China Media Shows Weakness in Trade War with Trump

In an escalating staring contest between the world’s two largest economies, China just blinked.

In a rare showing of Chinese weakness, the communist country’s government-controlled media has urged its nearly 1.4 billion population to remain calm as President Donald Trump punishes Turkey for imprisoning an American pastor and impales the Chinese economy with tariffs.

After Pres. Trump leveled economic sanctions against Turkey’s Erdogan regime, the country’s currency went into a free fall. The Trump Administration has successfully ramped up ferocious economic pressure on other rogue regimes such as communist North Korea and Iran. North Korea wisely came to the negotiating table. Iran and Turkey are suffering economic collapses as China teeters.

And Then China Blinked

While so-called experts claim that no one wins in a trade war, indications are that the United States holds the high ground. As reports of Turkey’s currency crisis flooded the news, China’s Global Times editorial trembled.

“The Chinese people must be prepared for hardship and crisis, but they must not underestimate their capabilities and scare themselves,” the state-run Global Times stated.

The majority of the editorial went on to prop up Chinese confidence by explaining the communists’ options in the trade war.

“It must be noted that there are more differences than similarities in the Chinese and Turkish economies. Both countries are latecomers to emerging markets and both have experienced an overheated economy,” the Global Times states.

“But there’s no comparison of their economic scale. China is the world’s second largest economy, the largest manufacturing nation and the largest trading nation. It takes much more to carry out an effective assault against China than bring Turkey to its knees.”

The posturing by the Chinese propaganda outlet shows an underlying fear of going toe-to-toe with the Trump Administration.

“In a bid to cement the US’ comparative advantage, Washington is unwilling to see smooth development of emerging countries and takes some actions, intentionally or not, to foster the crises that confront the latter. All developing countries have to stay alert to Washington’s role,” the editorial states.

Significant divisions among highest-ranking Chinese leadership have surfaced about confronting the United States. At least two factions have emerged.

Some leaders pushed to cut a deal with Pres. Trump early on and avoid an imminent and unwinnable trade war. Others pressed to test American will and level reciprocal tariffs. White House economic advisor Larry Kudlow points to indicators that America is already winning.

“Their economy is just heading south. Business investment is just collapsing,” Kudlow reportedly said. “People are selling their currency. Investors are moving out of China because they don’t like the economy, and they’re coming to the USA because they like our economy.”

Kudlow reportedly pointed to a 9-percent drop in the value of China’s currency since the international spat began.

China’s Losing, Big League

The idea that America could not win a trade war with China is being roundly proven false. Whether that reflects a changing global economy or simply anti-Trump rhetoric from the left remains to be seen. However, market indicators do not lie.

According to global market researcher Alec Young at New York’s FTSE Russell, the U.S. stock market has steadily outpaced its Chinese counterpart.

“There’s a lot of ways to judge this, and I expect a lot of twists and turns, but if we just look through the lens of the market, we’ve seen a much stronger U.S. stock performance,” Young reportedly said.

As of late-July, the Standard & Poor’s 500 rose 6.1 percent while the Shanghai composite fell nearly 13 points. The S&P 500 draws upwards of 43 percent of its revenue from foreign sales. Japan’s equivalent dipped less than 1 percent and Europe gained a meager 0.3 percent. Clearly, China is taking an economic beating in big corporation revenue.

In terms of actual money for everyday people. An American 401(k) investor in the United States saw a gain of about $6,100. A Chinese counterpart lost upwards of $13,000 during the same period.

China Fears an Ongoing Trade War

Even critics of trade wars recognize that President Trump kept his powder dry until he could negotiate from an absolute position of strength.

The Tax Cuts and Jobs Act, coupled with massive business deregulation, led to a booming economy. With more employment opportunities than qualified people to fill them in the United States, President Trump has mostly insulated Americans and companies from any downturn due to reciprocal tariffs. In fact, the tariffs are resulting in swelling tax revenue that can be applied to bailing out farmers that suffer even minor shortfalls.

According to financial investment strategists, corporate profits are on track to grow upwards of 20 percent and the country just posted GDP growth over 4 percent. In contrast, China faces a daunting economic slowdown.

Perhaps equity strategist Barry Bannister at Stifel Financial Corp. reportedly said it best about the tariff strain. “The U.S. does not need China as much as China needs the U.S.”

~ Freedom News Report

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115 Responses

  1. “While so-called experts claim that no one wins in a trade war, indications are that the United States holds the high ground. What kind of “experts” wouldn’t know that? I suspect that what those ” experts” really feared, is just what’s happening, that the US would WIN any trade wars! I have been saying, even before Trump started acting, that a trade war would be good for the US, even if there were some hardship, especially at first. After all, “War is Hell!” But, I believed in victory in the end, but not this quickly! Now, I hope the end is a tariff free world, with real, true Free Trade!

    1. The socalled “EXPERTS” after they’ve cleaned the lint from their navels,,,,,,,,,,,,,,,,,,,,, then they come on the fake news outlets!! They become “FERAL ANIMALS”!!!!!

  2. I’m hoping that things starts coming together. The President is a business man, and he knows how to deal, Maybe, some of the things he does or says don’t look healthy, but give the man a chance, HE’S KEPT HIS PROMISES SO FAR, and if people would quit looking for things to slam him with, and leave him a lone, they would find that he is doing a great job…HE’S GOT TO DO IT HIS WAY ! … So far he’s doing okay… Between God, Mr. Trump, & Mr. Pence, we will have a Great America……. Get rid of Mueller, and some of the others fault finders, GOD BLESS AMERICA.!!!

  3. It time we had a man with the courage to go against the system and do right by America. President Trump is doing what he said he would do and that is to get people back to work and make AMERICA GREAT AGAIN. He knows about business and how to go against the system and he is getting things done. Looking forward to 2020, 4 more years of his leadership!

  4. During the past year I have learned not to doubt President Trump.
    He has been using BUSINESS SENCE to Govern AMERICA.
    And it appears to be working better then “POLITICS AS USUAL”.

  5. THis is one case where the end justifies the means. There much be a level playing field where trade is concerned or you have one nation going broke and the other holding all the wealth and power. We have already seen the bad side of the unequal trade and the ruination of some of our major cities. Now we have a chance to put things back in order. If we don’t respond to this opportunity we will continue the fall and go right down the tubes.

  6. If people would notice the Democrats are doing every thing they can to degrade Mr.Trump the President because they wanted another crook in the White House. They wanted someone they could control and people look out for the so call news if you believe the news always look back at Orsan Well and what panic he caused. Look like the President is doing a good job and i think thing are going to get even better.
    People degrade the man’s speeches but he say thing just like he see them and not like a politician.

  7. >>> Communist China is only doing what the past 10 administrations, Congress and corporate America has allowed them to do.

    >>> Bill Clinton’s administration worked to bring China into the newly created World Trade Organization and to put unconditional MFN treatment for China on a permanent basis. This culminated in an agreement of 15 November 1999 to make China a full member of the WTO.

    >>> But will Congress revoke MFN trade status with Communist China? …NO!

    >>> Will Congress revoke the tax loopholes that make it tax deductible for Corporations to outsource Jobs and Factories to Communist China and keep their earnings overseas? …NO!

    >>> Will Congress ban all trade with Communist China and jail every US President, Congressman, Senator and C Suite corporate traitor that ever voted or supported Communist China’s rise since Nixon’s visit in 1972? …NO!

    Please note the year the “Work Force Participation Rate” graph turned negative and NEVER improved. Match that with the first two President Bill Clinton treasonous acts below.

    Google this excellent graphic:

    Then search for: Labor Force Participation Rate
    To Change Output Options: Type in start date of 1963 to 2015.

    1. Clinton pushes NAFTA through Congress and signs NAFTA–December 8, 1993
    On December 8, 1993, President Bill Clinton signed the North American Free Trade Agreement (NAFTA), which eliminated nearly every trade barrier between the United States, Canada, and Mexico, creating the world’s largest free trade zone. The House of Representatives approved NAFTA on November 17, 1993, by a vote of 234 to 200. Remarkably the agreement’s supporters included 132 Republicans and only 102 Democrats.

    2. Clinton pushes to grant China Most Favored Nation Trade status.
    In the 1990s, continued “most favored nation” status for the People’s Republic of China by the United States created controversy because of its sales of sensitive military technology. China’s MFN status was made permanent on December 27, 2001.

    >>> Bill Clinton should be in prison. He remains at large.

  8. Ban all trade with Communist China and jail every US President, Congressman, Senator and C Suite corporate traitor that ever voted for or supported Communist China’s rise since Nixon’s visit in 1972.

  9. China has over 1.5 billion, and rising daily, people to support in their communist country. The USA, 320 million in their democratic, free enterprise system. Who needs who more? I think that it is fairly obvious.

    China is unable to even grow enough food to accommodate their population. Then there is the question of heat, power and the other basics of life.

    One of the main reasons that China became big in manufacturing is that, already wealthy, corporations didn’t want to pay their workers proper wages in the USA, Canada, etc. So they went to China to abuse those people because they knew they were desperate for work. I wonder how that makes those people feel to be working below the wage they should be paid. Most people in China are living below poverty level and sterilization and abortions are mandatory.

    China used to be in the forefront of innovation, science, etc. Ever since the Communist obtained control; they have been stifled and free thinking and invention has all but stopped. Now China has to resort to stealing and copying the technology of others.

  10. donald trump has more good brains than all them other idiots to gether do.hes the best thing to happen to out country in over 60 years…now we need a hunting season on democraps like on deer and elk and ducks and geese and fishing..just buy a lisence and you get to take out 1 democrat

  11. China Media Shows Weakness in Trade War with Trump

    NOW the mainstream medias are extremely trying to criticize China being soft

    on President TRUMP’s unequivocal successful trade wars negotiations desires

    BUT my US President TRUMP is also unequivocally unwavering on his very need agenda(s)

    and I’m just as TRUMPing unequivocally unwavering with my US President TRUMP

    I will even give my US Military veterans life fighting for our US President TRUMP’s successful agendas to fully mature

    into our US producing fruition(s), and this is successfully being accomplished every moment of everyday

    until the Day of our Lord Jesus CHRIST 2ND COMING and that’s He Takes Over However He Wishes and Needs To

    as His Will is Accomplished However He Chooses
    Amen & Amen!!!

  12. Who says President Trump is a fool????? About time a BUSINESSMAN was the leader of the greatest country in the world! I’m backing Trump all the way! And yes, I voted for him and will again!

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