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Tuesday, August 20, 2019

Trump's Hong Kong moves



Earlier this month, President Donald John Trump postponed increasing tariffs on Red China. Peter Navarro, America's director of trade and manufacturing policy, said, "We had a big bump up on the market with President Trump's Christmas present to the nation, with his announcement on tariffs."

That is a smokescreen.

The press is puffing away.

The Washington Examiner, whose owner dislikes the president, reported, "Trade advisers to President Trump ostensibly appealed to his softer side, suggesting that he delay planned tariffs on China that could 'ruin Christmas.'

"The president's aides reportedly came to him last week with a plea to delay the tariff imposition on China that could hike the price of popular retail products produced in China. They suggested strongly that Trump's tariffs could affect Christmas. The president responded by delaying the tariffs until Dec. 15."

The narrative is that Dumb Donald was fooled by these Super Smart Staffers into doing the "right thing."

Sigh.

Meanwhile, the South China Morning Post reported, "Huawei Technologies, the world’s largest telecommunications equipment supplier, may have an opportunity to draw up new plans after Washington granted it a further reprieve to buy major components from American hi-tech companies.

"US Commerce Secretary Wilbur Ross had earlier confirmed in a US television interview that Huawei’s temporary general license, which would have expired on Monday, will be extended for another 90 days until November 19 and that another 46 affiliates of the Chinese company was added to the government’s trade blacklist."

The suspension of the tariff increases and the delay in the sanctions on Huawei are negotiation ploys. Red China is negotiating again because Chairman Xi's back is against the wall. He has to quell the protests in Hong Kong without losing face or the world's confidence in his economy.

The Hong Kong protesters apparently are putting the hurt on Red China.

Zero Hedge reported, "As the Hong Kong protests enter their 11th week, Chinese authorities may be disappointed given nine out of ten students support a campaign to boycott classes after school resumes September 2nd

"Hong Kong enjoys the 11th highest per capita worldwide on a purchasing power parity basis, one notch above that of the U.S. and nearly four times that of 79th ranked China; its stock market is the world’s fifth largest and Hong Kong is the priciest property market in the world

"The protests are beginning to harm the economy – in 2018, tourism was up 11% over the prior year, but has since declined by a third; in addition to the trade war drag, the protesters are encouraging the boycott of unsympathetic retailers further speeding the onset of recession."

President Trump's suspension of raising the tariffs is in keeping with Sun Tzu, who said, "To a surrounded enemy, you must leave a way of escape."

You do that because a trapped rat fights hardest.

The Hong Kong protests are a hindrance to President Trump, but also an opportunity for him.

5 comments:

  1. LOL!! All I get is emails from that guy from Nigeria.

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  2. "You do that because a trapped rat fights hardest."

    Indeed.

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  3. I think PDJT is toying with China like a cat does with a mouse. Patience and faith in our economic team.

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    1. The Han Empire is not a small rodent. Rats and mice can bite and hurt but not damage you particularly. The Empire is more like a large dog, like a chow. A man generally can beat a dog one-on-one. But he can get badly chewed up doing it. Better to feint and deke and convince the dog he's better off retreating than fighting. Sun Tzu tactics.

      TarsTarkas

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  4. China also turned down a shipment of Venezuelan oil. Horse traded. Though the horse that Trump had was one rustled up from Beijing.

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