Sad Panda increasingly frustrated as disruptor Trump heaps vociferous praise on Chairman Xi, while simultaneously out maneuvering Beijing’s geopolitical economic strategy.
China expert Michael Pillsbury discusses the current environment around the Beijing leadership with Fox host Tucker Carlson.  This is really important. WATCH:

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What Pillsbury outlines is exactly what CTH predicted last year when we shared how the Red Dragon would be caught entirely off-guard.  They’ve never seen this approach before.
NOTE: The upcoming Chinese trade delegation is not showing up at the end of this month as a matter of scheduling happenstance.  What no-one in the financial/trade/economic media is connecting is the timing of their visit with USTR Lighthizers’ Section 301 Tariff hearings –SEE HERE.  August 20th through August 27th, you can guarantee the Chinese delegations will be all over those hearings; including dispatching their paid lobbyists to provide input on their behalf.
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If there was a five-click dial available as a severity meter between the U.S. and China, something happened internally in Beijing, over the last 72 hours, because that dial just triggered movement from 3 to 4… Keep watching everything in the world of geopolitics with a mental 360° radar sweep looking for Chinese influence/interests.

Nuance and subtlety is everything in China. Culturally harsh tones are seen as a sign of weakness and considered intensely impolite in public displays between officials; especially within approved and released statements by officials representing the government.
Therefore, when we 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.

SHANGHAI (Reuters) – China’s state media on Monday lashed out at the policies of U.S. President Donald Trump in an usually direct attack, accusing him of “starring in his own carefully orchestrated street fighter-style deceitful drama”.
Trump’s wish for others to play along with his drama is “wishful thinking,” the ruling Communist Party’s People’s Daily newspaper said in an editorial.

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When President Trump withdrew the U.S. from the intensely short-sighted JCPOA (Iran deal), there was a period of preparation for our allies and partners prior to the re-institution of the first round of U.S. sanctions against Iran.   The transition period ends tomorrow as the sanctions begin August 6th, 2018.
Europe and NATO allies are under pressure to discontinue any trade action/terms with Iran as the U.S. sanctions will also apply toward any nation that engages in economic transactions with the Iranian regime.

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President Trump gave Rupert Murdoch (British U.K. Sun) an interview prior to leaving Washington DC for Brussels and the NATO summit.   Mr. Multinational Murdoch is severely against President Trump’s trade positions and wants to retain control over the global trade structure.   Murdoch personally has billions of dollars dependent on retaining the current globalist multinational trade scheme.
That’s the backdrop to understand the timing and presentation of the interview content.
As to the substance of the interview, President Trump is 100% accurate.  If the U.K. keeps the pre-existing trade pact with the EU, and essentially stays economically attached to the EU through acquiescence to the EU trade bloc, then any bilateral trade deal between the U.S. and the U.K. is essentially impossible.   Duh.
The EU doesn’t allow member nations to conduct their own trade negotiations.  So, any agreement that keeps the U.K attached to the EU economically means any trade deal with the U.K. would be a trade deal with the EU; and the EU trade positions are adverse to the ongoing economic interests of the United States.
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Following a bilateral meeting with German Chancellor Angela Merkel, President Trump meets with Emmanuel from France.  {transcript will follow later}
“I think its going to be very successful,” President Trump said, noting that the two have a tremendous relationship. Additionally, President Trump remarked the two leaders are discussing “trade, NATO, and a lot of different things, and hopefully in the end, it’ll all work out.”

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[Transcript 4:23 P.M. CEST]  PRESIDENT TRUMP: (In progress) — the President of France, who’s doing a terrific job being President of France. He’s changing a lot of things around. And I guess that had to happen. And I think it’s going to be very successful. We have a tremendous relationship. We’re discussing trade. We’re discussing NATO. We’re discussing a lot of different things. And hopefully, in the end, it will all work out. And so it’s great to be with you.
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Stunningly confrontational remarks today from EU President Donald Tusk as U.S. President Trump and First Lady Melania arrive in Brussels for a NATO summit.
After destroying nationalistic Brexit plans for the U.K. to exit the European Union, the insufferable arrogance of the EU surfaces with pontificating snark.
The EU might feel emboldened right now, but this approach will not end well; believe me.

Brussels – Speaking on the eve of the NATO summit here in Brussels, I would like to address President Trump directly, who for a long time now has been criticising Europe almost daily for, in his view, insufficient contributions to the common defence capabilities, and for living off the US.
Dear President Trump: America does not have, and will not have a better ally than Europe. Today Europeans spend on defence many times more than Russia, and as much as China. And I think you can have no doubt, Mr President, that this is an investment in common American and European defence and security. Which can’t be said with confidence about Russian or Chinese spending.
I would therefore have two remarks here. First of all, dear America, appreciate your allies, after all you don’t have that many. And, dear Europe, spend more on your defence, because everyone respects an ally that is well-prepared and equipped.

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There is an article from Bloomberg which finally concedes the obvious economic and trade dynamic within a U.S. -vs- China confrontation.  The media paradigm shift is based on new statements from Chinese Ministers admitting they cannot win a trade confrontation with U.S. President Trump.
The summary reason is simple, we have discussed it frequently:
China is a production-based economic model, they do not have the ability, or wealth, to consume their own durable goods production; they rely on exports.
The U.S. is a more balanced economy; we consume 80% of our own production.  We are self-sustaining, China is not.
Without a market to sell their products, the Chinese economy cannot survive.
Conversely, China has focused so intensely on durable-goods manufacturing, their consumable goods market (food) is dependent; they cannot feed themselves.  The U.S. can survive without exporting food, China cannot survive without importing food.  The U.S. economy can survive without importing durable goods; the Chinese economy cannot survive without exporting durable goods.  This is the unavoidable trade reality.  As a consequence President Trump has all the factual leverage.
In stunning, and carefully worded economic writings, Chinese academics and economic ministers are now talking about the inherent weakness of the Red Dragon policies:
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This has to be one of the single funniest French retorts in the history of commerce.  If President Trump follows through on auto tariffs, France will strike back.  Let that sink in.
Oh noes,… your next Peugeot, Citroen or Renault purchase might cost more.  D’oh.

PARIS (Reuters) – Europe will hit back if U.S. President Donald Trump follows through with a threat to slap import tariffs on European-made cars, France’s finance minister said on Monday. Trump escalated already burning trade tensions on Friday by threatening to hit all imports of cars assembled in the European Union (EU) with a 20 percent tariff.   (more)

The EU is the most protectionist trade bloc in the world.  The German auto-sector is the most protected trade sector inside the EU.  The hypocrisy is silly.
The EU, Germany specifically, needs access to the U.S. market to survive.  Angela Merkel has already conceded this point in the EU concessionary position to abandon all auto tariffs; in exchange for removal of Steel and Aluminum tariffs.
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Earlier today President Trump and First Lady Melania welcomed King Abdullah II bin Al-Hussein and Queen Rania Al Abdullah of Jordan back to the White House.  This is the second official visit of King Abdullah and Queen Raina.
In the background it is likely much of the executive conversation surrounds the current issues with Iran, the state of Syria, Israel and the Palestinian Authority as it pertains to regional stability overall and Jordan specifically.   In the quiet distance, and entirely overlooked by Western -mostly U.S. media, President Trump has been positioning the EU via economic leverage against Iranian influence.

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[Transcript] PRESIDENT TRUMP: Thank you very much. It’s a great honor to have the King and Queen of Jordan with us. They’re friends. We’ve known each other now for quite a while. Long before this.
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Earlier today President Trump and members of the administration delivered remarks following the G7 Summit in Charlevoix, Canada.  President Trump is heading to Singapore for a historic meeting with North Korean Chairman Kim Jong-un.

Prior to departing Canada, President Trump took questions from the media on a wide variety of issues including trade:  “Economic Security is National Security” !

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