HatTip to Ben for calling attention to this remarkable story.

Essentially China’s “Belt and Road” initiative is a system of China putting massive infrastructure investment funds into a targeted country in exchange for their ability to extract resources needed for Chinese expansion. However, several nations are now rising up against the Chinese influence as it surfaces in the lives of the citizens.

Angola is a case study in China investing billions and with the investment a large number of Chinese citizens arrive set up businesses there.  Over time resentment against the Chinese has been building.  Then a flashpoint with a massive jump in gas prices.  Suddenly, anarchy erupts, and all the Chinese businesses are looted, some even killed in the violence.

[READ STORY HERE]

China is now evacuating some of the 300,000+ Chinese citizens from the region, and the Chinese embassy is urgently warning people about the escalating crisis.

Remember when Tunis erupted at the origin of the “Arab Spring”?  That was a combined economic and cultural flashpoint. This escalating problem in Africa has a similar theme to it.

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U.S. Customs and Border Patrol has discovered a massive network of Chinese shell companies, set up in Taiwan, South Korea, Vietnam and Indonesia, specifically to avoid U.S. tariffs.

…”Investigations into transshipping are ongoing, the CBP tells FOX Business with monetary recovery likely to grow beyond $400 million”…

Up to 250 shell companies have been identified in the Beijing network with boots on the ground going to look at manufacturing facilities in Southeast Asia that have no manufacturing activity, yet they generate products for shipment to the USA.

CBP is now on the trail of what CTH identified in January of this year with a visit to Vietnam {GO DEEP}.

ASEAN NATIONS – U.S. Customs and Border Protection has busted up a duty-evasion ring attempting to evade President Trump’s tariffs, FOX Business exclusively reports. 

The CBP uncovered over $400 million in unpaid trade duties through investigations permitted under the Enforce and Protect Act (EAPA), a tactic used to police and stop illegal transshipments and other methods aimed at defrauding the U.S. government. That figure is expected to rise as the investigation deepens. 

[…] A source tells FOX Business’ Edward Lawrence that one of the operations had boots on the ground in Taiwan and Indonesia to look at mattress factories and found that there was no production going on. 

Additionally, over half, or $250 million, came from a network of 23 Chinese shell companies which funneled repackaged goods as if they were made in Asian nations, including South Korea, Indonesia and Vietnam, to avoid tariffs.  (read more)

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In a series of announcements, the Trump administration has retriggered the suspension of the de minimis exemption which will begin tariffs on imported small shipment foreign goods globally and from Canada, Mexico, China and Hong Kong specifically.  {SEE HERE}

The suspension of the de minimis exemption means direct to consumer product shipments valued under $800 will again be subject to tariffs.

Additionally, President Trump has triggered a 50% tariff on imported copper except for those nations who have a free trade agreement in place for their copper component goods.  {SEE HERE}

WHITE HOUSE – STRENGTHENING AMERICA’S COPPER INDUSTRY: Today, President Donald J. Trump signed a Proclamation to address the effects of copper imports on America’s national security, including by imposing tariffs on several categories of copper imports.

• The Proclamation imposes universal 50% tariffs on imports of semi-finished copper products (such as copper pipes, wires, rods, sheets, and tubes) and copper-intensive derivative products (such as pipe fittings, cables, connectors, and electrical components), effective August 1.

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U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer hold a joint press conference in Stockholm after concluding the third-round of trade talks with Chinese officials.

The discussion and press availability covered U.S-China trade negotiations, economic cooperation and whether President Trump will meet Xi Jinping. Key moments include questions on tariffs, supply chains, and Beijing diplomacy. WATCH:

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Treasury Secretary Bessent notes as the U.S. economy continues strengthening, and as each trade deal with the U.K, Japan, ASEAN nations and Europe have cemented, the talks between the U.S. and China become more substantive.

With each global trade partner agreeing to terms of access to the USA market more pressure is naturally created on China to complete negotiations and affirm their position as supplier to the world’s largest market.

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Secretary of State Marco Rubio speaks to reporters at the conclusion of the ASEAN Summit in Kuala Lumpur, Malaysia. While the topic of trade and tariffs was not the intention of the assembly, the issues around trade with the USA and tariffs was obviously of keen interest.  WATCH:

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White House Trade and Manufacturing Advisor Peter Navarro talks about how the Fed monetary position is lagging with the intent of Trump’s MAGAnomic policy.  In the short review, Chairman Jerome Powell is approximately 0.50% in rate cuts behind the growth plan of President Trump.

Peter Navarro notes this disconnect is politically motivated when viewed through the window of hindsight.  Navarro is correct.   CTH has been outlining this economic policy and monetary policy disconnect, specifically as it pertains to President Trump’s Main Street focused agenda, for almost a decade {GO DEEP}.

Additionally, in many ways the Trump tariffs are the reverse of decades of ‘exfiltration’ of American wealth. Just as there was a shift when the value of the Wall Street economy surpassed the value of the U.S. Main Street economy, the politicians began responding to their new donors, so too is the Fed reluctant in reverse focus and advance the agenda of Main Street.  WATCH:

Here’s the key – The DC challenges are not overwhelming when you take a non-traditional approach toward finding solutions.

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The details within the trade agreement are unique.  President Donald Trump has announced a trade agreement between the USA and Vietnam.  Interestingly Vietnam will face a 20% tariff rate (baseline) and a 40% tariff rate on transnational shipping.

The 40% transnational shipping rate is an interesting approach toward the process of China shipping goods to ASEAN countries to avoid direct tariffs. A transnational shipping tariff is a practical, pragmatic and honest way for the USA and Vietnam to face each other economically without masks and pretenses.

PRESIDENT TRUMP – “It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam. It will be a Great Deal of Cooperation between our two Countries. The Terms are that Vietnam will pay the United States a 20% Tariff on any and all goods sent into our Territory, and a 40% Tariff on any Transshipping. In return, Vietnam will do something that they have never done before, give the United States of America TOTAL ACCESS to their Markets for Trade. In other words, they will “OPEN THEIR MARKET TO THE UNITED STATES,” meaning that, we will be able to sell our product into Vietnam at ZERO Tariff. It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam. Dealing with General Secretary To Lam, which I did personally, was an absolute pleasure. Thank you for your attention to this matter!”

CTH was in the manufacturing base of Vietnam in January; their factories are loaded with component parts from China used to produce finished goods sent to the USA (and globally).  President Trump previously told Vietnam they need to reduce their reliance on Chinese imported component goods, but China has spent billions in advanced positioning and contracts, influencing Vietnam.

Vietnam is a very poor country, and their population cannot afford to purchase the products they manufacture.  They do not have a domestic consumption base. They are reliant on exports to more wealthy nations to keep their manufacturing base afloat.  Practically, it is easy to have sympathy for Vietnam due to their economic dependence on both China (for imported raw materials) and the USA (for exported finished goods).

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GE Appliances is a subsidiary of the Haier company, which is based in China.  Most people do not know that.  GE Appliances are Chinese appliances.

The recent headline about GE Appliances moving their production from China to the USA (Kentucky), is simply an outcome of the need for GE to avoid steel, aluminum and reciprocal trade tariffs.  This is not complicated.

FOX NEWS – GE Appliances on Thursday said it would spend $490 million to move the production of most of its washing machines from China to Kentucky.

The operation will move to the company’s massive industrial Appliance Park headquarters in Louisville, Kentucky, where it already manufactures washers and dryers. At least 800 new full-time jobs are expected to be created, the company said in a news release.

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Things are getting very interesting as the clock ticks toward the end of the USMCA trade agreement.

Almost no one is watching the USMCA element because it quietly exists only in the background of events. However, pay close attention to the ancillary stories because they will eventually merge with the end of the USMCA and two bilateral trade agreements between the U.S-Canada and the U.S. and Mexico later this year.

NATO funding and Canadian economic independence, and by extension the EU and China, comes into the northern agreement.  Border security and Mexican economic independence, and by extension immigration and China, comes into the southern agreement.  The strength of MAGAnomic policy flows directly through both.

In the quiet sphere, a few days ago Treasury Secretary Scott Bessent, a key player in the trade program, announced sanctions against three Mexican financial organizations that underline the influence of the Mexican cartels and the Mexican government. [Treasury Announcement Here]

“The U.S. Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) issued orders identifying three Mexico-based financial institutions—CIBanco S.A., Institution de Banca Multiple (CIBanco) [ORDER HERE], Intercam Banco S.A., Institución de Banca Multiple (Intercam) [ORDER HERE], and Vector Casa de Bolsa, S.A. de C.V. (Vector) [ORDER HERE]—as being of primary money laundering concern in connection with illicit opioid trafficking, and prohibit, respectively, certain transmittals of funds involving CIBanco, Intercam, and Vector.  These orders are the first actions by FinCEN pursuant to the Fentanyl Sanctions Act and the FEND Off Fentanyl Act, which provide Treasury with additional authorities to target money laundering associated with the trafficking of fentanyl and other synthetic opioids, including by cartels”. (more)

Mexican President Claudia Sheinbaum is furious. “The Treasury Department hasn’t provided a single piece of evidence to show that any money laundering was taking place,” she said. “We aren’t going to cover for anyone, there isn’t impunity here. They have to be able to demonstrate that there was actually money laundering, not with words, but with strong evidence.”

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The former Diversity, Equity and Inclusion Director for New York Governor Andrew Cuomo, who became Deputy Chief of Staff to New York Governor Kathy Hochul, Linda Sun, has been indicted on a host of federal charges for acting as an agent for China, bribery, kickbacks and fraud.

NEW YORK (AP) — Already charged with acting as an illicit agent of the Chinese government, a former aide to two New York governors is being accused of illegally profiteering off the state’s pandemic-era scramble for face masks.

Linda Sun — who worked for Govs. Andrew Cuomo and Kathy Hochul, both Democrats — and husband Chris Hu were indicted Wednesday on bribery and other charges in the alleged mask graft.

“When masks, gloves and other protective supplies were hard to find, Sun abused her position of trust to steer contracts to her associates so that she and her husband could share in the profits,” Brooklyn-based U.S. Attorney Joseph Nocella Jr. said in a statement Thursday.

[…] The new indictment accuses Sun and Hu of reaping millions in kickbacks by exploiting her role on a Cuomo administration team that procured much-needed personal protective equipment in the spring of 2020, as the COVID-19 pandemic was taking hold.

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