural products.
The official Xinhua News Agency reported on Friday that China’s National Development and Reform Commission and the Ministry of Commerce made the exemption in response to the US’ decision of postpone an increase in the tariff rate on $250 billion of Chinese goods from October 1 to October 15.

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CTH readers are well versed in the dynamics of the Panda mask -vs- Dragon motives of China.  Therefore we are able to discuss events without the MSM financial filter; which is narrated specifically to the benefit of multinational interests.  Always keep that in mind.

Everything needed to understand the latest panda narrative from Beijing is identified in this simple paragraph:

(Beijing) […] The talks were supposed to have resumed this month but China’s commerce ministry said Vice Premier Liu He, Beijing’s pointman on trade, agreed to October in a phone call with US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin on Thursday. (more)

First, anything from Vice Premier Liu He is panda-speak; he is a tool in the process of Chinese narrative engineering.  All former trade negotiation authority held by Liu He was stripped by Chairman Xi Jinping.  Commerce Minister Zhong Shan is the real voice of Xi and the Beijing authority.
Second, what exactly is Beijing selling?  An “October phone call”…. and that manipulates markets for the multinationals on Wall Street.  A friggin’ announcement of a phone call?
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After benefiting from ridiculous preferential treatment by the World Trade Organization under “emerging nation” status for the past two decades, Beijing now turns to the WTO and files a complaint against the U.S. over recent tariffs and countervailing duties.

The substance to Beijing’s complaint is silly.  China claims there was a “leadership agreement” during the Osaka G20 summit not to apply additional tariffs.  However, the latest round of U.S. tariffs on China were in response to Chinese tariffs applied after Osaka.  Bottom line, Beijing is playing political games.
China, once again playing the wounded panda routine, is trying to set up a narrative that President Trump has broken his word.  That’s the cornerstone of their position, and they know such a complaint won’t go anywhere at the WTO; the complaint is really for the use, exploitation, and consumption by President Trump’s political opposition, domestic and international.  (emphasis mine)

HONG KONG/GENEVA (Reuters) – China has lodged a complaint against the United States at the World Trade Organization over U.S. import duties, the Chinese Commerce Ministry said on Monday.

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Perhaps President Trump has to play the public pretend game to China’s panda mask presentations, but we do not.

The corporate U.S. media are pushing a hard narrative today surrounding claims by Chinese Vice-Premier Liu He and wanting to create “calm” to work in earnest toward a U.S-China trade deal.  However, those who follow the dynamic closely will remember Liu He’s role was changed back in July.  Today’s Panda announcement is pure cunning.
Everything China is doing is intended to make it harder for President Trump to be aggressive in the confrontation:

BEIJING (Reuters) – Chinese Vice Premier Liu He said on Monday that China is willing to resolve its trade dispute with the United States through calm negotiations and resolutely opposes the escalation of the conflict, a state-backed newspaper reported.
Liu, China’s top trade negotiator, was speaking at a tech conference in Chongqing in southwest China, the Chongqing Morning Post reported.

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Well, this will not come as a surprise to CTH readers, but it affirms prior suspicion of Chairman Xi Jinping’s motives and intents in the pre-G20 trip to North Korea.  There is also an aspect to this propaganda highlighting that Beijing actually had this narrative written prior to the outcome, I’ll explain below.

As predicted, China’s state media are proclaiming that Chairman Xi Jinping, playing the role of magnanimous panda, is responsible for the success and restart of the discussions between President Trump and Chairman Kim Jong-un of North Korea:

CHINA – […] Ten days before the Kim-Trump meeting, President Xi Jinping made a historic visit to North Korea, with one of the key aims being to show political support and help North Korea and the US to break the deadlock in their negotiations, Zheng said.
Xi also met Trump in Osaka on the sidelines of the G20 Summit on Saturday, when they also discussed the peninsula issue. Xi has encouraged both Kim and Trump to push forward negotiations and reach an agreement eventually.
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Sometimes we just read and think; sometimes we just read and laugh. This is the latter.
China continually looks at President Trump and the U.S. trade position through the wrong prism. Those around Chairman Xi genuinely seem to be incapable of understanding a U.S. President who independently represents long-term U.S. larger interests, and simultaneously leverages the U.S. market as a customer in a one-sided transaction.
The disconnect in Beijing analysis of the dynamic is really quite something.

After last weeks strategic magnanimous panda maneuver, Beijing was shocked, shocked, that President Trump continued to maintain “wrong thinking” toward the upcoming discussion with Chairman Xi.
It appears China fully expected some reciprocal trade bargaining based on their implied promise to release North Korean Chairman Kim Jong-un from manipulation; but Trump didn’t flinch.  Instead, of acquiescence to magnanimous panda, President Trump sends Chairman Kim a letter filled with “excellent content“. Beijing was snubbed.
So yesterday as a follow-up Beijing indicates a willingness to revisit the prior agreement by putting the face of Vice-Premier Liu He back into their negotiation position:
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