It does not take a deep geopolitical weed-walker to see the background for inviting the African delegation to the Biarritz summit.  Here we see the the G7 working session group on ‘partnerships with Africa‘:

What we don’t see in this picture is the main reason for the meeting, the 800lb panda in the room. All of these non-G7 members and meeting participants have been previously exposed to the One-Belt One-Road influence of Chinese Chairman Xi Jinping.
Combine World Bank President David Malpass into the equation, a direct U.S. nomination by President Trump now in place; mix in the visibility of Australian Prime Minister Scott Morrison; and then recognize the sudden appearance of Sebastian Pinera from Chile and Prime Minister Narendra Modi from India; and the picture of a multi-continental meeting to discuss the potential downstream ramifications of President Trump confronting China becomes visible.
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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.

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President Trump has announced the raising of tariffs on China effective Sept 1st and October 1st, 2019.  This is one arrow in a quiver filled with economic consequences:

• The preexisting 25 percent tariff on $250 billion in Chinese goods will increase to 30 percent effective October 1st, 2019.
• The pre-planned 10 percent tariff on $300 billion worth of Chinese goods will increase to 15 percent, effective September 1st, 2019.

This targeted tariff approach is only a small sample of the economic action that is available to President Trump.  There are a host of tools and targeted economic weapons available to President Trump that are far more damaging to Beijing.
This announcement also sends a clear message to the members of the G7 as they prepare for their meetings in France.
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Within the dynamic of the U.S -vs- China trade confrontation, CTH has long noted the Wall Street (globalist) multinationals would always go bananas.  There are trillions at stake and President Trump is confronting three decades of financial influence from Wall Street’s multinational corporate lobbyists.
To the angst of Wall Street, POTUS Trump tweets the dynamic.
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 waited three decades for this moment.  Main Street U.S.A has waited for this moment.  This President and his team are entirely prepared for this battle…. Now we fight!

We are finally confronting the geopolitical Red Dragon, China!
President Trump has been brutally consistent for more than three decades on his intent and purpose with the Chinese.  President Trump is the first U.S. President to understand how the red dragon hides nefarious motives behind the panda mask.
Additionally, while carrying out the objectives of the confrontation, Secretary Mnuchin, Secretary Ross, Ambassador Lighthizer and adviser Peter Navarro are well aware of Beijing’s duplicitous panda mask; POTUS Trump will never let them forget about it.
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Well, they cannot later claim they were not warned.  In a series of stunning tweets today, President Trump directly tells U.S. companies manufacturing goods in China, they need to make rapid plans for exit.

Earlier today China’s commerce ministry said it will impose additional tariffs on thousands of U.S. products, including agricultural products, crude oil, small aircraft and cars. Tariffs on some products would take effect on Sept. 1 and others on Dec. 15.
The Wall Street multinationals are exposed to significant losses because of their investments in China.  White House trade and manufacturing policy advisor Peter Navarro appeared on Fox Business with Maria Bartiromo to discuss the dynamic.

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National Economic Council Chairman Larry Kudlow appeared on Fox Business today to discuss the current state of the economy.  Mr. Kudlow was questioned about several media reports surrounding discussions of new tax cuts, tax rate modifications and tax policy.
Additionally, Kudkow updates the latest position on the U.S-China trade discussion.

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During an oval office press conference today, President Trump took several questions about China and the U.S. trade confrontation.  After receiving the third question, on the same subject, President Trump paused and then went deep into the heart of the issue.
The question was: ” Mr. President, you keep insisting that your trade war with China — the trade war with China is not affecting the U.S. economy. But a lot of economists disagree with that. And they worry that if China goes into a recession, they’ll pull us down with it.”
Here is President Trump’s response:

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[Transcript] … PRESIDENT TRUMP: Well — well, okay. Let me — let me tell you something. Number one, we’re doing very well as an economy. But somebody had to take China on. You know, I read and I see so much and I read so much, and I’ll see these economists saying, “Oh, give up. Give up on China. Give up.”
China has been ripping this country off for 25 years — for longer than that. And it’s about time, whether it’s good for our country or bad for our country short term. Long term, it’s imperative that somebody does this because our country cannot continue to pay China $500 billion a year because stupid people are running it.
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Secretary of State Mike Pompeo sits down for a wide-ranging interview with Martha MacCallum to discuss ongoing multi-layered issues between the U.S. and China.

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Commerce Secretary Wilbur Ross appears with Maria Bartiromo to discuss the security concerns around Chinese company Huawei and technology products designed to extract intelligence and data.  [Details of Commerce Announcement Follow Video]
Secretary Ross explains the Commerce Department decision to add 46 new Huawei subsidiaries to the restricted entity list requiring U.S. companies to apply for temporary licenses for Huawei purchases.  Due to the potential security ramifications the Commerce Dept. is giving U.S. companies 90-days (under Temporary General Licenses) to find alternate suppliers before all commercial engagement is halted.

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