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Tuesday, May 07, 2019

China Watch 33, US' 25% tariff on $200 B of CN exports

The China communist government is reeling again, not just from Trump challenge at the WPS/SCS but this time at his announcement yesterday of 25% tariff on $200 B of China exports starting this Friday. The CN economic bubble will burst big time?


Related news reports:

1. Trade Deal Dead: Trump Says 10% China Tariff Rising To 25% On Friday, Another $325BN In Goods To Be Taxed
by Tyler Durden Sun, 05/05/2019 - 19:39

2. Markets slide after Trump threatens to dramatically increase China tariffs
Martin Farrer and Richard Partington    Mon 6 May 2019 18.04 BST

3. US accuses China of backtracking on trade deal
7 May 2019

I was expecting that many Trump-haters would jump on this. NOT because they have suddenly become free traders and zero tariff advocates, but because they want to further pacify the CN Communist- protectionists. And they wish that beloved Obama-Hillary team will do that continued pacification. Seems they were silent on this.

Only Trump can do this. His balls are a lot sturdier than the balls of Obama, Biden, Sanders, etc combined. He challenged Russia, Saudi and OPEC who want high world oil prices by cutting their combined output, Trump deregulated US energy policies to help jack up US oil and gas production. He challenged global ecological socialism by the UN and big environmentalists by pulling out of Paris Agreement. He challenged NATO countries that they should send their billions of $ yearly for their own protection in Europe. Now he's directly confronting China communist protectionists.

Yesterday, end-of-day stocks in AsPac, Shanghai -5.6%, Shenzhen -6.8%.


Then the censorship and media blackout by the Beijing government.

China's Bull Market Suddenly in Peril
May 6, 2019, 11:41 AM GMT+8 Updated on May 6, 2019, 3:45 PM GMT+8

"Posts and stories about Trump’s twin pronouncements were deleted from Weibo, according to Weiboscope, a project backed by the University of Hong Kong that tallies deleted posts and censored words on the Twitter-like service. And several users reported that attempts to post screenshots of the American leader’s tweets to Tencent’s WeChat were blocked."

Trump challenged the EU countries to a zero tariff deal including agriculture, EU said no, showing how protectionist they can be. Trump challenged CN for mutually low if not zero tariff, CN said no naturally, so this trade challenge.

Ultimately we should go to a world of zero tariff, very little non-tariff barriers.
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